Udm Gds Profile

60
DISTRICT SOCIO-ECONOMIC PROFILE GROWTH & DEVELOPMENT SUMMIT 2007

Transcript of Udm Gds Profile

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

GROWTH amp

DEVELOPMENT

SUMMIT 2007

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i ndex

C O N T E N T S

INTRODU CTION 1

Aims of the Summit 1

Aims of this document 2

Methodology 2

DIS TR IC T S NA PS HOT 3

District Economy 6

Economic Competitiveness 7

Agriculture 8

Forestry 10

Tourism 10

Trade 11

Construction 11

Financial Services 11

Basic Services 12

Water and Sanitation 12

Electr ic ity 13

Housing 14

Waste 14

Road Maintenance 15

Transport 15

Telecommunications 16

Conservation areas 17

Education and Ski l l s 18

Social Services 18

Healthcare 20

HIV and AIDS 21

Poverty 22

Women 23

Youth 23

Disabled 24

Elderly 24

Moral Regeneration

Movement Chal lenges 24

Governance amp Administration 25

Administration of Municipal it ies 25

Financial Resource

Chal lenges of Municipal it ies 26

PRIORIT Y ISSUES 27

STRATEGY FOR DEVELOPMENT 28

Priority Programmes

or ldquoAnchor Projectsrdquo 30

PROVINCIAL DEPARTMENT

INFR A S TR UC TUR E E XPE NDITUR E PLA NS 31

CONCLUSION 34

ACRONYMS 35

GDS AGREEMENT 36

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I N T R O D U C T I O N

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

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

The distr ictrsquos 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)

Commitments by government business labour and

community sector to ensure investment in each of the

sectors

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

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

To ensure that discussion on the above issues takes place

on an informed basis

To present a coherent picture of the socia l demographic

and economic profile and service levels of the Ukhahlamba

area

To present a picture of the challenges facing local

government in Ukhahlamba especially in relation to

capacity

To suggest the mechanisms amp processes for monitoring

progress on the decisions reached and the governance

framework for ongoing dialogue and feedback among

social partners

The Ukhahlamba 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 Ukhahlamba 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 L O G Y

This profile of the Ukhahlamba 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

Monitor Group ndash Economic Profiling of the Poverty Nodesndash Ukhahlamba

District and local municipal IDPs

Data from the Rapid Assessment of services in the Eastern

Cape conducted in 2006 by Fort Hare Institute for Socio-

Economic Research for the Office of the Premier

Various research reports

Social and economic infrastructure programmes required

to improve investments and provide basic services to

communities

Contribution by each partner to the construction of such

infrastructure including possibility of PPP

Second Economy interventions (EPWP including roads

home-based care and early childhood development

cooperatives micro-credit procurement land reform

etc) and the role of each sector in such interventions

Promoting local procurement ndash what interventions are

required

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

Establishing a partnerships andor 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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D I S T R I C T S N A P S H O T

LOCATION to the north the district borders the

Free State Province and the country of Lesotho The district

municipalities of Alfred Nzo OR Tambo and Chris Hani to

the east and south and the Northern Cape Province to

the west The boundary of the district is an administrative

boundary and not necessarily an economic boundary

POPULATION About 350 000 people and with a low

growth rate The District is generally sparsely populated

except for the former homeland areas of Mount Fletcher

rural parts of Tsolo and Qumbu (in Elundini) and

Sterkspruit (in Senqu) These two areas account for about

three quarters of the District population These are also

the areas where poverty is most entrenched and basic

services backlogs most acute

AREA 26518km2

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CULTURE over 90 Xhosa

LANGUAGE Xhosa Sesotho Afrikaans and English

NODAL STATUS The Distr ict has a high development

profile in terms of its Integrated Sustainable Rural

Development Programme (ISRDP) nodal status

MUNICIPALITIES Ukhahlamba District and Gariep

Maletswai Senqu and Elundini local municipalities

TOPOGRAPHY The west of the District (Gariep and

Maletswai) is dry Karoo flatland and areas of the dry

NamaKaroo Biome The East (Senqu and Elundini) is

mountainous and wetter with elements of the Maloti

Biome Most of the District falls within the Orange River

catchment basin except for Elundini which falls in the

Mzimvubu River Basin

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S E T T L E M E N T S T R U C T U R E There are 13 towns

in the area with the largest being Aliwal North with a

population of about 40000 Sterkspruit Maclear and

Mount Fletcher are secondary service and retail centres

Ugie is an aspiring secondary town Three rural nodes (in

the communal land area) have been de1047297ned in Elundini

and four in Senqu The Spatial development framework for

the District de1047297ne special inter ventions for these different

categories of towns as well as corridors and special

development areas Different interventions are proposed

in each of these areas ndash areas of severe backlogs (old

Transkei) areas of high economic potential (agriculture

tourism) nodes with ability to support the economy

(especially primary and secondary towns)

S OC IA L S TR UC TUR ING The levels of out migration

from Ukhahlamba are higher than the provincial average

The proportion of households reporting at least one

migrant household member amounts to 18 of district

households against 152 of provincial households

While 7 of the district population overall is reported as

migrating from their household this is so for 56 of the

provincial population

The combination of the limited local economy and

significant challenges in local services infrastructure and

delivery understandably result in the District recording

among the highest levels of out migration in the

province The vast majority of migrants from Ukhahlamba

leave their households in order to take up employment

or to go in search of employment The historically

underdeveloped areas of Senqu and Elundini also see

significant numbers of household members migrating

in order to access schools or tertiary education

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D I S T R I C T E C O N O M Y

There is also a perception among residents in the area

that hawking hairdressing clothes washing etc are

not ldquorealrdquo jobs and they do not consider that this is a

contribution to the economy Many people still aspire for

a government job as it is seen as secure

It can be seen that in the manufacturing sector growth

has occurred in the food-processing sub sector In the

Trade Cater ing and Accommodation sector there has

been very little growth in the catering side with the

largest growth occurring in the retail sub-sector On the

Transpor t and Communication sector the bulk of the

growth has been in the communication sector and in

the Finance and business services sector there has been

an increase in the finance sector but a decrease in the

business services sub-sector

Overall the GGP of the district has remained a fairly

constant proportion of the provincial GGP and the per

capital GGP of individuals within the Ukhahlamba area has

also remained fairly constant (when using constant prices)

at around 41 of the provincial per capital income

The District area contributes about 3 of the provincial

Gross Geographic Product (GGP)

The Ukhahlamba area is one of the 13 poorest and most

poverty stricken districts of South Africa

The 2001 Census indicated that over 86 of the residents

of the area live in poverty This is based on that the annual

household income is below the basic annual substance

level of R19200 per year

Of those of working age only 18 are employed 21 are

unemployed and 603 are not economically active (that is

that they have not sought work during the past 2 years)

Of those that are employed over 90 are employed

by someone else and only a very small 22 are self-

employed This has a significant impact on the ldquospirit of

entrepreneurshiprdquo where most people do not have the

experience of running their own business and have

a history of reliance and dependency on others for

employment

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factor mobility reduce transport costs promote linkages

with neighboring regions and reduce time spent in

survivalist activities such as collecting fuel and water

is the salient need in terms of Ukhahlambarsquos economic

competitiveness

Comparative advantage and associated opportunities

do exist in the agricultural sector as a result of labour

surpluses pockets of fertile land and under-utilised

irrigation potential Wool processing (in Maletswai -

which is advantaged by the N6 link to East London and

Gariep) livestock husbandry (Elundini and Gariep) maize

(Elundini and Senqu) and dry-land lucerne (Senqu) have

all shown signs of being suitable but commercializing

these activities and enhancing productivity remains a

major challenge The relative humidity (particularly in

Senqu and Elundini) and abundance of water creates

the potential for forestry (wattle) enterprises in Elundini

and for an expansion of the irrigated agricultural sector

provided the supporting infrastructure is available

The District rsquos stark topography and spectacular landscapes

in conjunction with low reported crime levels creates the

potential for tourism Currently inhibiting the realization

of this potential are perceptions about crime the fact

that tourist products are neither well packaged nor well

marketed and the lack of suitable road or rail access

The district can reasonably anticipate investment ininfrastructure as a result of its nodal status and infrastructure

grant allocation This should create opportunities for local

contractors in the construction industry provided they

have the capacity to compete for tenders

E C O N O M I C C O M P E T I T I V E N E S S

The composite competitive index for competitive

advantage in Ukhahlamba District is low in comparison to

the rest of the province The main reason for the regionrsquos

lack of competitive activity appears to be the dearth of

basic services and economic infrastructure Only 431 of

the population has access to electricity and almost 60 of

the population does not have access to reticulated water

Further constraints on the Districtrsquos competitiveness

include prevailing tenure insecurity and ambiguous

tenure arrangements which act as a deterrent to private

sector investment and complicate public sector efforts to

address the infrastructure backlog There is a clear need

for an approach to communal tenure that is conducive to

attracting investment

Easy communication is undermined by the Districtrsquos

distance from a major economic hub As a result

transaction costs are high This barrier to enterprise

creation is exacerbated by the limited levels of finance

and enterprise support in the District

The municipal economies of Ukhahlamba Distr ict are

highly concentrated There is excessive reliance on two

sectors - agriculture and government and community

services This renders these economies dependent on

outside goods and services (sixty per cent of purchases

are produced and manufactured outside of the region)and vulnerable to change Gariep is the only municipality

that does not rely on community services as the primary

contributor to revenue and employment

The Competitiveness report (conducted for the

Provincial LED Programme) also stated that the provision

of economic infrastructure and services that enhance

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Very little agro-processing is done in the area and most

produce is transported via road to larger centers out of

the district Aside from agro-processing the District has

virtually no manufacturing industry The agro-processing

industry is also small and mainly concentrated in Aliwal

North Nevertheless it is quite possible that this sector

could attract some new investment linked to existing

and new primary production Areas of interest could

include for example game meat fruit-processing (eg

peaches raspberries) nuts processing wool products

potato processing tanning stock feed etc A thorough

sector study is required to identify and package the most

viable investment opportunities

Livestock farming (cattle dairy sheep goats) and game

are very important in the District both for commercial

and communal farmers Livestock farming in communal

areas is being supported by the Provincial Department of

Agriculture through construction of stock dams dipping

tanks shearing sheds fencing veterinary services etc

Also the District Municipality together with Gold Fields

Foundation have a Livestock Improvement Programme

in Elundini and there is a goat project in Mount Fletcher

The challenge is to increase incomes from communal

livestock farming Black emerging farmers suffer from

inadequate technology skills and market knowledge

and therefore receive an income significantly less than

better-equipped white commercial farmers Also landownership (and not land claims there are very few in the

District) is a major concern Large tracts of land are either

in the hands of a few white farmers or the state The

District Municipality should develop a register of state-

land in conjunction with DLA

A G R I C U L T U R E

Extensive livestock farming of sheep goats and cattle

dominate agriculture There are pockets of dry land crop

farming especially in the wetter eastern area Only small

isolated pockets of land are suitable for irrigation despite

having the Orange River and Gariep dam as the northern

boundary It is currently unknown as to the impact of the

Mzimvubu Basin Asgi-SA programme on the Elundini area

There is a differentiation between the commercial farming

areas which are the main economic drivers in the economy

and the subsistence farming areas that are located in the

communal land areas This latter sector is very dependent

on the state for 1047297nancial support and has little ability to

use the land as collateral for obtaining loans

The depopulation of the remote rural areas while people

move to the main roads to access services is seen as a

positive move for agriculture

Two large areas of agricultural land reform exist in the

district namely Umnga Flats and Pitseng both located

in the Elundini area

The care and rehabilitation of land as a means of

protecting agricultural resources is of critical importance

if agriculture is to grow in the area There is presently a

land care trials in ward four in Sterkspruit

Land redistribution is still to be suitably addressed in thearea For example there is no single land redistribution

project in the area of Barkly East in Senqu LM

Road access is constraining agricultural development in

the district area

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New irrigation investments being implementedplanned

include the Tsitsa River Basin Project Mzimvubu Basin

Project Orange River Water Scheme and Holo Hlahatsi

Dam development Senqu Municipality has already

undertaken studies on bulk water for irrigation purposes

for the Orange and Karringmelkspruit rivers

It is clear that crop production under irrigation if managed

well has huge potential for job and income creation

An industry Action Plan for arable agriculture would

probably include

Evaluation of all existing studies relevant to the

expansion of irrigation farming in the District

Selection of priority interventions

Project design and feasibility (including environmental

impact assessment)

Land acquisition and ownership

Project financing

Farmer training and support

An industry action plan for livestock would probably

include

Expansion of the effective NWGA model of support

Improving existing programmes designed to facilitate

skills transfer between commercial and emerging

farmers

Improved Agricultural Extension Services

Improved market access (eg drawing on experience of

USAID-funded project in the Chris Hani District Middle

East goat market)

Accelerated land redistribution (with effective support)

Building animal feeds industry

Improved veld management

Move to formal land administration in communal areas

Upgrading access roadsfarm logistics

Dry cropping is only feasible in small parts of the District

underscoring the important role that irrigation schemes

can play Dry-cropping is practiced in Elundini and this

yearrsquos ploughing under the Massive Food Programme

was 1700 hectares

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1 0

T O U R I S M

The Districtrsquos tourism industry has grown from a low base

over the last decade and a niche market seems to have

found in the area of adventure tourism The impact of

tourism has not really been wide felt but it is perceived

to be a growth sector for the area due to the unique

environments the only Ski resort in Southern Africa hot

springs and the largest dam in South Africa

Improved access to the District through the tarring of the

R56 between Mount Fletcher and Maclear access from

Lesotho at Telle Bridge and the new Ugie to Langeni road

are likely to positively impact on the district area

The potential of linking the N1 near Gariep Dam via

a scenic route to the N2 at Mthatha is currently being

explored There is an indication that the route between

Cape Town and Durban through the distric t may prove to

be more attractive to tourists

Environmental and land rehabilitation programmes

should be expanded to create jobs and to preserve the

agricultural and tourism potential of the District

There are several interventions being planned that will

grow tourism in the District

The Provincial Gateway Project at Aliwal Nor th This

involves the beautification of the town to attract

tourists to stopover Presently the N6 with heavy trucks

passes through the town center It would be preferableto divert the N6 onto a parallel Street (aligned with the

bridge over the Orange River) and restore the main

street (Somerset Street) to its former glory trees for

shade and pedestrianised

F O R E S T R Y

There are large untapped forestry potentials in the Elundini

area and an additional 30 000ha could be available for

the expansion of the current plantations Construction

has recently started on the R15 billion PG Bison North

East Cape Forests Cluster near Ugie This will create 3000

direct jobs and many thousands of indirect jobs This

forestry initiative is part of the AsgiSA initiative The

National government AsgiSA programme has identified

forestry development as a key pillar to achieving the

economic growth and development targets and has

prioritized forestry as a key sector for support across all

tiers of government The same is true in the PGDP as well

as in the emerging provincial industrial plan

There is also a potential for more forestry development in

the area but this is constrained by lack of road access into

the hinterland

Improved linkages to Mthatha through the new Ugie

Langeni road will enable products to be exported

from Mthata via the rail link to East London Industrial

Development Zone With the improved road access to this

area coupled with the forestry investments it is likely that

there will be signi1047297cant economic growth in this area

About 100 Interlink transport vehicles will be leaving

the particle board plant per day this is likely to have an

impact on the tarred road networks as well as the towns

through which they will drive when taking the productsto markets (Johannesburg Durban exports etc)

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C O N S T R U C T I O N

The Districtrsquos relatively high infrastructure budget

allocation in the Medium Term Expenditure Framework

presents opportunities for the growth of the local

construction industry (including housing water and

sanitation roads) and may enhance competitiveness

by addressing critical shortcomings in economic

infrastructure The sector also offers great potential to

enhance livelihoods through the EPWP

F I N A N C I A L S E R V I C E S

Most towns do have banks however there are exceptions

such as Venterstad and Mount Fletcher Due to the rural

nature of the area while there may be banks these do

not offer the full one-stop services and managers are

often based in centralized offices in the district (such as

Aliwal North) or outside the district such as in Elliot There

has been an increase in accessibility to ATMs through

the provision of in-store facilities Financial advice is still

however very limited

Revitalization of Aliwal Spa This project has been

delayed by the local municipalityrsquos determination to

retain land ownership of the facility A more pragmatic

approach is required

A public-private partnership should be packaged to

revive the tourist steam trains on the famous railway

reverses between Lady Grey and Barkly East

The Madiba Corridor Route between Aliwal North and Port

St Johns This would include the new road between Ugie

and Langeni (with a long bridge over indigenous forest)

The Gariep Complex Project is one of the distr ict

attractions

There is also a dedicated District tourism organization that

would strengthen marketing and product development

T R A D E

Social grants and employment by the government is the

largest economic sector in Ukhahlamba comprising more

than 40 of the GGP

The District has a significant informal trading sector

(including petty producers of traditional garments etc)

This sector could be boosted by better institutional

support (eg SEDA has not yet established an office in

the District) and by CBD regeneration and the provision

of improved trading environments for hawkers

1 1

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B A S I C S E R V I C E S

Free basic services are currently being implemented in

urban areas but still at differing levels A policy around

the matter is currently being developed

Excepting Maletswai (22) all local municipalities

in Ukhahlamba fall below the provincial average of

households not having any formal sanitation

The sanitation backlogs for Elundini and Senqu make up

three quarters of the district backlogs

Estimates of the cost of eliminating water and sanitation

backlogs in Ukhahlamba are R376 million and R332

million respectively

Service delivery backlogs are most acute in Elundini due

to the poor road network and historical factors related

to the peripheral nature of the area under the former

Transkei regime

W A T E R A N D S A N I T A T I O N

Significant inroads have been made in terms of extending

household water access in Ukhahlamba The more

populous eastern parts of the district (Elundini) faces

the greatest challenges as far a water backlogs with one

third of households (34) still relying on natural water

sources This is significantly greater than the provincial

average (28) According to Ukhahlamba DM 4337 of

the people are in need of water ser vices while 7555 are

in need of sanitation services

1 2

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E L E C T R I C I T Y

Some 16 of households in Ukhahlamba have been

linked to the electr icity grid between 2001-2006 with 70

and more households in Senqu Maletswai and Gariep

now accessing electricity Elundini however again faces

the greatest challenges as far as backlogs is concerned

Household electricity connections in Elundini more than

doubled between 2001-2006 This however amounts to

only slightly more than one quarter (28) of households

which is significantly below the district and provincial

averages (60 of households for Ukhahlamba and 67

of households for the Eastern Cape) A new 90km 132kV

line (costing about R58m) is required from Mount Frere

to Mount Fletcher to provide additional capacity to

eradicate backlogs

It is necessary to lobby for more Municipal Infrastructure

Grant (MIG) funding to achieve national targets There is

a clear need to revise Water and Sanitation Sector Plans

and in particular to calculate the MIG allocations that are

required to ensure that National water and sanitation

targets are met

The eradication of water and sanitation backlogs are being

used to expand the Expanded Public Works Programme

in the District and strengthen the construction industry

This is being implemented in the provis ion of water in

Mount Fletcher and in the construction of the water

pipeline to Steynsburg from the Fish River Tunnel It

could be expanded if there were funds available

About 50 of clinics in the district have no piped water

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W A S T E

Solid waste removal and disposal currently poses a

significant challenge to municipalities and communities

leading to inadequate compliance with legislation and

poor service delivery

There are however economic opportunities attached to

the management of waste in the form of recycling and

innovative concepts around space reduction in waste

processes This potential is largely connected to the

larger economic nodes but there are also opportunities

in smaller communities such as Rhodes using waste from

the large tourism establishment of Tiffendell

H O U S I N G

Due to the rural nature of the Ukhahlamba area and

having a low proportion of urbanization the prevalence

of informal houses (shacks) is below the provincial

average Although there are low levels of informal housing

across the District this does not mean there is no further

need for further RDP housing because the definition of

informal housing does not include traditional dwellings

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T R A N S P O R T

Of significant concern in the district with regard to its

future economic growth is that no public transport

services are offered between Venterstad and Burgersdorp

and between Lady Grey Aliwal North and Bark ly East This

has an impact on the potentials for economic and social

linkages and is highly frustrating for commuters and

does not support the spatial economic growth strategies

of the district area

The improvement of roads in the Elundini area is likely

to have a wide impact on passenger transport across the

district If the R56 becomes an alternative (even if not the

official alternative) to the N2 due to the route being shorter

(as identified in the Spatial Development Framework) this

will increase the amount of commuter traffic Services

for public transport will need to be provided in Mount

Fletcher Maclear Ugie and Steynsburg

Over the past five years taxi facilities were constructed in

Aliwal North (as a larger modal interchange) Maclear and

Mount Fletcher There is still a need to improve public

transport facilities in Senqu especially at Sterkspruit

Related to provision of public transport is the need for

basic essential services such as water sanitation and

shelters at key facilities There is a need to provide these

services at all the nodes (rural and urban) as defined in the

Spatial Development Plan Areas with high dependencyon public transport especially the primary and secondary

nodes should receive priority

R O A D M A I N T E N A N C E

While the district is covered by a network of tarred and

gravel roads the conditions of these are a significant

challenge for the growth of the economy

Without improved maintenance of urban streets access

roads district and provincial roads goods are unable

to get to market and the market cannot be effectively

accessed by residents of the area

Of significant importance is the constant maintenance

of key economic roads as identified as mobility corridors

in the Spatial Development Framework This should

be supported by maintenance of gravel access roads

especially in the Elundini and Senqu areas where

population numbers are higher and untapped economic

potentials are higher

The maintenance of tarred provincial roads will become

a significant issue of concern as they are already

deteriorating beyond reasonable repair and the timber

industry development in the Ugie area will further

exacerbate this issue

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Airfields are currently used fairly infrequently but form a

key element of the disaster management system as well

as the emergency medical system across the district area

There are also moves afoot to bring specia lised medica l

support to the district areas by flying in specialised

personnel and equipment

Tourism is also in need of improved air transport services

especially in the mountain areas This is due to the

remote location of this area from the main urban hubs

of South Africa but which could be a way of overcoming

the challenge of distance The area around the town of

Rhodes has motivated for a long time for such a facility

The maintenance of municipal airfields has received very

low priority from municipalities over the past years

With regard to railway transport services only one out of

the four railway lines existing in the district is effectively

operational ndash the main line between Johannesburg and

East London This is only accessible at Burgersdorp This

rail line has very little impact on public transport and the

conveyance of goods to and or from the area Infrequently

the line between Burgersdorp and Aliwal North is used

for goods

The line between Aliwal North and Barkly East is of

unique value and could be a significant tourist attraction

if effectively maintained managed and marketed

Airfields are found in most of the urban settlements

and form part of the function of local municipalities A

new airfield has been constructed in Sterkspruit by the

Department of Roads and Transport

Communities have raised the issue of improved telephone

services as a key pr iority There are also still police stations

clinics and schools without any telephone service and

this impacts on their ability to deliver services The

more remote areas of Elundini and Senqu are the worst

affected

Funding for an investigation into the possibility of

providing broadband internet connections in the district

area have been agreed to by the European Union This

could provide potential for Business Outsourcing

T E L E C O M M U N I C A T I O N S

According to the 2001 census more than 50 of the

population has access either to a private telephone or

one nearby but there is still a section of the population

that has no access to a telephone at all Urban areas

receive the best service Parts of the commercial farming

areas and rural areas are provided with telephone services

based on radio linkages to towers driven by solar panel

technology

Cellphone services are used by a large proportion of

the population However this service does not cover the

whole area The mountainous nature of the area affects

reception

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It is important to note that Wetlands cover 32 square

kilometres in Elundini which includes the Gatberg

wetland ndash the breeding ground for the endangered

wattled crane The conservation of wetland is

being attended to through the Working for Water

programme (an EPWP programme)

C O N S E R V A T I O N A R E A S

One provincial nature reserve the Oviston Nature

Reserve on the banks of the Gariep Dam is located within

the Ukhahlamba District There is discussion underway

between the Eastern Cape and Free State conservation

boards to amalgamate the management of the nature

reserves around the Gariep Dam There have also been

proposals to expand the area under conservation in

this area but it is likely that this will be in the form of

stewardships and not through the purchase of land by

the state

1 7

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S O C I A L S E R V I C E S

is clearly the improvement of services delivery while

health infrastructure needs to be addressed in the more

desperate municipalities of Elundini and Senqu

In the District 40 of clinics have no electricity and 50

have no piped water

The services delivery challenges are again greatest in

the eastern and more populous areas of Elundini and

Senqu Generally access to clinics and emergency health

services is lower here and often compounded by poor

access roads

Access to primary education within the more infrastructure

poor areas of Elundini and Senqu is well within the distric t

and provincial norm The focus in terms of education

Approximately 255 of the adult population does not

have any form of training or education with 402

only having completed grades 3-7 Only 33 of the

population has completed Grade 12 compared to 66

in the Eastern Cape Only 17 of the District population

has obtained a tertiary qualification

The Elundini area has the largest proportion of people

having only received primary education while the Gariep

area has the highest proportion of people (315) having

never received any form of education

This highlights the extremely low levels of education in

the District and the need to focus on education and skills

training This can only be accomplished if the backlog in

education facilities is met

E D U C A T I O N A N D S K I L L S

There is very limited access to higher education facil ities

in the district area Ukhahlamba has higher than the

national average of people between 5-24 years attending

school but lower than the national average for those

attending tertiary education

According to the latest information from the Departmentof Education since 1999 only five schools have been built

The ratio between learners and educators is 1 363 which

is a slight improvement

Number of Schools Learners and

Educators in Ukhahlamba DM

TYPE OF SCHOOL

Combined Primary Secondary Total

Schools 173 168 46 397

Learners 60 783 31 997 22 577 126 449

Educators 1 863 984 241 3 482

Census figures show that about 50 of the total

population is of school going age

1 8

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1 9

Other skills development initiatives will be geared

towards the Ugie development project

LGSETA is to fund a Learnership on Municipal Finance and

Administration as well other skills programme focusing

on the unemployed Other learnerships will be rolled out

to support the water and sanitation programmes andmore young people will be employed

Partnerships will be forged and individual MoUrsquos will

be entered into between the District Municipality and

the following Higher Education and Further Education

institutions

Ikhala Public FET College

University of Fort Hare

Walter Sisulu University of Technology

University of the Free State

University of Western Cape

University of Stellenbosch

and various SETArsquos including LGSETA

In partnership with the aforementioned stakeholders a

district wide skills development plan will be developed

as a post summit activity and it will be guided by the

summit resolutions

About 41 of the Ukhahlamba Districtrsquos workforce is

made up of elementary or unskilled workers which

is the highest percentage in the province In Gariep

elementaryunskilled workers make up 53 of the

workforce but the largest numbers of unskilled workers

are in the more densely populated Senqu (3 682) and

Elundini (3 253) municipal areas On average 14 of

Ukhahlambarsquos working people have professional skills

rising to 17 in Elundini and Senqu The less densely

populated parts appear to have more skilled people

in Maletswai 15 of working people are skilled and in

Gariep 13 are skilled

Ukhahlamba has lower levels of senior management

technical and clerical skills than the provincersquos other

district municipali ties This corresponds with low levels of

education in Ukhahlamba and indicates a need for skills

development and education programmes

STRATEGIC SKILLS

DEVELOPMENT INITIATIVES JIPSA

Ukhahlamba District Municipality will in partnership with

the Office Of the Premier civil society the business sector

sector departments community based projects and local

municipalities embark on a massive skills development

drive in the following sectors of the economy to support

the 6 economic growth of the district

1 Agriculture

2 Tourism

3 Infrastructure

4 Manufacturing

8122019 Udm Gds Profile

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2 0

H E A L T H C A R E

The Ukhahlamba area has 11 hospitals including health

care centres and 43 clinics with at least 2 clinics in each

magisterial district The most densely populated Mount

Fletcher and Sterkspruit areas have 13 and 10 clinics

respectively The District has about 998 hospital beds with

a serviced supply average of about 328 people per bed

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2 1

H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

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3 7

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3 8

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3 9

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4 0

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4 1

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42

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4 3

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44

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4 5

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4 6

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4 7

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4 9

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5 0

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5 1

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52

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54

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5 5

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

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i ndex

C O N T E N T S

INTRODU CTION 1

Aims of the Summit 1

Aims of this document 2

Methodology 2

DIS TR IC T S NA PS HOT 3

District Economy 6

Economic Competitiveness 7

Agriculture 8

Forestry 10

Tourism 10

Trade 11

Construction 11

Financial Services 11

Basic Services 12

Water and Sanitation 12

Electr ic ity 13

Housing 14

Waste 14

Road Maintenance 15

Transport 15

Telecommunications 16

Conservation areas 17

Education and Ski l l s 18

Social Services 18

Healthcare 20

HIV and AIDS 21

Poverty 22

Women 23

Youth 23

Disabled 24

Elderly 24

Moral Regeneration

Movement Chal lenges 24

Governance amp Administration 25

Administration of Municipal it ies 25

Financial Resource

Chal lenges of Municipal it ies 26

PRIORIT Y ISSUES 27

STRATEGY FOR DEVELOPMENT 28

Priority Programmes

or ldquoAnchor Projectsrdquo 30

PROVINCIAL DEPARTMENT

INFR A S TR UC TUR E E XPE NDITUR E PLA NS 31

CONCLUSION 34

ACRONYMS 35

GDS AGREEMENT 36

3

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I N T R O D U C T I O N

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

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

The distr ictrsquos 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)

Commitments by government business labour and

community sector to ensure investment in each of the

sectors

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

1

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

To ensure that discussion on the above issues takes place

on an informed basis

To present a coherent picture of the socia l demographic

and economic profile and service levels of the Ukhahlamba

area

To present a picture of the challenges facing local

government in Ukhahlamba especially in relation to

capacity

To suggest the mechanisms amp processes for monitoring

progress on the decisions reached and the governance

framework for ongoing dialogue and feedback among

social partners

The Ukhahlamba 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 Ukhahlamba 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 L O G Y

This profile of the Ukhahlamba 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

Monitor Group ndash Economic Profiling of the Poverty Nodesndash Ukhahlamba

District and local municipal IDPs

Data from the Rapid Assessment of services in the Eastern

Cape conducted in 2006 by Fort Hare Institute for Socio-

Economic Research for the Office of the Premier

Various research reports

Social and economic infrastructure programmes required

to improve investments and provide basic services to

communities

Contribution by each partner to the construction of such

infrastructure including possibility of PPP

Second Economy interventions (EPWP including roads

home-based care and early childhood development

cooperatives micro-credit procurement land reform

etc) and the role of each sector in such interventions

Promoting local procurement ndash what interventions are

required

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

Establishing a partnerships andor regional growth

coalitions which will act as a mechanism for cooperative

action at all levels and a robust framework for monitoring

and evaluating progress

2

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

LOCATION to the north the district borders the

Free State Province and the country of Lesotho The district

municipalities of Alfred Nzo OR Tambo and Chris Hani to

the east and south and the Northern Cape Province to

the west The boundary of the district is an administrative

boundary and not necessarily an economic boundary

POPULATION About 350 000 people and with a low

growth rate The District is generally sparsely populated

except for the former homeland areas of Mount Fletcher

rural parts of Tsolo and Qumbu (in Elundini) and

Sterkspruit (in Senqu) These two areas account for about

three quarters of the District population These are also

the areas where poverty is most entrenched and basic

services backlogs most acute

AREA 26518km2

3

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CULTURE over 90 Xhosa

LANGUAGE Xhosa Sesotho Afrikaans and English

NODAL STATUS The Distr ict has a high development

profile in terms of its Integrated Sustainable Rural

Development Programme (ISRDP) nodal status

MUNICIPALITIES Ukhahlamba District and Gariep

Maletswai Senqu and Elundini local municipalities

TOPOGRAPHY The west of the District (Gariep and

Maletswai) is dry Karoo flatland and areas of the dry

NamaKaroo Biome The East (Senqu and Elundini) is

mountainous and wetter with elements of the Maloti

Biome Most of the District falls within the Orange River

catchment basin except for Elundini which falls in the

Mzimvubu River Basin

4

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S E T T L E M E N T S T R U C T U R E There are 13 towns

in the area with the largest being Aliwal North with a

population of about 40000 Sterkspruit Maclear and

Mount Fletcher are secondary service and retail centres

Ugie is an aspiring secondary town Three rural nodes (in

the communal land area) have been de1047297ned in Elundini

and four in Senqu The Spatial development framework for

the District de1047297ne special inter ventions for these different

categories of towns as well as corridors and special

development areas Different interventions are proposed

in each of these areas ndash areas of severe backlogs (old

Transkei) areas of high economic potential (agriculture

tourism) nodes with ability to support the economy

(especially primary and secondary towns)

S OC IA L S TR UC TUR ING The levels of out migration

from Ukhahlamba are higher than the provincial average

The proportion of households reporting at least one

migrant household member amounts to 18 of district

households against 152 of provincial households

While 7 of the district population overall is reported as

migrating from their household this is so for 56 of the

provincial population

The combination of the limited local economy and

significant challenges in local services infrastructure and

delivery understandably result in the District recording

among the highest levels of out migration in the

province The vast majority of migrants from Ukhahlamba

leave their households in order to take up employment

or to go in search of employment The historically

underdeveloped areas of Senqu and Elundini also see

significant numbers of household members migrating

in order to access schools or tertiary education

5

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D I S T R I C T E C O N O M Y

There is also a perception among residents in the area

that hawking hairdressing clothes washing etc are

not ldquorealrdquo jobs and they do not consider that this is a

contribution to the economy Many people still aspire for

a government job as it is seen as secure

It can be seen that in the manufacturing sector growth

has occurred in the food-processing sub sector In the

Trade Cater ing and Accommodation sector there has

been very little growth in the catering side with the

largest growth occurring in the retail sub-sector On the

Transpor t and Communication sector the bulk of the

growth has been in the communication sector and in

the Finance and business services sector there has been

an increase in the finance sector but a decrease in the

business services sub-sector

Overall the GGP of the district has remained a fairly

constant proportion of the provincial GGP and the per

capital GGP of individuals within the Ukhahlamba area has

also remained fairly constant (when using constant prices)

at around 41 of the provincial per capital income

The District area contributes about 3 of the provincial

Gross Geographic Product (GGP)

The Ukhahlamba area is one of the 13 poorest and most

poverty stricken districts of South Africa

The 2001 Census indicated that over 86 of the residents

of the area live in poverty This is based on that the annual

household income is below the basic annual substance

level of R19200 per year

Of those of working age only 18 are employed 21 are

unemployed and 603 are not economically active (that is

that they have not sought work during the past 2 years)

Of those that are employed over 90 are employed

by someone else and only a very small 22 are self-

employed This has a significant impact on the ldquospirit of

entrepreneurshiprdquo where most people do not have the

experience of running their own business and have

a history of reliance and dependency on others for

employment

6

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7

factor mobility reduce transport costs promote linkages

with neighboring regions and reduce time spent in

survivalist activities such as collecting fuel and water

is the salient need in terms of Ukhahlambarsquos economic

competitiveness

Comparative advantage and associated opportunities

do exist in the agricultural sector as a result of labour

surpluses pockets of fertile land and under-utilised

irrigation potential Wool processing (in Maletswai -

which is advantaged by the N6 link to East London and

Gariep) livestock husbandry (Elundini and Gariep) maize

(Elundini and Senqu) and dry-land lucerne (Senqu) have

all shown signs of being suitable but commercializing

these activities and enhancing productivity remains a

major challenge The relative humidity (particularly in

Senqu and Elundini) and abundance of water creates

the potential for forestry (wattle) enterprises in Elundini

and for an expansion of the irrigated agricultural sector

provided the supporting infrastructure is available

The District rsquos stark topography and spectacular landscapes

in conjunction with low reported crime levels creates the

potential for tourism Currently inhibiting the realization

of this potential are perceptions about crime the fact

that tourist products are neither well packaged nor well

marketed and the lack of suitable road or rail access

The district can reasonably anticipate investment ininfrastructure as a result of its nodal status and infrastructure

grant allocation This should create opportunities for local

contractors in the construction industry provided they

have the capacity to compete for tenders

E C O N O M I C C O M P E T I T I V E N E S S

The composite competitive index for competitive

advantage in Ukhahlamba District is low in comparison to

the rest of the province The main reason for the regionrsquos

lack of competitive activity appears to be the dearth of

basic services and economic infrastructure Only 431 of

the population has access to electricity and almost 60 of

the population does not have access to reticulated water

Further constraints on the Districtrsquos competitiveness

include prevailing tenure insecurity and ambiguous

tenure arrangements which act as a deterrent to private

sector investment and complicate public sector efforts to

address the infrastructure backlog There is a clear need

for an approach to communal tenure that is conducive to

attracting investment

Easy communication is undermined by the Districtrsquos

distance from a major economic hub As a result

transaction costs are high This barrier to enterprise

creation is exacerbated by the limited levels of finance

and enterprise support in the District

The municipal economies of Ukhahlamba Distr ict are

highly concentrated There is excessive reliance on two

sectors - agriculture and government and community

services This renders these economies dependent on

outside goods and services (sixty per cent of purchases

are produced and manufactured outside of the region)and vulnerable to change Gariep is the only municipality

that does not rely on community services as the primary

contributor to revenue and employment

The Competitiveness report (conducted for the

Provincial LED Programme) also stated that the provision

of economic infrastructure and services that enhance

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8

Very little agro-processing is done in the area and most

produce is transported via road to larger centers out of

the district Aside from agro-processing the District has

virtually no manufacturing industry The agro-processing

industry is also small and mainly concentrated in Aliwal

North Nevertheless it is quite possible that this sector

could attract some new investment linked to existing

and new primary production Areas of interest could

include for example game meat fruit-processing (eg

peaches raspberries) nuts processing wool products

potato processing tanning stock feed etc A thorough

sector study is required to identify and package the most

viable investment opportunities

Livestock farming (cattle dairy sheep goats) and game

are very important in the District both for commercial

and communal farmers Livestock farming in communal

areas is being supported by the Provincial Department of

Agriculture through construction of stock dams dipping

tanks shearing sheds fencing veterinary services etc

Also the District Municipality together with Gold Fields

Foundation have a Livestock Improvement Programme

in Elundini and there is a goat project in Mount Fletcher

The challenge is to increase incomes from communal

livestock farming Black emerging farmers suffer from

inadequate technology skills and market knowledge

and therefore receive an income significantly less than

better-equipped white commercial farmers Also landownership (and not land claims there are very few in the

District) is a major concern Large tracts of land are either

in the hands of a few white farmers or the state The

District Municipality should develop a register of state-

land in conjunction with DLA

A G R I C U L T U R E

Extensive livestock farming of sheep goats and cattle

dominate agriculture There are pockets of dry land crop

farming especially in the wetter eastern area Only small

isolated pockets of land are suitable for irrigation despite

having the Orange River and Gariep dam as the northern

boundary It is currently unknown as to the impact of the

Mzimvubu Basin Asgi-SA programme on the Elundini area

There is a differentiation between the commercial farming

areas which are the main economic drivers in the economy

and the subsistence farming areas that are located in the

communal land areas This latter sector is very dependent

on the state for 1047297nancial support and has little ability to

use the land as collateral for obtaining loans

The depopulation of the remote rural areas while people

move to the main roads to access services is seen as a

positive move for agriculture

Two large areas of agricultural land reform exist in the

district namely Umnga Flats and Pitseng both located

in the Elundini area

The care and rehabilitation of land as a means of

protecting agricultural resources is of critical importance

if agriculture is to grow in the area There is presently a

land care trials in ward four in Sterkspruit

Land redistribution is still to be suitably addressed in thearea For example there is no single land redistribution

project in the area of Barkly East in Senqu LM

Road access is constraining agricultural development in

the district area

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9

New irrigation investments being implementedplanned

include the Tsitsa River Basin Project Mzimvubu Basin

Project Orange River Water Scheme and Holo Hlahatsi

Dam development Senqu Municipality has already

undertaken studies on bulk water for irrigation purposes

for the Orange and Karringmelkspruit rivers

It is clear that crop production under irrigation if managed

well has huge potential for job and income creation

An industry Action Plan for arable agriculture would

probably include

Evaluation of all existing studies relevant to the

expansion of irrigation farming in the District

Selection of priority interventions

Project design and feasibility (including environmental

impact assessment)

Land acquisition and ownership

Project financing

Farmer training and support

An industry action plan for livestock would probably

include

Expansion of the effective NWGA model of support

Improving existing programmes designed to facilitate

skills transfer between commercial and emerging

farmers

Improved Agricultural Extension Services

Improved market access (eg drawing on experience of

USAID-funded project in the Chris Hani District Middle

East goat market)

Accelerated land redistribution (with effective support)

Building animal feeds industry

Improved veld management

Move to formal land administration in communal areas

Upgrading access roadsfarm logistics

Dry cropping is only feasible in small parts of the District

underscoring the important role that irrigation schemes

can play Dry-cropping is practiced in Elundini and this

yearrsquos ploughing under the Massive Food Programme

was 1700 hectares

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1 0

T O U R I S M

The Districtrsquos tourism industry has grown from a low base

over the last decade and a niche market seems to have

found in the area of adventure tourism The impact of

tourism has not really been wide felt but it is perceived

to be a growth sector for the area due to the unique

environments the only Ski resort in Southern Africa hot

springs and the largest dam in South Africa

Improved access to the District through the tarring of the

R56 between Mount Fletcher and Maclear access from

Lesotho at Telle Bridge and the new Ugie to Langeni road

are likely to positively impact on the district area

The potential of linking the N1 near Gariep Dam via

a scenic route to the N2 at Mthatha is currently being

explored There is an indication that the route between

Cape Town and Durban through the distric t may prove to

be more attractive to tourists

Environmental and land rehabilitation programmes

should be expanded to create jobs and to preserve the

agricultural and tourism potential of the District

There are several interventions being planned that will

grow tourism in the District

The Provincial Gateway Project at Aliwal Nor th This

involves the beautification of the town to attract

tourists to stopover Presently the N6 with heavy trucks

passes through the town center It would be preferableto divert the N6 onto a parallel Street (aligned with the

bridge over the Orange River) and restore the main

street (Somerset Street) to its former glory trees for

shade and pedestrianised

F O R E S T R Y

There are large untapped forestry potentials in the Elundini

area and an additional 30 000ha could be available for

the expansion of the current plantations Construction

has recently started on the R15 billion PG Bison North

East Cape Forests Cluster near Ugie This will create 3000

direct jobs and many thousands of indirect jobs This

forestry initiative is part of the AsgiSA initiative The

National government AsgiSA programme has identified

forestry development as a key pillar to achieving the

economic growth and development targets and has

prioritized forestry as a key sector for support across all

tiers of government The same is true in the PGDP as well

as in the emerging provincial industrial plan

There is also a potential for more forestry development in

the area but this is constrained by lack of road access into

the hinterland

Improved linkages to Mthatha through the new Ugie

Langeni road will enable products to be exported

from Mthata via the rail link to East London Industrial

Development Zone With the improved road access to this

area coupled with the forestry investments it is likely that

there will be signi1047297cant economic growth in this area

About 100 Interlink transport vehicles will be leaving

the particle board plant per day this is likely to have an

impact on the tarred road networks as well as the towns

through which they will drive when taking the productsto markets (Johannesburg Durban exports etc)

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C O N S T R U C T I O N

The Districtrsquos relatively high infrastructure budget

allocation in the Medium Term Expenditure Framework

presents opportunities for the growth of the local

construction industry (including housing water and

sanitation roads) and may enhance competitiveness

by addressing critical shortcomings in economic

infrastructure The sector also offers great potential to

enhance livelihoods through the EPWP

F I N A N C I A L S E R V I C E S

Most towns do have banks however there are exceptions

such as Venterstad and Mount Fletcher Due to the rural

nature of the area while there may be banks these do

not offer the full one-stop services and managers are

often based in centralized offices in the district (such as

Aliwal North) or outside the district such as in Elliot There

has been an increase in accessibility to ATMs through

the provision of in-store facilities Financial advice is still

however very limited

Revitalization of Aliwal Spa This project has been

delayed by the local municipalityrsquos determination to

retain land ownership of the facility A more pragmatic

approach is required

A public-private partnership should be packaged to

revive the tourist steam trains on the famous railway

reverses between Lady Grey and Barkly East

The Madiba Corridor Route between Aliwal North and Port

St Johns This would include the new road between Ugie

and Langeni (with a long bridge over indigenous forest)

The Gariep Complex Project is one of the distr ict

attractions

There is also a dedicated District tourism organization that

would strengthen marketing and product development

T R A D E

Social grants and employment by the government is the

largest economic sector in Ukhahlamba comprising more

than 40 of the GGP

The District has a significant informal trading sector

(including petty producers of traditional garments etc)

This sector could be boosted by better institutional

support (eg SEDA has not yet established an office in

the District) and by CBD regeneration and the provision

of improved trading environments for hawkers

1 1

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B A S I C S E R V I C E S

Free basic services are currently being implemented in

urban areas but still at differing levels A policy around

the matter is currently being developed

Excepting Maletswai (22) all local municipalities

in Ukhahlamba fall below the provincial average of

households not having any formal sanitation

The sanitation backlogs for Elundini and Senqu make up

three quarters of the district backlogs

Estimates of the cost of eliminating water and sanitation

backlogs in Ukhahlamba are R376 million and R332

million respectively

Service delivery backlogs are most acute in Elundini due

to the poor road network and historical factors related

to the peripheral nature of the area under the former

Transkei regime

W A T E R A N D S A N I T A T I O N

Significant inroads have been made in terms of extending

household water access in Ukhahlamba The more

populous eastern parts of the district (Elundini) faces

the greatest challenges as far a water backlogs with one

third of households (34) still relying on natural water

sources This is significantly greater than the provincial

average (28) According to Ukhahlamba DM 4337 of

the people are in need of water ser vices while 7555 are

in need of sanitation services

1 2

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1 3

E L E C T R I C I T Y

Some 16 of households in Ukhahlamba have been

linked to the electr icity grid between 2001-2006 with 70

and more households in Senqu Maletswai and Gariep

now accessing electricity Elundini however again faces

the greatest challenges as far as backlogs is concerned

Household electricity connections in Elundini more than

doubled between 2001-2006 This however amounts to

only slightly more than one quarter (28) of households

which is significantly below the district and provincial

averages (60 of households for Ukhahlamba and 67

of households for the Eastern Cape) A new 90km 132kV

line (costing about R58m) is required from Mount Frere

to Mount Fletcher to provide additional capacity to

eradicate backlogs

It is necessary to lobby for more Municipal Infrastructure

Grant (MIG) funding to achieve national targets There is

a clear need to revise Water and Sanitation Sector Plans

and in particular to calculate the MIG allocations that are

required to ensure that National water and sanitation

targets are met

The eradication of water and sanitation backlogs are being

used to expand the Expanded Public Works Programme

in the District and strengthen the construction industry

This is being implemented in the provis ion of water in

Mount Fletcher and in the construction of the water

pipeline to Steynsburg from the Fish River Tunnel It

could be expanded if there were funds available

About 50 of clinics in the district have no piped water

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1 4

W A S T E

Solid waste removal and disposal currently poses a

significant challenge to municipalities and communities

leading to inadequate compliance with legislation and

poor service delivery

There are however economic opportunities attached to

the management of waste in the form of recycling and

innovative concepts around space reduction in waste

processes This potential is largely connected to the

larger economic nodes but there are also opportunities

in smaller communities such as Rhodes using waste from

the large tourism establishment of Tiffendell

H O U S I N G

Due to the rural nature of the Ukhahlamba area and

having a low proportion of urbanization the prevalence

of informal houses (shacks) is below the provincial

average Although there are low levels of informal housing

across the District this does not mean there is no further

need for further RDP housing because the definition of

informal housing does not include traditional dwellings

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1 5

T R A N S P O R T

Of significant concern in the district with regard to its

future economic growth is that no public transport

services are offered between Venterstad and Burgersdorp

and between Lady Grey Aliwal North and Bark ly East This

has an impact on the potentials for economic and social

linkages and is highly frustrating for commuters and

does not support the spatial economic growth strategies

of the district area

The improvement of roads in the Elundini area is likely

to have a wide impact on passenger transport across the

district If the R56 becomes an alternative (even if not the

official alternative) to the N2 due to the route being shorter

(as identified in the Spatial Development Framework) this

will increase the amount of commuter traffic Services

for public transport will need to be provided in Mount

Fletcher Maclear Ugie and Steynsburg

Over the past five years taxi facilities were constructed in

Aliwal North (as a larger modal interchange) Maclear and

Mount Fletcher There is still a need to improve public

transport facilities in Senqu especially at Sterkspruit

Related to provision of public transport is the need for

basic essential services such as water sanitation and

shelters at key facilities There is a need to provide these

services at all the nodes (rural and urban) as defined in the

Spatial Development Plan Areas with high dependencyon public transport especially the primary and secondary

nodes should receive priority

R O A D M A I N T E N A N C E

While the district is covered by a network of tarred and

gravel roads the conditions of these are a significant

challenge for the growth of the economy

Without improved maintenance of urban streets access

roads district and provincial roads goods are unable

to get to market and the market cannot be effectively

accessed by residents of the area

Of significant importance is the constant maintenance

of key economic roads as identified as mobility corridors

in the Spatial Development Framework This should

be supported by maintenance of gravel access roads

especially in the Elundini and Senqu areas where

population numbers are higher and untapped economic

potentials are higher

The maintenance of tarred provincial roads will become

a significant issue of concern as they are already

deteriorating beyond reasonable repair and the timber

industry development in the Ugie area will further

exacerbate this issue

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1 6

Airfields are currently used fairly infrequently but form a

key element of the disaster management system as well

as the emergency medical system across the district area

There are also moves afoot to bring specia lised medica l

support to the district areas by flying in specialised

personnel and equipment

Tourism is also in need of improved air transport services

especially in the mountain areas This is due to the

remote location of this area from the main urban hubs

of South Africa but which could be a way of overcoming

the challenge of distance The area around the town of

Rhodes has motivated for a long time for such a facility

The maintenance of municipal airfields has received very

low priority from municipalities over the past years

With regard to railway transport services only one out of

the four railway lines existing in the district is effectively

operational ndash the main line between Johannesburg and

East London This is only accessible at Burgersdorp This

rail line has very little impact on public transport and the

conveyance of goods to and or from the area Infrequently

the line between Burgersdorp and Aliwal North is used

for goods

The line between Aliwal North and Barkly East is of

unique value and could be a significant tourist attraction

if effectively maintained managed and marketed

Airfields are found in most of the urban settlements

and form part of the function of local municipalities A

new airfield has been constructed in Sterkspruit by the

Department of Roads and Transport

Communities have raised the issue of improved telephone

services as a key pr iority There are also still police stations

clinics and schools without any telephone service and

this impacts on their ability to deliver services The

more remote areas of Elundini and Senqu are the worst

affected

Funding for an investigation into the possibility of

providing broadband internet connections in the district

area have been agreed to by the European Union This

could provide potential for Business Outsourcing

T E L E C O M M U N I C A T I O N S

According to the 2001 census more than 50 of the

population has access either to a private telephone or

one nearby but there is still a section of the population

that has no access to a telephone at all Urban areas

receive the best service Parts of the commercial farming

areas and rural areas are provided with telephone services

based on radio linkages to towers driven by solar panel

technology

Cellphone services are used by a large proportion of

the population However this service does not cover the

whole area The mountainous nature of the area affects

reception

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It is important to note that Wetlands cover 32 square

kilometres in Elundini which includes the Gatberg

wetland ndash the breeding ground for the endangered

wattled crane The conservation of wetland is

being attended to through the Working for Water

programme (an EPWP programme)

C O N S E R V A T I O N A R E A S

One provincial nature reserve the Oviston Nature

Reserve on the banks of the Gariep Dam is located within

the Ukhahlamba District There is discussion underway

between the Eastern Cape and Free State conservation

boards to amalgamate the management of the nature

reserves around the Gariep Dam There have also been

proposals to expand the area under conservation in

this area but it is likely that this will be in the form of

stewardships and not through the purchase of land by

the state

1 7

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S O C I A L S E R V I C E S

is clearly the improvement of services delivery while

health infrastructure needs to be addressed in the more

desperate municipalities of Elundini and Senqu

In the District 40 of clinics have no electricity and 50

have no piped water

The services delivery challenges are again greatest in

the eastern and more populous areas of Elundini and

Senqu Generally access to clinics and emergency health

services is lower here and often compounded by poor

access roads

Access to primary education within the more infrastructure

poor areas of Elundini and Senqu is well within the distric t

and provincial norm The focus in terms of education

Approximately 255 of the adult population does not

have any form of training or education with 402

only having completed grades 3-7 Only 33 of the

population has completed Grade 12 compared to 66

in the Eastern Cape Only 17 of the District population

has obtained a tertiary qualification

The Elundini area has the largest proportion of people

having only received primary education while the Gariep

area has the highest proportion of people (315) having

never received any form of education

This highlights the extremely low levels of education in

the District and the need to focus on education and skills

training This can only be accomplished if the backlog in

education facilities is met

E D U C A T I O N A N D S K I L L S

There is very limited access to higher education facil ities

in the district area Ukhahlamba has higher than the

national average of people between 5-24 years attending

school but lower than the national average for those

attending tertiary education

According to the latest information from the Departmentof Education since 1999 only five schools have been built

The ratio between learners and educators is 1 363 which

is a slight improvement

Number of Schools Learners and

Educators in Ukhahlamba DM

TYPE OF SCHOOL

Combined Primary Secondary Total

Schools 173 168 46 397

Learners 60 783 31 997 22 577 126 449

Educators 1 863 984 241 3 482

Census figures show that about 50 of the total

population is of school going age

1 8

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1 9

Other skills development initiatives will be geared

towards the Ugie development project

LGSETA is to fund a Learnership on Municipal Finance and

Administration as well other skills programme focusing

on the unemployed Other learnerships will be rolled out

to support the water and sanitation programmes andmore young people will be employed

Partnerships will be forged and individual MoUrsquos will

be entered into between the District Municipality and

the following Higher Education and Further Education

institutions

Ikhala Public FET College

University of Fort Hare

Walter Sisulu University of Technology

University of the Free State

University of Western Cape

University of Stellenbosch

and various SETArsquos including LGSETA

In partnership with the aforementioned stakeholders a

district wide skills development plan will be developed

as a post summit activity and it will be guided by the

summit resolutions

About 41 of the Ukhahlamba Districtrsquos workforce is

made up of elementary or unskilled workers which

is the highest percentage in the province In Gariep

elementaryunskilled workers make up 53 of the

workforce but the largest numbers of unskilled workers

are in the more densely populated Senqu (3 682) and

Elundini (3 253) municipal areas On average 14 of

Ukhahlambarsquos working people have professional skills

rising to 17 in Elundini and Senqu The less densely

populated parts appear to have more skilled people

in Maletswai 15 of working people are skilled and in

Gariep 13 are skilled

Ukhahlamba has lower levels of senior management

technical and clerical skills than the provincersquos other

district municipali ties This corresponds with low levels of

education in Ukhahlamba and indicates a need for skills

development and education programmes

STRATEGIC SKILLS

DEVELOPMENT INITIATIVES JIPSA

Ukhahlamba District Municipality will in partnership with

the Office Of the Premier civil society the business sector

sector departments community based projects and local

municipalities embark on a massive skills development

drive in the following sectors of the economy to support

the 6 economic growth of the district

1 Agriculture

2 Tourism

3 Infrastructure

4 Manufacturing

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2 0

H E A L T H C A R E

The Ukhahlamba area has 11 hospitals including health

care centres and 43 clinics with at least 2 clinics in each

magisterial district The most densely populated Mount

Fletcher and Sterkspruit areas have 13 and 10 clinics

respectively The District has about 998 hospital beds with

a serviced supply average of about 328 people per bed

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2 1

H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

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3 7

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3 8

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3 9

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4 0

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4 1

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42

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4 3

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44

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4 5

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4 6

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4 7

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4 9

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5 0

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5 1

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52

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54

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5 5

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

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i ndex

C O N T E N T S

INTRODU CTION 1

Aims of the Summit 1

Aims of this document 2

Methodology 2

DIS TR IC T S NA PS HOT 3

District Economy 6

Economic Competitiveness 7

Agriculture 8

Forestry 10

Tourism 10

Trade 11

Construction 11

Financial Services 11

Basic Services 12

Water and Sanitation 12

Electr ic ity 13

Housing 14

Waste 14

Road Maintenance 15

Transport 15

Telecommunications 16

Conservation areas 17

Education and Ski l l s 18

Social Services 18

Healthcare 20

HIV and AIDS 21

Poverty 22

Women 23

Youth 23

Disabled 24

Elderly 24

Moral Regeneration

Movement Chal lenges 24

Governance amp Administration 25

Administration of Municipal it ies 25

Financial Resource

Chal lenges of Municipal it ies 26

PRIORIT Y ISSUES 27

STRATEGY FOR DEVELOPMENT 28

Priority Programmes

or ldquoAnchor Projectsrdquo 30

PROVINCIAL DEPARTMENT

INFR A S TR UC TUR E E XPE NDITUR E PLA NS 31

CONCLUSION 34

ACRONYMS 35

GDS AGREEMENT 36

3

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I N T R O D U C T I O N

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

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

The distr ictrsquos 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)

Commitments by government business labour and

community sector to ensure investment in each of the

sectors

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

1

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

To ensure that discussion on the above issues takes place

on an informed basis

To present a coherent picture of the socia l demographic

and economic profile and service levels of the Ukhahlamba

area

To present a picture of the challenges facing local

government in Ukhahlamba especially in relation to

capacity

To suggest the mechanisms amp processes for monitoring

progress on the decisions reached and the governance

framework for ongoing dialogue and feedback among

social partners

The Ukhahlamba 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 Ukhahlamba 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 L O G Y

This profile of the Ukhahlamba 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

Monitor Group ndash Economic Profiling of the Poverty Nodesndash Ukhahlamba

District and local municipal IDPs

Data from the Rapid Assessment of services in the Eastern

Cape conducted in 2006 by Fort Hare Institute for Socio-

Economic Research for the Office of the Premier

Various research reports

Social and economic infrastructure programmes required

to improve investments and provide basic services to

communities

Contribution by each partner to the construction of such

infrastructure including possibility of PPP

Second Economy interventions (EPWP including roads

home-based care and early childhood development

cooperatives micro-credit procurement land reform

etc) and the role of each sector in such interventions

Promoting local procurement ndash what interventions are

required

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

Establishing a partnerships andor regional growth

coalitions which will act as a mechanism for cooperative

action at all levels and a robust framework for monitoring

and evaluating progress

2

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

LOCATION to the north the district borders the

Free State Province and the country of Lesotho The district

municipalities of Alfred Nzo OR Tambo and Chris Hani to

the east and south and the Northern Cape Province to

the west The boundary of the district is an administrative

boundary and not necessarily an economic boundary

POPULATION About 350 000 people and with a low

growth rate The District is generally sparsely populated

except for the former homeland areas of Mount Fletcher

rural parts of Tsolo and Qumbu (in Elundini) and

Sterkspruit (in Senqu) These two areas account for about

three quarters of the District population These are also

the areas where poverty is most entrenched and basic

services backlogs most acute

AREA 26518km2

3

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CULTURE over 90 Xhosa

LANGUAGE Xhosa Sesotho Afrikaans and English

NODAL STATUS The Distr ict has a high development

profile in terms of its Integrated Sustainable Rural

Development Programme (ISRDP) nodal status

MUNICIPALITIES Ukhahlamba District and Gariep

Maletswai Senqu and Elundini local municipalities

TOPOGRAPHY The west of the District (Gariep and

Maletswai) is dry Karoo flatland and areas of the dry

NamaKaroo Biome The East (Senqu and Elundini) is

mountainous and wetter with elements of the Maloti

Biome Most of the District falls within the Orange River

catchment basin except for Elundini which falls in the

Mzimvubu River Basin

4

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S E T T L E M E N T S T R U C T U R E There are 13 towns

in the area with the largest being Aliwal North with a

population of about 40000 Sterkspruit Maclear and

Mount Fletcher are secondary service and retail centres

Ugie is an aspiring secondary town Three rural nodes (in

the communal land area) have been de1047297ned in Elundini

and four in Senqu The Spatial development framework for

the District de1047297ne special inter ventions for these different

categories of towns as well as corridors and special

development areas Different interventions are proposed

in each of these areas ndash areas of severe backlogs (old

Transkei) areas of high economic potential (agriculture

tourism) nodes with ability to support the economy

(especially primary and secondary towns)

S OC IA L S TR UC TUR ING The levels of out migration

from Ukhahlamba are higher than the provincial average

The proportion of households reporting at least one

migrant household member amounts to 18 of district

households against 152 of provincial households

While 7 of the district population overall is reported as

migrating from their household this is so for 56 of the

provincial population

The combination of the limited local economy and

significant challenges in local services infrastructure and

delivery understandably result in the District recording

among the highest levels of out migration in the

province The vast majority of migrants from Ukhahlamba

leave their households in order to take up employment

or to go in search of employment The historically

underdeveloped areas of Senqu and Elundini also see

significant numbers of household members migrating

in order to access schools or tertiary education

5

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D I S T R I C T E C O N O M Y

There is also a perception among residents in the area

that hawking hairdressing clothes washing etc are

not ldquorealrdquo jobs and they do not consider that this is a

contribution to the economy Many people still aspire for

a government job as it is seen as secure

It can be seen that in the manufacturing sector growth

has occurred in the food-processing sub sector In the

Trade Cater ing and Accommodation sector there has

been very little growth in the catering side with the

largest growth occurring in the retail sub-sector On the

Transpor t and Communication sector the bulk of the

growth has been in the communication sector and in

the Finance and business services sector there has been

an increase in the finance sector but a decrease in the

business services sub-sector

Overall the GGP of the district has remained a fairly

constant proportion of the provincial GGP and the per

capital GGP of individuals within the Ukhahlamba area has

also remained fairly constant (when using constant prices)

at around 41 of the provincial per capital income

The District area contributes about 3 of the provincial

Gross Geographic Product (GGP)

The Ukhahlamba area is one of the 13 poorest and most

poverty stricken districts of South Africa

The 2001 Census indicated that over 86 of the residents

of the area live in poverty This is based on that the annual

household income is below the basic annual substance

level of R19200 per year

Of those of working age only 18 are employed 21 are

unemployed and 603 are not economically active (that is

that they have not sought work during the past 2 years)

Of those that are employed over 90 are employed

by someone else and only a very small 22 are self-

employed This has a significant impact on the ldquospirit of

entrepreneurshiprdquo where most people do not have the

experience of running their own business and have

a history of reliance and dependency on others for

employment

6

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7

factor mobility reduce transport costs promote linkages

with neighboring regions and reduce time spent in

survivalist activities such as collecting fuel and water

is the salient need in terms of Ukhahlambarsquos economic

competitiveness

Comparative advantage and associated opportunities

do exist in the agricultural sector as a result of labour

surpluses pockets of fertile land and under-utilised

irrigation potential Wool processing (in Maletswai -

which is advantaged by the N6 link to East London and

Gariep) livestock husbandry (Elundini and Gariep) maize

(Elundini and Senqu) and dry-land lucerne (Senqu) have

all shown signs of being suitable but commercializing

these activities and enhancing productivity remains a

major challenge The relative humidity (particularly in

Senqu and Elundini) and abundance of water creates

the potential for forestry (wattle) enterprises in Elundini

and for an expansion of the irrigated agricultural sector

provided the supporting infrastructure is available

The District rsquos stark topography and spectacular landscapes

in conjunction with low reported crime levels creates the

potential for tourism Currently inhibiting the realization

of this potential are perceptions about crime the fact

that tourist products are neither well packaged nor well

marketed and the lack of suitable road or rail access

The district can reasonably anticipate investment ininfrastructure as a result of its nodal status and infrastructure

grant allocation This should create opportunities for local

contractors in the construction industry provided they

have the capacity to compete for tenders

E C O N O M I C C O M P E T I T I V E N E S S

The composite competitive index for competitive

advantage in Ukhahlamba District is low in comparison to

the rest of the province The main reason for the regionrsquos

lack of competitive activity appears to be the dearth of

basic services and economic infrastructure Only 431 of

the population has access to electricity and almost 60 of

the population does not have access to reticulated water

Further constraints on the Districtrsquos competitiveness

include prevailing tenure insecurity and ambiguous

tenure arrangements which act as a deterrent to private

sector investment and complicate public sector efforts to

address the infrastructure backlog There is a clear need

for an approach to communal tenure that is conducive to

attracting investment

Easy communication is undermined by the Districtrsquos

distance from a major economic hub As a result

transaction costs are high This barrier to enterprise

creation is exacerbated by the limited levels of finance

and enterprise support in the District

The municipal economies of Ukhahlamba Distr ict are

highly concentrated There is excessive reliance on two

sectors - agriculture and government and community

services This renders these economies dependent on

outside goods and services (sixty per cent of purchases

are produced and manufactured outside of the region)and vulnerable to change Gariep is the only municipality

that does not rely on community services as the primary

contributor to revenue and employment

The Competitiveness report (conducted for the

Provincial LED Programme) also stated that the provision

of economic infrastructure and services that enhance

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8

Very little agro-processing is done in the area and most

produce is transported via road to larger centers out of

the district Aside from agro-processing the District has

virtually no manufacturing industry The agro-processing

industry is also small and mainly concentrated in Aliwal

North Nevertheless it is quite possible that this sector

could attract some new investment linked to existing

and new primary production Areas of interest could

include for example game meat fruit-processing (eg

peaches raspberries) nuts processing wool products

potato processing tanning stock feed etc A thorough

sector study is required to identify and package the most

viable investment opportunities

Livestock farming (cattle dairy sheep goats) and game

are very important in the District both for commercial

and communal farmers Livestock farming in communal

areas is being supported by the Provincial Department of

Agriculture through construction of stock dams dipping

tanks shearing sheds fencing veterinary services etc

Also the District Municipality together with Gold Fields

Foundation have a Livestock Improvement Programme

in Elundini and there is a goat project in Mount Fletcher

The challenge is to increase incomes from communal

livestock farming Black emerging farmers suffer from

inadequate technology skills and market knowledge

and therefore receive an income significantly less than

better-equipped white commercial farmers Also landownership (and not land claims there are very few in the

District) is a major concern Large tracts of land are either

in the hands of a few white farmers or the state The

District Municipality should develop a register of state-

land in conjunction with DLA

A G R I C U L T U R E

Extensive livestock farming of sheep goats and cattle

dominate agriculture There are pockets of dry land crop

farming especially in the wetter eastern area Only small

isolated pockets of land are suitable for irrigation despite

having the Orange River and Gariep dam as the northern

boundary It is currently unknown as to the impact of the

Mzimvubu Basin Asgi-SA programme on the Elundini area

There is a differentiation between the commercial farming

areas which are the main economic drivers in the economy

and the subsistence farming areas that are located in the

communal land areas This latter sector is very dependent

on the state for 1047297nancial support and has little ability to

use the land as collateral for obtaining loans

The depopulation of the remote rural areas while people

move to the main roads to access services is seen as a

positive move for agriculture

Two large areas of agricultural land reform exist in the

district namely Umnga Flats and Pitseng both located

in the Elundini area

The care and rehabilitation of land as a means of

protecting agricultural resources is of critical importance

if agriculture is to grow in the area There is presently a

land care trials in ward four in Sterkspruit

Land redistribution is still to be suitably addressed in thearea For example there is no single land redistribution

project in the area of Barkly East in Senqu LM

Road access is constraining agricultural development in

the district area

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9

New irrigation investments being implementedplanned

include the Tsitsa River Basin Project Mzimvubu Basin

Project Orange River Water Scheme and Holo Hlahatsi

Dam development Senqu Municipality has already

undertaken studies on bulk water for irrigation purposes

for the Orange and Karringmelkspruit rivers

It is clear that crop production under irrigation if managed

well has huge potential for job and income creation

An industry Action Plan for arable agriculture would

probably include

Evaluation of all existing studies relevant to the

expansion of irrigation farming in the District

Selection of priority interventions

Project design and feasibility (including environmental

impact assessment)

Land acquisition and ownership

Project financing

Farmer training and support

An industry action plan for livestock would probably

include

Expansion of the effective NWGA model of support

Improving existing programmes designed to facilitate

skills transfer between commercial and emerging

farmers

Improved Agricultural Extension Services

Improved market access (eg drawing on experience of

USAID-funded project in the Chris Hani District Middle

East goat market)

Accelerated land redistribution (with effective support)

Building animal feeds industry

Improved veld management

Move to formal land administration in communal areas

Upgrading access roadsfarm logistics

Dry cropping is only feasible in small parts of the District

underscoring the important role that irrigation schemes

can play Dry-cropping is practiced in Elundini and this

yearrsquos ploughing under the Massive Food Programme

was 1700 hectares

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T O U R I S M

The Districtrsquos tourism industry has grown from a low base

over the last decade and a niche market seems to have

found in the area of adventure tourism The impact of

tourism has not really been wide felt but it is perceived

to be a growth sector for the area due to the unique

environments the only Ski resort in Southern Africa hot

springs and the largest dam in South Africa

Improved access to the District through the tarring of the

R56 between Mount Fletcher and Maclear access from

Lesotho at Telle Bridge and the new Ugie to Langeni road

are likely to positively impact on the district area

The potential of linking the N1 near Gariep Dam via

a scenic route to the N2 at Mthatha is currently being

explored There is an indication that the route between

Cape Town and Durban through the distric t may prove to

be more attractive to tourists

Environmental and land rehabilitation programmes

should be expanded to create jobs and to preserve the

agricultural and tourism potential of the District

There are several interventions being planned that will

grow tourism in the District

The Provincial Gateway Project at Aliwal Nor th This

involves the beautification of the town to attract

tourists to stopover Presently the N6 with heavy trucks

passes through the town center It would be preferableto divert the N6 onto a parallel Street (aligned with the

bridge over the Orange River) and restore the main

street (Somerset Street) to its former glory trees for

shade and pedestrianised

F O R E S T R Y

There are large untapped forestry potentials in the Elundini

area and an additional 30 000ha could be available for

the expansion of the current plantations Construction

has recently started on the R15 billion PG Bison North

East Cape Forests Cluster near Ugie This will create 3000

direct jobs and many thousands of indirect jobs This

forestry initiative is part of the AsgiSA initiative The

National government AsgiSA programme has identified

forestry development as a key pillar to achieving the

economic growth and development targets and has

prioritized forestry as a key sector for support across all

tiers of government The same is true in the PGDP as well

as in the emerging provincial industrial plan

There is also a potential for more forestry development in

the area but this is constrained by lack of road access into

the hinterland

Improved linkages to Mthatha through the new Ugie

Langeni road will enable products to be exported

from Mthata via the rail link to East London Industrial

Development Zone With the improved road access to this

area coupled with the forestry investments it is likely that

there will be signi1047297cant economic growth in this area

About 100 Interlink transport vehicles will be leaving

the particle board plant per day this is likely to have an

impact on the tarred road networks as well as the towns

through which they will drive when taking the productsto markets (Johannesburg Durban exports etc)

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C O N S T R U C T I O N

The Districtrsquos relatively high infrastructure budget

allocation in the Medium Term Expenditure Framework

presents opportunities for the growth of the local

construction industry (including housing water and

sanitation roads) and may enhance competitiveness

by addressing critical shortcomings in economic

infrastructure The sector also offers great potential to

enhance livelihoods through the EPWP

F I N A N C I A L S E R V I C E S

Most towns do have banks however there are exceptions

such as Venterstad and Mount Fletcher Due to the rural

nature of the area while there may be banks these do

not offer the full one-stop services and managers are

often based in centralized offices in the district (such as

Aliwal North) or outside the district such as in Elliot There

has been an increase in accessibility to ATMs through

the provision of in-store facilities Financial advice is still

however very limited

Revitalization of Aliwal Spa This project has been

delayed by the local municipalityrsquos determination to

retain land ownership of the facility A more pragmatic

approach is required

A public-private partnership should be packaged to

revive the tourist steam trains on the famous railway

reverses between Lady Grey and Barkly East

The Madiba Corridor Route between Aliwal North and Port

St Johns This would include the new road between Ugie

and Langeni (with a long bridge over indigenous forest)

The Gariep Complex Project is one of the distr ict

attractions

There is also a dedicated District tourism organization that

would strengthen marketing and product development

T R A D E

Social grants and employment by the government is the

largest economic sector in Ukhahlamba comprising more

than 40 of the GGP

The District has a significant informal trading sector

(including petty producers of traditional garments etc)

This sector could be boosted by better institutional

support (eg SEDA has not yet established an office in

the District) and by CBD regeneration and the provision

of improved trading environments for hawkers

1 1

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B A S I C S E R V I C E S

Free basic services are currently being implemented in

urban areas but still at differing levels A policy around

the matter is currently being developed

Excepting Maletswai (22) all local municipalities

in Ukhahlamba fall below the provincial average of

households not having any formal sanitation

The sanitation backlogs for Elundini and Senqu make up

three quarters of the district backlogs

Estimates of the cost of eliminating water and sanitation

backlogs in Ukhahlamba are R376 million and R332

million respectively

Service delivery backlogs are most acute in Elundini due

to the poor road network and historical factors related

to the peripheral nature of the area under the former

Transkei regime

W A T E R A N D S A N I T A T I O N

Significant inroads have been made in terms of extending

household water access in Ukhahlamba The more

populous eastern parts of the district (Elundini) faces

the greatest challenges as far a water backlogs with one

third of households (34) still relying on natural water

sources This is significantly greater than the provincial

average (28) According to Ukhahlamba DM 4337 of

the people are in need of water ser vices while 7555 are

in need of sanitation services

1 2

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1 3

E L E C T R I C I T Y

Some 16 of households in Ukhahlamba have been

linked to the electr icity grid between 2001-2006 with 70

and more households in Senqu Maletswai and Gariep

now accessing electricity Elundini however again faces

the greatest challenges as far as backlogs is concerned

Household electricity connections in Elundini more than

doubled between 2001-2006 This however amounts to

only slightly more than one quarter (28) of households

which is significantly below the district and provincial

averages (60 of households for Ukhahlamba and 67

of households for the Eastern Cape) A new 90km 132kV

line (costing about R58m) is required from Mount Frere

to Mount Fletcher to provide additional capacity to

eradicate backlogs

It is necessary to lobby for more Municipal Infrastructure

Grant (MIG) funding to achieve national targets There is

a clear need to revise Water and Sanitation Sector Plans

and in particular to calculate the MIG allocations that are

required to ensure that National water and sanitation

targets are met

The eradication of water and sanitation backlogs are being

used to expand the Expanded Public Works Programme

in the District and strengthen the construction industry

This is being implemented in the provis ion of water in

Mount Fletcher and in the construction of the water

pipeline to Steynsburg from the Fish River Tunnel It

could be expanded if there were funds available

About 50 of clinics in the district have no piped water

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W A S T E

Solid waste removal and disposal currently poses a

significant challenge to municipalities and communities

leading to inadequate compliance with legislation and

poor service delivery

There are however economic opportunities attached to

the management of waste in the form of recycling and

innovative concepts around space reduction in waste

processes This potential is largely connected to the

larger economic nodes but there are also opportunities

in smaller communities such as Rhodes using waste from

the large tourism establishment of Tiffendell

H O U S I N G

Due to the rural nature of the Ukhahlamba area and

having a low proportion of urbanization the prevalence

of informal houses (shacks) is below the provincial

average Although there are low levels of informal housing

across the District this does not mean there is no further

need for further RDP housing because the definition of

informal housing does not include traditional dwellings

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1 5

T R A N S P O R T

Of significant concern in the district with regard to its

future economic growth is that no public transport

services are offered between Venterstad and Burgersdorp

and between Lady Grey Aliwal North and Bark ly East This

has an impact on the potentials for economic and social

linkages and is highly frustrating for commuters and

does not support the spatial economic growth strategies

of the district area

The improvement of roads in the Elundini area is likely

to have a wide impact on passenger transport across the

district If the R56 becomes an alternative (even if not the

official alternative) to the N2 due to the route being shorter

(as identified in the Spatial Development Framework) this

will increase the amount of commuter traffic Services

for public transport will need to be provided in Mount

Fletcher Maclear Ugie and Steynsburg

Over the past five years taxi facilities were constructed in

Aliwal North (as a larger modal interchange) Maclear and

Mount Fletcher There is still a need to improve public

transport facilities in Senqu especially at Sterkspruit

Related to provision of public transport is the need for

basic essential services such as water sanitation and

shelters at key facilities There is a need to provide these

services at all the nodes (rural and urban) as defined in the

Spatial Development Plan Areas with high dependencyon public transport especially the primary and secondary

nodes should receive priority

R O A D M A I N T E N A N C E

While the district is covered by a network of tarred and

gravel roads the conditions of these are a significant

challenge for the growth of the economy

Without improved maintenance of urban streets access

roads district and provincial roads goods are unable

to get to market and the market cannot be effectively

accessed by residents of the area

Of significant importance is the constant maintenance

of key economic roads as identified as mobility corridors

in the Spatial Development Framework This should

be supported by maintenance of gravel access roads

especially in the Elundini and Senqu areas where

population numbers are higher and untapped economic

potentials are higher

The maintenance of tarred provincial roads will become

a significant issue of concern as they are already

deteriorating beyond reasonable repair and the timber

industry development in the Ugie area will further

exacerbate this issue

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1 6

Airfields are currently used fairly infrequently but form a

key element of the disaster management system as well

as the emergency medical system across the district area

There are also moves afoot to bring specia lised medica l

support to the district areas by flying in specialised

personnel and equipment

Tourism is also in need of improved air transport services

especially in the mountain areas This is due to the

remote location of this area from the main urban hubs

of South Africa but which could be a way of overcoming

the challenge of distance The area around the town of

Rhodes has motivated for a long time for such a facility

The maintenance of municipal airfields has received very

low priority from municipalities over the past years

With regard to railway transport services only one out of

the four railway lines existing in the district is effectively

operational ndash the main line between Johannesburg and

East London This is only accessible at Burgersdorp This

rail line has very little impact on public transport and the

conveyance of goods to and or from the area Infrequently

the line between Burgersdorp and Aliwal North is used

for goods

The line between Aliwal North and Barkly East is of

unique value and could be a significant tourist attraction

if effectively maintained managed and marketed

Airfields are found in most of the urban settlements

and form part of the function of local municipalities A

new airfield has been constructed in Sterkspruit by the

Department of Roads and Transport

Communities have raised the issue of improved telephone

services as a key pr iority There are also still police stations

clinics and schools without any telephone service and

this impacts on their ability to deliver services The

more remote areas of Elundini and Senqu are the worst

affected

Funding for an investigation into the possibility of

providing broadband internet connections in the district

area have been agreed to by the European Union This

could provide potential for Business Outsourcing

T E L E C O M M U N I C A T I O N S

According to the 2001 census more than 50 of the

population has access either to a private telephone or

one nearby but there is still a section of the population

that has no access to a telephone at all Urban areas

receive the best service Parts of the commercial farming

areas and rural areas are provided with telephone services

based on radio linkages to towers driven by solar panel

technology

Cellphone services are used by a large proportion of

the population However this service does not cover the

whole area The mountainous nature of the area affects

reception

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It is important to note that Wetlands cover 32 square

kilometres in Elundini which includes the Gatberg

wetland ndash the breeding ground for the endangered

wattled crane The conservation of wetland is

being attended to through the Working for Water

programme (an EPWP programme)

C O N S E R V A T I O N A R E A S

One provincial nature reserve the Oviston Nature

Reserve on the banks of the Gariep Dam is located within

the Ukhahlamba District There is discussion underway

between the Eastern Cape and Free State conservation

boards to amalgamate the management of the nature

reserves around the Gariep Dam There have also been

proposals to expand the area under conservation in

this area but it is likely that this will be in the form of

stewardships and not through the purchase of land by

the state

1 7

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S O C I A L S E R V I C E S

is clearly the improvement of services delivery while

health infrastructure needs to be addressed in the more

desperate municipalities of Elundini and Senqu

In the District 40 of clinics have no electricity and 50

have no piped water

The services delivery challenges are again greatest in

the eastern and more populous areas of Elundini and

Senqu Generally access to clinics and emergency health

services is lower here and often compounded by poor

access roads

Access to primary education within the more infrastructure

poor areas of Elundini and Senqu is well within the distric t

and provincial norm The focus in terms of education

Approximately 255 of the adult population does not

have any form of training or education with 402

only having completed grades 3-7 Only 33 of the

population has completed Grade 12 compared to 66

in the Eastern Cape Only 17 of the District population

has obtained a tertiary qualification

The Elundini area has the largest proportion of people

having only received primary education while the Gariep

area has the highest proportion of people (315) having

never received any form of education

This highlights the extremely low levels of education in

the District and the need to focus on education and skills

training This can only be accomplished if the backlog in

education facilities is met

E D U C A T I O N A N D S K I L L S

There is very limited access to higher education facil ities

in the district area Ukhahlamba has higher than the

national average of people between 5-24 years attending

school but lower than the national average for those

attending tertiary education

According to the latest information from the Departmentof Education since 1999 only five schools have been built

The ratio between learners and educators is 1 363 which

is a slight improvement

Number of Schools Learners and

Educators in Ukhahlamba DM

TYPE OF SCHOOL

Combined Primary Secondary Total

Schools 173 168 46 397

Learners 60 783 31 997 22 577 126 449

Educators 1 863 984 241 3 482

Census figures show that about 50 of the total

population is of school going age

1 8

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1 9

Other skills development initiatives will be geared

towards the Ugie development project

LGSETA is to fund a Learnership on Municipal Finance and

Administration as well other skills programme focusing

on the unemployed Other learnerships will be rolled out

to support the water and sanitation programmes andmore young people will be employed

Partnerships will be forged and individual MoUrsquos will

be entered into between the District Municipality and

the following Higher Education and Further Education

institutions

Ikhala Public FET College

University of Fort Hare

Walter Sisulu University of Technology

University of the Free State

University of Western Cape

University of Stellenbosch

and various SETArsquos including LGSETA

In partnership with the aforementioned stakeholders a

district wide skills development plan will be developed

as a post summit activity and it will be guided by the

summit resolutions

About 41 of the Ukhahlamba Districtrsquos workforce is

made up of elementary or unskilled workers which

is the highest percentage in the province In Gariep

elementaryunskilled workers make up 53 of the

workforce but the largest numbers of unskilled workers

are in the more densely populated Senqu (3 682) and

Elundini (3 253) municipal areas On average 14 of

Ukhahlambarsquos working people have professional skills

rising to 17 in Elundini and Senqu The less densely

populated parts appear to have more skilled people

in Maletswai 15 of working people are skilled and in

Gariep 13 are skilled

Ukhahlamba has lower levels of senior management

technical and clerical skills than the provincersquos other

district municipali ties This corresponds with low levels of

education in Ukhahlamba and indicates a need for skills

development and education programmes

STRATEGIC SKILLS

DEVELOPMENT INITIATIVES JIPSA

Ukhahlamba District Municipality will in partnership with

the Office Of the Premier civil society the business sector

sector departments community based projects and local

municipalities embark on a massive skills development

drive in the following sectors of the economy to support

the 6 economic growth of the district

1 Agriculture

2 Tourism

3 Infrastructure

4 Manufacturing

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H E A L T H C A R E

The Ukhahlamba area has 11 hospitals including health

care centres and 43 clinics with at least 2 clinics in each

magisterial district The most densely populated Mount

Fletcher and Sterkspruit areas have 13 and 10 clinics

respectively The District has about 998 hospital beds with

a serviced supply average of about 328 people per bed

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H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

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3 7

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3 8

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3 9

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4 0

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4 1

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42

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4 3

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44

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4 5

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4 6

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4 7

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4 9

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5 0

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5 1

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52

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54

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5 5

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

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I N T R O D U C T I O N

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

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

The distr ictrsquos 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)

Commitments by government business labour and

community sector to ensure investment in each of the

sectors

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

1

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

To ensure that discussion on the above issues takes place

on an informed basis

To present a coherent picture of the socia l demographic

and economic profile and service levels of the Ukhahlamba

area

To present a picture of the challenges facing local

government in Ukhahlamba especially in relation to

capacity

To suggest the mechanisms amp processes for monitoring

progress on the decisions reached and the governance

framework for ongoing dialogue and feedback among

social partners

The Ukhahlamba 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 Ukhahlamba 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 L O G Y

This profile of the Ukhahlamba 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

Monitor Group ndash Economic Profiling of the Poverty Nodesndash Ukhahlamba

District and local municipal IDPs

Data from the Rapid Assessment of services in the Eastern

Cape conducted in 2006 by Fort Hare Institute for Socio-

Economic Research for the Office of the Premier

Various research reports

Social and economic infrastructure programmes required

to improve investments and provide basic services to

communities

Contribution by each partner to the construction of such

infrastructure including possibility of PPP

Second Economy interventions (EPWP including roads

home-based care and early childhood development

cooperatives micro-credit procurement land reform

etc) and the role of each sector in such interventions

Promoting local procurement ndash what interventions are

required

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

Establishing a partnerships andor regional growth

coalitions which will act as a mechanism for cooperative

action at all levels and a robust framework for monitoring

and evaluating progress

2

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

LOCATION to the north the district borders the

Free State Province and the country of Lesotho The district

municipalities of Alfred Nzo OR Tambo and Chris Hani to

the east and south and the Northern Cape Province to

the west The boundary of the district is an administrative

boundary and not necessarily an economic boundary

POPULATION About 350 000 people and with a low

growth rate The District is generally sparsely populated

except for the former homeland areas of Mount Fletcher

rural parts of Tsolo and Qumbu (in Elundini) and

Sterkspruit (in Senqu) These two areas account for about

three quarters of the District population These are also

the areas where poverty is most entrenched and basic

services backlogs most acute

AREA 26518km2

3

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CULTURE over 90 Xhosa

LANGUAGE Xhosa Sesotho Afrikaans and English

NODAL STATUS The Distr ict has a high development

profile in terms of its Integrated Sustainable Rural

Development Programme (ISRDP) nodal status

MUNICIPALITIES Ukhahlamba District and Gariep

Maletswai Senqu and Elundini local municipalities

TOPOGRAPHY The west of the District (Gariep and

Maletswai) is dry Karoo flatland and areas of the dry

NamaKaroo Biome The East (Senqu and Elundini) is

mountainous and wetter with elements of the Maloti

Biome Most of the District falls within the Orange River

catchment basin except for Elundini which falls in the

Mzimvubu River Basin

4

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S E T T L E M E N T S T R U C T U R E There are 13 towns

in the area with the largest being Aliwal North with a

population of about 40000 Sterkspruit Maclear and

Mount Fletcher are secondary service and retail centres

Ugie is an aspiring secondary town Three rural nodes (in

the communal land area) have been de1047297ned in Elundini

and four in Senqu The Spatial development framework for

the District de1047297ne special inter ventions for these different

categories of towns as well as corridors and special

development areas Different interventions are proposed

in each of these areas ndash areas of severe backlogs (old

Transkei) areas of high economic potential (agriculture

tourism) nodes with ability to support the economy

(especially primary and secondary towns)

S OC IA L S TR UC TUR ING The levels of out migration

from Ukhahlamba are higher than the provincial average

The proportion of households reporting at least one

migrant household member amounts to 18 of district

households against 152 of provincial households

While 7 of the district population overall is reported as

migrating from their household this is so for 56 of the

provincial population

The combination of the limited local economy and

significant challenges in local services infrastructure and

delivery understandably result in the District recording

among the highest levels of out migration in the

province The vast majority of migrants from Ukhahlamba

leave their households in order to take up employment

or to go in search of employment The historically

underdeveloped areas of Senqu and Elundini also see

significant numbers of household members migrating

in order to access schools or tertiary education

5

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D I S T R I C T E C O N O M Y

There is also a perception among residents in the area

that hawking hairdressing clothes washing etc are

not ldquorealrdquo jobs and they do not consider that this is a

contribution to the economy Many people still aspire for

a government job as it is seen as secure

It can be seen that in the manufacturing sector growth

has occurred in the food-processing sub sector In the

Trade Cater ing and Accommodation sector there has

been very little growth in the catering side with the

largest growth occurring in the retail sub-sector On the

Transpor t and Communication sector the bulk of the

growth has been in the communication sector and in

the Finance and business services sector there has been

an increase in the finance sector but a decrease in the

business services sub-sector

Overall the GGP of the district has remained a fairly

constant proportion of the provincial GGP and the per

capital GGP of individuals within the Ukhahlamba area has

also remained fairly constant (when using constant prices)

at around 41 of the provincial per capital income

The District area contributes about 3 of the provincial

Gross Geographic Product (GGP)

The Ukhahlamba area is one of the 13 poorest and most

poverty stricken districts of South Africa

The 2001 Census indicated that over 86 of the residents

of the area live in poverty This is based on that the annual

household income is below the basic annual substance

level of R19200 per year

Of those of working age only 18 are employed 21 are

unemployed and 603 are not economically active (that is

that they have not sought work during the past 2 years)

Of those that are employed over 90 are employed

by someone else and only a very small 22 are self-

employed This has a significant impact on the ldquospirit of

entrepreneurshiprdquo where most people do not have the

experience of running their own business and have

a history of reliance and dependency on others for

employment

6

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7

factor mobility reduce transport costs promote linkages

with neighboring regions and reduce time spent in

survivalist activities such as collecting fuel and water

is the salient need in terms of Ukhahlambarsquos economic

competitiveness

Comparative advantage and associated opportunities

do exist in the agricultural sector as a result of labour

surpluses pockets of fertile land and under-utilised

irrigation potential Wool processing (in Maletswai -

which is advantaged by the N6 link to East London and

Gariep) livestock husbandry (Elundini and Gariep) maize

(Elundini and Senqu) and dry-land lucerne (Senqu) have

all shown signs of being suitable but commercializing

these activities and enhancing productivity remains a

major challenge The relative humidity (particularly in

Senqu and Elundini) and abundance of water creates

the potential for forestry (wattle) enterprises in Elundini

and for an expansion of the irrigated agricultural sector

provided the supporting infrastructure is available

The District rsquos stark topography and spectacular landscapes

in conjunction with low reported crime levels creates the

potential for tourism Currently inhibiting the realization

of this potential are perceptions about crime the fact

that tourist products are neither well packaged nor well

marketed and the lack of suitable road or rail access

The district can reasonably anticipate investment ininfrastructure as a result of its nodal status and infrastructure

grant allocation This should create opportunities for local

contractors in the construction industry provided they

have the capacity to compete for tenders

E C O N O M I C C O M P E T I T I V E N E S S

The composite competitive index for competitive

advantage in Ukhahlamba District is low in comparison to

the rest of the province The main reason for the regionrsquos

lack of competitive activity appears to be the dearth of

basic services and economic infrastructure Only 431 of

the population has access to electricity and almost 60 of

the population does not have access to reticulated water

Further constraints on the Districtrsquos competitiveness

include prevailing tenure insecurity and ambiguous

tenure arrangements which act as a deterrent to private

sector investment and complicate public sector efforts to

address the infrastructure backlog There is a clear need

for an approach to communal tenure that is conducive to

attracting investment

Easy communication is undermined by the Districtrsquos

distance from a major economic hub As a result

transaction costs are high This barrier to enterprise

creation is exacerbated by the limited levels of finance

and enterprise support in the District

The municipal economies of Ukhahlamba Distr ict are

highly concentrated There is excessive reliance on two

sectors - agriculture and government and community

services This renders these economies dependent on

outside goods and services (sixty per cent of purchases

are produced and manufactured outside of the region)and vulnerable to change Gariep is the only municipality

that does not rely on community services as the primary

contributor to revenue and employment

The Competitiveness report (conducted for the

Provincial LED Programme) also stated that the provision

of economic infrastructure and services that enhance

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8

Very little agro-processing is done in the area and most

produce is transported via road to larger centers out of

the district Aside from agro-processing the District has

virtually no manufacturing industry The agro-processing

industry is also small and mainly concentrated in Aliwal

North Nevertheless it is quite possible that this sector

could attract some new investment linked to existing

and new primary production Areas of interest could

include for example game meat fruit-processing (eg

peaches raspberries) nuts processing wool products

potato processing tanning stock feed etc A thorough

sector study is required to identify and package the most

viable investment opportunities

Livestock farming (cattle dairy sheep goats) and game

are very important in the District both for commercial

and communal farmers Livestock farming in communal

areas is being supported by the Provincial Department of

Agriculture through construction of stock dams dipping

tanks shearing sheds fencing veterinary services etc

Also the District Municipality together with Gold Fields

Foundation have a Livestock Improvement Programme

in Elundini and there is a goat project in Mount Fletcher

The challenge is to increase incomes from communal

livestock farming Black emerging farmers suffer from

inadequate technology skills and market knowledge

and therefore receive an income significantly less than

better-equipped white commercial farmers Also landownership (and not land claims there are very few in the

District) is a major concern Large tracts of land are either

in the hands of a few white farmers or the state The

District Municipality should develop a register of state-

land in conjunction with DLA

A G R I C U L T U R E

Extensive livestock farming of sheep goats and cattle

dominate agriculture There are pockets of dry land crop

farming especially in the wetter eastern area Only small

isolated pockets of land are suitable for irrigation despite

having the Orange River and Gariep dam as the northern

boundary It is currently unknown as to the impact of the

Mzimvubu Basin Asgi-SA programme on the Elundini area

There is a differentiation between the commercial farming

areas which are the main economic drivers in the economy

and the subsistence farming areas that are located in the

communal land areas This latter sector is very dependent

on the state for 1047297nancial support and has little ability to

use the land as collateral for obtaining loans

The depopulation of the remote rural areas while people

move to the main roads to access services is seen as a

positive move for agriculture

Two large areas of agricultural land reform exist in the

district namely Umnga Flats and Pitseng both located

in the Elundini area

The care and rehabilitation of land as a means of

protecting agricultural resources is of critical importance

if agriculture is to grow in the area There is presently a

land care trials in ward four in Sterkspruit

Land redistribution is still to be suitably addressed in thearea For example there is no single land redistribution

project in the area of Barkly East in Senqu LM

Road access is constraining agricultural development in

the district area

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9

New irrigation investments being implementedplanned

include the Tsitsa River Basin Project Mzimvubu Basin

Project Orange River Water Scheme and Holo Hlahatsi

Dam development Senqu Municipality has already

undertaken studies on bulk water for irrigation purposes

for the Orange and Karringmelkspruit rivers

It is clear that crop production under irrigation if managed

well has huge potential for job and income creation

An industry Action Plan for arable agriculture would

probably include

Evaluation of all existing studies relevant to the

expansion of irrigation farming in the District

Selection of priority interventions

Project design and feasibility (including environmental

impact assessment)

Land acquisition and ownership

Project financing

Farmer training and support

An industry action plan for livestock would probably

include

Expansion of the effective NWGA model of support

Improving existing programmes designed to facilitate

skills transfer between commercial and emerging

farmers

Improved Agricultural Extension Services

Improved market access (eg drawing on experience of

USAID-funded project in the Chris Hani District Middle

East goat market)

Accelerated land redistribution (with effective support)

Building animal feeds industry

Improved veld management

Move to formal land administration in communal areas

Upgrading access roadsfarm logistics

Dry cropping is only feasible in small parts of the District

underscoring the important role that irrigation schemes

can play Dry-cropping is practiced in Elundini and this

yearrsquos ploughing under the Massive Food Programme

was 1700 hectares

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1 0

T O U R I S M

The Districtrsquos tourism industry has grown from a low base

over the last decade and a niche market seems to have

found in the area of adventure tourism The impact of

tourism has not really been wide felt but it is perceived

to be a growth sector for the area due to the unique

environments the only Ski resort in Southern Africa hot

springs and the largest dam in South Africa

Improved access to the District through the tarring of the

R56 between Mount Fletcher and Maclear access from

Lesotho at Telle Bridge and the new Ugie to Langeni road

are likely to positively impact on the district area

The potential of linking the N1 near Gariep Dam via

a scenic route to the N2 at Mthatha is currently being

explored There is an indication that the route between

Cape Town and Durban through the distric t may prove to

be more attractive to tourists

Environmental and land rehabilitation programmes

should be expanded to create jobs and to preserve the

agricultural and tourism potential of the District

There are several interventions being planned that will

grow tourism in the District

The Provincial Gateway Project at Aliwal Nor th This

involves the beautification of the town to attract

tourists to stopover Presently the N6 with heavy trucks

passes through the town center It would be preferableto divert the N6 onto a parallel Street (aligned with the

bridge over the Orange River) and restore the main

street (Somerset Street) to its former glory trees for

shade and pedestrianised

F O R E S T R Y

There are large untapped forestry potentials in the Elundini

area and an additional 30 000ha could be available for

the expansion of the current plantations Construction

has recently started on the R15 billion PG Bison North

East Cape Forests Cluster near Ugie This will create 3000

direct jobs and many thousands of indirect jobs This

forestry initiative is part of the AsgiSA initiative The

National government AsgiSA programme has identified

forestry development as a key pillar to achieving the

economic growth and development targets and has

prioritized forestry as a key sector for support across all

tiers of government The same is true in the PGDP as well

as in the emerging provincial industrial plan

There is also a potential for more forestry development in

the area but this is constrained by lack of road access into

the hinterland

Improved linkages to Mthatha through the new Ugie

Langeni road will enable products to be exported

from Mthata via the rail link to East London Industrial

Development Zone With the improved road access to this

area coupled with the forestry investments it is likely that

there will be signi1047297cant economic growth in this area

About 100 Interlink transport vehicles will be leaving

the particle board plant per day this is likely to have an

impact on the tarred road networks as well as the towns

through which they will drive when taking the productsto markets (Johannesburg Durban exports etc)

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C O N S T R U C T I O N

The Districtrsquos relatively high infrastructure budget

allocation in the Medium Term Expenditure Framework

presents opportunities for the growth of the local

construction industry (including housing water and

sanitation roads) and may enhance competitiveness

by addressing critical shortcomings in economic

infrastructure The sector also offers great potential to

enhance livelihoods through the EPWP

F I N A N C I A L S E R V I C E S

Most towns do have banks however there are exceptions

such as Venterstad and Mount Fletcher Due to the rural

nature of the area while there may be banks these do

not offer the full one-stop services and managers are

often based in centralized offices in the district (such as

Aliwal North) or outside the district such as in Elliot There

has been an increase in accessibility to ATMs through

the provision of in-store facilities Financial advice is still

however very limited

Revitalization of Aliwal Spa This project has been

delayed by the local municipalityrsquos determination to

retain land ownership of the facility A more pragmatic

approach is required

A public-private partnership should be packaged to

revive the tourist steam trains on the famous railway

reverses between Lady Grey and Barkly East

The Madiba Corridor Route between Aliwal North and Port

St Johns This would include the new road between Ugie

and Langeni (with a long bridge over indigenous forest)

The Gariep Complex Project is one of the distr ict

attractions

There is also a dedicated District tourism organization that

would strengthen marketing and product development

T R A D E

Social grants and employment by the government is the

largest economic sector in Ukhahlamba comprising more

than 40 of the GGP

The District has a significant informal trading sector

(including petty producers of traditional garments etc)

This sector could be boosted by better institutional

support (eg SEDA has not yet established an office in

the District) and by CBD regeneration and the provision

of improved trading environments for hawkers

1 1

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B A S I C S E R V I C E S

Free basic services are currently being implemented in

urban areas but still at differing levels A policy around

the matter is currently being developed

Excepting Maletswai (22) all local municipalities

in Ukhahlamba fall below the provincial average of

households not having any formal sanitation

The sanitation backlogs for Elundini and Senqu make up

three quarters of the district backlogs

Estimates of the cost of eliminating water and sanitation

backlogs in Ukhahlamba are R376 million and R332

million respectively

Service delivery backlogs are most acute in Elundini due

to the poor road network and historical factors related

to the peripheral nature of the area under the former

Transkei regime

W A T E R A N D S A N I T A T I O N

Significant inroads have been made in terms of extending

household water access in Ukhahlamba The more

populous eastern parts of the district (Elundini) faces

the greatest challenges as far a water backlogs with one

third of households (34) still relying on natural water

sources This is significantly greater than the provincial

average (28) According to Ukhahlamba DM 4337 of

the people are in need of water ser vices while 7555 are

in need of sanitation services

1 2

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1 3

E L E C T R I C I T Y

Some 16 of households in Ukhahlamba have been

linked to the electr icity grid between 2001-2006 with 70

and more households in Senqu Maletswai and Gariep

now accessing electricity Elundini however again faces

the greatest challenges as far as backlogs is concerned

Household electricity connections in Elundini more than

doubled between 2001-2006 This however amounts to

only slightly more than one quarter (28) of households

which is significantly below the district and provincial

averages (60 of households for Ukhahlamba and 67

of households for the Eastern Cape) A new 90km 132kV

line (costing about R58m) is required from Mount Frere

to Mount Fletcher to provide additional capacity to

eradicate backlogs

It is necessary to lobby for more Municipal Infrastructure

Grant (MIG) funding to achieve national targets There is

a clear need to revise Water and Sanitation Sector Plans

and in particular to calculate the MIG allocations that are

required to ensure that National water and sanitation

targets are met

The eradication of water and sanitation backlogs are being

used to expand the Expanded Public Works Programme

in the District and strengthen the construction industry

This is being implemented in the provis ion of water in

Mount Fletcher and in the construction of the water

pipeline to Steynsburg from the Fish River Tunnel It

could be expanded if there were funds available

About 50 of clinics in the district have no piped water

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1 4

W A S T E

Solid waste removal and disposal currently poses a

significant challenge to municipalities and communities

leading to inadequate compliance with legislation and

poor service delivery

There are however economic opportunities attached to

the management of waste in the form of recycling and

innovative concepts around space reduction in waste

processes This potential is largely connected to the

larger economic nodes but there are also opportunities

in smaller communities such as Rhodes using waste from

the large tourism establishment of Tiffendell

H O U S I N G

Due to the rural nature of the Ukhahlamba area and

having a low proportion of urbanization the prevalence

of informal houses (shacks) is below the provincial

average Although there are low levels of informal housing

across the District this does not mean there is no further

need for further RDP housing because the definition of

informal housing does not include traditional dwellings

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1 5

T R A N S P O R T

Of significant concern in the district with regard to its

future economic growth is that no public transport

services are offered between Venterstad and Burgersdorp

and between Lady Grey Aliwal North and Bark ly East This

has an impact on the potentials for economic and social

linkages and is highly frustrating for commuters and

does not support the spatial economic growth strategies

of the district area

The improvement of roads in the Elundini area is likely

to have a wide impact on passenger transport across the

district If the R56 becomes an alternative (even if not the

official alternative) to the N2 due to the route being shorter

(as identified in the Spatial Development Framework) this

will increase the amount of commuter traffic Services

for public transport will need to be provided in Mount

Fletcher Maclear Ugie and Steynsburg

Over the past five years taxi facilities were constructed in

Aliwal North (as a larger modal interchange) Maclear and

Mount Fletcher There is still a need to improve public

transport facilities in Senqu especially at Sterkspruit

Related to provision of public transport is the need for

basic essential services such as water sanitation and

shelters at key facilities There is a need to provide these

services at all the nodes (rural and urban) as defined in the

Spatial Development Plan Areas with high dependencyon public transport especially the primary and secondary

nodes should receive priority

R O A D M A I N T E N A N C E

While the district is covered by a network of tarred and

gravel roads the conditions of these are a significant

challenge for the growth of the economy

Without improved maintenance of urban streets access

roads district and provincial roads goods are unable

to get to market and the market cannot be effectively

accessed by residents of the area

Of significant importance is the constant maintenance

of key economic roads as identified as mobility corridors

in the Spatial Development Framework This should

be supported by maintenance of gravel access roads

especially in the Elundini and Senqu areas where

population numbers are higher and untapped economic

potentials are higher

The maintenance of tarred provincial roads will become

a significant issue of concern as they are already

deteriorating beyond reasonable repair and the timber

industry development in the Ugie area will further

exacerbate this issue

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1 6

Airfields are currently used fairly infrequently but form a

key element of the disaster management system as well

as the emergency medical system across the district area

There are also moves afoot to bring specia lised medica l

support to the district areas by flying in specialised

personnel and equipment

Tourism is also in need of improved air transport services

especially in the mountain areas This is due to the

remote location of this area from the main urban hubs

of South Africa but which could be a way of overcoming

the challenge of distance The area around the town of

Rhodes has motivated for a long time for such a facility

The maintenance of municipal airfields has received very

low priority from municipalities over the past years

With regard to railway transport services only one out of

the four railway lines existing in the district is effectively

operational ndash the main line between Johannesburg and

East London This is only accessible at Burgersdorp This

rail line has very little impact on public transport and the

conveyance of goods to and or from the area Infrequently

the line between Burgersdorp and Aliwal North is used

for goods

The line between Aliwal North and Barkly East is of

unique value and could be a significant tourist attraction

if effectively maintained managed and marketed

Airfields are found in most of the urban settlements

and form part of the function of local municipalities A

new airfield has been constructed in Sterkspruit by the

Department of Roads and Transport

Communities have raised the issue of improved telephone

services as a key pr iority There are also still police stations

clinics and schools without any telephone service and

this impacts on their ability to deliver services The

more remote areas of Elundini and Senqu are the worst

affected

Funding for an investigation into the possibility of

providing broadband internet connections in the district

area have been agreed to by the European Union This

could provide potential for Business Outsourcing

T E L E C O M M U N I C A T I O N S

According to the 2001 census more than 50 of the

population has access either to a private telephone or

one nearby but there is still a section of the population

that has no access to a telephone at all Urban areas

receive the best service Parts of the commercial farming

areas and rural areas are provided with telephone services

based on radio linkages to towers driven by solar panel

technology

Cellphone services are used by a large proportion of

the population However this service does not cover the

whole area The mountainous nature of the area affects

reception

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It is important to note that Wetlands cover 32 square

kilometres in Elundini which includes the Gatberg

wetland ndash the breeding ground for the endangered

wattled crane The conservation of wetland is

being attended to through the Working for Water

programme (an EPWP programme)

C O N S E R V A T I O N A R E A S

One provincial nature reserve the Oviston Nature

Reserve on the banks of the Gariep Dam is located within

the Ukhahlamba District There is discussion underway

between the Eastern Cape and Free State conservation

boards to amalgamate the management of the nature

reserves around the Gariep Dam There have also been

proposals to expand the area under conservation in

this area but it is likely that this will be in the form of

stewardships and not through the purchase of land by

the state

1 7

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S O C I A L S E R V I C E S

is clearly the improvement of services delivery while

health infrastructure needs to be addressed in the more

desperate municipalities of Elundini and Senqu

In the District 40 of clinics have no electricity and 50

have no piped water

The services delivery challenges are again greatest in

the eastern and more populous areas of Elundini and

Senqu Generally access to clinics and emergency health

services is lower here and often compounded by poor

access roads

Access to primary education within the more infrastructure

poor areas of Elundini and Senqu is well within the distric t

and provincial norm The focus in terms of education

Approximately 255 of the adult population does not

have any form of training or education with 402

only having completed grades 3-7 Only 33 of the

population has completed Grade 12 compared to 66

in the Eastern Cape Only 17 of the District population

has obtained a tertiary qualification

The Elundini area has the largest proportion of people

having only received primary education while the Gariep

area has the highest proportion of people (315) having

never received any form of education

This highlights the extremely low levels of education in

the District and the need to focus on education and skills

training This can only be accomplished if the backlog in

education facilities is met

E D U C A T I O N A N D S K I L L S

There is very limited access to higher education facil ities

in the district area Ukhahlamba has higher than the

national average of people between 5-24 years attending

school but lower than the national average for those

attending tertiary education

According to the latest information from the Departmentof Education since 1999 only five schools have been built

The ratio between learners and educators is 1 363 which

is a slight improvement

Number of Schools Learners and

Educators in Ukhahlamba DM

TYPE OF SCHOOL

Combined Primary Secondary Total

Schools 173 168 46 397

Learners 60 783 31 997 22 577 126 449

Educators 1 863 984 241 3 482

Census figures show that about 50 of the total

population is of school going age

1 8

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1 9

Other skills development initiatives will be geared

towards the Ugie development project

LGSETA is to fund a Learnership on Municipal Finance and

Administration as well other skills programme focusing

on the unemployed Other learnerships will be rolled out

to support the water and sanitation programmes andmore young people will be employed

Partnerships will be forged and individual MoUrsquos will

be entered into between the District Municipality and

the following Higher Education and Further Education

institutions

Ikhala Public FET College

University of Fort Hare

Walter Sisulu University of Technology

University of the Free State

University of Western Cape

University of Stellenbosch

and various SETArsquos including LGSETA

In partnership with the aforementioned stakeholders a

district wide skills development plan will be developed

as a post summit activity and it will be guided by the

summit resolutions

About 41 of the Ukhahlamba Districtrsquos workforce is

made up of elementary or unskilled workers which

is the highest percentage in the province In Gariep

elementaryunskilled workers make up 53 of the

workforce but the largest numbers of unskilled workers

are in the more densely populated Senqu (3 682) and

Elundini (3 253) municipal areas On average 14 of

Ukhahlambarsquos working people have professional skills

rising to 17 in Elundini and Senqu The less densely

populated parts appear to have more skilled people

in Maletswai 15 of working people are skilled and in

Gariep 13 are skilled

Ukhahlamba has lower levels of senior management

technical and clerical skills than the provincersquos other

district municipali ties This corresponds with low levels of

education in Ukhahlamba and indicates a need for skills

development and education programmes

STRATEGIC SKILLS

DEVELOPMENT INITIATIVES JIPSA

Ukhahlamba District Municipality will in partnership with

the Office Of the Premier civil society the business sector

sector departments community based projects and local

municipalities embark on a massive skills development

drive in the following sectors of the economy to support

the 6 economic growth of the district

1 Agriculture

2 Tourism

3 Infrastructure

4 Manufacturing

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2 0

H E A L T H C A R E

The Ukhahlamba area has 11 hospitals including health

care centres and 43 clinics with at least 2 clinics in each

magisterial district The most densely populated Mount

Fletcher and Sterkspruit areas have 13 and 10 clinics

respectively The District has about 998 hospital beds with

a serviced supply average of about 328 people per bed

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2 1

H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

8122019 Udm Gds Profile

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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G D S A G R E E M E N T

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

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

To ensure that discussion on the above issues takes place

on an informed basis

To present a coherent picture of the socia l demographic

and economic profile and service levels of the Ukhahlamba

area

To present a picture of the challenges facing local

government in Ukhahlamba especially in relation to

capacity

To suggest the mechanisms amp processes for monitoring

progress on the decisions reached and the governance

framework for ongoing dialogue and feedback among

social partners

The Ukhahlamba 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 Ukhahlamba 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 L O G Y

This profile of the Ukhahlamba 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

Monitor Group ndash Economic Profiling of the Poverty Nodesndash Ukhahlamba

District and local municipal IDPs

Data from the Rapid Assessment of services in the Eastern

Cape conducted in 2006 by Fort Hare Institute for Socio-

Economic Research for the Office of the Premier

Various research reports

Social and economic infrastructure programmes required

to improve investments and provide basic services to

communities

Contribution by each partner to the construction of such

infrastructure including possibility of PPP

Second Economy interventions (EPWP including roads

home-based care and early childhood development

cooperatives micro-credit procurement land reform

etc) and the role of each sector in such interventions

Promoting local procurement ndash what interventions are

required

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

Establishing a partnerships andor regional growth

coalitions which will act as a mechanism for cooperative

action at all levels and a robust framework for monitoring

and evaluating progress

2

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

LOCATION to the north the district borders the

Free State Province and the country of Lesotho The district

municipalities of Alfred Nzo OR Tambo and Chris Hani to

the east and south and the Northern Cape Province to

the west The boundary of the district is an administrative

boundary and not necessarily an economic boundary

POPULATION About 350 000 people and with a low

growth rate The District is generally sparsely populated

except for the former homeland areas of Mount Fletcher

rural parts of Tsolo and Qumbu (in Elundini) and

Sterkspruit (in Senqu) These two areas account for about

three quarters of the District population These are also

the areas where poverty is most entrenched and basic

services backlogs most acute

AREA 26518km2

3

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CULTURE over 90 Xhosa

LANGUAGE Xhosa Sesotho Afrikaans and English

NODAL STATUS The Distr ict has a high development

profile in terms of its Integrated Sustainable Rural

Development Programme (ISRDP) nodal status

MUNICIPALITIES Ukhahlamba District and Gariep

Maletswai Senqu and Elundini local municipalities

TOPOGRAPHY The west of the District (Gariep and

Maletswai) is dry Karoo flatland and areas of the dry

NamaKaroo Biome The East (Senqu and Elundini) is

mountainous and wetter with elements of the Maloti

Biome Most of the District falls within the Orange River

catchment basin except for Elundini which falls in the

Mzimvubu River Basin

4

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S E T T L E M E N T S T R U C T U R E There are 13 towns

in the area with the largest being Aliwal North with a

population of about 40000 Sterkspruit Maclear and

Mount Fletcher are secondary service and retail centres

Ugie is an aspiring secondary town Three rural nodes (in

the communal land area) have been de1047297ned in Elundini

and four in Senqu The Spatial development framework for

the District de1047297ne special inter ventions for these different

categories of towns as well as corridors and special

development areas Different interventions are proposed

in each of these areas ndash areas of severe backlogs (old

Transkei) areas of high economic potential (agriculture

tourism) nodes with ability to support the economy

(especially primary and secondary towns)

S OC IA L S TR UC TUR ING The levels of out migration

from Ukhahlamba are higher than the provincial average

The proportion of households reporting at least one

migrant household member amounts to 18 of district

households against 152 of provincial households

While 7 of the district population overall is reported as

migrating from their household this is so for 56 of the

provincial population

The combination of the limited local economy and

significant challenges in local services infrastructure and

delivery understandably result in the District recording

among the highest levels of out migration in the

province The vast majority of migrants from Ukhahlamba

leave their households in order to take up employment

or to go in search of employment The historically

underdeveloped areas of Senqu and Elundini also see

significant numbers of household members migrating

in order to access schools or tertiary education

5

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D I S T R I C T E C O N O M Y

There is also a perception among residents in the area

that hawking hairdressing clothes washing etc are

not ldquorealrdquo jobs and they do not consider that this is a

contribution to the economy Many people still aspire for

a government job as it is seen as secure

It can be seen that in the manufacturing sector growth

has occurred in the food-processing sub sector In the

Trade Cater ing and Accommodation sector there has

been very little growth in the catering side with the

largest growth occurring in the retail sub-sector On the

Transpor t and Communication sector the bulk of the

growth has been in the communication sector and in

the Finance and business services sector there has been

an increase in the finance sector but a decrease in the

business services sub-sector

Overall the GGP of the district has remained a fairly

constant proportion of the provincial GGP and the per

capital GGP of individuals within the Ukhahlamba area has

also remained fairly constant (when using constant prices)

at around 41 of the provincial per capital income

The District area contributes about 3 of the provincial

Gross Geographic Product (GGP)

The Ukhahlamba area is one of the 13 poorest and most

poverty stricken districts of South Africa

The 2001 Census indicated that over 86 of the residents

of the area live in poverty This is based on that the annual

household income is below the basic annual substance

level of R19200 per year

Of those of working age only 18 are employed 21 are

unemployed and 603 are not economically active (that is

that they have not sought work during the past 2 years)

Of those that are employed over 90 are employed

by someone else and only a very small 22 are self-

employed This has a significant impact on the ldquospirit of

entrepreneurshiprdquo where most people do not have the

experience of running their own business and have

a history of reliance and dependency on others for

employment

6

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7

factor mobility reduce transport costs promote linkages

with neighboring regions and reduce time spent in

survivalist activities such as collecting fuel and water

is the salient need in terms of Ukhahlambarsquos economic

competitiveness

Comparative advantage and associated opportunities

do exist in the agricultural sector as a result of labour

surpluses pockets of fertile land and under-utilised

irrigation potential Wool processing (in Maletswai -

which is advantaged by the N6 link to East London and

Gariep) livestock husbandry (Elundini and Gariep) maize

(Elundini and Senqu) and dry-land lucerne (Senqu) have

all shown signs of being suitable but commercializing

these activities and enhancing productivity remains a

major challenge The relative humidity (particularly in

Senqu and Elundini) and abundance of water creates

the potential for forestry (wattle) enterprises in Elundini

and for an expansion of the irrigated agricultural sector

provided the supporting infrastructure is available

The District rsquos stark topography and spectacular landscapes

in conjunction with low reported crime levels creates the

potential for tourism Currently inhibiting the realization

of this potential are perceptions about crime the fact

that tourist products are neither well packaged nor well

marketed and the lack of suitable road or rail access

The district can reasonably anticipate investment ininfrastructure as a result of its nodal status and infrastructure

grant allocation This should create opportunities for local

contractors in the construction industry provided they

have the capacity to compete for tenders

E C O N O M I C C O M P E T I T I V E N E S S

The composite competitive index for competitive

advantage in Ukhahlamba District is low in comparison to

the rest of the province The main reason for the regionrsquos

lack of competitive activity appears to be the dearth of

basic services and economic infrastructure Only 431 of

the population has access to electricity and almost 60 of

the population does not have access to reticulated water

Further constraints on the Districtrsquos competitiveness

include prevailing tenure insecurity and ambiguous

tenure arrangements which act as a deterrent to private

sector investment and complicate public sector efforts to

address the infrastructure backlog There is a clear need

for an approach to communal tenure that is conducive to

attracting investment

Easy communication is undermined by the Districtrsquos

distance from a major economic hub As a result

transaction costs are high This barrier to enterprise

creation is exacerbated by the limited levels of finance

and enterprise support in the District

The municipal economies of Ukhahlamba Distr ict are

highly concentrated There is excessive reliance on two

sectors - agriculture and government and community

services This renders these economies dependent on

outside goods and services (sixty per cent of purchases

are produced and manufactured outside of the region)and vulnerable to change Gariep is the only municipality

that does not rely on community services as the primary

contributor to revenue and employment

The Competitiveness report (conducted for the

Provincial LED Programme) also stated that the provision

of economic infrastructure and services that enhance

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8

Very little agro-processing is done in the area and most

produce is transported via road to larger centers out of

the district Aside from agro-processing the District has

virtually no manufacturing industry The agro-processing

industry is also small and mainly concentrated in Aliwal

North Nevertheless it is quite possible that this sector

could attract some new investment linked to existing

and new primary production Areas of interest could

include for example game meat fruit-processing (eg

peaches raspberries) nuts processing wool products

potato processing tanning stock feed etc A thorough

sector study is required to identify and package the most

viable investment opportunities

Livestock farming (cattle dairy sheep goats) and game

are very important in the District both for commercial

and communal farmers Livestock farming in communal

areas is being supported by the Provincial Department of

Agriculture through construction of stock dams dipping

tanks shearing sheds fencing veterinary services etc

Also the District Municipality together with Gold Fields

Foundation have a Livestock Improvement Programme

in Elundini and there is a goat project in Mount Fletcher

The challenge is to increase incomes from communal

livestock farming Black emerging farmers suffer from

inadequate technology skills and market knowledge

and therefore receive an income significantly less than

better-equipped white commercial farmers Also landownership (and not land claims there are very few in the

District) is a major concern Large tracts of land are either

in the hands of a few white farmers or the state The

District Municipality should develop a register of state-

land in conjunction with DLA

A G R I C U L T U R E

Extensive livestock farming of sheep goats and cattle

dominate agriculture There are pockets of dry land crop

farming especially in the wetter eastern area Only small

isolated pockets of land are suitable for irrigation despite

having the Orange River and Gariep dam as the northern

boundary It is currently unknown as to the impact of the

Mzimvubu Basin Asgi-SA programme on the Elundini area

There is a differentiation between the commercial farming

areas which are the main economic drivers in the economy

and the subsistence farming areas that are located in the

communal land areas This latter sector is very dependent

on the state for 1047297nancial support and has little ability to

use the land as collateral for obtaining loans

The depopulation of the remote rural areas while people

move to the main roads to access services is seen as a

positive move for agriculture

Two large areas of agricultural land reform exist in the

district namely Umnga Flats and Pitseng both located

in the Elundini area

The care and rehabilitation of land as a means of

protecting agricultural resources is of critical importance

if agriculture is to grow in the area There is presently a

land care trials in ward four in Sterkspruit

Land redistribution is still to be suitably addressed in thearea For example there is no single land redistribution

project in the area of Barkly East in Senqu LM

Road access is constraining agricultural development in

the district area

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9

New irrigation investments being implementedplanned

include the Tsitsa River Basin Project Mzimvubu Basin

Project Orange River Water Scheme and Holo Hlahatsi

Dam development Senqu Municipality has already

undertaken studies on bulk water for irrigation purposes

for the Orange and Karringmelkspruit rivers

It is clear that crop production under irrigation if managed

well has huge potential for job and income creation

An industry Action Plan for arable agriculture would

probably include

Evaluation of all existing studies relevant to the

expansion of irrigation farming in the District

Selection of priority interventions

Project design and feasibility (including environmental

impact assessment)

Land acquisition and ownership

Project financing

Farmer training and support

An industry action plan for livestock would probably

include

Expansion of the effective NWGA model of support

Improving existing programmes designed to facilitate

skills transfer between commercial and emerging

farmers

Improved Agricultural Extension Services

Improved market access (eg drawing on experience of

USAID-funded project in the Chris Hani District Middle

East goat market)

Accelerated land redistribution (with effective support)

Building animal feeds industry

Improved veld management

Move to formal land administration in communal areas

Upgrading access roadsfarm logistics

Dry cropping is only feasible in small parts of the District

underscoring the important role that irrigation schemes

can play Dry-cropping is practiced in Elundini and this

yearrsquos ploughing under the Massive Food Programme

was 1700 hectares

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1 0

T O U R I S M

The Districtrsquos tourism industry has grown from a low base

over the last decade and a niche market seems to have

found in the area of adventure tourism The impact of

tourism has not really been wide felt but it is perceived

to be a growth sector for the area due to the unique

environments the only Ski resort in Southern Africa hot

springs and the largest dam in South Africa

Improved access to the District through the tarring of the

R56 between Mount Fletcher and Maclear access from

Lesotho at Telle Bridge and the new Ugie to Langeni road

are likely to positively impact on the district area

The potential of linking the N1 near Gariep Dam via

a scenic route to the N2 at Mthatha is currently being

explored There is an indication that the route between

Cape Town and Durban through the distric t may prove to

be more attractive to tourists

Environmental and land rehabilitation programmes

should be expanded to create jobs and to preserve the

agricultural and tourism potential of the District

There are several interventions being planned that will

grow tourism in the District

The Provincial Gateway Project at Aliwal Nor th This

involves the beautification of the town to attract

tourists to stopover Presently the N6 with heavy trucks

passes through the town center It would be preferableto divert the N6 onto a parallel Street (aligned with the

bridge over the Orange River) and restore the main

street (Somerset Street) to its former glory trees for

shade and pedestrianised

F O R E S T R Y

There are large untapped forestry potentials in the Elundini

area and an additional 30 000ha could be available for

the expansion of the current plantations Construction

has recently started on the R15 billion PG Bison North

East Cape Forests Cluster near Ugie This will create 3000

direct jobs and many thousands of indirect jobs This

forestry initiative is part of the AsgiSA initiative The

National government AsgiSA programme has identified

forestry development as a key pillar to achieving the

economic growth and development targets and has

prioritized forestry as a key sector for support across all

tiers of government The same is true in the PGDP as well

as in the emerging provincial industrial plan

There is also a potential for more forestry development in

the area but this is constrained by lack of road access into

the hinterland

Improved linkages to Mthatha through the new Ugie

Langeni road will enable products to be exported

from Mthata via the rail link to East London Industrial

Development Zone With the improved road access to this

area coupled with the forestry investments it is likely that

there will be signi1047297cant economic growth in this area

About 100 Interlink transport vehicles will be leaving

the particle board plant per day this is likely to have an

impact on the tarred road networks as well as the towns

through which they will drive when taking the productsto markets (Johannesburg Durban exports etc)

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C O N S T R U C T I O N

The Districtrsquos relatively high infrastructure budget

allocation in the Medium Term Expenditure Framework

presents opportunities for the growth of the local

construction industry (including housing water and

sanitation roads) and may enhance competitiveness

by addressing critical shortcomings in economic

infrastructure The sector also offers great potential to

enhance livelihoods through the EPWP

F I N A N C I A L S E R V I C E S

Most towns do have banks however there are exceptions

such as Venterstad and Mount Fletcher Due to the rural

nature of the area while there may be banks these do

not offer the full one-stop services and managers are

often based in centralized offices in the district (such as

Aliwal North) or outside the district such as in Elliot There

has been an increase in accessibility to ATMs through

the provision of in-store facilities Financial advice is still

however very limited

Revitalization of Aliwal Spa This project has been

delayed by the local municipalityrsquos determination to

retain land ownership of the facility A more pragmatic

approach is required

A public-private partnership should be packaged to

revive the tourist steam trains on the famous railway

reverses between Lady Grey and Barkly East

The Madiba Corridor Route between Aliwal North and Port

St Johns This would include the new road between Ugie

and Langeni (with a long bridge over indigenous forest)

The Gariep Complex Project is one of the distr ict

attractions

There is also a dedicated District tourism organization that

would strengthen marketing and product development

T R A D E

Social grants and employment by the government is the

largest economic sector in Ukhahlamba comprising more

than 40 of the GGP

The District has a significant informal trading sector

(including petty producers of traditional garments etc)

This sector could be boosted by better institutional

support (eg SEDA has not yet established an office in

the District) and by CBD regeneration and the provision

of improved trading environments for hawkers

1 1

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B A S I C S E R V I C E S

Free basic services are currently being implemented in

urban areas but still at differing levels A policy around

the matter is currently being developed

Excepting Maletswai (22) all local municipalities

in Ukhahlamba fall below the provincial average of

households not having any formal sanitation

The sanitation backlogs for Elundini and Senqu make up

three quarters of the district backlogs

Estimates of the cost of eliminating water and sanitation

backlogs in Ukhahlamba are R376 million and R332

million respectively

Service delivery backlogs are most acute in Elundini due

to the poor road network and historical factors related

to the peripheral nature of the area under the former

Transkei regime

W A T E R A N D S A N I T A T I O N

Significant inroads have been made in terms of extending

household water access in Ukhahlamba The more

populous eastern parts of the district (Elundini) faces

the greatest challenges as far a water backlogs with one

third of households (34) still relying on natural water

sources This is significantly greater than the provincial

average (28) According to Ukhahlamba DM 4337 of

the people are in need of water ser vices while 7555 are

in need of sanitation services

1 2

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1 3

E L E C T R I C I T Y

Some 16 of households in Ukhahlamba have been

linked to the electr icity grid between 2001-2006 with 70

and more households in Senqu Maletswai and Gariep

now accessing electricity Elundini however again faces

the greatest challenges as far as backlogs is concerned

Household electricity connections in Elundini more than

doubled between 2001-2006 This however amounts to

only slightly more than one quarter (28) of households

which is significantly below the district and provincial

averages (60 of households for Ukhahlamba and 67

of households for the Eastern Cape) A new 90km 132kV

line (costing about R58m) is required from Mount Frere

to Mount Fletcher to provide additional capacity to

eradicate backlogs

It is necessary to lobby for more Municipal Infrastructure

Grant (MIG) funding to achieve national targets There is

a clear need to revise Water and Sanitation Sector Plans

and in particular to calculate the MIG allocations that are

required to ensure that National water and sanitation

targets are met

The eradication of water and sanitation backlogs are being

used to expand the Expanded Public Works Programme

in the District and strengthen the construction industry

This is being implemented in the provis ion of water in

Mount Fletcher and in the construction of the water

pipeline to Steynsburg from the Fish River Tunnel It

could be expanded if there were funds available

About 50 of clinics in the district have no piped water

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1 4

W A S T E

Solid waste removal and disposal currently poses a

significant challenge to municipalities and communities

leading to inadequate compliance with legislation and

poor service delivery

There are however economic opportunities attached to

the management of waste in the form of recycling and

innovative concepts around space reduction in waste

processes This potential is largely connected to the

larger economic nodes but there are also opportunities

in smaller communities such as Rhodes using waste from

the large tourism establishment of Tiffendell

H O U S I N G

Due to the rural nature of the Ukhahlamba area and

having a low proportion of urbanization the prevalence

of informal houses (shacks) is below the provincial

average Although there are low levels of informal housing

across the District this does not mean there is no further

need for further RDP housing because the definition of

informal housing does not include traditional dwellings

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1 5

T R A N S P O R T

Of significant concern in the district with regard to its

future economic growth is that no public transport

services are offered between Venterstad and Burgersdorp

and between Lady Grey Aliwal North and Bark ly East This

has an impact on the potentials for economic and social

linkages and is highly frustrating for commuters and

does not support the spatial economic growth strategies

of the district area

The improvement of roads in the Elundini area is likely

to have a wide impact on passenger transport across the

district If the R56 becomes an alternative (even if not the

official alternative) to the N2 due to the route being shorter

(as identified in the Spatial Development Framework) this

will increase the amount of commuter traffic Services

for public transport will need to be provided in Mount

Fletcher Maclear Ugie and Steynsburg

Over the past five years taxi facilities were constructed in

Aliwal North (as a larger modal interchange) Maclear and

Mount Fletcher There is still a need to improve public

transport facilities in Senqu especially at Sterkspruit

Related to provision of public transport is the need for

basic essential services such as water sanitation and

shelters at key facilities There is a need to provide these

services at all the nodes (rural and urban) as defined in the

Spatial Development Plan Areas with high dependencyon public transport especially the primary and secondary

nodes should receive priority

R O A D M A I N T E N A N C E

While the district is covered by a network of tarred and

gravel roads the conditions of these are a significant

challenge for the growth of the economy

Without improved maintenance of urban streets access

roads district and provincial roads goods are unable

to get to market and the market cannot be effectively

accessed by residents of the area

Of significant importance is the constant maintenance

of key economic roads as identified as mobility corridors

in the Spatial Development Framework This should

be supported by maintenance of gravel access roads

especially in the Elundini and Senqu areas where

population numbers are higher and untapped economic

potentials are higher

The maintenance of tarred provincial roads will become

a significant issue of concern as they are already

deteriorating beyond reasonable repair and the timber

industry development in the Ugie area will further

exacerbate this issue

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1 6

Airfields are currently used fairly infrequently but form a

key element of the disaster management system as well

as the emergency medical system across the district area

There are also moves afoot to bring specia lised medica l

support to the district areas by flying in specialised

personnel and equipment

Tourism is also in need of improved air transport services

especially in the mountain areas This is due to the

remote location of this area from the main urban hubs

of South Africa but which could be a way of overcoming

the challenge of distance The area around the town of

Rhodes has motivated for a long time for such a facility

The maintenance of municipal airfields has received very

low priority from municipalities over the past years

With regard to railway transport services only one out of

the four railway lines existing in the district is effectively

operational ndash the main line between Johannesburg and

East London This is only accessible at Burgersdorp This

rail line has very little impact on public transport and the

conveyance of goods to and or from the area Infrequently

the line between Burgersdorp and Aliwal North is used

for goods

The line between Aliwal North and Barkly East is of

unique value and could be a significant tourist attraction

if effectively maintained managed and marketed

Airfields are found in most of the urban settlements

and form part of the function of local municipalities A

new airfield has been constructed in Sterkspruit by the

Department of Roads and Transport

Communities have raised the issue of improved telephone

services as a key pr iority There are also still police stations

clinics and schools without any telephone service and

this impacts on their ability to deliver services The

more remote areas of Elundini and Senqu are the worst

affected

Funding for an investigation into the possibility of

providing broadband internet connections in the district

area have been agreed to by the European Union This

could provide potential for Business Outsourcing

T E L E C O M M U N I C A T I O N S

According to the 2001 census more than 50 of the

population has access either to a private telephone or

one nearby but there is still a section of the population

that has no access to a telephone at all Urban areas

receive the best service Parts of the commercial farming

areas and rural areas are provided with telephone services

based on radio linkages to towers driven by solar panel

technology

Cellphone services are used by a large proportion of

the population However this service does not cover the

whole area The mountainous nature of the area affects

reception

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It is important to note that Wetlands cover 32 square

kilometres in Elundini which includes the Gatberg

wetland ndash the breeding ground for the endangered

wattled crane The conservation of wetland is

being attended to through the Working for Water

programme (an EPWP programme)

C O N S E R V A T I O N A R E A S

One provincial nature reserve the Oviston Nature

Reserve on the banks of the Gariep Dam is located within

the Ukhahlamba District There is discussion underway

between the Eastern Cape and Free State conservation

boards to amalgamate the management of the nature

reserves around the Gariep Dam There have also been

proposals to expand the area under conservation in

this area but it is likely that this will be in the form of

stewardships and not through the purchase of land by

the state

1 7

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S O C I A L S E R V I C E S

is clearly the improvement of services delivery while

health infrastructure needs to be addressed in the more

desperate municipalities of Elundini and Senqu

In the District 40 of clinics have no electricity and 50

have no piped water

The services delivery challenges are again greatest in

the eastern and more populous areas of Elundini and

Senqu Generally access to clinics and emergency health

services is lower here and often compounded by poor

access roads

Access to primary education within the more infrastructure

poor areas of Elundini and Senqu is well within the distric t

and provincial norm The focus in terms of education

Approximately 255 of the adult population does not

have any form of training or education with 402

only having completed grades 3-7 Only 33 of the

population has completed Grade 12 compared to 66

in the Eastern Cape Only 17 of the District population

has obtained a tertiary qualification

The Elundini area has the largest proportion of people

having only received primary education while the Gariep

area has the highest proportion of people (315) having

never received any form of education

This highlights the extremely low levels of education in

the District and the need to focus on education and skills

training This can only be accomplished if the backlog in

education facilities is met

E D U C A T I O N A N D S K I L L S

There is very limited access to higher education facil ities

in the district area Ukhahlamba has higher than the

national average of people between 5-24 years attending

school but lower than the national average for those

attending tertiary education

According to the latest information from the Departmentof Education since 1999 only five schools have been built

The ratio between learners and educators is 1 363 which

is a slight improvement

Number of Schools Learners and

Educators in Ukhahlamba DM

TYPE OF SCHOOL

Combined Primary Secondary Total

Schools 173 168 46 397

Learners 60 783 31 997 22 577 126 449

Educators 1 863 984 241 3 482

Census figures show that about 50 of the total

population is of school going age

1 8

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1 9

Other skills development initiatives will be geared

towards the Ugie development project

LGSETA is to fund a Learnership on Municipal Finance and

Administration as well other skills programme focusing

on the unemployed Other learnerships will be rolled out

to support the water and sanitation programmes andmore young people will be employed

Partnerships will be forged and individual MoUrsquos will

be entered into between the District Municipality and

the following Higher Education and Further Education

institutions

Ikhala Public FET College

University of Fort Hare

Walter Sisulu University of Technology

University of the Free State

University of Western Cape

University of Stellenbosch

and various SETArsquos including LGSETA

In partnership with the aforementioned stakeholders a

district wide skills development plan will be developed

as a post summit activity and it will be guided by the

summit resolutions

About 41 of the Ukhahlamba Districtrsquos workforce is

made up of elementary or unskilled workers which

is the highest percentage in the province In Gariep

elementaryunskilled workers make up 53 of the

workforce but the largest numbers of unskilled workers

are in the more densely populated Senqu (3 682) and

Elundini (3 253) municipal areas On average 14 of

Ukhahlambarsquos working people have professional skills

rising to 17 in Elundini and Senqu The less densely

populated parts appear to have more skilled people

in Maletswai 15 of working people are skilled and in

Gariep 13 are skilled

Ukhahlamba has lower levels of senior management

technical and clerical skills than the provincersquos other

district municipali ties This corresponds with low levels of

education in Ukhahlamba and indicates a need for skills

development and education programmes

STRATEGIC SKILLS

DEVELOPMENT INITIATIVES JIPSA

Ukhahlamba District Municipality will in partnership with

the Office Of the Premier civil society the business sector

sector departments community based projects and local

municipalities embark on a massive skills development

drive in the following sectors of the economy to support

the 6 economic growth of the district

1 Agriculture

2 Tourism

3 Infrastructure

4 Manufacturing

8122019 Udm Gds Profile

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2 0

H E A L T H C A R E

The Ukhahlamba area has 11 hospitals including health

care centres and 43 clinics with at least 2 clinics in each

magisterial district The most densely populated Mount

Fletcher and Sterkspruit areas have 13 and 10 clinics

respectively The District has about 998 hospital beds with

a serviced supply average of about 328 people per bed

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2 1

H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

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3 7

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3 8

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3 9

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4 0

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4 1

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42

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4 3

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44

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4 5

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4 6

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4 7

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4 9

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5 0

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5 1

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52

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54

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5 5

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

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

LOCATION to the north the district borders the

Free State Province and the country of Lesotho The district

municipalities of Alfred Nzo OR Tambo and Chris Hani to

the east and south and the Northern Cape Province to

the west The boundary of the district is an administrative

boundary and not necessarily an economic boundary

POPULATION About 350 000 people and with a low

growth rate The District is generally sparsely populated

except for the former homeland areas of Mount Fletcher

rural parts of Tsolo and Qumbu (in Elundini) and

Sterkspruit (in Senqu) These two areas account for about

three quarters of the District population These are also

the areas where poverty is most entrenched and basic

services backlogs most acute

AREA 26518km2

3

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CULTURE over 90 Xhosa

LANGUAGE Xhosa Sesotho Afrikaans and English

NODAL STATUS The Distr ict has a high development

profile in terms of its Integrated Sustainable Rural

Development Programme (ISRDP) nodal status

MUNICIPALITIES Ukhahlamba District and Gariep

Maletswai Senqu and Elundini local municipalities

TOPOGRAPHY The west of the District (Gariep and

Maletswai) is dry Karoo flatland and areas of the dry

NamaKaroo Biome The East (Senqu and Elundini) is

mountainous and wetter with elements of the Maloti

Biome Most of the District falls within the Orange River

catchment basin except for Elundini which falls in the

Mzimvubu River Basin

4

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S E T T L E M E N T S T R U C T U R E There are 13 towns

in the area with the largest being Aliwal North with a

population of about 40000 Sterkspruit Maclear and

Mount Fletcher are secondary service and retail centres

Ugie is an aspiring secondary town Three rural nodes (in

the communal land area) have been de1047297ned in Elundini

and four in Senqu The Spatial development framework for

the District de1047297ne special inter ventions for these different

categories of towns as well as corridors and special

development areas Different interventions are proposed

in each of these areas ndash areas of severe backlogs (old

Transkei) areas of high economic potential (agriculture

tourism) nodes with ability to support the economy

(especially primary and secondary towns)

S OC IA L S TR UC TUR ING The levels of out migration

from Ukhahlamba are higher than the provincial average

The proportion of households reporting at least one

migrant household member amounts to 18 of district

households against 152 of provincial households

While 7 of the district population overall is reported as

migrating from their household this is so for 56 of the

provincial population

The combination of the limited local economy and

significant challenges in local services infrastructure and

delivery understandably result in the District recording

among the highest levels of out migration in the

province The vast majority of migrants from Ukhahlamba

leave their households in order to take up employment

or to go in search of employment The historically

underdeveloped areas of Senqu and Elundini also see

significant numbers of household members migrating

in order to access schools or tertiary education

5

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D I S T R I C T E C O N O M Y

There is also a perception among residents in the area

that hawking hairdressing clothes washing etc are

not ldquorealrdquo jobs and they do not consider that this is a

contribution to the economy Many people still aspire for

a government job as it is seen as secure

It can be seen that in the manufacturing sector growth

has occurred in the food-processing sub sector In the

Trade Cater ing and Accommodation sector there has

been very little growth in the catering side with the

largest growth occurring in the retail sub-sector On the

Transpor t and Communication sector the bulk of the

growth has been in the communication sector and in

the Finance and business services sector there has been

an increase in the finance sector but a decrease in the

business services sub-sector

Overall the GGP of the district has remained a fairly

constant proportion of the provincial GGP and the per

capital GGP of individuals within the Ukhahlamba area has

also remained fairly constant (when using constant prices)

at around 41 of the provincial per capital income

The District area contributes about 3 of the provincial

Gross Geographic Product (GGP)

The Ukhahlamba area is one of the 13 poorest and most

poverty stricken districts of South Africa

The 2001 Census indicated that over 86 of the residents

of the area live in poverty This is based on that the annual

household income is below the basic annual substance

level of R19200 per year

Of those of working age only 18 are employed 21 are

unemployed and 603 are not economically active (that is

that they have not sought work during the past 2 years)

Of those that are employed over 90 are employed

by someone else and only a very small 22 are self-

employed This has a significant impact on the ldquospirit of

entrepreneurshiprdquo where most people do not have the

experience of running their own business and have

a history of reliance and dependency on others for

employment

6

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7

factor mobility reduce transport costs promote linkages

with neighboring regions and reduce time spent in

survivalist activities such as collecting fuel and water

is the salient need in terms of Ukhahlambarsquos economic

competitiveness

Comparative advantage and associated opportunities

do exist in the agricultural sector as a result of labour

surpluses pockets of fertile land and under-utilised

irrigation potential Wool processing (in Maletswai -

which is advantaged by the N6 link to East London and

Gariep) livestock husbandry (Elundini and Gariep) maize

(Elundini and Senqu) and dry-land lucerne (Senqu) have

all shown signs of being suitable but commercializing

these activities and enhancing productivity remains a

major challenge The relative humidity (particularly in

Senqu and Elundini) and abundance of water creates

the potential for forestry (wattle) enterprises in Elundini

and for an expansion of the irrigated agricultural sector

provided the supporting infrastructure is available

The District rsquos stark topography and spectacular landscapes

in conjunction with low reported crime levels creates the

potential for tourism Currently inhibiting the realization

of this potential are perceptions about crime the fact

that tourist products are neither well packaged nor well

marketed and the lack of suitable road or rail access

The district can reasonably anticipate investment ininfrastructure as a result of its nodal status and infrastructure

grant allocation This should create opportunities for local

contractors in the construction industry provided they

have the capacity to compete for tenders

E C O N O M I C C O M P E T I T I V E N E S S

The composite competitive index for competitive

advantage in Ukhahlamba District is low in comparison to

the rest of the province The main reason for the regionrsquos

lack of competitive activity appears to be the dearth of

basic services and economic infrastructure Only 431 of

the population has access to electricity and almost 60 of

the population does not have access to reticulated water

Further constraints on the Districtrsquos competitiveness

include prevailing tenure insecurity and ambiguous

tenure arrangements which act as a deterrent to private

sector investment and complicate public sector efforts to

address the infrastructure backlog There is a clear need

for an approach to communal tenure that is conducive to

attracting investment

Easy communication is undermined by the Districtrsquos

distance from a major economic hub As a result

transaction costs are high This barrier to enterprise

creation is exacerbated by the limited levels of finance

and enterprise support in the District

The municipal economies of Ukhahlamba Distr ict are

highly concentrated There is excessive reliance on two

sectors - agriculture and government and community

services This renders these economies dependent on

outside goods and services (sixty per cent of purchases

are produced and manufactured outside of the region)and vulnerable to change Gariep is the only municipality

that does not rely on community services as the primary

contributor to revenue and employment

The Competitiveness report (conducted for the

Provincial LED Programme) also stated that the provision

of economic infrastructure and services that enhance

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8

Very little agro-processing is done in the area and most

produce is transported via road to larger centers out of

the district Aside from agro-processing the District has

virtually no manufacturing industry The agro-processing

industry is also small and mainly concentrated in Aliwal

North Nevertheless it is quite possible that this sector

could attract some new investment linked to existing

and new primary production Areas of interest could

include for example game meat fruit-processing (eg

peaches raspberries) nuts processing wool products

potato processing tanning stock feed etc A thorough

sector study is required to identify and package the most

viable investment opportunities

Livestock farming (cattle dairy sheep goats) and game

are very important in the District both for commercial

and communal farmers Livestock farming in communal

areas is being supported by the Provincial Department of

Agriculture through construction of stock dams dipping

tanks shearing sheds fencing veterinary services etc

Also the District Municipality together with Gold Fields

Foundation have a Livestock Improvement Programme

in Elundini and there is a goat project in Mount Fletcher

The challenge is to increase incomes from communal

livestock farming Black emerging farmers suffer from

inadequate technology skills and market knowledge

and therefore receive an income significantly less than

better-equipped white commercial farmers Also landownership (and not land claims there are very few in the

District) is a major concern Large tracts of land are either

in the hands of a few white farmers or the state The

District Municipality should develop a register of state-

land in conjunction with DLA

A G R I C U L T U R E

Extensive livestock farming of sheep goats and cattle

dominate agriculture There are pockets of dry land crop

farming especially in the wetter eastern area Only small

isolated pockets of land are suitable for irrigation despite

having the Orange River and Gariep dam as the northern

boundary It is currently unknown as to the impact of the

Mzimvubu Basin Asgi-SA programme on the Elundini area

There is a differentiation between the commercial farming

areas which are the main economic drivers in the economy

and the subsistence farming areas that are located in the

communal land areas This latter sector is very dependent

on the state for 1047297nancial support and has little ability to

use the land as collateral for obtaining loans

The depopulation of the remote rural areas while people

move to the main roads to access services is seen as a

positive move for agriculture

Two large areas of agricultural land reform exist in the

district namely Umnga Flats and Pitseng both located

in the Elundini area

The care and rehabilitation of land as a means of

protecting agricultural resources is of critical importance

if agriculture is to grow in the area There is presently a

land care trials in ward four in Sterkspruit

Land redistribution is still to be suitably addressed in thearea For example there is no single land redistribution

project in the area of Barkly East in Senqu LM

Road access is constraining agricultural development in

the district area

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9

New irrigation investments being implementedplanned

include the Tsitsa River Basin Project Mzimvubu Basin

Project Orange River Water Scheme and Holo Hlahatsi

Dam development Senqu Municipality has already

undertaken studies on bulk water for irrigation purposes

for the Orange and Karringmelkspruit rivers

It is clear that crop production under irrigation if managed

well has huge potential for job and income creation

An industry Action Plan for arable agriculture would

probably include

Evaluation of all existing studies relevant to the

expansion of irrigation farming in the District

Selection of priority interventions

Project design and feasibility (including environmental

impact assessment)

Land acquisition and ownership

Project financing

Farmer training and support

An industry action plan for livestock would probably

include

Expansion of the effective NWGA model of support

Improving existing programmes designed to facilitate

skills transfer between commercial and emerging

farmers

Improved Agricultural Extension Services

Improved market access (eg drawing on experience of

USAID-funded project in the Chris Hani District Middle

East goat market)

Accelerated land redistribution (with effective support)

Building animal feeds industry

Improved veld management

Move to formal land administration in communal areas

Upgrading access roadsfarm logistics

Dry cropping is only feasible in small parts of the District

underscoring the important role that irrigation schemes

can play Dry-cropping is practiced in Elundini and this

yearrsquos ploughing under the Massive Food Programme

was 1700 hectares

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1 0

T O U R I S M

The Districtrsquos tourism industry has grown from a low base

over the last decade and a niche market seems to have

found in the area of adventure tourism The impact of

tourism has not really been wide felt but it is perceived

to be a growth sector for the area due to the unique

environments the only Ski resort in Southern Africa hot

springs and the largest dam in South Africa

Improved access to the District through the tarring of the

R56 between Mount Fletcher and Maclear access from

Lesotho at Telle Bridge and the new Ugie to Langeni road

are likely to positively impact on the district area

The potential of linking the N1 near Gariep Dam via

a scenic route to the N2 at Mthatha is currently being

explored There is an indication that the route between

Cape Town and Durban through the distric t may prove to

be more attractive to tourists

Environmental and land rehabilitation programmes

should be expanded to create jobs and to preserve the

agricultural and tourism potential of the District

There are several interventions being planned that will

grow tourism in the District

The Provincial Gateway Project at Aliwal Nor th This

involves the beautification of the town to attract

tourists to stopover Presently the N6 with heavy trucks

passes through the town center It would be preferableto divert the N6 onto a parallel Street (aligned with the

bridge over the Orange River) and restore the main

street (Somerset Street) to its former glory trees for

shade and pedestrianised

F O R E S T R Y

There are large untapped forestry potentials in the Elundini

area and an additional 30 000ha could be available for

the expansion of the current plantations Construction

has recently started on the R15 billion PG Bison North

East Cape Forests Cluster near Ugie This will create 3000

direct jobs and many thousands of indirect jobs This

forestry initiative is part of the AsgiSA initiative The

National government AsgiSA programme has identified

forestry development as a key pillar to achieving the

economic growth and development targets and has

prioritized forestry as a key sector for support across all

tiers of government The same is true in the PGDP as well

as in the emerging provincial industrial plan

There is also a potential for more forestry development in

the area but this is constrained by lack of road access into

the hinterland

Improved linkages to Mthatha through the new Ugie

Langeni road will enable products to be exported

from Mthata via the rail link to East London Industrial

Development Zone With the improved road access to this

area coupled with the forestry investments it is likely that

there will be signi1047297cant economic growth in this area

About 100 Interlink transport vehicles will be leaving

the particle board plant per day this is likely to have an

impact on the tarred road networks as well as the towns

through which they will drive when taking the productsto markets (Johannesburg Durban exports etc)

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C O N S T R U C T I O N

The Districtrsquos relatively high infrastructure budget

allocation in the Medium Term Expenditure Framework

presents opportunities for the growth of the local

construction industry (including housing water and

sanitation roads) and may enhance competitiveness

by addressing critical shortcomings in economic

infrastructure The sector also offers great potential to

enhance livelihoods through the EPWP

F I N A N C I A L S E R V I C E S

Most towns do have banks however there are exceptions

such as Venterstad and Mount Fletcher Due to the rural

nature of the area while there may be banks these do

not offer the full one-stop services and managers are

often based in centralized offices in the district (such as

Aliwal North) or outside the district such as in Elliot There

has been an increase in accessibility to ATMs through

the provision of in-store facilities Financial advice is still

however very limited

Revitalization of Aliwal Spa This project has been

delayed by the local municipalityrsquos determination to

retain land ownership of the facility A more pragmatic

approach is required

A public-private partnership should be packaged to

revive the tourist steam trains on the famous railway

reverses between Lady Grey and Barkly East

The Madiba Corridor Route between Aliwal North and Port

St Johns This would include the new road between Ugie

and Langeni (with a long bridge over indigenous forest)

The Gariep Complex Project is one of the distr ict

attractions

There is also a dedicated District tourism organization that

would strengthen marketing and product development

T R A D E

Social grants and employment by the government is the

largest economic sector in Ukhahlamba comprising more

than 40 of the GGP

The District has a significant informal trading sector

(including petty producers of traditional garments etc)

This sector could be boosted by better institutional

support (eg SEDA has not yet established an office in

the District) and by CBD regeneration and the provision

of improved trading environments for hawkers

1 1

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B A S I C S E R V I C E S

Free basic services are currently being implemented in

urban areas but still at differing levels A policy around

the matter is currently being developed

Excepting Maletswai (22) all local municipalities

in Ukhahlamba fall below the provincial average of

households not having any formal sanitation

The sanitation backlogs for Elundini and Senqu make up

three quarters of the district backlogs

Estimates of the cost of eliminating water and sanitation

backlogs in Ukhahlamba are R376 million and R332

million respectively

Service delivery backlogs are most acute in Elundini due

to the poor road network and historical factors related

to the peripheral nature of the area under the former

Transkei regime

W A T E R A N D S A N I T A T I O N

Significant inroads have been made in terms of extending

household water access in Ukhahlamba The more

populous eastern parts of the district (Elundini) faces

the greatest challenges as far a water backlogs with one

third of households (34) still relying on natural water

sources This is significantly greater than the provincial

average (28) According to Ukhahlamba DM 4337 of

the people are in need of water ser vices while 7555 are

in need of sanitation services

1 2

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1 3

E L E C T R I C I T Y

Some 16 of households in Ukhahlamba have been

linked to the electr icity grid between 2001-2006 with 70

and more households in Senqu Maletswai and Gariep

now accessing electricity Elundini however again faces

the greatest challenges as far as backlogs is concerned

Household electricity connections in Elundini more than

doubled between 2001-2006 This however amounts to

only slightly more than one quarter (28) of households

which is significantly below the district and provincial

averages (60 of households for Ukhahlamba and 67

of households for the Eastern Cape) A new 90km 132kV

line (costing about R58m) is required from Mount Frere

to Mount Fletcher to provide additional capacity to

eradicate backlogs

It is necessary to lobby for more Municipal Infrastructure

Grant (MIG) funding to achieve national targets There is

a clear need to revise Water and Sanitation Sector Plans

and in particular to calculate the MIG allocations that are

required to ensure that National water and sanitation

targets are met

The eradication of water and sanitation backlogs are being

used to expand the Expanded Public Works Programme

in the District and strengthen the construction industry

This is being implemented in the provis ion of water in

Mount Fletcher and in the construction of the water

pipeline to Steynsburg from the Fish River Tunnel It

could be expanded if there were funds available

About 50 of clinics in the district have no piped water

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1 4

W A S T E

Solid waste removal and disposal currently poses a

significant challenge to municipalities and communities

leading to inadequate compliance with legislation and

poor service delivery

There are however economic opportunities attached to

the management of waste in the form of recycling and

innovative concepts around space reduction in waste

processes This potential is largely connected to the

larger economic nodes but there are also opportunities

in smaller communities such as Rhodes using waste from

the large tourism establishment of Tiffendell

H O U S I N G

Due to the rural nature of the Ukhahlamba area and

having a low proportion of urbanization the prevalence

of informal houses (shacks) is below the provincial

average Although there are low levels of informal housing

across the District this does not mean there is no further

need for further RDP housing because the definition of

informal housing does not include traditional dwellings

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1 5

T R A N S P O R T

Of significant concern in the district with regard to its

future economic growth is that no public transport

services are offered between Venterstad and Burgersdorp

and between Lady Grey Aliwal North and Bark ly East This

has an impact on the potentials for economic and social

linkages and is highly frustrating for commuters and

does not support the spatial economic growth strategies

of the district area

The improvement of roads in the Elundini area is likely

to have a wide impact on passenger transport across the

district If the R56 becomes an alternative (even if not the

official alternative) to the N2 due to the route being shorter

(as identified in the Spatial Development Framework) this

will increase the amount of commuter traffic Services

for public transport will need to be provided in Mount

Fletcher Maclear Ugie and Steynsburg

Over the past five years taxi facilities were constructed in

Aliwal North (as a larger modal interchange) Maclear and

Mount Fletcher There is still a need to improve public

transport facilities in Senqu especially at Sterkspruit

Related to provision of public transport is the need for

basic essential services such as water sanitation and

shelters at key facilities There is a need to provide these

services at all the nodes (rural and urban) as defined in the

Spatial Development Plan Areas with high dependencyon public transport especially the primary and secondary

nodes should receive priority

R O A D M A I N T E N A N C E

While the district is covered by a network of tarred and

gravel roads the conditions of these are a significant

challenge for the growth of the economy

Without improved maintenance of urban streets access

roads district and provincial roads goods are unable

to get to market and the market cannot be effectively

accessed by residents of the area

Of significant importance is the constant maintenance

of key economic roads as identified as mobility corridors

in the Spatial Development Framework This should

be supported by maintenance of gravel access roads

especially in the Elundini and Senqu areas where

population numbers are higher and untapped economic

potentials are higher

The maintenance of tarred provincial roads will become

a significant issue of concern as they are already

deteriorating beyond reasonable repair and the timber

industry development in the Ugie area will further

exacerbate this issue

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1 6

Airfields are currently used fairly infrequently but form a

key element of the disaster management system as well

as the emergency medical system across the district area

There are also moves afoot to bring specia lised medica l

support to the district areas by flying in specialised

personnel and equipment

Tourism is also in need of improved air transport services

especially in the mountain areas This is due to the

remote location of this area from the main urban hubs

of South Africa but which could be a way of overcoming

the challenge of distance The area around the town of

Rhodes has motivated for a long time for such a facility

The maintenance of municipal airfields has received very

low priority from municipalities over the past years

With regard to railway transport services only one out of

the four railway lines existing in the district is effectively

operational ndash the main line between Johannesburg and

East London This is only accessible at Burgersdorp This

rail line has very little impact on public transport and the

conveyance of goods to and or from the area Infrequently

the line between Burgersdorp and Aliwal North is used

for goods

The line between Aliwal North and Barkly East is of

unique value and could be a significant tourist attraction

if effectively maintained managed and marketed

Airfields are found in most of the urban settlements

and form part of the function of local municipalities A

new airfield has been constructed in Sterkspruit by the

Department of Roads and Transport

Communities have raised the issue of improved telephone

services as a key pr iority There are also still police stations

clinics and schools without any telephone service and

this impacts on their ability to deliver services The

more remote areas of Elundini and Senqu are the worst

affected

Funding for an investigation into the possibility of

providing broadband internet connections in the district

area have been agreed to by the European Union This

could provide potential for Business Outsourcing

T E L E C O M M U N I C A T I O N S

According to the 2001 census more than 50 of the

population has access either to a private telephone or

one nearby but there is still a section of the population

that has no access to a telephone at all Urban areas

receive the best service Parts of the commercial farming

areas and rural areas are provided with telephone services

based on radio linkages to towers driven by solar panel

technology

Cellphone services are used by a large proportion of

the population However this service does not cover the

whole area The mountainous nature of the area affects

reception

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It is important to note that Wetlands cover 32 square

kilometres in Elundini which includes the Gatberg

wetland ndash the breeding ground for the endangered

wattled crane The conservation of wetland is

being attended to through the Working for Water

programme (an EPWP programme)

C O N S E R V A T I O N A R E A S

One provincial nature reserve the Oviston Nature

Reserve on the banks of the Gariep Dam is located within

the Ukhahlamba District There is discussion underway

between the Eastern Cape and Free State conservation

boards to amalgamate the management of the nature

reserves around the Gariep Dam There have also been

proposals to expand the area under conservation in

this area but it is likely that this will be in the form of

stewardships and not through the purchase of land by

the state

1 7

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S O C I A L S E R V I C E S

is clearly the improvement of services delivery while

health infrastructure needs to be addressed in the more

desperate municipalities of Elundini and Senqu

In the District 40 of clinics have no electricity and 50

have no piped water

The services delivery challenges are again greatest in

the eastern and more populous areas of Elundini and

Senqu Generally access to clinics and emergency health

services is lower here and often compounded by poor

access roads

Access to primary education within the more infrastructure

poor areas of Elundini and Senqu is well within the distric t

and provincial norm The focus in terms of education

Approximately 255 of the adult population does not

have any form of training or education with 402

only having completed grades 3-7 Only 33 of the

population has completed Grade 12 compared to 66

in the Eastern Cape Only 17 of the District population

has obtained a tertiary qualification

The Elundini area has the largest proportion of people

having only received primary education while the Gariep

area has the highest proportion of people (315) having

never received any form of education

This highlights the extremely low levels of education in

the District and the need to focus on education and skills

training This can only be accomplished if the backlog in

education facilities is met

E D U C A T I O N A N D S K I L L S

There is very limited access to higher education facil ities

in the district area Ukhahlamba has higher than the

national average of people between 5-24 years attending

school but lower than the national average for those

attending tertiary education

According to the latest information from the Departmentof Education since 1999 only five schools have been built

The ratio between learners and educators is 1 363 which

is a slight improvement

Number of Schools Learners and

Educators in Ukhahlamba DM

TYPE OF SCHOOL

Combined Primary Secondary Total

Schools 173 168 46 397

Learners 60 783 31 997 22 577 126 449

Educators 1 863 984 241 3 482

Census figures show that about 50 of the total

population is of school going age

1 8

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1 9

Other skills development initiatives will be geared

towards the Ugie development project

LGSETA is to fund a Learnership on Municipal Finance and

Administration as well other skills programme focusing

on the unemployed Other learnerships will be rolled out

to support the water and sanitation programmes andmore young people will be employed

Partnerships will be forged and individual MoUrsquos will

be entered into between the District Municipality and

the following Higher Education and Further Education

institutions

Ikhala Public FET College

University of Fort Hare

Walter Sisulu University of Technology

University of the Free State

University of Western Cape

University of Stellenbosch

and various SETArsquos including LGSETA

In partnership with the aforementioned stakeholders a

district wide skills development plan will be developed

as a post summit activity and it will be guided by the

summit resolutions

About 41 of the Ukhahlamba Districtrsquos workforce is

made up of elementary or unskilled workers which

is the highest percentage in the province In Gariep

elementaryunskilled workers make up 53 of the

workforce but the largest numbers of unskilled workers

are in the more densely populated Senqu (3 682) and

Elundini (3 253) municipal areas On average 14 of

Ukhahlambarsquos working people have professional skills

rising to 17 in Elundini and Senqu The less densely

populated parts appear to have more skilled people

in Maletswai 15 of working people are skilled and in

Gariep 13 are skilled

Ukhahlamba has lower levels of senior management

technical and clerical skills than the provincersquos other

district municipali ties This corresponds with low levels of

education in Ukhahlamba and indicates a need for skills

development and education programmes

STRATEGIC SKILLS

DEVELOPMENT INITIATIVES JIPSA

Ukhahlamba District Municipality will in partnership with

the Office Of the Premier civil society the business sector

sector departments community based projects and local

municipalities embark on a massive skills development

drive in the following sectors of the economy to support

the 6 economic growth of the district

1 Agriculture

2 Tourism

3 Infrastructure

4 Manufacturing

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2 0

H E A L T H C A R E

The Ukhahlamba area has 11 hospitals including health

care centres and 43 clinics with at least 2 clinics in each

magisterial district The most densely populated Mount

Fletcher and Sterkspruit areas have 13 and 10 clinics

respectively The District has about 998 hospital beds with

a serviced supply average of about 328 people per bed

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2 1

H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

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3 7

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3 8

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3 9

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4 0

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4 1

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42

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4 3

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44

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4 5

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4 6

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4 7

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4 9

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5 0

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5 1

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52

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54

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5 5

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

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CULTURE over 90 Xhosa

LANGUAGE Xhosa Sesotho Afrikaans and English

NODAL STATUS The Distr ict has a high development

profile in terms of its Integrated Sustainable Rural

Development Programme (ISRDP) nodal status

MUNICIPALITIES Ukhahlamba District and Gariep

Maletswai Senqu and Elundini local municipalities

TOPOGRAPHY The west of the District (Gariep and

Maletswai) is dry Karoo flatland and areas of the dry

NamaKaroo Biome The East (Senqu and Elundini) is

mountainous and wetter with elements of the Maloti

Biome Most of the District falls within the Orange River

catchment basin except for Elundini which falls in the

Mzimvubu River Basin

4

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S E T T L E M E N T S T R U C T U R E There are 13 towns

in the area with the largest being Aliwal North with a

population of about 40000 Sterkspruit Maclear and

Mount Fletcher are secondary service and retail centres

Ugie is an aspiring secondary town Three rural nodes (in

the communal land area) have been de1047297ned in Elundini

and four in Senqu The Spatial development framework for

the District de1047297ne special inter ventions for these different

categories of towns as well as corridors and special

development areas Different interventions are proposed

in each of these areas ndash areas of severe backlogs (old

Transkei) areas of high economic potential (agriculture

tourism) nodes with ability to support the economy

(especially primary and secondary towns)

S OC IA L S TR UC TUR ING The levels of out migration

from Ukhahlamba are higher than the provincial average

The proportion of households reporting at least one

migrant household member amounts to 18 of district

households against 152 of provincial households

While 7 of the district population overall is reported as

migrating from their household this is so for 56 of the

provincial population

The combination of the limited local economy and

significant challenges in local services infrastructure and

delivery understandably result in the District recording

among the highest levels of out migration in the

province The vast majority of migrants from Ukhahlamba

leave their households in order to take up employment

or to go in search of employment The historically

underdeveloped areas of Senqu and Elundini also see

significant numbers of household members migrating

in order to access schools or tertiary education

5

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D I S T R I C T E C O N O M Y

There is also a perception among residents in the area

that hawking hairdressing clothes washing etc are

not ldquorealrdquo jobs and they do not consider that this is a

contribution to the economy Many people still aspire for

a government job as it is seen as secure

It can be seen that in the manufacturing sector growth

has occurred in the food-processing sub sector In the

Trade Cater ing and Accommodation sector there has

been very little growth in the catering side with the

largest growth occurring in the retail sub-sector On the

Transpor t and Communication sector the bulk of the

growth has been in the communication sector and in

the Finance and business services sector there has been

an increase in the finance sector but a decrease in the

business services sub-sector

Overall the GGP of the district has remained a fairly

constant proportion of the provincial GGP and the per

capital GGP of individuals within the Ukhahlamba area has

also remained fairly constant (when using constant prices)

at around 41 of the provincial per capital income

The District area contributes about 3 of the provincial

Gross Geographic Product (GGP)

The Ukhahlamba area is one of the 13 poorest and most

poverty stricken districts of South Africa

The 2001 Census indicated that over 86 of the residents

of the area live in poverty This is based on that the annual

household income is below the basic annual substance

level of R19200 per year

Of those of working age only 18 are employed 21 are

unemployed and 603 are not economically active (that is

that they have not sought work during the past 2 years)

Of those that are employed over 90 are employed

by someone else and only a very small 22 are self-

employed This has a significant impact on the ldquospirit of

entrepreneurshiprdquo where most people do not have the

experience of running their own business and have

a history of reliance and dependency on others for

employment

6

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7

factor mobility reduce transport costs promote linkages

with neighboring regions and reduce time spent in

survivalist activities such as collecting fuel and water

is the salient need in terms of Ukhahlambarsquos economic

competitiveness

Comparative advantage and associated opportunities

do exist in the agricultural sector as a result of labour

surpluses pockets of fertile land and under-utilised

irrigation potential Wool processing (in Maletswai -

which is advantaged by the N6 link to East London and

Gariep) livestock husbandry (Elundini and Gariep) maize

(Elundini and Senqu) and dry-land lucerne (Senqu) have

all shown signs of being suitable but commercializing

these activities and enhancing productivity remains a

major challenge The relative humidity (particularly in

Senqu and Elundini) and abundance of water creates

the potential for forestry (wattle) enterprises in Elundini

and for an expansion of the irrigated agricultural sector

provided the supporting infrastructure is available

The District rsquos stark topography and spectacular landscapes

in conjunction with low reported crime levels creates the

potential for tourism Currently inhibiting the realization

of this potential are perceptions about crime the fact

that tourist products are neither well packaged nor well

marketed and the lack of suitable road or rail access

The district can reasonably anticipate investment ininfrastructure as a result of its nodal status and infrastructure

grant allocation This should create opportunities for local

contractors in the construction industry provided they

have the capacity to compete for tenders

E C O N O M I C C O M P E T I T I V E N E S S

The composite competitive index for competitive

advantage in Ukhahlamba District is low in comparison to

the rest of the province The main reason for the regionrsquos

lack of competitive activity appears to be the dearth of

basic services and economic infrastructure Only 431 of

the population has access to electricity and almost 60 of

the population does not have access to reticulated water

Further constraints on the Districtrsquos competitiveness

include prevailing tenure insecurity and ambiguous

tenure arrangements which act as a deterrent to private

sector investment and complicate public sector efforts to

address the infrastructure backlog There is a clear need

for an approach to communal tenure that is conducive to

attracting investment

Easy communication is undermined by the Districtrsquos

distance from a major economic hub As a result

transaction costs are high This barrier to enterprise

creation is exacerbated by the limited levels of finance

and enterprise support in the District

The municipal economies of Ukhahlamba Distr ict are

highly concentrated There is excessive reliance on two

sectors - agriculture and government and community

services This renders these economies dependent on

outside goods and services (sixty per cent of purchases

are produced and manufactured outside of the region)and vulnerable to change Gariep is the only municipality

that does not rely on community services as the primary

contributor to revenue and employment

The Competitiveness report (conducted for the

Provincial LED Programme) also stated that the provision

of economic infrastructure and services that enhance

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8

Very little agro-processing is done in the area and most

produce is transported via road to larger centers out of

the district Aside from agro-processing the District has

virtually no manufacturing industry The agro-processing

industry is also small and mainly concentrated in Aliwal

North Nevertheless it is quite possible that this sector

could attract some new investment linked to existing

and new primary production Areas of interest could

include for example game meat fruit-processing (eg

peaches raspberries) nuts processing wool products

potato processing tanning stock feed etc A thorough

sector study is required to identify and package the most

viable investment opportunities

Livestock farming (cattle dairy sheep goats) and game

are very important in the District both for commercial

and communal farmers Livestock farming in communal

areas is being supported by the Provincial Department of

Agriculture through construction of stock dams dipping

tanks shearing sheds fencing veterinary services etc

Also the District Municipality together with Gold Fields

Foundation have a Livestock Improvement Programme

in Elundini and there is a goat project in Mount Fletcher

The challenge is to increase incomes from communal

livestock farming Black emerging farmers suffer from

inadequate technology skills and market knowledge

and therefore receive an income significantly less than

better-equipped white commercial farmers Also landownership (and not land claims there are very few in the

District) is a major concern Large tracts of land are either

in the hands of a few white farmers or the state The

District Municipality should develop a register of state-

land in conjunction with DLA

A G R I C U L T U R E

Extensive livestock farming of sheep goats and cattle

dominate agriculture There are pockets of dry land crop

farming especially in the wetter eastern area Only small

isolated pockets of land are suitable for irrigation despite

having the Orange River and Gariep dam as the northern

boundary It is currently unknown as to the impact of the

Mzimvubu Basin Asgi-SA programme on the Elundini area

There is a differentiation between the commercial farming

areas which are the main economic drivers in the economy

and the subsistence farming areas that are located in the

communal land areas This latter sector is very dependent

on the state for 1047297nancial support and has little ability to

use the land as collateral for obtaining loans

The depopulation of the remote rural areas while people

move to the main roads to access services is seen as a

positive move for agriculture

Two large areas of agricultural land reform exist in the

district namely Umnga Flats and Pitseng both located

in the Elundini area

The care and rehabilitation of land as a means of

protecting agricultural resources is of critical importance

if agriculture is to grow in the area There is presently a

land care trials in ward four in Sterkspruit

Land redistribution is still to be suitably addressed in thearea For example there is no single land redistribution

project in the area of Barkly East in Senqu LM

Road access is constraining agricultural development in

the district area

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9

New irrigation investments being implementedplanned

include the Tsitsa River Basin Project Mzimvubu Basin

Project Orange River Water Scheme and Holo Hlahatsi

Dam development Senqu Municipality has already

undertaken studies on bulk water for irrigation purposes

for the Orange and Karringmelkspruit rivers

It is clear that crop production under irrigation if managed

well has huge potential for job and income creation

An industry Action Plan for arable agriculture would

probably include

Evaluation of all existing studies relevant to the

expansion of irrigation farming in the District

Selection of priority interventions

Project design and feasibility (including environmental

impact assessment)

Land acquisition and ownership

Project financing

Farmer training and support

An industry action plan for livestock would probably

include

Expansion of the effective NWGA model of support

Improving existing programmes designed to facilitate

skills transfer between commercial and emerging

farmers

Improved Agricultural Extension Services

Improved market access (eg drawing on experience of

USAID-funded project in the Chris Hani District Middle

East goat market)

Accelerated land redistribution (with effective support)

Building animal feeds industry

Improved veld management

Move to formal land administration in communal areas

Upgrading access roadsfarm logistics

Dry cropping is only feasible in small parts of the District

underscoring the important role that irrigation schemes

can play Dry-cropping is practiced in Elundini and this

yearrsquos ploughing under the Massive Food Programme

was 1700 hectares

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1 0

T O U R I S M

The Districtrsquos tourism industry has grown from a low base

over the last decade and a niche market seems to have

found in the area of adventure tourism The impact of

tourism has not really been wide felt but it is perceived

to be a growth sector for the area due to the unique

environments the only Ski resort in Southern Africa hot

springs and the largest dam in South Africa

Improved access to the District through the tarring of the

R56 between Mount Fletcher and Maclear access from

Lesotho at Telle Bridge and the new Ugie to Langeni road

are likely to positively impact on the district area

The potential of linking the N1 near Gariep Dam via

a scenic route to the N2 at Mthatha is currently being

explored There is an indication that the route between

Cape Town and Durban through the distric t may prove to

be more attractive to tourists

Environmental and land rehabilitation programmes

should be expanded to create jobs and to preserve the

agricultural and tourism potential of the District

There are several interventions being planned that will

grow tourism in the District

The Provincial Gateway Project at Aliwal Nor th This

involves the beautification of the town to attract

tourists to stopover Presently the N6 with heavy trucks

passes through the town center It would be preferableto divert the N6 onto a parallel Street (aligned with the

bridge over the Orange River) and restore the main

street (Somerset Street) to its former glory trees for

shade and pedestrianised

F O R E S T R Y

There are large untapped forestry potentials in the Elundini

area and an additional 30 000ha could be available for

the expansion of the current plantations Construction

has recently started on the R15 billion PG Bison North

East Cape Forests Cluster near Ugie This will create 3000

direct jobs and many thousands of indirect jobs This

forestry initiative is part of the AsgiSA initiative The

National government AsgiSA programme has identified

forestry development as a key pillar to achieving the

economic growth and development targets and has

prioritized forestry as a key sector for support across all

tiers of government The same is true in the PGDP as well

as in the emerging provincial industrial plan

There is also a potential for more forestry development in

the area but this is constrained by lack of road access into

the hinterland

Improved linkages to Mthatha through the new Ugie

Langeni road will enable products to be exported

from Mthata via the rail link to East London Industrial

Development Zone With the improved road access to this

area coupled with the forestry investments it is likely that

there will be signi1047297cant economic growth in this area

About 100 Interlink transport vehicles will be leaving

the particle board plant per day this is likely to have an

impact on the tarred road networks as well as the towns

through which they will drive when taking the productsto markets (Johannesburg Durban exports etc)

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C O N S T R U C T I O N

The Districtrsquos relatively high infrastructure budget

allocation in the Medium Term Expenditure Framework

presents opportunities for the growth of the local

construction industry (including housing water and

sanitation roads) and may enhance competitiveness

by addressing critical shortcomings in economic

infrastructure The sector also offers great potential to

enhance livelihoods through the EPWP

F I N A N C I A L S E R V I C E S

Most towns do have banks however there are exceptions

such as Venterstad and Mount Fletcher Due to the rural

nature of the area while there may be banks these do

not offer the full one-stop services and managers are

often based in centralized offices in the district (such as

Aliwal North) or outside the district such as in Elliot There

has been an increase in accessibility to ATMs through

the provision of in-store facilities Financial advice is still

however very limited

Revitalization of Aliwal Spa This project has been

delayed by the local municipalityrsquos determination to

retain land ownership of the facility A more pragmatic

approach is required

A public-private partnership should be packaged to

revive the tourist steam trains on the famous railway

reverses between Lady Grey and Barkly East

The Madiba Corridor Route between Aliwal North and Port

St Johns This would include the new road between Ugie

and Langeni (with a long bridge over indigenous forest)

The Gariep Complex Project is one of the distr ict

attractions

There is also a dedicated District tourism organization that

would strengthen marketing and product development

T R A D E

Social grants and employment by the government is the

largest economic sector in Ukhahlamba comprising more

than 40 of the GGP

The District has a significant informal trading sector

(including petty producers of traditional garments etc)

This sector could be boosted by better institutional

support (eg SEDA has not yet established an office in

the District) and by CBD regeneration and the provision

of improved trading environments for hawkers

1 1

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B A S I C S E R V I C E S

Free basic services are currently being implemented in

urban areas but still at differing levels A policy around

the matter is currently being developed

Excepting Maletswai (22) all local municipalities

in Ukhahlamba fall below the provincial average of

households not having any formal sanitation

The sanitation backlogs for Elundini and Senqu make up

three quarters of the district backlogs

Estimates of the cost of eliminating water and sanitation

backlogs in Ukhahlamba are R376 million and R332

million respectively

Service delivery backlogs are most acute in Elundini due

to the poor road network and historical factors related

to the peripheral nature of the area under the former

Transkei regime

W A T E R A N D S A N I T A T I O N

Significant inroads have been made in terms of extending

household water access in Ukhahlamba The more

populous eastern parts of the district (Elundini) faces

the greatest challenges as far a water backlogs with one

third of households (34) still relying on natural water

sources This is significantly greater than the provincial

average (28) According to Ukhahlamba DM 4337 of

the people are in need of water ser vices while 7555 are

in need of sanitation services

1 2

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1 3

E L E C T R I C I T Y

Some 16 of households in Ukhahlamba have been

linked to the electr icity grid between 2001-2006 with 70

and more households in Senqu Maletswai and Gariep

now accessing electricity Elundini however again faces

the greatest challenges as far as backlogs is concerned

Household electricity connections in Elundini more than

doubled between 2001-2006 This however amounts to

only slightly more than one quarter (28) of households

which is significantly below the district and provincial

averages (60 of households for Ukhahlamba and 67

of households for the Eastern Cape) A new 90km 132kV

line (costing about R58m) is required from Mount Frere

to Mount Fletcher to provide additional capacity to

eradicate backlogs

It is necessary to lobby for more Municipal Infrastructure

Grant (MIG) funding to achieve national targets There is

a clear need to revise Water and Sanitation Sector Plans

and in particular to calculate the MIG allocations that are

required to ensure that National water and sanitation

targets are met

The eradication of water and sanitation backlogs are being

used to expand the Expanded Public Works Programme

in the District and strengthen the construction industry

This is being implemented in the provis ion of water in

Mount Fletcher and in the construction of the water

pipeline to Steynsburg from the Fish River Tunnel It

could be expanded if there were funds available

About 50 of clinics in the district have no piped water

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1 4

W A S T E

Solid waste removal and disposal currently poses a

significant challenge to municipalities and communities

leading to inadequate compliance with legislation and

poor service delivery

There are however economic opportunities attached to

the management of waste in the form of recycling and

innovative concepts around space reduction in waste

processes This potential is largely connected to the

larger economic nodes but there are also opportunities

in smaller communities such as Rhodes using waste from

the large tourism establishment of Tiffendell

H O U S I N G

Due to the rural nature of the Ukhahlamba area and

having a low proportion of urbanization the prevalence

of informal houses (shacks) is below the provincial

average Although there are low levels of informal housing

across the District this does not mean there is no further

need for further RDP housing because the definition of

informal housing does not include traditional dwellings

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1 5

T R A N S P O R T

Of significant concern in the district with regard to its

future economic growth is that no public transport

services are offered between Venterstad and Burgersdorp

and between Lady Grey Aliwal North and Bark ly East This

has an impact on the potentials for economic and social

linkages and is highly frustrating for commuters and

does not support the spatial economic growth strategies

of the district area

The improvement of roads in the Elundini area is likely

to have a wide impact on passenger transport across the

district If the R56 becomes an alternative (even if not the

official alternative) to the N2 due to the route being shorter

(as identified in the Spatial Development Framework) this

will increase the amount of commuter traffic Services

for public transport will need to be provided in Mount

Fletcher Maclear Ugie and Steynsburg

Over the past five years taxi facilities were constructed in

Aliwal North (as a larger modal interchange) Maclear and

Mount Fletcher There is still a need to improve public

transport facilities in Senqu especially at Sterkspruit

Related to provision of public transport is the need for

basic essential services such as water sanitation and

shelters at key facilities There is a need to provide these

services at all the nodes (rural and urban) as defined in the

Spatial Development Plan Areas with high dependencyon public transport especially the primary and secondary

nodes should receive priority

R O A D M A I N T E N A N C E

While the district is covered by a network of tarred and

gravel roads the conditions of these are a significant

challenge for the growth of the economy

Without improved maintenance of urban streets access

roads district and provincial roads goods are unable

to get to market and the market cannot be effectively

accessed by residents of the area

Of significant importance is the constant maintenance

of key economic roads as identified as mobility corridors

in the Spatial Development Framework This should

be supported by maintenance of gravel access roads

especially in the Elundini and Senqu areas where

population numbers are higher and untapped economic

potentials are higher

The maintenance of tarred provincial roads will become

a significant issue of concern as they are already

deteriorating beyond reasonable repair and the timber

industry development in the Ugie area will further

exacerbate this issue

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1 6

Airfields are currently used fairly infrequently but form a

key element of the disaster management system as well

as the emergency medical system across the district area

There are also moves afoot to bring specia lised medica l

support to the district areas by flying in specialised

personnel and equipment

Tourism is also in need of improved air transport services

especially in the mountain areas This is due to the

remote location of this area from the main urban hubs

of South Africa but which could be a way of overcoming

the challenge of distance The area around the town of

Rhodes has motivated for a long time for such a facility

The maintenance of municipal airfields has received very

low priority from municipalities over the past years

With regard to railway transport services only one out of

the four railway lines existing in the district is effectively

operational ndash the main line between Johannesburg and

East London This is only accessible at Burgersdorp This

rail line has very little impact on public transport and the

conveyance of goods to and or from the area Infrequently

the line between Burgersdorp and Aliwal North is used

for goods

The line between Aliwal North and Barkly East is of

unique value and could be a significant tourist attraction

if effectively maintained managed and marketed

Airfields are found in most of the urban settlements

and form part of the function of local municipalities A

new airfield has been constructed in Sterkspruit by the

Department of Roads and Transport

Communities have raised the issue of improved telephone

services as a key pr iority There are also still police stations

clinics and schools without any telephone service and

this impacts on their ability to deliver services The

more remote areas of Elundini and Senqu are the worst

affected

Funding for an investigation into the possibility of

providing broadband internet connections in the district

area have been agreed to by the European Union This

could provide potential for Business Outsourcing

T E L E C O M M U N I C A T I O N S

According to the 2001 census more than 50 of the

population has access either to a private telephone or

one nearby but there is still a section of the population

that has no access to a telephone at all Urban areas

receive the best service Parts of the commercial farming

areas and rural areas are provided with telephone services

based on radio linkages to towers driven by solar panel

technology

Cellphone services are used by a large proportion of

the population However this service does not cover the

whole area The mountainous nature of the area affects

reception

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It is important to note that Wetlands cover 32 square

kilometres in Elundini which includes the Gatberg

wetland ndash the breeding ground for the endangered

wattled crane The conservation of wetland is

being attended to through the Working for Water

programme (an EPWP programme)

C O N S E R V A T I O N A R E A S

One provincial nature reserve the Oviston Nature

Reserve on the banks of the Gariep Dam is located within

the Ukhahlamba District There is discussion underway

between the Eastern Cape and Free State conservation

boards to amalgamate the management of the nature

reserves around the Gariep Dam There have also been

proposals to expand the area under conservation in

this area but it is likely that this will be in the form of

stewardships and not through the purchase of land by

the state

1 7

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S O C I A L S E R V I C E S

is clearly the improvement of services delivery while

health infrastructure needs to be addressed in the more

desperate municipalities of Elundini and Senqu

In the District 40 of clinics have no electricity and 50

have no piped water

The services delivery challenges are again greatest in

the eastern and more populous areas of Elundini and

Senqu Generally access to clinics and emergency health

services is lower here and often compounded by poor

access roads

Access to primary education within the more infrastructure

poor areas of Elundini and Senqu is well within the distric t

and provincial norm The focus in terms of education

Approximately 255 of the adult population does not

have any form of training or education with 402

only having completed grades 3-7 Only 33 of the

population has completed Grade 12 compared to 66

in the Eastern Cape Only 17 of the District population

has obtained a tertiary qualification

The Elundini area has the largest proportion of people

having only received primary education while the Gariep

area has the highest proportion of people (315) having

never received any form of education

This highlights the extremely low levels of education in

the District and the need to focus on education and skills

training This can only be accomplished if the backlog in

education facilities is met

E D U C A T I O N A N D S K I L L S

There is very limited access to higher education facil ities

in the district area Ukhahlamba has higher than the

national average of people between 5-24 years attending

school but lower than the national average for those

attending tertiary education

According to the latest information from the Departmentof Education since 1999 only five schools have been built

The ratio between learners and educators is 1 363 which

is a slight improvement

Number of Schools Learners and

Educators in Ukhahlamba DM

TYPE OF SCHOOL

Combined Primary Secondary Total

Schools 173 168 46 397

Learners 60 783 31 997 22 577 126 449

Educators 1 863 984 241 3 482

Census figures show that about 50 of the total

population is of school going age

1 8

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1 9

Other skills development initiatives will be geared

towards the Ugie development project

LGSETA is to fund a Learnership on Municipal Finance and

Administration as well other skills programme focusing

on the unemployed Other learnerships will be rolled out

to support the water and sanitation programmes andmore young people will be employed

Partnerships will be forged and individual MoUrsquos will

be entered into between the District Municipality and

the following Higher Education and Further Education

institutions

Ikhala Public FET College

University of Fort Hare

Walter Sisulu University of Technology

University of the Free State

University of Western Cape

University of Stellenbosch

and various SETArsquos including LGSETA

In partnership with the aforementioned stakeholders a

district wide skills development plan will be developed

as a post summit activity and it will be guided by the

summit resolutions

About 41 of the Ukhahlamba Districtrsquos workforce is

made up of elementary or unskilled workers which

is the highest percentage in the province In Gariep

elementaryunskilled workers make up 53 of the

workforce but the largest numbers of unskilled workers

are in the more densely populated Senqu (3 682) and

Elundini (3 253) municipal areas On average 14 of

Ukhahlambarsquos working people have professional skills

rising to 17 in Elundini and Senqu The less densely

populated parts appear to have more skilled people

in Maletswai 15 of working people are skilled and in

Gariep 13 are skilled

Ukhahlamba has lower levels of senior management

technical and clerical skills than the provincersquos other

district municipali ties This corresponds with low levels of

education in Ukhahlamba and indicates a need for skills

development and education programmes

STRATEGIC SKILLS

DEVELOPMENT INITIATIVES JIPSA

Ukhahlamba District Municipality will in partnership with

the Office Of the Premier civil society the business sector

sector departments community based projects and local

municipalities embark on a massive skills development

drive in the following sectors of the economy to support

the 6 economic growth of the district

1 Agriculture

2 Tourism

3 Infrastructure

4 Manufacturing

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2 0

H E A L T H C A R E

The Ukhahlamba area has 11 hospitals including health

care centres and 43 clinics with at least 2 clinics in each

magisterial district The most densely populated Mount

Fletcher and Sterkspruit areas have 13 and 10 clinics

respectively The District has about 998 hospital beds with

a serviced supply average of about 328 people per bed

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2 1

H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

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3 7

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3 8

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3 9

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4 0

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4 1

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42

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4 3

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44

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4 5

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4 6

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4 7

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4 9

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5 0

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5 1

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52

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54

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5 5

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

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S E T T L E M E N T S T R U C T U R E There are 13 towns

in the area with the largest being Aliwal North with a

population of about 40000 Sterkspruit Maclear and

Mount Fletcher are secondary service and retail centres

Ugie is an aspiring secondary town Three rural nodes (in

the communal land area) have been de1047297ned in Elundini

and four in Senqu The Spatial development framework for

the District de1047297ne special inter ventions for these different

categories of towns as well as corridors and special

development areas Different interventions are proposed

in each of these areas ndash areas of severe backlogs (old

Transkei) areas of high economic potential (agriculture

tourism) nodes with ability to support the economy

(especially primary and secondary towns)

S OC IA L S TR UC TUR ING The levels of out migration

from Ukhahlamba are higher than the provincial average

The proportion of households reporting at least one

migrant household member amounts to 18 of district

households against 152 of provincial households

While 7 of the district population overall is reported as

migrating from their household this is so for 56 of the

provincial population

The combination of the limited local economy and

significant challenges in local services infrastructure and

delivery understandably result in the District recording

among the highest levels of out migration in the

province The vast majority of migrants from Ukhahlamba

leave their households in order to take up employment

or to go in search of employment The historically

underdeveloped areas of Senqu and Elundini also see

significant numbers of household members migrating

in order to access schools or tertiary education

5

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D I S T R I C T E C O N O M Y

There is also a perception among residents in the area

that hawking hairdressing clothes washing etc are

not ldquorealrdquo jobs and they do not consider that this is a

contribution to the economy Many people still aspire for

a government job as it is seen as secure

It can be seen that in the manufacturing sector growth

has occurred in the food-processing sub sector In the

Trade Cater ing and Accommodation sector there has

been very little growth in the catering side with the

largest growth occurring in the retail sub-sector On the

Transpor t and Communication sector the bulk of the

growth has been in the communication sector and in

the Finance and business services sector there has been

an increase in the finance sector but a decrease in the

business services sub-sector

Overall the GGP of the district has remained a fairly

constant proportion of the provincial GGP and the per

capital GGP of individuals within the Ukhahlamba area has

also remained fairly constant (when using constant prices)

at around 41 of the provincial per capital income

The District area contributes about 3 of the provincial

Gross Geographic Product (GGP)

The Ukhahlamba area is one of the 13 poorest and most

poverty stricken districts of South Africa

The 2001 Census indicated that over 86 of the residents

of the area live in poverty This is based on that the annual

household income is below the basic annual substance

level of R19200 per year

Of those of working age only 18 are employed 21 are

unemployed and 603 are not economically active (that is

that they have not sought work during the past 2 years)

Of those that are employed over 90 are employed

by someone else and only a very small 22 are self-

employed This has a significant impact on the ldquospirit of

entrepreneurshiprdquo where most people do not have the

experience of running their own business and have

a history of reliance and dependency on others for

employment

6

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7

factor mobility reduce transport costs promote linkages

with neighboring regions and reduce time spent in

survivalist activities such as collecting fuel and water

is the salient need in terms of Ukhahlambarsquos economic

competitiveness

Comparative advantage and associated opportunities

do exist in the agricultural sector as a result of labour

surpluses pockets of fertile land and under-utilised

irrigation potential Wool processing (in Maletswai -

which is advantaged by the N6 link to East London and

Gariep) livestock husbandry (Elundini and Gariep) maize

(Elundini and Senqu) and dry-land lucerne (Senqu) have

all shown signs of being suitable but commercializing

these activities and enhancing productivity remains a

major challenge The relative humidity (particularly in

Senqu and Elundini) and abundance of water creates

the potential for forestry (wattle) enterprises in Elundini

and for an expansion of the irrigated agricultural sector

provided the supporting infrastructure is available

The District rsquos stark topography and spectacular landscapes

in conjunction with low reported crime levels creates the

potential for tourism Currently inhibiting the realization

of this potential are perceptions about crime the fact

that tourist products are neither well packaged nor well

marketed and the lack of suitable road or rail access

The district can reasonably anticipate investment ininfrastructure as a result of its nodal status and infrastructure

grant allocation This should create opportunities for local

contractors in the construction industry provided they

have the capacity to compete for tenders

E C O N O M I C C O M P E T I T I V E N E S S

The composite competitive index for competitive

advantage in Ukhahlamba District is low in comparison to

the rest of the province The main reason for the regionrsquos

lack of competitive activity appears to be the dearth of

basic services and economic infrastructure Only 431 of

the population has access to electricity and almost 60 of

the population does not have access to reticulated water

Further constraints on the Districtrsquos competitiveness

include prevailing tenure insecurity and ambiguous

tenure arrangements which act as a deterrent to private

sector investment and complicate public sector efforts to

address the infrastructure backlog There is a clear need

for an approach to communal tenure that is conducive to

attracting investment

Easy communication is undermined by the Districtrsquos

distance from a major economic hub As a result

transaction costs are high This barrier to enterprise

creation is exacerbated by the limited levels of finance

and enterprise support in the District

The municipal economies of Ukhahlamba Distr ict are

highly concentrated There is excessive reliance on two

sectors - agriculture and government and community

services This renders these economies dependent on

outside goods and services (sixty per cent of purchases

are produced and manufactured outside of the region)and vulnerable to change Gariep is the only municipality

that does not rely on community services as the primary

contributor to revenue and employment

The Competitiveness report (conducted for the

Provincial LED Programme) also stated that the provision

of economic infrastructure and services that enhance

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8

Very little agro-processing is done in the area and most

produce is transported via road to larger centers out of

the district Aside from agro-processing the District has

virtually no manufacturing industry The agro-processing

industry is also small and mainly concentrated in Aliwal

North Nevertheless it is quite possible that this sector

could attract some new investment linked to existing

and new primary production Areas of interest could

include for example game meat fruit-processing (eg

peaches raspberries) nuts processing wool products

potato processing tanning stock feed etc A thorough

sector study is required to identify and package the most

viable investment opportunities

Livestock farming (cattle dairy sheep goats) and game

are very important in the District both for commercial

and communal farmers Livestock farming in communal

areas is being supported by the Provincial Department of

Agriculture through construction of stock dams dipping

tanks shearing sheds fencing veterinary services etc

Also the District Municipality together with Gold Fields

Foundation have a Livestock Improvement Programme

in Elundini and there is a goat project in Mount Fletcher

The challenge is to increase incomes from communal

livestock farming Black emerging farmers suffer from

inadequate technology skills and market knowledge

and therefore receive an income significantly less than

better-equipped white commercial farmers Also landownership (and not land claims there are very few in the

District) is a major concern Large tracts of land are either

in the hands of a few white farmers or the state The

District Municipality should develop a register of state-

land in conjunction with DLA

A G R I C U L T U R E

Extensive livestock farming of sheep goats and cattle

dominate agriculture There are pockets of dry land crop

farming especially in the wetter eastern area Only small

isolated pockets of land are suitable for irrigation despite

having the Orange River and Gariep dam as the northern

boundary It is currently unknown as to the impact of the

Mzimvubu Basin Asgi-SA programme on the Elundini area

There is a differentiation between the commercial farming

areas which are the main economic drivers in the economy

and the subsistence farming areas that are located in the

communal land areas This latter sector is very dependent

on the state for 1047297nancial support and has little ability to

use the land as collateral for obtaining loans

The depopulation of the remote rural areas while people

move to the main roads to access services is seen as a

positive move for agriculture

Two large areas of agricultural land reform exist in the

district namely Umnga Flats and Pitseng both located

in the Elundini area

The care and rehabilitation of land as a means of

protecting agricultural resources is of critical importance

if agriculture is to grow in the area There is presently a

land care trials in ward four in Sterkspruit

Land redistribution is still to be suitably addressed in thearea For example there is no single land redistribution

project in the area of Barkly East in Senqu LM

Road access is constraining agricultural development in

the district area

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9

New irrigation investments being implementedplanned

include the Tsitsa River Basin Project Mzimvubu Basin

Project Orange River Water Scheme and Holo Hlahatsi

Dam development Senqu Municipality has already

undertaken studies on bulk water for irrigation purposes

for the Orange and Karringmelkspruit rivers

It is clear that crop production under irrigation if managed

well has huge potential for job and income creation

An industry Action Plan for arable agriculture would

probably include

Evaluation of all existing studies relevant to the

expansion of irrigation farming in the District

Selection of priority interventions

Project design and feasibility (including environmental

impact assessment)

Land acquisition and ownership

Project financing

Farmer training and support

An industry action plan for livestock would probably

include

Expansion of the effective NWGA model of support

Improving existing programmes designed to facilitate

skills transfer between commercial and emerging

farmers

Improved Agricultural Extension Services

Improved market access (eg drawing on experience of

USAID-funded project in the Chris Hani District Middle

East goat market)

Accelerated land redistribution (with effective support)

Building animal feeds industry

Improved veld management

Move to formal land administration in communal areas

Upgrading access roadsfarm logistics

Dry cropping is only feasible in small parts of the District

underscoring the important role that irrigation schemes

can play Dry-cropping is practiced in Elundini and this

yearrsquos ploughing under the Massive Food Programme

was 1700 hectares

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1 0

T O U R I S M

The Districtrsquos tourism industry has grown from a low base

over the last decade and a niche market seems to have

found in the area of adventure tourism The impact of

tourism has not really been wide felt but it is perceived

to be a growth sector for the area due to the unique

environments the only Ski resort in Southern Africa hot

springs and the largest dam in South Africa

Improved access to the District through the tarring of the

R56 between Mount Fletcher and Maclear access from

Lesotho at Telle Bridge and the new Ugie to Langeni road

are likely to positively impact on the district area

The potential of linking the N1 near Gariep Dam via

a scenic route to the N2 at Mthatha is currently being

explored There is an indication that the route between

Cape Town and Durban through the distric t may prove to

be more attractive to tourists

Environmental and land rehabilitation programmes

should be expanded to create jobs and to preserve the

agricultural and tourism potential of the District

There are several interventions being planned that will

grow tourism in the District

The Provincial Gateway Project at Aliwal Nor th This

involves the beautification of the town to attract

tourists to stopover Presently the N6 with heavy trucks

passes through the town center It would be preferableto divert the N6 onto a parallel Street (aligned with the

bridge over the Orange River) and restore the main

street (Somerset Street) to its former glory trees for

shade and pedestrianised

F O R E S T R Y

There are large untapped forestry potentials in the Elundini

area and an additional 30 000ha could be available for

the expansion of the current plantations Construction

has recently started on the R15 billion PG Bison North

East Cape Forests Cluster near Ugie This will create 3000

direct jobs and many thousands of indirect jobs This

forestry initiative is part of the AsgiSA initiative The

National government AsgiSA programme has identified

forestry development as a key pillar to achieving the

economic growth and development targets and has

prioritized forestry as a key sector for support across all

tiers of government The same is true in the PGDP as well

as in the emerging provincial industrial plan

There is also a potential for more forestry development in

the area but this is constrained by lack of road access into

the hinterland

Improved linkages to Mthatha through the new Ugie

Langeni road will enable products to be exported

from Mthata via the rail link to East London Industrial

Development Zone With the improved road access to this

area coupled with the forestry investments it is likely that

there will be signi1047297cant economic growth in this area

About 100 Interlink transport vehicles will be leaving

the particle board plant per day this is likely to have an

impact on the tarred road networks as well as the towns

through which they will drive when taking the productsto markets (Johannesburg Durban exports etc)

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C O N S T R U C T I O N

The Districtrsquos relatively high infrastructure budget

allocation in the Medium Term Expenditure Framework

presents opportunities for the growth of the local

construction industry (including housing water and

sanitation roads) and may enhance competitiveness

by addressing critical shortcomings in economic

infrastructure The sector also offers great potential to

enhance livelihoods through the EPWP

F I N A N C I A L S E R V I C E S

Most towns do have banks however there are exceptions

such as Venterstad and Mount Fletcher Due to the rural

nature of the area while there may be banks these do

not offer the full one-stop services and managers are

often based in centralized offices in the district (such as

Aliwal North) or outside the district such as in Elliot There

has been an increase in accessibility to ATMs through

the provision of in-store facilities Financial advice is still

however very limited

Revitalization of Aliwal Spa This project has been

delayed by the local municipalityrsquos determination to

retain land ownership of the facility A more pragmatic

approach is required

A public-private partnership should be packaged to

revive the tourist steam trains on the famous railway

reverses between Lady Grey and Barkly East

The Madiba Corridor Route between Aliwal North and Port

St Johns This would include the new road between Ugie

and Langeni (with a long bridge over indigenous forest)

The Gariep Complex Project is one of the distr ict

attractions

There is also a dedicated District tourism organization that

would strengthen marketing and product development

T R A D E

Social grants and employment by the government is the

largest economic sector in Ukhahlamba comprising more

than 40 of the GGP

The District has a significant informal trading sector

(including petty producers of traditional garments etc)

This sector could be boosted by better institutional

support (eg SEDA has not yet established an office in

the District) and by CBD regeneration and the provision

of improved trading environments for hawkers

1 1

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B A S I C S E R V I C E S

Free basic services are currently being implemented in

urban areas but still at differing levels A policy around

the matter is currently being developed

Excepting Maletswai (22) all local municipalities

in Ukhahlamba fall below the provincial average of

households not having any formal sanitation

The sanitation backlogs for Elundini and Senqu make up

three quarters of the district backlogs

Estimates of the cost of eliminating water and sanitation

backlogs in Ukhahlamba are R376 million and R332

million respectively

Service delivery backlogs are most acute in Elundini due

to the poor road network and historical factors related

to the peripheral nature of the area under the former

Transkei regime

W A T E R A N D S A N I T A T I O N

Significant inroads have been made in terms of extending

household water access in Ukhahlamba The more

populous eastern parts of the district (Elundini) faces

the greatest challenges as far a water backlogs with one

third of households (34) still relying on natural water

sources This is significantly greater than the provincial

average (28) According to Ukhahlamba DM 4337 of

the people are in need of water ser vices while 7555 are

in need of sanitation services

1 2

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1 3

E L E C T R I C I T Y

Some 16 of households in Ukhahlamba have been

linked to the electr icity grid between 2001-2006 with 70

and more households in Senqu Maletswai and Gariep

now accessing electricity Elundini however again faces

the greatest challenges as far as backlogs is concerned

Household electricity connections in Elundini more than

doubled between 2001-2006 This however amounts to

only slightly more than one quarter (28) of households

which is significantly below the district and provincial

averages (60 of households for Ukhahlamba and 67

of households for the Eastern Cape) A new 90km 132kV

line (costing about R58m) is required from Mount Frere

to Mount Fletcher to provide additional capacity to

eradicate backlogs

It is necessary to lobby for more Municipal Infrastructure

Grant (MIG) funding to achieve national targets There is

a clear need to revise Water and Sanitation Sector Plans

and in particular to calculate the MIG allocations that are

required to ensure that National water and sanitation

targets are met

The eradication of water and sanitation backlogs are being

used to expand the Expanded Public Works Programme

in the District and strengthen the construction industry

This is being implemented in the provis ion of water in

Mount Fletcher and in the construction of the water

pipeline to Steynsburg from the Fish River Tunnel It

could be expanded if there were funds available

About 50 of clinics in the district have no piped water

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1 4

W A S T E

Solid waste removal and disposal currently poses a

significant challenge to municipalities and communities

leading to inadequate compliance with legislation and

poor service delivery

There are however economic opportunities attached to

the management of waste in the form of recycling and

innovative concepts around space reduction in waste

processes This potential is largely connected to the

larger economic nodes but there are also opportunities

in smaller communities such as Rhodes using waste from

the large tourism establishment of Tiffendell

H O U S I N G

Due to the rural nature of the Ukhahlamba area and

having a low proportion of urbanization the prevalence

of informal houses (shacks) is below the provincial

average Although there are low levels of informal housing

across the District this does not mean there is no further

need for further RDP housing because the definition of

informal housing does not include traditional dwellings

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1 5

T R A N S P O R T

Of significant concern in the district with regard to its

future economic growth is that no public transport

services are offered between Venterstad and Burgersdorp

and between Lady Grey Aliwal North and Bark ly East This

has an impact on the potentials for economic and social

linkages and is highly frustrating for commuters and

does not support the spatial economic growth strategies

of the district area

The improvement of roads in the Elundini area is likely

to have a wide impact on passenger transport across the

district If the R56 becomes an alternative (even if not the

official alternative) to the N2 due to the route being shorter

(as identified in the Spatial Development Framework) this

will increase the amount of commuter traffic Services

for public transport will need to be provided in Mount

Fletcher Maclear Ugie and Steynsburg

Over the past five years taxi facilities were constructed in

Aliwal North (as a larger modal interchange) Maclear and

Mount Fletcher There is still a need to improve public

transport facilities in Senqu especially at Sterkspruit

Related to provision of public transport is the need for

basic essential services such as water sanitation and

shelters at key facilities There is a need to provide these

services at all the nodes (rural and urban) as defined in the

Spatial Development Plan Areas with high dependencyon public transport especially the primary and secondary

nodes should receive priority

R O A D M A I N T E N A N C E

While the district is covered by a network of tarred and

gravel roads the conditions of these are a significant

challenge for the growth of the economy

Without improved maintenance of urban streets access

roads district and provincial roads goods are unable

to get to market and the market cannot be effectively

accessed by residents of the area

Of significant importance is the constant maintenance

of key economic roads as identified as mobility corridors

in the Spatial Development Framework This should

be supported by maintenance of gravel access roads

especially in the Elundini and Senqu areas where

population numbers are higher and untapped economic

potentials are higher

The maintenance of tarred provincial roads will become

a significant issue of concern as they are already

deteriorating beyond reasonable repair and the timber

industry development in the Ugie area will further

exacerbate this issue

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1 6

Airfields are currently used fairly infrequently but form a

key element of the disaster management system as well

as the emergency medical system across the district area

There are also moves afoot to bring specia lised medica l

support to the district areas by flying in specialised

personnel and equipment

Tourism is also in need of improved air transport services

especially in the mountain areas This is due to the

remote location of this area from the main urban hubs

of South Africa but which could be a way of overcoming

the challenge of distance The area around the town of

Rhodes has motivated for a long time for such a facility

The maintenance of municipal airfields has received very

low priority from municipalities over the past years

With regard to railway transport services only one out of

the four railway lines existing in the district is effectively

operational ndash the main line between Johannesburg and

East London This is only accessible at Burgersdorp This

rail line has very little impact on public transport and the

conveyance of goods to and or from the area Infrequently

the line between Burgersdorp and Aliwal North is used

for goods

The line between Aliwal North and Barkly East is of

unique value and could be a significant tourist attraction

if effectively maintained managed and marketed

Airfields are found in most of the urban settlements

and form part of the function of local municipalities A

new airfield has been constructed in Sterkspruit by the

Department of Roads and Transport

Communities have raised the issue of improved telephone

services as a key pr iority There are also still police stations

clinics and schools without any telephone service and

this impacts on their ability to deliver services The

more remote areas of Elundini and Senqu are the worst

affected

Funding for an investigation into the possibility of

providing broadband internet connections in the district

area have been agreed to by the European Union This

could provide potential for Business Outsourcing

T E L E C O M M U N I C A T I O N S

According to the 2001 census more than 50 of the

population has access either to a private telephone or

one nearby but there is still a section of the population

that has no access to a telephone at all Urban areas

receive the best service Parts of the commercial farming

areas and rural areas are provided with telephone services

based on radio linkages to towers driven by solar panel

technology

Cellphone services are used by a large proportion of

the population However this service does not cover the

whole area The mountainous nature of the area affects

reception

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It is important to note that Wetlands cover 32 square

kilometres in Elundini which includes the Gatberg

wetland ndash the breeding ground for the endangered

wattled crane The conservation of wetland is

being attended to through the Working for Water

programme (an EPWP programme)

C O N S E R V A T I O N A R E A S

One provincial nature reserve the Oviston Nature

Reserve on the banks of the Gariep Dam is located within

the Ukhahlamba District There is discussion underway

between the Eastern Cape and Free State conservation

boards to amalgamate the management of the nature

reserves around the Gariep Dam There have also been

proposals to expand the area under conservation in

this area but it is likely that this will be in the form of

stewardships and not through the purchase of land by

the state

1 7

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S O C I A L S E R V I C E S

is clearly the improvement of services delivery while

health infrastructure needs to be addressed in the more

desperate municipalities of Elundini and Senqu

In the District 40 of clinics have no electricity and 50

have no piped water

The services delivery challenges are again greatest in

the eastern and more populous areas of Elundini and

Senqu Generally access to clinics and emergency health

services is lower here and often compounded by poor

access roads

Access to primary education within the more infrastructure

poor areas of Elundini and Senqu is well within the distric t

and provincial norm The focus in terms of education

Approximately 255 of the adult population does not

have any form of training or education with 402

only having completed grades 3-7 Only 33 of the

population has completed Grade 12 compared to 66

in the Eastern Cape Only 17 of the District population

has obtained a tertiary qualification

The Elundini area has the largest proportion of people

having only received primary education while the Gariep

area has the highest proportion of people (315) having

never received any form of education

This highlights the extremely low levels of education in

the District and the need to focus on education and skills

training This can only be accomplished if the backlog in

education facilities is met

E D U C A T I O N A N D S K I L L S

There is very limited access to higher education facil ities

in the district area Ukhahlamba has higher than the

national average of people between 5-24 years attending

school but lower than the national average for those

attending tertiary education

According to the latest information from the Departmentof Education since 1999 only five schools have been built

The ratio between learners and educators is 1 363 which

is a slight improvement

Number of Schools Learners and

Educators in Ukhahlamba DM

TYPE OF SCHOOL

Combined Primary Secondary Total

Schools 173 168 46 397

Learners 60 783 31 997 22 577 126 449

Educators 1 863 984 241 3 482

Census figures show that about 50 of the total

population is of school going age

1 8

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1 9

Other skills development initiatives will be geared

towards the Ugie development project

LGSETA is to fund a Learnership on Municipal Finance and

Administration as well other skills programme focusing

on the unemployed Other learnerships will be rolled out

to support the water and sanitation programmes andmore young people will be employed

Partnerships will be forged and individual MoUrsquos will

be entered into between the District Municipality and

the following Higher Education and Further Education

institutions

Ikhala Public FET College

University of Fort Hare

Walter Sisulu University of Technology

University of the Free State

University of Western Cape

University of Stellenbosch

and various SETArsquos including LGSETA

In partnership with the aforementioned stakeholders a

district wide skills development plan will be developed

as a post summit activity and it will be guided by the

summit resolutions

About 41 of the Ukhahlamba Districtrsquos workforce is

made up of elementary or unskilled workers which

is the highest percentage in the province In Gariep

elementaryunskilled workers make up 53 of the

workforce but the largest numbers of unskilled workers

are in the more densely populated Senqu (3 682) and

Elundini (3 253) municipal areas On average 14 of

Ukhahlambarsquos working people have professional skills

rising to 17 in Elundini and Senqu The less densely

populated parts appear to have more skilled people

in Maletswai 15 of working people are skilled and in

Gariep 13 are skilled

Ukhahlamba has lower levels of senior management

technical and clerical skills than the provincersquos other

district municipali ties This corresponds with low levels of

education in Ukhahlamba and indicates a need for skills

development and education programmes

STRATEGIC SKILLS

DEVELOPMENT INITIATIVES JIPSA

Ukhahlamba District Municipality will in partnership with

the Office Of the Premier civil society the business sector

sector departments community based projects and local

municipalities embark on a massive skills development

drive in the following sectors of the economy to support

the 6 economic growth of the district

1 Agriculture

2 Tourism

3 Infrastructure

4 Manufacturing

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2 0

H E A L T H C A R E

The Ukhahlamba area has 11 hospitals including health

care centres and 43 clinics with at least 2 clinics in each

magisterial district The most densely populated Mount

Fletcher and Sterkspruit areas have 13 and 10 clinics

respectively The District has about 998 hospital beds with

a serviced supply average of about 328 people per bed

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2 1

H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

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3 7

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3 8

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3 9

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4 0

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4 1

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42

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4 3

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44

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4 5

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4 6

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4 7

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4 9

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5 0

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5 1

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52

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54

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5 5

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

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D I S T R I C T E C O N O M Y

There is also a perception among residents in the area

that hawking hairdressing clothes washing etc are

not ldquorealrdquo jobs and they do not consider that this is a

contribution to the economy Many people still aspire for

a government job as it is seen as secure

It can be seen that in the manufacturing sector growth

has occurred in the food-processing sub sector In the

Trade Cater ing and Accommodation sector there has

been very little growth in the catering side with the

largest growth occurring in the retail sub-sector On the

Transpor t and Communication sector the bulk of the

growth has been in the communication sector and in

the Finance and business services sector there has been

an increase in the finance sector but a decrease in the

business services sub-sector

Overall the GGP of the district has remained a fairly

constant proportion of the provincial GGP and the per

capital GGP of individuals within the Ukhahlamba area has

also remained fairly constant (when using constant prices)

at around 41 of the provincial per capital income

The District area contributes about 3 of the provincial

Gross Geographic Product (GGP)

The Ukhahlamba area is one of the 13 poorest and most

poverty stricken districts of South Africa

The 2001 Census indicated that over 86 of the residents

of the area live in poverty This is based on that the annual

household income is below the basic annual substance

level of R19200 per year

Of those of working age only 18 are employed 21 are

unemployed and 603 are not economically active (that is

that they have not sought work during the past 2 years)

Of those that are employed over 90 are employed

by someone else and only a very small 22 are self-

employed This has a significant impact on the ldquospirit of

entrepreneurshiprdquo where most people do not have the

experience of running their own business and have

a history of reliance and dependency on others for

employment

6

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7

factor mobility reduce transport costs promote linkages

with neighboring regions and reduce time spent in

survivalist activities such as collecting fuel and water

is the salient need in terms of Ukhahlambarsquos economic

competitiveness

Comparative advantage and associated opportunities

do exist in the agricultural sector as a result of labour

surpluses pockets of fertile land and under-utilised

irrigation potential Wool processing (in Maletswai -

which is advantaged by the N6 link to East London and

Gariep) livestock husbandry (Elundini and Gariep) maize

(Elundini and Senqu) and dry-land lucerne (Senqu) have

all shown signs of being suitable but commercializing

these activities and enhancing productivity remains a

major challenge The relative humidity (particularly in

Senqu and Elundini) and abundance of water creates

the potential for forestry (wattle) enterprises in Elundini

and for an expansion of the irrigated agricultural sector

provided the supporting infrastructure is available

The District rsquos stark topography and spectacular landscapes

in conjunction with low reported crime levels creates the

potential for tourism Currently inhibiting the realization

of this potential are perceptions about crime the fact

that tourist products are neither well packaged nor well

marketed and the lack of suitable road or rail access

The district can reasonably anticipate investment ininfrastructure as a result of its nodal status and infrastructure

grant allocation This should create opportunities for local

contractors in the construction industry provided they

have the capacity to compete for tenders

E C O N O M I C C O M P E T I T I V E N E S S

The composite competitive index for competitive

advantage in Ukhahlamba District is low in comparison to

the rest of the province The main reason for the regionrsquos

lack of competitive activity appears to be the dearth of

basic services and economic infrastructure Only 431 of

the population has access to electricity and almost 60 of

the population does not have access to reticulated water

Further constraints on the Districtrsquos competitiveness

include prevailing tenure insecurity and ambiguous

tenure arrangements which act as a deterrent to private

sector investment and complicate public sector efforts to

address the infrastructure backlog There is a clear need

for an approach to communal tenure that is conducive to

attracting investment

Easy communication is undermined by the Districtrsquos

distance from a major economic hub As a result

transaction costs are high This barrier to enterprise

creation is exacerbated by the limited levels of finance

and enterprise support in the District

The municipal economies of Ukhahlamba Distr ict are

highly concentrated There is excessive reliance on two

sectors - agriculture and government and community

services This renders these economies dependent on

outside goods and services (sixty per cent of purchases

are produced and manufactured outside of the region)and vulnerable to change Gariep is the only municipality

that does not rely on community services as the primary

contributor to revenue and employment

The Competitiveness report (conducted for the

Provincial LED Programme) also stated that the provision

of economic infrastructure and services that enhance

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8

Very little agro-processing is done in the area and most

produce is transported via road to larger centers out of

the district Aside from agro-processing the District has

virtually no manufacturing industry The agro-processing

industry is also small and mainly concentrated in Aliwal

North Nevertheless it is quite possible that this sector

could attract some new investment linked to existing

and new primary production Areas of interest could

include for example game meat fruit-processing (eg

peaches raspberries) nuts processing wool products

potato processing tanning stock feed etc A thorough

sector study is required to identify and package the most

viable investment opportunities

Livestock farming (cattle dairy sheep goats) and game

are very important in the District both for commercial

and communal farmers Livestock farming in communal

areas is being supported by the Provincial Department of

Agriculture through construction of stock dams dipping

tanks shearing sheds fencing veterinary services etc

Also the District Municipality together with Gold Fields

Foundation have a Livestock Improvement Programme

in Elundini and there is a goat project in Mount Fletcher

The challenge is to increase incomes from communal

livestock farming Black emerging farmers suffer from

inadequate technology skills and market knowledge

and therefore receive an income significantly less than

better-equipped white commercial farmers Also landownership (and not land claims there are very few in the

District) is a major concern Large tracts of land are either

in the hands of a few white farmers or the state The

District Municipality should develop a register of state-

land in conjunction with DLA

A G R I C U L T U R E

Extensive livestock farming of sheep goats and cattle

dominate agriculture There are pockets of dry land crop

farming especially in the wetter eastern area Only small

isolated pockets of land are suitable for irrigation despite

having the Orange River and Gariep dam as the northern

boundary It is currently unknown as to the impact of the

Mzimvubu Basin Asgi-SA programme on the Elundini area

There is a differentiation between the commercial farming

areas which are the main economic drivers in the economy

and the subsistence farming areas that are located in the

communal land areas This latter sector is very dependent

on the state for 1047297nancial support and has little ability to

use the land as collateral for obtaining loans

The depopulation of the remote rural areas while people

move to the main roads to access services is seen as a

positive move for agriculture

Two large areas of agricultural land reform exist in the

district namely Umnga Flats and Pitseng both located

in the Elundini area

The care and rehabilitation of land as a means of

protecting agricultural resources is of critical importance

if agriculture is to grow in the area There is presently a

land care trials in ward four in Sterkspruit

Land redistribution is still to be suitably addressed in thearea For example there is no single land redistribution

project in the area of Barkly East in Senqu LM

Road access is constraining agricultural development in

the district area

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9

New irrigation investments being implementedplanned

include the Tsitsa River Basin Project Mzimvubu Basin

Project Orange River Water Scheme and Holo Hlahatsi

Dam development Senqu Municipality has already

undertaken studies on bulk water for irrigation purposes

for the Orange and Karringmelkspruit rivers

It is clear that crop production under irrigation if managed

well has huge potential for job and income creation

An industry Action Plan for arable agriculture would

probably include

Evaluation of all existing studies relevant to the

expansion of irrigation farming in the District

Selection of priority interventions

Project design and feasibility (including environmental

impact assessment)

Land acquisition and ownership

Project financing

Farmer training and support

An industry action plan for livestock would probably

include

Expansion of the effective NWGA model of support

Improving existing programmes designed to facilitate

skills transfer between commercial and emerging

farmers

Improved Agricultural Extension Services

Improved market access (eg drawing on experience of

USAID-funded project in the Chris Hani District Middle

East goat market)

Accelerated land redistribution (with effective support)

Building animal feeds industry

Improved veld management

Move to formal land administration in communal areas

Upgrading access roadsfarm logistics

Dry cropping is only feasible in small parts of the District

underscoring the important role that irrigation schemes

can play Dry-cropping is practiced in Elundini and this

yearrsquos ploughing under the Massive Food Programme

was 1700 hectares

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1 0

T O U R I S M

The Districtrsquos tourism industry has grown from a low base

over the last decade and a niche market seems to have

found in the area of adventure tourism The impact of

tourism has not really been wide felt but it is perceived

to be a growth sector for the area due to the unique

environments the only Ski resort in Southern Africa hot

springs and the largest dam in South Africa

Improved access to the District through the tarring of the

R56 between Mount Fletcher and Maclear access from

Lesotho at Telle Bridge and the new Ugie to Langeni road

are likely to positively impact on the district area

The potential of linking the N1 near Gariep Dam via

a scenic route to the N2 at Mthatha is currently being

explored There is an indication that the route between

Cape Town and Durban through the distric t may prove to

be more attractive to tourists

Environmental and land rehabilitation programmes

should be expanded to create jobs and to preserve the

agricultural and tourism potential of the District

There are several interventions being planned that will

grow tourism in the District

The Provincial Gateway Project at Aliwal Nor th This

involves the beautification of the town to attract

tourists to stopover Presently the N6 with heavy trucks

passes through the town center It would be preferableto divert the N6 onto a parallel Street (aligned with the

bridge over the Orange River) and restore the main

street (Somerset Street) to its former glory trees for

shade and pedestrianised

F O R E S T R Y

There are large untapped forestry potentials in the Elundini

area and an additional 30 000ha could be available for

the expansion of the current plantations Construction

has recently started on the R15 billion PG Bison North

East Cape Forests Cluster near Ugie This will create 3000

direct jobs and many thousands of indirect jobs This

forestry initiative is part of the AsgiSA initiative The

National government AsgiSA programme has identified

forestry development as a key pillar to achieving the

economic growth and development targets and has

prioritized forestry as a key sector for support across all

tiers of government The same is true in the PGDP as well

as in the emerging provincial industrial plan

There is also a potential for more forestry development in

the area but this is constrained by lack of road access into

the hinterland

Improved linkages to Mthatha through the new Ugie

Langeni road will enable products to be exported

from Mthata via the rail link to East London Industrial

Development Zone With the improved road access to this

area coupled with the forestry investments it is likely that

there will be signi1047297cant economic growth in this area

About 100 Interlink transport vehicles will be leaving

the particle board plant per day this is likely to have an

impact on the tarred road networks as well as the towns

through which they will drive when taking the productsto markets (Johannesburg Durban exports etc)

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C O N S T R U C T I O N

The Districtrsquos relatively high infrastructure budget

allocation in the Medium Term Expenditure Framework

presents opportunities for the growth of the local

construction industry (including housing water and

sanitation roads) and may enhance competitiveness

by addressing critical shortcomings in economic

infrastructure The sector also offers great potential to

enhance livelihoods through the EPWP

F I N A N C I A L S E R V I C E S

Most towns do have banks however there are exceptions

such as Venterstad and Mount Fletcher Due to the rural

nature of the area while there may be banks these do

not offer the full one-stop services and managers are

often based in centralized offices in the district (such as

Aliwal North) or outside the district such as in Elliot There

has been an increase in accessibility to ATMs through

the provision of in-store facilities Financial advice is still

however very limited

Revitalization of Aliwal Spa This project has been

delayed by the local municipalityrsquos determination to

retain land ownership of the facility A more pragmatic

approach is required

A public-private partnership should be packaged to

revive the tourist steam trains on the famous railway

reverses between Lady Grey and Barkly East

The Madiba Corridor Route between Aliwal North and Port

St Johns This would include the new road between Ugie

and Langeni (with a long bridge over indigenous forest)

The Gariep Complex Project is one of the distr ict

attractions

There is also a dedicated District tourism organization that

would strengthen marketing and product development

T R A D E

Social grants and employment by the government is the

largest economic sector in Ukhahlamba comprising more

than 40 of the GGP

The District has a significant informal trading sector

(including petty producers of traditional garments etc)

This sector could be boosted by better institutional

support (eg SEDA has not yet established an office in

the District) and by CBD regeneration and the provision

of improved trading environments for hawkers

1 1

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B A S I C S E R V I C E S

Free basic services are currently being implemented in

urban areas but still at differing levels A policy around

the matter is currently being developed

Excepting Maletswai (22) all local municipalities

in Ukhahlamba fall below the provincial average of

households not having any formal sanitation

The sanitation backlogs for Elundini and Senqu make up

three quarters of the district backlogs

Estimates of the cost of eliminating water and sanitation

backlogs in Ukhahlamba are R376 million and R332

million respectively

Service delivery backlogs are most acute in Elundini due

to the poor road network and historical factors related

to the peripheral nature of the area under the former

Transkei regime

W A T E R A N D S A N I T A T I O N

Significant inroads have been made in terms of extending

household water access in Ukhahlamba The more

populous eastern parts of the district (Elundini) faces

the greatest challenges as far a water backlogs with one

third of households (34) still relying on natural water

sources This is significantly greater than the provincial

average (28) According to Ukhahlamba DM 4337 of

the people are in need of water ser vices while 7555 are

in need of sanitation services

1 2

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1 3

E L E C T R I C I T Y

Some 16 of households in Ukhahlamba have been

linked to the electr icity grid between 2001-2006 with 70

and more households in Senqu Maletswai and Gariep

now accessing electricity Elundini however again faces

the greatest challenges as far as backlogs is concerned

Household electricity connections in Elundini more than

doubled between 2001-2006 This however amounts to

only slightly more than one quarter (28) of households

which is significantly below the district and provincial

averages (60 of households for Ukhahlamba and 67

of households for the Eastern Cape) A new 90km 132kV

line (costing about R58m) is required from Mount Frere

to Mount Fletcher to provide additional capacity to

eradicate backlogs

It is necessary to lobby for more Municipal Infrastructure

Grant (MIG) funding to achieve national targets There is

a clear need to revise Water and Sanitation Sector Plans

and in particular to calculate the MIG allocations that are

required to ensure that National water and sanitation

targets are met

The eradication of water and sanitation backlogs are being

used to expand the Expanded Public Works Programme

in the District and strengthen the construction industry

This is being implemented in the provis ion of water in

Mount Fletcher and in the construction of the water

pipeline to Steynsburg from the Fish River Tunnel It

could be expanded if there were funds available

About 50 of clinics in the district have no piped water

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1 4

W A S T E

Solid waste removal and disposal currently poses a

significant challenge to municipalities and communities

leading to inadequate compliance with legislation and

poor service delivery

There are however economic opportunities attached to

the management of waste in the form of recycling and

innovative concepts around space reduction in waste

processes This potential is largely connected to the

larger economic nodes but there are also opportunities

in smaller communities such as Rhodes using waste from

the large tourism establishment of Tiffendell

H O U S I N G

Due to the rural nature of the Ukhahlamba area and

having a low proportion of urbanization the prevalence

of informal houses (shacks) is below the provincial

average Although there are low levels of informal housing

across the District this does not mean there is no further

need for further RDP housing because the definition of

informal housing does not include traditional dwellings

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1 5

T R A N S P O R T

Of significant concern in the district with regard to its

future economic growth is that no public transport

services are offered between Venterstad and Burgersdorp

and between Lady Grey Aliwal North and Bark ly East This

has an impact on the potentials for economic and social

linkages and is highly frustrating for commuters and

does not support the spatial economic growth strategies

of the district area

The improvement of roads in the Elundini area is likely

to have a wide impact on passenger transport across the

district If the R56 becomes an alternative (even if not the

official alternative) to the N2 due to the route being shorter

(as identified in the Spatial Development Framework) this

will increase the amount of commuter traffic Services

for public transport will need to be provided in Mount

Fletcher Maclear Ugie and Steynsburg

Over the past five years taxi facilities were constructed in

Aliwal North (as a larger modal interchange) Maclear and

Mount Fletcher There is still a need to improve public

transport facilities in Senqu especially at Sterkspruit

Related to provision of public transport is the need for

basic essential services such as water sanitation and

shelters at key facilities There is a need to provide these

services at all the nodes (rural and urban) as defined in the

Spatial Development Plan Areas with high dependencyon public transport especially the primary and secondary

nodes should receive priority

R O A D M A I N T E N A N C E

While the district is covered by a network of tarred and

gravel roads the conditions of these are a significant

challenge for the growth of the economy

Without improved maintenance of urban streets access

roads district and provincial roads goods are unable

to get to market and the market cannot be effectively

accessed by residents of the area

Of significant importance is the constant maintenance

of key economic roads as identified as mobility corridors

in the Spatial Development Framework This should

be supported by maintenance of gravel access roads

especially in the Elundini and Senqu areas where

population numbers are higher and untapped economic

potentials are higher

The maintenance of tarred provincial roads will become

a significant issue of concern as they are already

deteriorating beyond reasonable repair and the timber

industry development in the Ugie area will further

exacerbate this issue

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1 6

Airfields are currently used fairly infrequently but form a

key element of the disaster management system as well

as the emergency medical system across the district area

There are also moves afoot to bring specia lised medica l

support to the district areas by flying in specialised

personnel and equipment

Tourism is also in need of improved air transport services

especially in the mountain areas This is due to the

remote location of this area from the main urban hubs

of South Africa but which could be a way of overcoming

the challenge of distance The area around the town of

Rhodes has motivated for a long time for such a facility

The maintenance of municipal airfields has received very

low priority from municipalities over the past years

With regard to railway transport services only one out of

the four railway lines existing in the district is effectively

operational ndash the main line between Johannesburg and

East London This is only accessible at Burgersdorp This

rail line has very little impact on public transport and the

conveyance of goods to and or from the area Infrequently

the line between Burgersdorp and Aliwal North is used

for goods

The line between Aliwal North and Barkly East is of

unique value and could be a significant tourist attraction

if effectively maintained managed and marketed

Airfields are found in most of the urban settlements

and form part of the function of local municipalities A

new airfield has been constructed in Sterkspruit by the

Department of Roads and Transport

Communities have raised the issue of improved telephone

services as a key pr iority There are also still police stations

clinics and schools without any telephone service and

this impacts on their ability to deliver services The

more remote areas of Elundini and Senqu are the worst

affected

Funding for an investigation into the possibility of

providing broadband internet connections in the district

area have been agreed to by the European Union This

could provide potential for Business Outsourcing

T E L E C O M M U N I C A T I O N S

According to the 2001 census more than 50 of the

population has access either to a private telephone or

one nearby but there is still a section of the population

that has no access to a telephone at all Urban areas

receive the best service Parts of the commercial farming

areas and rural areas are provided with telephone services

based on radio linkages to towers driven by solar panel

technology

Cellphone services are used by a large proportion of

the population However this service does not cover the

whole area The mountainous nature of the area affects

reception

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It is important to note that Wetlands cover 32 square

kilometres in Elundini which includes the Gatberg

wetland ndash the breeding ground for the endangered

wattled crane The conservation of wetland is

being attended to through the Working for Water

programme (an EPWP programme)

C O N S E R V A T I O N A R E A S

One provincial nature reserve the Oviston Nature

Reserve on the banks of the Gariep Dam is located within

the Ukhahlamba District There is discussion underway

between the Eastern Cape and Free State conservation

boards to amalgamate the management of the nature

reserves around the Gariep Dam There have also been

proposals to expand the area under conservation in

this area but it is likely that this will be in the form of

stewardships and not through the purchase of land by

the state

1 7

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S O C I A L S E R V I C E S

is clearly the improvement of services delivery while

health infrastructure needs to be addressed in the more

desperate municipalities of Elundini and Senqu

In the District 40 of clinics have no electricity and 50

have no piped water

The services delivery challenges are again greatest in

the eastern and more populous areas of Elundini and

Senqu Generally access to clinics and emergency health

services is lower here and often compounded by poor

access roads

Access to primary education within the more infrastructure

poor areas of Elundini and Senqu is well within the distric t

and provincial norm The focus in terms of education

Approximately 255 of the adult population does not

have any form of training or education with 402

only having completed grades 3-7 Only 33 of the

population has completed Grade 12 compared to 66

in the Eastern Cape Only 17 of the District population

has obtained a tertiary qualification

The Elundini area has the largest proportion of people

having only received primary education while the Gariep

area has the highest proportion of people (315) having

never received any form of education

This highlights the extremely low levels of education in

the District and the need to focus on education and skills

training This can only be accomplished if the backlog in

education facilities is met

E D U C A T I O N A N D S K I L L S

There is very limited access to higher education facil ities

in the district area Ukhahlamba has higher than the

national average of people between 5-24 years attending

school but lower than the national average for those

attending tertiary education

According to the latest information from the Departmentof Education since 1999 only five schools have been built

The ratio between learners and educators is 1 363 which

is a slight improvement

Number of Schools Learners and

Educators in Ukhahlamba DM

TYPE OF SCHOOL

Combined Primary Secondary Total

Schools 173 168 46 397

Learners 60 783 31 997 22 577 126 449

Educators 1 863 984 241 3 482

Census figures show that about 50 of the total

population is of school going age

1 8

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1 9

Other skills development initiatives will be geared

towards the Ugie development project

LGSETA is to fund a Learnership on Municipal Finance and

Administration as well other skills programme focusing

on the unemployed Other learnerships will be rolled out

to support the water and sanitation programmes andmore young people will be employed

Partnerships will be forged and individual MoUrsquos will

be entered into between the District Municipality and

the following Higher Education and Further Education

institutions

Ikhala Public FET College

University of Fort Hare

Walter Sisulu University of Technology

University of the Free State

University of Western Cape

University of Stellenbosch

and various SETArsquos including LGSETA

In partnership with the aforementioned stakeholders a

district wide skills development plan will be developed

as a post summit activity and it will be guided by the

summit resolutions

About 41 of the Ukhahlamba Districtrsquos workforce is

made up of elementary or unskilled workers which

is the highest percentage in the province In Gariep

elementaryunskilled workers make up 53 of the

workforce but the largest numbers of unskilled workers

are in the more densely populated Senqu (3 682) and

Elundini (3 253) municipal areas On average 14 of

Ukhahlambarsquos working people have professional skills

rising to 17 in Elundini and Senqu The less densely

populated parts appear to have more skilled people

in Maletswai 15 of working people are skilled and in

Gariep 13 are skilled

Ukhahlamba has lower levels of senior management

technical and clerical skills than the provincersquos other

district municipali ties This corresponds with low levels of

education in Ukhahlamba and indicates a need for skills

development and education programmes

STRATEGIC SKILLS

DEVELOPMENT INITIATIVES JIPSA

Ukhahlamba District Municipality will in partnership with

the Office Of the Premier civil society the business sector

sector departments community based projects and local

municipalities embark on a massive skills development

drive in the following sectors of the economy to support

the 6 economic growth of the district

1 Agriculture

2 Tourism

3 Infrastructure

4 Manufacturing

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2 0

H E A L T H C A R E

The Ukhahlamba area has 11 hospitals including health

care centres and 43 clinics with at least 2 clinics in each

magisterial district The most densely populated Mount

Fletcher and Sterkspruit areas have 13 and 10 clinics

respectively The District has about 998 hospital beds with

a serviced supply average of about 328 people per bed

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H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

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3 7

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3 8

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3 9

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4 0

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4 1

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42

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4 3

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44

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4 5

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4 6

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4 7

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4 9

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5 0

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5 1

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52

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54

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5 5

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

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7

factor mobility reduce transport costs promote linkages

with neighboring regions and reduce time spent in

survivalist activities such as collecting fuel and water

is the salient need in terms of Ukhahlambarsquos economic

competitiveness

Comparative advantage and associated opportunities

do exist in the agricultural sector as a result of labour

surpluses pockets of fertile land and under-utilised

irrigation potential Wool processing (in Maletswai -

which is advantaged by the N6 link to East London and

Gariep) livestock husbandry (Elundini and Gariep) maize

(Elundini and Senqu) and dry-land lucerne (Senqu) have

all shown signs of being suitable but commercializing

these activities and enhancing productivity remains a

major challenge The relative humidity (particularly in

Senqu and Elundini) and abundance of water creates

the potential for forestry (wattle) enterprises in Elundini

and for an expansion of the irrigated agricultural sector

provided the supporting infrastructure is available

The District rsquos stark topography and spectacular landscapes

in conjunction with low reported crime levels creates the

potential for tourism Currently inhibiting the realization

of this potential are perceptions about crime the fact

that tourist products are neither well packaged nor well

marketed and the lack of suitable road or rail access

The district can reasonably anticipate investment ininfrastructure as a result of its nodal status and infrastructure

grant allocation This should create opportunities for local

contractors in the construction industry provided they

have the capacity to compete for tenders

E C O N O M I C C O M P E T I T I V E N E S S

The composite competitive index for competitive

advantage in Ukhahlamba District is low in comparison to

the rest of the province The main reason for the regionrsquos

lack of competitive activity appears to be the dearth of

basic services and economic infrastructure Only 431 of

the population has access to electricity and almost 60 of

the population does not have access to reticulated water

Further constraints on the Districtrsquos competitiveness

include prevailing tenure insecurity and ambiguous

tenure arrangements which act as a deterrent to private

sector investment and complicate public sector efforts to

address the infrastructure backlog There is a clear need

for an approach to communal tenure that is conducive to

attracting investment

Easy communication is undermined by the Districtrsquos

distance from a major economic hub As a result

transaction costs are high This barrier to enterprise

creation is exacerbated by the limited levels of finance

and enterprise support in the District

The municipal economies of Ukhahlamba Distr ict are

highly concentrated There is excessive reliance on two

sectors - agriculture and government and community

services This renders these economies dependent on

outside goods and services (sixty per cent of purchases

are produced and manufactured outside of the region)and vulnerable to change Gariep is the only municipality

that does not rely on community services as the primary

contributor to revenue and employment

The Competitiveness report (conducted for the

Provincial LED Programme) also stated that the provision

of economic infrastructure and services that enhance

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8

Very little agro-processing is done in the area and most

produce is transported via road to larger centers out of

the district Aside from agro-processing the District has

virtually no manufacturing industry The agro-processing

industry is also small and mainly concentrated in Aliwal

North Nevertheless it is quite possible that this sector

could attract some new investment linked to existing

and new primary production Areas of interest could

include for example game meat fruit-processing (eg

peaches raspberries) nuts processing wool products

potato processing tanning stock feed etc A thorough

sector study is required to identify and package the most

viable investment opportunities

Livestock farming (cattle dairy sheep goats) and game

are very important in the District both for commercial

and communal farmers Livestock farming in communal

areas is being supported by the Provincial Department of

Agriculture through construction of stock dams dipping

tanks shearing sheds fencing veterinary services etc

Also the District Municipality together with Gold Fields

Foundation have a Livestock Improvement Programme

in Elundini and there is a goat project in Mount Fletcher

The challenge is to increase incomes from communal

livestock farming Black emerging farmers suffer from

inadequate technology skills and market knowledge

and therefore receive an income significantly less than

better-equipped white commercial farmers Also landownership (and not land claims there are very few in the

District) is a major concern Large tracts of land are either

in the hands of a few white farmers or the state The

District Municipality should develop a register of state-

land in conjunction with DLA

A G R I C U L T U R E

Extensive livestock farming of sheep goats and cattle

dominate agriculture There are pockets of dry land crop

farming especially in the wetter eastern area Only small

isolated pockets of land are suitable for irrigation despite

having the Orange River and Gariep dam as the northern

boundary It is currently unknown as to the impact of the

Mzimvubu Basin Asgi-SA programme on the Elundini area

There is a differentiation between the commercial farming

areas which are the main economic drivers in the economy

and the subsistence farming areas that are located in the

communal land areas This latter sector is very dependent

on the state for 1047297nancial support and has little ability to

use the land as collateral for obtaining loans

The depopulation of the remote rural areas while people

move to the main roads to access services is seen as a

positive move for agriculture

Two large areas of agricultural land reform exist in the

district namely Umnga Flats and Pitseng both located

in the Elundini area

The care and rehabilitation of land as a means of

protecting agricultural resources is of critical importance

if agriculture is to grow in the area There is presently a

land care trials in ward four in Sterkspruit

Land redistribution is still to be suitably addressed in thearea For example there is no single land redistribution

project in the area of Barkly East in Senqu LM

Road access is constraining agricultural development in

the district area

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9

New irrigation investments being implementedplanned

include the Tsitsa River Basin Project Mzimvubu Basin

Project Orange River Water Scheme and Holo Hlahatsi

Dam development Senqu Municipality has already

undertaken studies on bulk water for irrigation purposes

for the Orange and Karringmelkspruit rivers

It is clear that crop production under irrigation if managed

well has huge potential for job and income creation

An industry Action Plan for arable agriculture would

probably include

Evaluation of all existing studies relevant to the

expansion of irrigation farming in the District

Selection of priority interventions

Project design and feasibility (including environmental

impact assessment)

Land acquisition and ownership

Project financing

Farmer training and support

An industry action plan for livestock would probably

include

Expansion of the effective NWGA model of support

Improving existing programmes designed to facilitate

skills transfer between commercial and emerging

farmers

Improved Agricultural Extension Services

Improved market access (eg drawing on experience of

USAID-funded project in the Chris Hani District Middle

East goat market)

Accelerated land redistribution (with effective support)

Building animal feeds industry

Improved veld management

Move to formal land administration in communal areas

Upgrading access roadsfarm logistics

Dry cropping is only feasible in small parts of the District

underscoring the important role that irrigation schemes

can play Dry-cropping is practiced in Elundini and this

yearrsquos ploughing under the Massive Food Programme

was 1700 hectares

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1 0

T O U R I S M

The Districtrsquos tourism industry has grown from a low base

over the last decade and a niche market seems to have

found in the area of adventure tourism The impact of

tourism has not really been wide felt but it is perceived

to be a growth sector for the area due to the unique

environments the only Ski resort in Southern Africa hot

springs and the largest dam in South Africa

Improved access to the District through the tarring of the

R56 between Mount Fletcher and Maclear access from

Lesotho at Telle Bridge and the new Ugie to Langeni road

are likely to positively impact on the district area

The potential of linking the N1 near Gariep Dam via

a scenic route to the N2 at Mthatha is currently being

explored There is an indication that the route between

Cape Town and Durban through the distric t may prove to

be more attractive to tourists

Environmental and land rehabilitation programmes

should be expanded to create jobs and to preserve the

agricultural and tourism potential of the District

There are several interventions being planned that will

grow tourism in the District

The Provincial Gateway Project at Aliwal Nor th This

involves the beautification of the town to attract

tourists to stopover Presently the N6 with heavy trucks

passes through the town center It would be preferableto divert the N6 onto a parallel Street (aligned with the

bridge over the Orange River) and restore the main

street (Somerset Street) to its former glory trees for

shade and pedestrianised

F O R E S T R Y

There are large untapped forestry potentials in the Elundini

area and an additional 30 000ha could be available for

the expansion of the current plantations Construction

has recently started on the R15 billion PG Bison North

East Cape Forests Cluster near Ugie This will create 3000

direct jobs and many thousands of indirect jobs This

forestry initiative is part of the AsgiSA initiative The

National government AsgiSA programme has identified

forestry development as a key pillar to achieving the

economic growth and development targets and has

prioritized forestry as a key sector for support across all

tiers of government The same is true in the PGDP as well

as in the emerging provincial industrial plan

There is also a potential for more forestry development in

the area but this is constrained by lack of road access into

the hinterland

Improved linkages to Mthatha through the new Ugie

Langeni road will enable products to be exported

from Mthata via the rail link to East London Industrial

Development Zone With the improved road access to this

area coupled with the forestry investments it is likely that

there will be signi1047297cant economic growth in this area

About 100 Interlink transport vehicles will be leaving

the particle board plant per day this is likely to have an

impact on the tarred road networks as well as the towns

through which they will drive when taking the productsto markets (Johannesburg Durban exports etc)

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C O N S T R U C T I O N

The Districtrsquos relatively high infrastructure budget

allocation in the Medium Term Expenditure Framework

presents opportunities for the growth of the local

construction industry (including housing water and

sanitation roads) and may enhance competitiveness

by addressing critical shortcomings in economic

infrastructure The sector also offers great potential to

enhance livelihoods through the EPWP

F I N A N C I A L S E R V I C E S

Most towns do have banks however there are exceptions

such as Venterstad and Mount Fletcher Due to the rural

nature of the area while there may be banks these do

not offer the full one-stop services and managers are

often based in centralized offices in the district (such as

Aliwal North) or outside the district such as in Elliot There

has been an increase in accessibility to ATMs through

the provision of in-store facilities Financial advice is still

however very limited

Revitalization of Aliwal Spa This project has been

delayed by the local municipalityrsquos determination to

retain land ownership of the facility A more pragmatic

approach is required

A public-private partnership should be packaged to

revive the tourist steam trains on the famous railway

reverses between Lady Grey and Barkly East

The Madiba Corridor Route between Aliwal North and Port

St Johns This would include the new road between Ugie

and Langeni (with a long bridge over indigenous forest)

The Gariep Complex Project is one of the distr ict

attractions

There is also a dedicated District tourism organization that

would strengthen marketing and product development

T R A D E

Social grants and employment by the government is the

largest economic sector in Ukhahlamba comprising more

than 40 of the GGP

The District has a significant informal trading sector

(including petty producers of traditional garments etc)

This sector could be boosted by better institutional

support (eg SEDA has not yet established an office in

the District) and by CBD regeneration and the provision

of improved trading environments for hawkers

1 1

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B A S I C S E R V I C E S

Free basic services are currently being implemented in

urban areas but still at differing levels A policy around

the matter is currently being developed

Excepting Maletswai (22) all local municipalities

in Ukhahlamba fall below the provincial average of

households not having any formal sanitation

The sanitation backlogs for Elundini and Senqu make up

three quarters of the district backlogs

Estimates of the cost of eliminating water and sanitation

backlogs in Ukhahlamba are R376 million and R332

million respectively

Service delivery backlogs are most acute in Elundini due

to the poor road network and historical factors related

to the peripheral nature of the area under the former

Transkei regime

W A T E R A N D S A N I T A T I O N

Significant inroads have been made in terms of extending

household water access in Ukhahlamba The more

populous eastern parts of the district (Elundini) faces

the greatest challenges as far a water backlogs with one

third of households (34) still relying on natural water

sources This is significantly greater than the provincial

average (28) According to Ukhahlamba DM 4337 of

the people are in need of water ser vices while 7555 are

in need of sanitation services

1 2

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1 3

E L E C T R I C I T Y

Some 16 of households in Ukhahlamba have been

linked to the electr icity grid between 2001-2006 with 70

and more households in Senqu Maletswai and Gariep

now accessing electricity Elundini however again faces

the greatest challenges as far as backlogs is concerned

Household electricity connections in Elundini more than

doubled between 2001-2006 This however amounts to

only slightly more than one quarter (28) of households

which is significantly below the district and provincial

averages (60 of households for Ukhahlamba and 67

of households for the Eastern Cape) A new 90km 132kV

line (costing about R58m) is required from Mount Frere

to Mount Fletcher to provide additional capacity to

eradicate backlogs

It is necessary to lobby for more Municipal Infrastructure

Grant (MIG) funding to achieve national targets There is

a clear need to revise Water and Sanitation Sector Plans

and in particular to calculate the MIG allocations that are

required to ensure that National water and sanitation

targets are met

The eradication of water and sanitation backlogs are being

used to expand the Expanded Public Works Programme

in the District and strengthen the construction industry

This is being implemented in the provis ion of water in

Mount Fletcher and in the construction of the water

pipeline to Steynsburg from the Fish River Tunnel It

could be expanded if there were funds available

About 50 of clinics in the district have no piped water

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1 4

W A S T E

Solid waste removal and disposal currently poses a

significant challenge to municipalities and communities

leading to inadequate compliance with legislation and

poor service delivery

There are however economic opportunities attached to

the management of waste in the form of recycling and

innovative concepts around space reduction in waste

processes This potential is largely connected to the

larger economic nodes but there are also opportunities

in smaller communities such as Rhodes using waste from

the large tourism establishment of Tiffendell

H O U S I N G

Due to the rural nature of the Ukhahlamba area and

having a low proportion of urbanization the prevalence

of informal houses (shacks) is below the provincial

average Although there are low levels of informal housing

across the District this does not mean there is no further

need for further RDP housing because the definition of

informal housing does not include traditional dwellings

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1 5

T R A N S P O R T

Of significant concern in the district with regard to its

future economic growth is that no public transport

services are offered between Venterstad and Burgersdorp

and between Lady Grey Aliwal North and Bark ly East This

has an impact on the potentials for economic and social

linkages and is highly frustrating for commuters and

does not support the spatial economic growth strategies

of the district area

The improvement of roads in the Elundini area is likely

to have a wide impact on passenger transport across the

district If the R56 becomes an alternative (even if not the

official alternative) to the N2 due to the route being shorter

(as identified in the Spatial Development Framework) this

will increase the amount of commuter traffic Services

for public transport will need to be provided in Mount

Fletcher Maclear Ugie and Steynsburg

Over the past five years taxi facilities were constructed in

Aliwal North (as a larger modal interchange) Maclear and

Mount Fletcher There is still a need to improve public

transport facilities in Senqu especially at Sterkspruit

Related to provision of public transport is the need for

basic essential services such as water sanitation and

shelters at key facilities There is a need to provide these

services at all the nodes (rural and urban) as defined in the

Spatial Development Plan Areas with high dependencyon public transport especially the primary and secondary

nodes should receive priority

R O A D M A I N T E N A N C E

While the district is covered by a network of tarred and

gravel roads the conditions of these are a significant

challenge for the growth of the economy

Without improved maintenance of urban streets access

roads district and provincial roads goods are unable

to get to market and the market cannot be effectively

accessed by residents of the area

Of significant importance is the constant maintenance

of key economic roads as identified as mobility corridors

in the Spatial Development Framework This should

be supported by maintenance of gravel access roads

especially in the Elundini and Senqu areas where

population numbers are higher and untapped economic

potentials are higher

The maintenance of tarred provincial roads will become

a significant issue of concern as they are already

deteriorating beyond reasonable repair and the timber

industry development in the Ugie area will further

exacerbate this issue

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1 6

Airfields are currently used fairly infrequently but form a

key element of the disaster management system as well

as the emergency medical system across the district area

There are also moves afoot to bring specia lised medica l

support to the district areas by flying in specialised

personnel and equipment

Tourism is also in need of improved air transport services

especially in the mountain areas This is due to the

remote location of this area from the main urban hubs

of South Africa but which could be a way of overcoming

the challenge of distance The area around the town of

Rhodes has motivated for a long time for such a facility

The maintenance of municipal airfields has received very

low priority from municipalities over the past years

With regard to railway transport services only one out of

the four railway lines existing in the district is effectively

operational ndash the main line between Johannesburg and

East London This is only accessible at Burgersdorp This

rail line has very little impact on public transport and the

conveyance of goods to and or from the area Infrequently

the line between Burgersdorp and Aliwal North is used

for goods

The line between Aliwal North and Barkly East is of

unique value and could be a significant tourist attraction

if effectively maintained managed and marketed

Airfields are found in most of the urban settlements

and form part of the function of local municipalities A

new airfield has been constructed in Sterkspruit by the

Department of Roads and Transport

Communities have raised the issue of improved telephone

services as a key pr iority There are also still police stations

clinics and schools without any telephone service and

this impacts on their ability to deliver services The

more remote areas of Elundini and Senqu are the worst

affected

Funding for an investigation into the possibility of

providing broadband internet connections in the district

area have been agreed to by the European Union This

could provide potential for Business Outsourcing

T E L E C O M M U N I C A T I O N S

According to the 2001 census more than 50 of the

population has access either to a private telephone or

one nearby but there is still a section of the population

that has no access to a telephone at all Urban areas

receive the best service Parts of the commercial farming

areas and rural areas are provided with telephone services

based on radio linkages to towers driven by solar panel

technology

Cellphone services are used by a large proportion of

the population However this service does not cover the

whole area The mountainous nature of the area affects

reception

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It is important to note that Wetlands cover 32 square

kilometres in Elundini which includes the Gatberg

wetland ndash the breeding ground for the endangered

wattled crane The conservation of wetland is

being attended to through the Working for Water

programme (an EPWP programme)

C O N S E R V A T I O N A R E A S

One provincial nature reserve the Oviston Nature

Reserve on the banks of the Gariep Dam is located within

the Ukhahlamba District There is discussion underway

between the Eastern Cape and Free State conservation

boards to amalgamate the management of the nature

reserves around the Gariep Dam There have also been

proposals to expand the area under conservation in

this area but it is likely that this will be in the form of

stewardships and not through the purchase of land by

the state

1 7

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S O C I A L S E R V I C E S

is clearly the improvement of services delivery while

health infrastructure needs to be addressed in the more

desperate municipalities of Elundini and Senqu

In the District 40 of clinics have no electricity and 50

have no piped water

The services delivery challenges are again greatest in

the eastern and more populous areas of Elundini and

Senqu Generally access to clinics and emergency health

services is lower here and often compounded by poor

access roads

Access to primary education within the more infrastructure

poor areas of Elundini and Senqu is well within the distric t

and provincial norm The focus in terms of education

Approximately 255 of the adult population does not

have any form of training or education with 402

only having completed grades 3-7 Only 33 of the

population has completed Grade 12 compared to 66

in the Eastern Cape Only 17 of the District population

has obtained a tertiary qualification

The Elundini area has the largest proportion of people

having only received primary education while the Gariep

area has the highest proportion of people (315) having

never received any form of education

This highlights the extremely low levels of education in

the District and the need to focus on education and skills

training This can only be accomplished if the backlog in

education facilities is met

E D U C A T I O N A N D S K I L L S

There is very limited access to higher education facil ities

in the district area Ukhahlamba has higher than the

national average of people between 5-24 years attending

school but lower than the national average for those

attending tertiary education

According to the latest information from the Departmentof Education since 1999 only five schools have been built

The ratio between learners and educators is 1 363 which

is a slight improvement

Number of Schools Learners and

Educators in Ukhahlamba DM

TYPE OF SCHOOL

Combined Primary Secondary Total

Schools 173 168 46 397

Learners 60 783 31 997 22 577 126 449

Educators 1 863 984 241 3 482

Census figures show that about 50 of the total

population is of school going age

1 8

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1 9

Other skills development initiatives will be geared

towards the Ugie development project

LGSETA is to fund a Learnership on Municipal Finance and

Administration as well other skills programme focusing

on the unemployed Other learnerships will be rolled out

to support the water and sanitation programmes andmore young people will be employed

Partnerships will be forged and individual MoUrsquos will

be entered into between the District Municipality and

the following Higher Education and Further Education

institutions

Ikhala Public FET College

University of Fort Hare

Walter Sisulu University of Technology

University of the Free State

University of Western Cape

University of Stellenbosch

and various SETArsquos including LGSETA

In partnership with the aforementioned stakeholders a

district wide skills development plan will be developed

as a post summit activity and it will be guided by the

summit resolutions

About 41 of the Ukhahlamba Districtrsquos workforce is

made up of elementary or unskilled workers which

is the highest percentage in the province In Gariep

elementaryunskilled workers make up 53 of the

workforce but the largest numbers of unskilled workers

are in the more densely populated Senqu (3 682) and

Elundini (3 253) municipal areas On average 14 of

Ukhahlambarsquos working people have professional skills

rising to 17 in Elundini and Senqu The less densely

populated parts appear to have more skilled people

in Maletswai 15 of working people are skilled and in

Gariep 13 are skilled

Ukhahlamba has lower levels of senior management

technical and clerical skills than the provincersquos other

district municipali ties This corresponds with low levels of

education in Ukhahlamba and indicates a need for skills

development and education programmes

STRATEGIC SKILLS

DEVELOPMENT INITIATIVES JIPSA

Ukhahlamba District Municipality will in partnership with

the Office Of the Premier civil society the business sector

sector departments community based projects and local

municipalities embark on a massive skills development

drive in the following sectors of the economy to support

the 6 economic growth of the district

1 Agriculture

2 Tourism

3 Infrastructure

4 Manufacturing

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2 0

H E A L T H C A R E

The Ukhahlamba area has 11 hospitals including health

care centres and 43 clinics with at least 2 clinics in each

magisterial district The most densely populated Mount

Fletcher and Sterkspruit areas have 13 and 10 clinics

respectively The District has about 998 hospital beds with

a serviced supply average of about 328 people per bed

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2 1

H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

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3 7

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3 8

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3 9

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4 0

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4 1

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4 3

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4 5

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4 6

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4 7

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4 9

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5 0

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5 1

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

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8

Very little agro-processing is done in the area and most

produce is transported via road to larger centers out of

the district Aside from agro-processing the District has

virtually no manufacturing industry The agro-processing

industry is also small and mainly concentrated in Aliwal

North Nevertheless it is quite possible that this sector

could attract some new investment linked to existing

and new primary production Areas of interest could

include for example game meat fruit-processing (eg

peaches raspberries) nuts processing wool products

potato processing tanning stock feed etc A thorough

sector study is required to identify and package the most

viable investment opportunities

Livestock farming (cattle dairy sheep goats) and game

are very important in the District both for commercial

and communal farmers Livestock farming in communal

areas is being supported by the Provincial Department of

Agriculture through construction of stock dams dipping

tanks shearing sheds fencing veterinary services etc

Also the District Municipality together with Gold Fields

Foundation have a Livestock Improvement Programme

in Elundini and there is a goat project in Mount Fletcher

The challenge is to increase incomes from communal

livestock farming Black emerging farmers suffer from

inadequate technology skills and market knowledge

and therefore receive an income significantly less than

better-equipped white commercial farmers Also landownership (and not land claims there are very few in the

District) is a major concern Large tracts of land are either

in the hands of a few white farmers or the state The

District Municipality should develop a register of state-

land in conjunction with DLA

A G R I C U L T U R E

Extensive livestock farming of sheep goats and cattle

dominate agriculture There are pockets of dry land crop

farming especially in the wetter eastern area Only small

isolated pockets of land are suitable for irrigation despite

having the Orange River and Gariep dam as the northern

boundary It is currently unknown as to the impact of the

Mzimvubu Basin Asgi-SA programme on the Elundini area

There is a differentiation between the commercial farming

areas which are the main economic drivers in the economy

and the subsistence farming areas that are located in the

communal land areas This latter sector is very dependent

on the state for 1047297nancial support and has little ability to

use the land as collateral for obtaining loans

The depopulation of the remote rural areas while people

move to the main roads to access services is seen as a

positive move for agriculture

Two large areas of agricultural land reform exist in the

district namely Umnga Flats and Pitseng both located

in the Elundini area

The care and rehabilitation of land as a means of

protecting agricultural resources is of critical importance

if agriculture is to grow in the area There is presently a

land care trials in ward four in Sterkspruit

Land redistribution is still to be suitably addressed in thearea For example there is no single land redistribution

project in the area of Barkly East in Senqu LM

Road access is constraining agricultural development in

the district area

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9

New irrigation investments being implementedplanned

include the Tsitsa River Basin Project Mzimvubu Basin

Project Orange River Water Scheme and Holo Hlahatsi

Dam development Senqu Municipality has already

undertaken studies on bulk water for irrigation purposes

for the Orange and Karringmelkspruit rivers

It is clear that crop production under irrigation if managed

well has huge potential for job and income creation

An industry Action Plan for arable agriculture would

probably include

Evaluation of all existing studies relevant to the

expansion of irrigation farming in the District

Selection of priority interventions

Project design and feasibility (including environmental

impact assessment)

Land acquisition and ownership

Project financing

Farmer training and support

An industry action plan for livestock would probably

include

Expansion of the effective NWGA model of support

Improving existing programmes designed to facilitate

skills transfer between commercial and emerging

farmers

Improved Agricultural Extension Services

Improved market access (eg drawing on experience of

USAID-funded project in the Chris Hani District Middle

East goat market)

Accelerated land redistribution (with effective support)

Building animal feeds industry

Improved veld management

Move to formal land administration in communal areas

Upgrading access roadsfarm logistics

Dry cropping is only feasible in small parts of the District

underscoring the important role that irrigation schemes

can play Dry-cropping is practiced in Elundini and this

yearrsquos ploughing under the Massive Food Programme

was 1700 hectares

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1 0

T O U R I S M

The Districtrsquos tourism industry has grown from a low base

over the last decade and a niche market seems to have

found in the area of adventure tourism The impact of

tourism has not really been wide felt but it is perceived

to be a growth sector for the area due to the unique

environments the only Ski resort in Southern Africa hot

springs and the largest dam in South Africa

Improved access to the District through the tarring of the

R56 between Mount Fletcher and Maclear access from

Lesotho at Telle Bridge and the new Ugie to Langeni road

are likely to positively impact on the district area

The potential of linking the N1 near Gariep Dam via

a scenic route to the N2 at Mthatha is currently being

explored There is an indication that the route between

Cape Town and Durban through the distric t may prove to

be more attractive to tourists

Environmental and land rehabilitation programmes

should be expanded to create jobs and to preserve the

agricultural and tourism potential of the District

There are several interventions being planned that will

grow tourism in the District

The Provincial Gateway Project at Aliwal Nor th This

involves the beautification of the town to attract

tourists to stopover Presently the N6 with heavy trucks

passes through the town center It would be preferableto divert the N6 onto a parallel Street (aligned with the

bridge over the Orange River) and restore the main

street (Somerset Street) to its former glory trees for

shade and pedestrianised

F O R E S T R Y

There are large untapped forestry potentials in the Elundini

area and an additional 30 000ha could be available for

the expansion of the current plantations Construction

has recently started on the R15 billion PG Bison North

East Cape Forests Cluster near Ugie This will create 3000

direct jobs and many thousands of indirect jobs This

forestry initiative is part of the AsgiSA initiative The

National government AsgiSA programme has identified

forestry development as a key pillar to achieving the

economic growth and development targets and has

prioritized forestry as a key sector for support across all

tiers of government The same is true in the PGDP as well

as in the emerging provincial industrial plan

There is also a potential for more forestry development in

the area but this is constrained by lack of road access into

the hinterland

Improved linkages to Mthatha through the new Ugie

Langeni road will enable products to be exported

from Mthata via the rail link to East London Industrial

Development Zone With the improved road access to this

area coupled with the forestry investments it is likely that

there will be signi1047297cant economic growth in this area

About 100 Interlink transport vehicles will be leaving

the particle board plant per day this is likely to have an

impact on the tarred road networks as well as the towns

through which they will drive when taking the productsto markets (Johannesburg Durban exports etc)

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C O N S T R U C T I O N

The Districtrsquos relatively high infrastructure budget

allocation in the Medium Term Expenditure Framework

presents opportunities for the growth of the local

construction industry (including housing water and

sanitation roads) and may enhance competitiveness

by addressing critical shortcomings in economic

infrastructure The sector also offers great potential to

enhance livelihoods through the EPWP

F I N A N C I A L S E R V I C E S

Most towns do have banks however there are exceptions

such as Venterstad and Mount Fletcher Due to the rural

nature of the area while there may be banks these do

not offer the full one-stop services and managers are

often based in centralized offices in the district (such as

Aliwal North) or outside the district such as in Elliot There

has been an increase in accessibility to ATMs through

the provision of in-store facilities Financial advice is still

however very limited

Revitalization of Aliwal Spa This project has been

delayed by the local municipalityrsquos determination to

retain land ownership of the facility A more pragmatic

approach is required

A public-private partnership should be packaged to

revive the tourist steam trains on the famous railway

reverses between Lady Grey and Barkly East

The Madiba Corridor Route between Aliwal North and Port

St Johns This would include the new road between Ugie

and Langeni (with a long bridge over indigenous forest)

The Gariep Complex Project is one of the distr ict

attractions

There is also a dedicated District tourism organization that

would strengthen marketing and product development

T R A D E

Social grants and employment by the government is the

largest economic sector in Ukhahlamba comprising more

than 40 of the GGP

The District has a significant informal trading sector

(including petty producers of traditional garments etc)

This sector could be boosted by better institutional

support (eg SEDA has not yet established an office in

the District) and by CBD regeneration and the provision

of improved trading environments for hawkers

1 1

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B A S I C S E R V I C E S

Free basic services are currently being implemented in

urban areas but still at differing levels A policy around

the matter is currently being developed

Excepting Maletswai (22) all local municipalities

in Ukhahlamba fall below the provincial average of

households not having any formal sanitation

The sanitation backlogs for Elundini and Senqu make up

three quarters of the district backlogs

Estimates of the cost of eliminating water and sanitation

backlogs in Ukhahlamba are R376 million and R332

million respectively

Service delivery backlogs are most acute in Elundini due

to the poor road network and historical factors related

to the peripheral nature of the area under the former

Transkei regime

W A T E R A N D S A N I T A T I O N

Significant inroads have been made in terms of extending

household water access in Ukhahlamba The more

populous eastern parts of the district (Elundini) faces

the greatest challenges as far a water backlogs with one

third of households (34) still relying on natural water

sources This is significantly greater than the provincial

average (28) According to Ukhahlamba DM 4337 of

the people are in need of water ser vices while 7555 are

in need of sanitation services

1 2

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1 3

E L E C T R I C I T Y

Some 16 of households in Ukhahlamba have been

linked to the electr icity grid between 2001-2006 with 70

and more households in Senqu Maletswai and Gariep

now accessing electricity Elundini however again faces

the greatest challenges as far as backlogs is concerned

Household electricity connections in Elundini more than

doubled between 2001-2006 This however amounts to

only slightly more than one quarter (28) of households

which is significantly below the district and provincial

averages (60 of households for Ukhahlamba and 67

of households for the Eastern Cape) A new 90km 132kV

line (costing about R58m) is required from Mount Frere

to Mount Fletcher to provide additional capacity to

eradicate backlogs

It is necessary to lobby for more Municipal Infrastructure

Grant (MIG) funding to achieve national targets There is

a clear need to revise Water and Sanitation Sector Plans

and in particular to calculate the MIG allocations that are

required to ensure that National water and sanitation

targets are met

The eradication of water and sanitation backlogs are being

used to expand the Expanded Public Works Programme

in the District and strengthen the construction industry

This is being implemented in the provis ion of water in

Mount Fletcher and in the construction of the water

pipeline to Steynsburg from the Fish River Tunnel It

could be expanded if there were funds available

About 50 of clinics in the district have no piped water

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1 4

W A S T E

Solid waste removal and disposal currently poses a

significant challenge to municipalities and communities

leading to inadequate compliance with legislation and

poor service delivery

There are however economic opportunities attached to

the management of waste in the form of recycling and

innovative concepts around space reduction in waste

processes This potential is largely connected to the

larger economic nodes but there are also opportunities

in smaller communities such as Rhodes using waste from

the large tourism establishment of Tiffendell

H O U S I N G

Due to the rural nature of the Ukhahlamba area and

having a low proportion of urbanization the prevalence

of informal houses (shacks) is below the provincial

average Although there are low levels of informal housing

across the District this does not mean there is no further

need for further RDP housing because the definition of

informal housing does not include traditional dwellings

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1 5

T R A N S P O R T

Of significant concern in the district with regard to its

future economic growth is that no public transport

services are offered between Venterstad and Burgersdorp

and between Lady Grey Aliwal North and Bark ly East This

has an impact on the potentials for economic and social

linkages and is highly frustrating for commuters and

does not support the spatial economic growth strategies

of the district area

The improvement of roads in the Elundini area is likely

to have a wide impact on passenger transport across the

district If the R56 becomes an alternative (even if not the

official alternative) to the N2 due to the route being shorter

(as identified in the Spatial Development Framework) this

will increase the amount of commuter traffic Services

for public transport will need to be provided in Mount

Fletcher Maclear Ugie and Steynsburg

Over the past five years taxi facilities were constructed in

Aliwal North (as a larger modal interchange) Maclear and

Mount Fletcher There is still a need to improve public

transport facilities in Senqu especially at Sterkspruit

Related to provision of public transport is the need for

basic essential services such as water sanitation and

shelters at key facilities There is a need to provide these

services at all the nodes (rural and urban) as defined in the

Spatial Development Plan Areas with high dependencyon public transport especially the primary and secondary

nodes should receive priority

R O A D M A I N T E N A N C E

While the district is covered by a network of tarred and

gravel roads the conditions of these are a significant

challenge for the growth of the economy

Without improved maintenance of urban streets access

roads district and provincial roads goods are unable

to get to market and the market cannot be effectively

accessed by residents of the area

Of significant importance is the constant maintenance

of key economic roads as identified as mobility corridors

in the Spatial Development Framework This should

be supported by maintenance of gravel access roads

especially in the Elundini and Senqu areas where

population numbers are higher and untapped economic

potentials are higher

The maintenance of tarred provincial roads will become

a significant issue of concern as they are already

deteriorating beyond reasonable repair and the timber

industry development in the Ugie area will further

exacerbate this issue

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1 6

Airfields are currently used fairly infrequently but form a

key element of the disaster management system as well

as the emergency medical system across the district area

There are also moves afoot to bring specia lised medica l

support to the district areas by flying in specialised

personnel and equipment

Tourism is also in need of improved air transport services

especially in the mountain areas This is due to the

remote location of this area from the main urban hubs

of South Africa but which could be a way of overcoming

the challenge of distance The area around the town of

Rhodes has motivated for a long time for such a facility

The maintenance of municipal airfields has received very

low priority from municipalities over the past years

With regard to railway transport services only one out of

the four railway lines existing in the district is effectively

operational ndash the main line between Johannesburg and

East London This is only accessible at Burgersdorp This

rail line has very little impact on public transport and the

conveyance of goods to and or from the area Infrequently

the line between Burgersdorp and Aliwal North is used

for goods

The line between Aliwal North and Barkly East is of

unique value and could be a significant tourist attraction

if effectively maintained managed and marketed

Airfields are found in most of the urban settlements

and form part of the function of local municipalities A

new airfield has been constructed in Sterkspruit by the

Department of Roads and Transport

Communities have raised the issue of improved telephone

services as a key pr iority There are also still police stations

clinics and schools without any telephone service and

this impacts on their ability to deliver services The

more remote areas of Elundini and Senqu are the worst

affected

Funding for an investigation into the possibility of

providing broadband internet connections in the district

area have been agreed to by the European Union This

could provide potential for Business Outsourcing

T E L E C O M M U N I C A T I O N S

According to the 2001 census more than 50 of the

population has access either to a private telephone or

one nearby but there is still a section of the population

that has no access to a telephone at all Urban areas

receive the best service Parts of the commercial farming

areas and rural areas are provided with telephone services

based on radio linkages to towers driven by solar panel

technology

Cellphone services are used by a large proportion of

the population However this service does not cover the

whole area The mountainous nature of the area affects

reception

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It is important to note that Wetlands cover 32 square

kilometres in Elundini which includes the Gatberg

wetland ndash the breeding ground for the endangered

wattled crane The conservation of wetland is

being attended to through the Working for Water

programme (an EPWP programme)

C O N S E R V A T I O N A R E A S

One provincial nature reserve the Oviston Nature

Reserve on the banks of the Gariep Dam is located within

the Ukhahlamba District There is discussion underway

between the Eastern Cape and Free State conservation

boards to amalgamate the management of the nature

reserves around the Gariep Dam There have also been

proposals to expand the area under conservation in

this area but it is likely that this will be in the form of

stewardships and not through the purchase of land by

the state

1 7

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S O C I A L S E R V I C E S

is clearly the improvement of services delivery while

health infrastructure needs to be addressed in the more

desperate municipalities of Elundini and Senqu

In the District 40 of clinics have no electricity and 50

have no piped water

The services delivery challenges are again greatest in

the eastern and more populous areas of Elundini and

Senqu Generally access to clinics and emergency health

services is lower here and often compounded by poor

access roads

Access to primary education within the more infrastructure

poor areas of Elundini and Senqu is well within the distric t

and provincial norm The focus in terms of education

Approximately 255 of the adult population does not

have any form of training or education with 402

only having completed grades 3-7 Only 33 of the

population has completed Grade 12 compared to 66

in the Eastern Cape Only 17 of the District population

has obtained a tertiary qualification

The Elundini area has the largest proportion of people

having only received primary education while the Gariep

area has the highest proportion of people (315) having

never received any form of education

This highlights the extremely low levels of education in

the District and the need to focus on education and skills

training This can only be accomplished if the backlog in

education facilities is met

E D U C A T I O N A N D S K I L L S

There is very limited access to higher education facil ities

in the district area Ukhahlamba has higher than the

national average of people between 5-24 years attending

school but lower than the national average for those

attending tertiary education

According to the latest information from the Departmentof Education since 1999 only five schools have been built

The ratio between learners and educators is 1 363 which

is a slight improvement

Number of Schools Learners and

Educators in Ukhahlamba DM

TYPE OF SCHOOL

Combined Primary Secondary Total

Schools 173 168 46 397

Learners 60 783 31 997 22 577 126 449

Educators 1 863 984 241 3 482

Census figures show that about 50 of the total

population is of school going age

1 8

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1 9

Other skills development initiatives will be geared

towards the Ugie development project

LGSETA is to fund a Learnership on Municipal Finance and

Administration as well other skills programme focusing

on the unemployed Other learnerships will be rolled out

to support the water and sanitation programmes andmore young people will be employed

Partnerships will be forged and individual MoUrsquos will

be entered into between the District Municipality and

the following Higher Education and Further Education

institutions

Ikhala Public FET College

University of Fort Hare

Walter Sisulu University of Technology

University of the Free State

University of Western Cape

University of Stellenbosch

and various SETArsquos including LGSETA

In partnership with the aforementioned stakeholders a

district wide skills development plan will be developed

as a post summit activity and it will be guided by the

summit resolutions

About 41 of the Ukhahlamba Districtrsquos workforce is

made up of elementary or unskilled workers which

is the highest percentage in the province In Gariep

elementaryunskilled workers make up 53 of the

workforce but the largest numbers of unskilled workers

are in the more densely populated Senqu (3 682) and

Elundini (3 253) municipal areas On average 14 of

Ukhahlambarsquos working people have professional skills

rising to 17 in Elundini and Senqu The less densely

populated parts appear to have more skilled people

in Maletswai 15 of working people are skilled and in

Gariep 13 are skilled

Ukhahlamba has lower levels of senior management

technical and clerical skills than the provincersquos other

district municipali ties This corresponds with low levels of

education in Ukhahlamba and indicates a need for skills

development and education programmes

STRATEGIC SKILLS

DEVELOPMENT INITIATIVES JIPSA

Ukhahlamba District Municipality will in partnership with

the Office Of the Premier civil society the business sector

sector departments community based projects and local

municipalities embark on a massive skills development

drive in the following sectors of the economy to support

the 6 economic growth of the district

1 Agriculture

2 Tourism

3 Infrastructure

4 Manufacturing

8122019 Udm Gds Profile

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2 0

H E A L T H C A R E

The Ukhahlamba area has 11 hospitals including health

care centres and 43 clinics with at least 2 clinics in each

magisterial district The most densely populated Mount

Fletcher and Sterkspruit areas have 13 and 10 clinics

respectively The District has about 998 hospital beds with

a serviced supply average of about 328 people per bed

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2 1

H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

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3 7

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3 8

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3 9

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4 0

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4 1

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4 3

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4 5

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4 6

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4 7

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4 9

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5 0

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5 1

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

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9

New irrigation investments being implementedplanned

include the Tsitsa River Basin Project Mzimvubu Basin

Project Orange River Water Scheme and Holo Hlahatsi

Dam development Senqu Municipality has already

undertaken studies on bulk water for irrigation purposes

for the Orange and Karringmelkspruit rivers

It is clear that crop production under irrigation if managed

well has huge potential for job and income creation

An industry Action Plan for arable agriculture would

probably include

Evaluation of all existing studies relevant to the

expansion of irrigation farming in the District

Selection of priority interventions

Project design and feasibility (including environmental

impact assessment)

Land acquisition and ownership

Project financing

Farmer training and support

An industry action plan for livestock would probably

include

Expansion of the effective NWGA model of support

Improving existing programmes designed to facilitate

skills transfer between commercial and emerging

farmers

Improved Agricultural Extension Services

Improved market access (eg drawing on experience of

USAID-funded project in the Chris Hani District Middle

East goat market)

Accelerated land redistribution (with effective support)

Building animal feeds industry

Improved veld management

Move to formal land administration in communal areas

Upgrading access roadsfarm logistics

Dry cropping is only feasible in small parts of the District

underscoring the important role that irrigation schemes

can play Dry-cropping is practiced in Elundini and this

yearrsquos ploughing under the Massive Food Programme

was 1700 hectares

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1 0

T O U R I S M

The Districtrsquos tourism industry has grown from a low base

over the last decade and a niche market seems to have

found in the area of adventure tourism The impact of

tourism has not really been wide felt but it is perceived

to be a growth sector for the area due to the unique

environments the only Ski resort in Southern Africa hot

springs and the largest dam in South Africa

Improved access to the District through the tarring of the

R56 between Mount Fletcher and Maclear access from

Lesotho at Telle Bridge and the new Ugie to Langeni road

are likely to positively impact on the district area

The potential of linking the N1 near Gariep Dam via

a scenic route to the N2 at Mthatha is currently being

explored There is an indication that the route between

Cape Town and Durban through the distric t may prove to

be more attractive to tourists

Environmental and land rehabilitation programmes

should be expanded to create jobs and to preserve the

agricultural and tourism potential of the District

There are several interventions being planned that will

grow tourism in the District

The Provincial Gateway Project at Aliwal Nor th This

involves the beautification of the town to attract

tourists to stopover Presently the N6 with heavy trucks

passes through the town center It would be preferableto divert the N6 onto a parallel Street (aligned with the

bridge over the Orange River) and restore the main

street (Somerset Street) to its former glory trees for

shade and pedestrianised

F O R E S T R Y

There are large untapped forestry potentials in the Elundini

area and an additional 30 000ha could be available for

the expansion of the current plantations Construction

has recently started on the R15 billion PG Bison North

East Cape Forests Cluster near Ugie This will create 3000

direct jobs and many thousands of indirect jobs This

forestry initiative is part of the AsgiSA initiative The

National government AsgiSA programme has identified

forestry development as a key pillar to achieving the

economic growth and development targets and has

prioritized forestry as a key sector for support across all

tiers of government The same is true in the PGDP as well

as in the emerging provincial industrial plan

There is also a potential for more forestry development in

the area but this is constrained by lack of road access into

the hinterland

Improved linkages to Mthatha through the new Ugie

Langeni road will enable products to be exported

from Mthata via the rail link to East London Industrial

Development Zone With the improved road access to this

area coupled with the forestry investments it is likely that

there will be signi1047297cant economic growth in this area

About 100 Interlink transport vehicles will be leaving

the particle board plant per day this is likely to have an

impact on the tarred road networks as well as the towns

through which they will drive when taking the productsto markets (Johannesburg Durban exports etc)

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C O N S T R U C T I O N

The Districtrsquos relatively high infrastructure budget

allocation in the Medium Term Expenditure Framework

presents opportunities for the growth of the local

construction industry (including housing water and

sanitation roads) and may enhance competitiveness

by addressing critical shortcomings in economic

infrastructure The sector also offers great potential to

enhance livelihoods through the EPWP

F I N A N C I A L S E R V I C E S

Most towns do have banks however there are exceptions

such as Venterstad and Mount Fletcher Due to the rural

nature of the area while there may be banks these do

not offer the full one-stop services and managers are

often based in centralized offices in the district (such as

Aliwal North) or outside the district such as in Elliot There

has been an increase in accessibility to ATMs through

the provision of in-store facilities Financial advice is still

however very limited

Revitalization of Aliwal Spa This project has been

delayed by the local municipalityrsquos determination to

retain land ownership of the facility A more pragmatic

approach is required

A public-private partnership should be packaged to

revive the tourist steam trains on the famous railway

reverses between Lady Grey and Barkly East

The Madiba Corridor Route between Aliwal North and Port

St Johns This would include the new road between Ugie

and Langeni (with a long bridge over indigenous forest)

The Gariep Complex Project is one of the distr ict

attractions

There is also a dedicated District tourism organization that

would strengthen marketing and product development

T R A D E

Social grants and employment by the government is the

largest economic sector in Ukhahlamba comprising more

than 40 of the GGP

The District has a significant informal trading sector

(including petty producers of traditional garments etc)

This sector could be boosted by better institutional

support (eg SEDA has not yet established an office in

the District) and by CBD regeneration and the provision

of improved trading environments for hawkers

1 1

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B A S I C S E R V I C E S

Free basic services are currently being implemented in

urban areas but still at differing levels A policy around

the matter is currently being developed

Excepting Maletswai (22) all local municipalities

in Ukhahlamba fall below the provincial average of

households not having any formal sanitation

The sanitation backlogs for Elundini and Senqu make up

three quarters of the district backlogs

Estimates of the cost of eliminating water and sanitation

backlogs in Ukhahlamba are R376 million and R332

million respectively

Service delivery backlogs are most acute in Elundini due

to the poor road network and historical factors related

to the peripheral nature of the area under the former

Transkei regime

W A T E R A N D S A N I T A T I O N

Significant inroads have been made in terms of extending

household water access in Ukhahlamba The more

populous eastern parts of the district (Elundini) faces

the greatest challenges as far a water backlogs with one

third of households (34) still relying on natural water

sources This is significantly greater than the provincial

average (28) According to Ukhahlamba DM 4337 of

the people are in need of water ser vices while 7555 are

in need of sanitation services

1 2

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1 3

E L E C T R I C I T Y

Some 16 of households in Ukhahlamba have been

linked to the electr icity grid between 2001-2006 with 70

and more households in Senqu Maletswai and Gariep

now accessing electricity Elundini however again faces

the greatest challenges as far as backlogs is concerned

Household electricity connections in Elundini more than

doubled between 2001-2006 This however amounts to

only slightly more than one quarter (28) of households

which is significantly below the district and provincial

averages (60 of households for Ukhahlamba and 67

of households for the Eastern Cape) A new 90km 132kV

line (costing about R58m) is required from Mount Frere

to Mount Fletcher to provide additional capacity to

eradicate backlogs

It is necessary to lobby for more Municipal Infrastructure

Grant (MIG) funding to achieve national targets There is

a clear need to revise Water and Sanitation Sector Plans

and in particular to calculate the MIG allocations that are

required to ensure that National water and sanitation

targets are met

The eradication of water and sanitation backlogs are being

used to expand the Expanded Public Works Programme

in the District and strengthen the construction industry

This is being implemented in the provis ion of water in

Mount Fletcher and in the construction of the water

pipeline to Steynsburg from the Fish River Tunnel It

could be expanded if there were funds available

About 50 of clinics in the district have no piped water

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1 4

W A S T E

Solid waste removal and disposal currently poses a

significant challenge to municipalities and communities

leading to inadequate compliance with legislation and

poor service delivery

There are however economic opportunities attached to

the management of waste in the form of recycling and

innovative concepts around space reduction in waste

processes This potential is largely connected to the

larger economic nodes but there are also opportunities

in smaller communities such as Rhodes using waste from

the large tourism establishment of Tiffendell

H O U S I N G

Due to the rural nature of the Ukhahlamba area and

having a low proportion of urbanization the prevalence

of informal houses (shacks) is below the provincial

average Although there are low levels of informal housing

across the District this does not mean there is no further

need for further RDP housing because the definition of

informal housing does not include traditional dwellings

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1 5

T R A N S P O R T

Of significant concern in the district with regard to its

future economic growth is that no public transport

services are offered between Venterstad and Burgersdorp

and between Lady Grey Aliwal North and Bark ly East This

has an impact on the potentials for economic and social

linkages and is highly frustrating for commuters and

does not support the spatial economic growth strategies

of the district area

The improvement of roads in the Elundini area is likely

to have a wide impact on passenger transport across the

district If the R56 becomes an alternative (even if not the

official alternative) to the N2 due to the route being shorter

(as identified in the Spatial Development Framework) this

will increase the amount of commuter traffic Services

for public transport will need to be provided in Mount

Fletcher Maclear Ugie and Steynsburg

Over the past five years taxi facilities were constructed in

Aliwal North (as a larger modal interchange) Maclear and

Mount Fletcher There is still a need to improve public

transport facilities in Senqu especially at Sterkspruit

Related to provision of public transport is the need for

basic essential services such as water sanitation and

shelters at key facilities There is a need to provide these

services at all the nodes (rural and urban) as defined in the

Spatial Development Plan Areas with high dependencyon public transport especially the primary and secondary

nodes should receive priority

R O A D M A I N T E N A N C E

While the district is covered by a network of tarred and

gravel roads the conditions of these are a significant

challenge for the growth of the economy

Without improved maintenance of urban streets access

roads district and provincial roads goods are unable

to get to market and the market cannot be effectively

accessed by residents of the area

Of significant importance is the constant maintenance

of key economic roads as identified as mobility corridors

in the Spatial Development Framework This should

be supported by maintenance of gravel access roads

especially in the Elundini and Senqu areas where

population numbers are higher and untapped economic

potentials are higher

The maintenance of tarred provincial roads will become

a significant issue of concern as they are already

deteriorating beyond reasonable repair and the timber

industry development in the Ugie area will further

exacerbate this issue

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1 6

Airfields are currently used fairly infrequently but form a

key element of the disaster management system as well

as the emergency medical system across the district area

There are also moves afoot to bring specia lised medica l

support to the district areas by flying in specialised

personnel and equipment

Tourism is also in need of improved air transport services

especially in the mountain areas This is due to the

remote location of this area from the main urban hubs

of South Africa but which could be a way of overcoming

the challenge of distance The area around the town of

Rhodes has motivated for a long time for such a facility

The maintenance of municipal airfields has received very

low priority from municipalities over the past years

With regard to railway transport services only one out of

the four railway lines existing in the district is effectively

operational ndash the main line between Johannesburg and

East London This is only accessible at Burgersdorp This

rail line has very little impact on public transport and the

conveyance of goods to and or from the area Infrequently

the line between Burgersdorp and Aliwal North is used

for goods

The line between Aliwal North and Barkly East is of

unique value and could be a significant tourist attraction

if effectively maintained managed and marketed

Airfields are found in most of the urban settlements

and form part of the function of local municipalities A

new airfield has been constructed in Sterkspruit by the

Department of Roads and Transport

Communities have raised the issue of improved telephone

services as a key pr iority There are also still police stations

clinics and schools without any telephone service and

this impacts on their ability to deliver services The

more remote areas of Elundini and Senqu are the worst

affected

Funding for an investigation into the possibility of

providing broadband internet connections in the district

area have been agreed to by the European Union This

could provide potential for Business Outsourcing

T E L E C O M M U N I C A T I O N S

According to the 2001 census more than 50 of the

population has access either to a private telephone or

one nearby but there is still a section of the population

that has no access to a telephone at all Urban areas

receive the best service Parts of the commercial farming

areas and rural areas are provided with telephone services

based on radio linkages to towers driven by solar panel

technology

Cellphone services are used by a large proportion of

the population However this service does not cover the

whole area The mountainous nature of the area affects

reception

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It is important to note that Wetlands cover 32 square

kilometres in Elundini which includes the Gatberg

wetland ndash the breeding ground for the endangered

wattled crane The conservation of wetland is

being attended to through the Working for Water

programme (an EPWP programme)

C O N S E R V A T I O N A R E A S

One provincial nature reserve the Oviston Nature

Reserve on the banks of the Gariep Dam is located within

the Ukhahlamba District There is discussion underway

between the Eastern Cape and Free State conservation

boards to amalgamate the management of the nature

reserves around the Gariep Dam There have also been

proposals to expand the area under conservation in

this area but it is likely that this will be in the form of

stewardships and not through the purchase of land by

the state

1 7

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S O C I A L S E R V I C E S

is clearly the improvement of services delivery while

health infrastructure needs to be addressed in the more

desperate municipalities of Elundini and Senqu

In the District 40 of clinics have no electricity and 50

have no piped water

The services delivery challenges are again greatest in

the eastern and more populous areas of Elundini and

Senqu Generally access to clinics and emergency health

services is lower here and often compounded by poor

access roads

Access to primary education within the more infrastructure

poor areas of Elundini and Senqu is well within the distric t

and provincial norm The focus in terms of education

Approximately 255 of the adult population does not

have any form of training or education with 402

only having completed grades 3-7 Only 33 of the

population has completed Grade 12 compared to 66

in the Eastern Cape Only 17 of the District population

has obtained a tertiary qualification

The Elundini area has the largest proportion of people

having only received primary education while the Gariep

area has the highest proportion of people (315) having

never received any form of education

This highlights the extremely low levels of education in

the District and the need to focus on education and skills

training This can only be accomplished if the backlog in

education facilities is met

E D U C A T I O N A N D S K I L L S

There is very limited access to higher education facil ities

in the district area Ukhahlamba has higher than the

national average of people between 5-24 years attending

school but lower than the national average for those

attending tertiary education

According to the latest information from the Departmentof Education since 1999 only five schools have been built

The ratio between learners and educators is 1 363 which

is a slight improvement

Number of Schools Learners and

Educators in Ukhahlamba DM

TYPE OF SCHOOL

Combined Primary Secondary Total

Schools 173 168 46 397

Learners 60 783 31 997 22 577 126 449

Educators 1 863 984 241 3 482

Census figures show that about 50 of the total

population is of school going age

1 8

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1 9

Other skills development initiatives will be geared

towards the Ugie development project

LGSETA is to fund a Learnership on Municipal Finance and

Administration as well other skills programme focusing

on the unemployed Other learnerships will be rolled out

to support the water and sanitation programmes andmore young people will be employed

Partnerships will be forged and individual MoUrsquos will

be entered into between the District Municipality and

the following Higher Education and Further Education

institutions

Ikhala Public FET College

University of Fort Hare

Walter Sisulu University of Technology

University of the Free State

University of Western Cape

University of Stellenbosch

and various SETArsquos including LGSETA

In partnership with the aforementioned stakeholders a

district wide skills development plan will be developed

as a post summit activity and it will be guided by the

summit resolutions

About 41 of the Ukhahlamba Districtrsquos workforce is

made up of elementary or unskilled workers which

is the highest percentage in the province In Gariep

elementaryunskilled workers make up 53 of the

workforce but the largest numbers of unskilled workers

are in the more densely populated Senqu (3 682) and

Elundini (3 253) municipal areas On average 14 of

Ukhahlambarsquos working people have professional skills

rising to 17 in Elundini and Senqu The less densely

populated parts appear to have more skilled people

in Maletswai 15 of working people are skilled and in

Gariep 13 are skilled

Ukhahlamba has lower levels of senior management

technical and clerical skills than the provincersquos other

district municipali ties This corresponds with low levels of

education in Ukhahlamba and indicates a need for skills

development and education programmes

STRATEGIC SKILLS

DEVELOPMENT INITIATIVES JIPSA

Ukhahlamba District Municipality will in partnership with

the Office Of the Premier civil society the business sector

sector departments community based projects and local

municipalities embark on a massive skills development

drive in the following sectors of the economy to support

the 6 economic growth of the district

1 Agriculture

2 Tourism

3 Infrastructure

4 Manufacturing

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2 0

H E A L T H C A R E

The Ukhahlamba area has 11 hospitals including health

care centres and 43 clinics with at least 2 clinics in each

magisterial district The most densely populated Mount

Fletcher and Sterkspruit areas have 13 and 10 clinics

respectively The District has about 998 hospital beds with

a serviced supply average of about 328 people per bed

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2 1

H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

8122019 Udm Gds Profile

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

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4 0

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

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1 0

T O U R I S M

The Districtrsquos tourism industry has grown from a low base

over the last decade and a niche market seems to have

found in the area of adventure tourism The impact of

tourism has not really been wide felt but it is perceived

to be a growth sector for the area due to the unique

environments the only Ski resort in Southern Africa hot

springs and the largest dam in South Africa

Improved access to the District through the tarring of the

R56 between Mount Fletcher and Maclear access from

Lesotho at Telle Bridge and the new Ugie to Langeni road

are likely to positively impact on the district area

The potential of linking the N1 near Gariep Dam via

a scenic route to the N2 at Mthatha is currently being

explored There is an indication that the route between

Cape Town and Durban through the distric t may prove to

be more attractive to tourists

Environmental and land rehabilitation programmes

should be expanded to create jobs and to preserve the

agricultural and tourism potential of the District

There are several interventions being planned that will

grow tourism in the District

The Provincial Gateway Project at Aliwal Nor th This

involves the beautification of the town to attract

tourists to stopover Presently the N6 with heavy trucks

passes through the town center It would be preferableto divert the N6 onto a parallel Street (aligned with the

bridge over the Orange River) and restore the main

street (Somerset Street) to its former glory trees for

shade and pedestrianised

F O R E S T R Y

There are large untapped forestry potentials in the Elundini

area and an additional 30 000ha could be available for

the expansion of the current plantations Construction

has recently started on the R15 billion PG Bison North

East Cape Forests Cluster near Ugie This will create 3000

direct jobs and many thousands of indirect jobs This

forestry initiative is part of the AsgiSA initiative The

National government AsgiSA programme has identified

forestry development as a key pillar to achieving the

economic growth and development targets and has

prioritized forestry as a key sector for support across all

tiers of government The same is true in the PGDP as well

as in the emerging provincial industrial plan

There is also a potential for more forestry development in

the area but this is constrained by lack of road access into

the hinterland

Improved linkages to Mthatha through the new Ugie

Langeni road will enable products to be exported

from Mthata via the rail link to East London Industrial

Development Zone With the improved road access to this

area coupled with the forestry investments it is likely that

there will be signi1047297cant economic growth in this area

About 100 Interlink transport vehicles will be leaving

the particle board plant per day this is likely to have an

impact on the tarred road networks as well as the towns

through which they will drive when taking the productsto markets (Johannesburg Durban exports etc)

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C O N S T R U C T I O N

The Districtrsquos relatively high infrastructure budget

allocation in the Medium Term Expenditure Framework

presents opportunities for the growth of the local

construction industry (including housing water and

sanitation roads) and may enhance competitiveness

by addressing critical shortcomings in economic

infrastructure The sector also offers great potential to

enhance livelihoods through the EPWP

F I N A N C I A L S E R V I C E S

Most towns do have banks however there are exceptions

such as Venterstad and Mount Fletcher Due to the rural

nature of the area while there may be banks these do

not offer the full one-stop services and managers are

often based in centralized offices in the district (such as

Aliwal North) or outside the district such as in Elliot There

has been an increase in accessibility to ATMs through

the provision of in-store facilities Financial advice is still

however very limited

Revitalization of Aliwal Spa This project has been

delayed by the local municipalityrsquos determination to

retain land ownership of the facility A more pragmatic

approach is required

A public-private partnership should be packaged to

revive the tourist steam trains on the famous railway

reverses between Lady Grey and Barkly East

The Madiba Corridor Route between Aliwal North and Port

St Johns This would include the new road between Ugie

and Langeni (with a long bridge over indigenous forest)

The Gariep Complex Project is one of the distr ict

attractions

There is also a dedicated District tourism organization that

would strengthen marketing and product development

T R A D E

Social grants and employment by the government is the

largest economic sector in Ukhahlamba comprising more

than 40 of the GGP

The District has a significant informal trading sector

(including petty producers of traditional garments etc)

This sector could be boosted by better institutional

support (eg SEDA has not yet established an office in

the District) and by CBD regeneration and the provision

of improved trading environments for hawkers

1 1

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B A S I C S E R V I C E S

Free basic services are currently being implemented in

urban areas but still at differing levels A policy around

the matter is currently being developed

Excepting Maletswai (22) all local municipalities

in Ukhahlamba fall below the provincial average of

households not having any formal sanitation

The sanitation backlogs for Elundini and Senqu make up

three quarters of the district backlogs

Estimates of the cost of eliminating water and sanitation

backlogs in Ukhahlamba are R376 million and R332

million respectively

Service delivery backlogs are most acute in Elundini due

to the poor road network and historical factors related

to the peripheral nature of the area under the former

Transkei regime

W A T E R A N D S A N I T A T I O N

Significant inroads have been made in terms of extending

household water access in Ukhahlamba The more

populous eastern parts of the district (Elundini) faces

the greatest challenges as far a water backlogs with one

third of households (34) still relying on natural water

sources This is significantly greater than the provincial

average (28) According to Ukhahlamba DM 4337 of

the people are in need of water ser vices while 7555 are

in need of sanitation services

1 2

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1 3

E L E C T R I C I T Y

Some 16 of households in Ukhahlamba have been

linked to the electr icity grid between 2001-2006 with 70

and more households in Senqu Maletswai and Gariep

now accessing electricity Elundini however again faces

the greatest challenges as far as backlogs is concerned

Household electricity connections in Elundini more than

doubled between 2001-2006 This however amounts to

only slightly more than one quarter (28) of households

which is significantly below the district and provincial

averages (60 of households for Ukhahlamba and 67

of households for the Eastern Cape) A new 90km 132kV

line (costing about R58m) is required from Mount Frere

to Mount Fletcher to provide additional capacity to

eradicate backlogs

It is necessary to lobby for more Municipal Infrastructure

Grant (MIG) funding to achieve national targets There is

a clear need to revise Water and Sanitation Sector Plans

and in particular to calculate the MIG allocations that are

required to ensure that National water and sanitation

targets are met

The eradication of water and sanitation backlogs are being

used to expand the Expanded Public Works Programme

in the District and strengthen the construction industry

This is being implemented in the provis ion of water in

Mount Fletcher and in the construction of the water

pipeline to Steynsburg from the Fish River Tunnel It

could be expanded if there were funds available

About 50 of clinics in the district have no piped water

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1 4

W A S T E

Solid waste removal and disposal currently poses a

significant challenge to municipalities and communities

leading to inadequate compliance with legislation and

poor service delivery

There are however economic opportunities attached to

the management of waste in the form of recycling and

innovative concepts around space reduction in waste

processes This potential is largely connected to the

larger economic nodes but there are also opportunities

in smaller communities such as Rhodes using waste from

the large tourism establishment of Tiffendell

H O U S I N G

Due to the rural nature of the Ukhahlamba area and

having a low proportion of urbanization the prevalence

of informal houses (shacks) is below the provincial

average Although there are low levels of informal housing

across the District this does not mean there is no further

need for further RDP housing because the definition of

informal housing does not include traditional dwellings

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1 5

T R A N S P O R T

Of significant concern in the district with regard to its

future economic growth is that no public transport

services are offered between Venterstad and Burgersdorp

and between Lady Grey Aliwal North and Bark ly East This

has an impact on the potentials for economic and social

linkages and is highly frustrating for commuters and

does not support the spatial economic growth strategies

of the district area

The improvement of roads in the Elundini area is likely

to have a wide impact on passenger transport across the

district If the R56 becomes an alternative (even if not the

official alternative) to the N2 due to the route being shorter

(as identified in the Spatial Development Framework) this

will increase the amount of commuter traffic Services

for public transport will need to be provided in Mount

Fletcher Maclear Ugie and Steynsburg

Over the past five years taxi facilities were constructed in

Aliwal North (as a larger modal interchange) Maclear and

Mount Fletcher There is still a need to improve public

transport facilities in Senqu especially at Sterkspruit

Related to provision of public transport is the need for

basic essential services such as water sanitation and

shelters at key facilities There is a need to provide these

services at all the nodes (rural and urban) as defined in the

Spatial Development Plan Areas with high dependencyon public transport especially the primary and secondary

nodes should receive priority

R O A D M A I N T E N A N C E

While the district is covered by a network of tarred and

gravel roads the conditions of these are a significant

challenge for the growth of the economy

Without improved maintenance of urban streets access

roads district and provincial roads goods are unable

to get to market and the market cannot be effectively

accessed by residents of the area

Of significant importance is the constant maintenance

of key economic roads as identified as mobility corridors

in the Spatial Development Framework This should

be supported by maintenance of gravel access roads

especially in the Elundini and Senqu areas where

population numbers are higher and untapped economic

potentials are higher

The maintenance of tarred provincial roads will become

a significant issue of concern as they are already

deteriorating beyond reasonable repair and the timber

industry development in the Ugie area will further

exacerbate this issue

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1 6

Airfields are currently used fairly infrequently but form a

key element of the disaster management system as well

as the emergency medical system across the district area

There are also moves afoot to bring specia lised medica l

support to the district areas by flying in specialised

personnel and equipment

Tourism is also in need of improved air transport services

especially in the mountain areas This is due to the

remote location of this area from the main urban hubs

of South Africa but which could be a way of overcoming

the challenge of distance The area around the town of

Rhodes has motivated for a long time for such a facility

The maintenance of municipal airfields has received very

low priority from municipalities over the past years

With regard to railway transport services only one out of

the four railway lines existing in the district is effectively

operational ndash the main line between Johannesburg and

East London This is only accessible at Burgersdorp This

rail line has very little impact on public transport and the

conveyance of goods to and or from the area Infrequently

the line between Burgersdorp and Aliwal North is used

for goods

The line between Aliwal North and Barkly East is of

unique value and could be a significant tourist attraction

if effectively maintained managed and marketed

Airfields are found in most of the urban settlements

and form part of the function of local municipalities A

new airfield has been constructed in Sterkspruit by the

Department of Roads and Transport

Communities have raised the issue of improved telephone

services as a key pr iority There are also still police stations

clinics and schools without any telephone service and

this impacts on their ability to deliver services The

more remote areas of Elundini and Senqu are the worst

affected

Funding for an investigation into the possibility of

providing broadband internet connections in the district

area have been agreed to by the European Union This

could provide potential for Business Outsourcing

T E L E C O M M U N I C A T I O N S

According to the 2001 census more than 50 of the

population has access either to a private telephone or

one nearby but there is still a section of the population

that has no access to a telephone at all Urban areas

receive the best service Parts of the commercial farming

areas and rural areas are provided with telephone services

based on radio linkages to towers driven by solar panel

technology

Cellphone services are used by a large proportion of

the population However this service does not cover the

whole area The mountainous nature of the area affects

reception

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It is important to note that Wetlands cover 32 square

kilometres in Elundini which includes the Gatberg

wetland ndash the breeding ground for the endangered

wattled crane The conservation of wetland is

being attended to through the Working for Water

programme (an EPWP programme)

C O N S E R V A T I O N A R E A S

One provincial nature reserve the Oviston Nature

Reserve on the banks of the Gariep Dam is located within

the Ukhahlamba District There is discussion underway

between the Eastern Cape and Free State conservation

boards to amalgamate the management of the nature

reserves around the Gariep Dam There have also been

proposals to expand the area under conservation in

this area but it is likely that this will be in the form of

stewardships and not through the purchase of land by

the state

1 7

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S O C I A L S E R V I C E S

is clearly the improvement of services delivery while

health infrastructure needs to be addressed in the more

desperate municipalities of Elundini and Senqu

In the District 40 of clinics have no electricity and 50

have no piped water

The services delivery challenges are again greatest in

the eastern and more populous areas of Elundini and

Senqu Generally access to clinics and emergency health

services is lower here and often compounded by poor

access roads

Access to primary education within the more infrastructure

poor areas of Elundini and Senqu is well within the distric t

and provincial norm The focus in terms of education

Approximately 255 of the adult population does not

have any form of training or education with 402

only having completed grades 3-7 Only 33 of the

population has completed Grade 12 compared to 66

in the Eastern Cape Only 17 of the District population

has obtained a tertiary qualification

The Elundini area has the largest proportion of people

having only received primary education while the Gariep

area has the highest proportion of people (315) having

never received any form of education

This highlights the extremely low levels of education in

the District and the need to focus on education and skills

training This can only be accomplished if the backlog in

education facilities is met

E D U C A T I O N A N D S K I L L S

There is very limited access to higher education facil ities

in the district area Ukhahlamba has higher than the

national average of people between 5-24 years attending

school but lower than the national average for those

attending tertiary education

According to the latest information from the Departmentof Education since 1999 only five schools have been built

The ratio between learners and educators is 1 363 which

is a slight improvement

Number of Schools Learners and

Educators in Ukhahlamba DM

TYPE OF SCHOOL

Combined Primary Secondary Total

Schools 173 168 46 397

Learners 60 783 31 997 22 577 126 449

Educators 1 863 984 241 3 482

Census figures show that about 50 of the total

population is of school going age

1 8

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1 9

Other skills development initiatives will be geared

towards the Ugie development project

LGSETA is to fund a Learnership on Municipal Finance and

Administration as well other skills programme focusing

on the unemployed Other learnerships will be rolled out

to support the water and sanitation programmes andmore young people will be employed

Partnerships will be forged and individual MoUrsquos will

be entered into between the District Municipality and

the following Higher Education and Further Education

institutions

Ikhala Public FET College

University of Fort Hare

Walter Sisulu University of Technology

University of the Free State

University of Western Cape

University of Stellenbosch

and various SETArsquos including LGSETA

In partnership with the aforementioned stakeholders a

district wide skills development plan will be developed

as a post summit activity and it will be guided by the

summit resolutions

About 41 of the Ukhahlamba Districtrsquos workforce is

made up of elementary or unskilled workers which

is the highest percentage in the province In Gariep

elementaryunskilled workers make up 53 of the

workforce but the largest numbers of unskilled workers

are in the more densely populated Senqu (3 682) and

Elundini (3 253) municipal areas On average 14 of

Ukhahlambarsquos working people have professional skills

rising to 17 in Elundini and Senqu The less densely

populated parts appear to have more skilled people

in Maletswai 15 of working people are skilled and in

Gariep 13 are skilled

Ukhahlamba has lower levels of senior management

technical and clerical skills than the provincersquos other

district municipali ties This corresponds with low levels of

education in Ukhahlamba and indicates a need for skills

development and education programmes

STRATEGIC SKILLS

DEVELOPMENT INITIATIVES JIPSA

Ukhahlamba District Municipality will in partnership with

the Office Of the Premier civil society the business sector

sector departments community based projects and local

municipalities embark on a massive skills development

drive in the following sectors of the economy to support

the 6 economic growth of the district

1 Agriculture

2 Tourism

3 Infrastructure

4 Manufacturing

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2 0

H E A L T H C A R E

The Ukhahlamba area has 11 hospitals including health

care centres and 43 clinics with at least 2 clinics in each

magisterial district The most densely populated Mount

Fletcher and Sterkspruit areas have 13 and 10 clinics

respectively The District has about 998 hospital beds with

a serviced supply average of about 328 people per bed

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2 1

H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

8122019 Udm Gds Profile

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

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3 7

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3 8

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3 9

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4 0

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4 1

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42

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4 3

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44

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4 5

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4 6

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4 7

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4 9

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5 0

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5 1

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52

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54

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5 5

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8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

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C O N S T R U C T I O N

The Districtrsquos relatively high infrastructure budget

allocation in the Medium Term Expenditure Framework

presents opportunities for the growth of the local

construction industry (including housing water and

sanitation roads) and may enhance competitiveness

by addressing critical shortcomings in economic

infrastructure The sector also offers great potential to

enhance livelihoods through the EPWP

F I N A N C I A L S E R V I C E S

Most towns do have banks however there are exceptions

such as Venterstad and Mount Fletcher Due to the rural

nature of the area while there may be banks these do

not offer the full one-stop services and managers are

often based in centralized offices in the district (such as

Aliwal North) or outside the district such as in Elliot There

has been an increase in accessibility to ATMs through

the provision of in-store facilities Financial advice is still

however very limited

Revitalization of Aliwal Spa This project has been

delayed by the local municipalityrsquos determination to

retain land ownership of the facility A more pragmatic

approach is required

A public-private partnership should be packaged to

revive the tourist steam trains on the famous railway

reverses between Lady Grey and Barkly East

The Madiba Corridor Route between Aliwal North and Port

St Johns This would include the new road between Ugie

and Langeni (with a long bridge over indigenous forest)

The Gariep Complex Project is one of the distr ict

attractions

There is also a dedicated District tourism organization that

would strengthen marketing and product development

T R A D E

Social grants and employment by the government is the

largest economic sector in Ukhahlamba comprising more

than 40 of the GGP

The District has a significant informal trading sector

(including petty producers of traditional garments etc)

This sector could be boosted by better institutional

support (eg SEDA has not yet established an office in

the District) and by CBD regeneration and the provision

of improved trading environments for hawkers

1 1

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B A S I C S E R V I C E S

Free basic services are currently being implemented in

urban areas but still at differing levels A policy around

the matter is currently being developed

Excepting Maletswai (22) all local municipalities

in Ukhahlamba fall below the provincial average of

households not having any formal sanitation

The sanitation backlogs for Elundini and Senqu make up

three quarters of the district backlogs

Estimates of the cost of eliminating water and sanitation

backlogs in Ukhahlamba are R376 million and R332

million respectively

Service delivery backlogs are most acute in Elundini due

to the poor road network and historical factors related

to the peripheral nature of the area under the former

Transkei regime

W A T E R A N D S A N I T A T I O N

Significant inroads have been made in terms of extending

household water access in Ukhahlamba The more

populous eastern parts of the district (Elundini) faces

the greatest challenges as far a water backlogs with one

third of households (34) still relying on natural water

sources This is significantly greater than the provincial

average (28) According to Ukhahlamba DM 4337 of

the people are in need of water ser vices while 7555 are

in need of sanitation services

1 2

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1 3

E L E C T R I C I T Y

Some 16 of households in Ukhahlamba have been

linked to the electr icity grid between 2001-2006 with 70

and more households in Senqu Maletswai and Gariep

now accessing electricity Elundini however again faces

the greatest challenges as far as backlogs is concerned

Household electricity connections in Elundini more than

doubled between 2001-2006 This however amounts to

only slightly more than one quarter (28) of households

which is significantly below the district and provincial

averages (60 of households for Ukhahlamba and 67

of households for the Eastern Cape) A new 90km 132kV

line (costing about R58m) is required from Mount Frere

to Mount Fletcher to provide additional capacity to

eradicate backlogs

It is necessary to lobby for more Municipal Infrastructure

Grant (MIG) funding to achieve national targets There is

a clear need to revise Water and Sanitation Sector Plans

and in particular to calculate the MIG allocations that are

required to ensure that National water and sanitation

targets are met

The eradication of water and sanitation backlogs are being

used to expand the Expanded Public Works Programme

in the District and strengthen the construction industry

This is being implemented in the provis ion of water in

Mount Fletcher and in the construction of the water

pipeline to Steynsburg from the Fish River Tunnel It

could be expanded if there were funds available

About 50 of clinics in the district have no piped water

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1 4

W A S T E

Solid waste removal and disposal currently poses a

significant challenge to municipalities and communities

leading to inadequate compliance with legislation and

poor service delivery

There are however economic opportunities attached to

the management of waste in the form of recycling and

innovative concepts around space reduction in waste

processes This potential is largely connected to the

larger economic nodes but there are also opportunities

in smaller communities such as Rhodes using waste from

the large tourism establishment of Tiffendell

H O U S I N G

Due to the rural nature of the Ukhahlamba area and

having a low proportion of urbanization the prevalence

of informal houses (shacks) is below the provincial

average Although there are low levels of informal housing

across the District this does not mean there is no further

need for further RDP housing because the definition of

informal housing does not include traditional dwellings

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1 5

T R A N S P O R T

Of significant concern in the district with regard to its

future economic growth is that no public transport

services are offered between Venterstad and Burgersdorp

and between Lady Grey Aliwal North and Bark ly East This

has an impact on the potentials for economic and social

linkages and is highly frustrating for commuters and

does not support the spatial economic growth strategies

of the district area

The improvement of roads in the Elundini area is likely

to have a wide impact on passenger transport across the

district If the R56 becomes an alternative (even if not the

official alternative) to the N2 due to the route being shorter

(as identified in the Spatial Development Framework) this

will increase the amount of commuter traffic Services

for public transport will need to be provided in Mount

Fletcher Maclear Ugie and Steynsburg

Over the past five years taxi facilities were constructed in

Aliwal North (as a larger modal interchange) Maclear and

Mount Fletcher There is still a need to improve public

transport facilities in Senqu especially at Sterkspruit

Related to provision of public transport is the need for

basic essential services such as water sanitation and

shelters at key facilities There is a need to provide these

services at all the nodes (rural and urban) as defined in the

Spatial Development Plan Areas with high dependencyon public transport especially the primary and secondary

nodes should receive priority

R O A D M A I N T E N A N C E

While the district is covered by a network of tarred and

gravel roads the conditions of these are a significant

challenge for the growth of the economy

Without improved maintenance of urban streets access

roads district and provincial roads goods are unable

to get to market and the market cannot be effectively

accessed by residents of the area

Of significant importance is the constant maintenance

of key economic roads as identified as mobility corridors

in the Spatial Development Framework This should

be supported by maintenance of gravel access roads

especially in the Elundini and Senqu areas where

population numbers are higher and untapped economic

potentials are higher

The maintenance of tarred provincial roads will become

a significant issue of concern as they are already

deteriorating beyond reasonable repair and the timber

industry development in the Ugie area will further

exacerbate this issue

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1 6

Airfields are currently used fairly infrequently but form a

key element of the disaster management system as well

as the emergency medical system across the district area

There are also moves afoot to bring specia lised medica l

support to the district areas by flying in specialised

personnel and equipment

Tourism is also in need of improved air transport services

especially in the mountain areas This is due to the

remote location of this area from the main urban hubs

of South Africa but which could be a way of overcoming

the challenge of distance The area around the town of

Rhodes has motivated for a long time for such a facility

The maintenance of municipal airfields has received very

low priority from municipalities over the past years

With regard to railway transport services only one out of

the four railway lines existing in the district is effectively

operational ndash the main line between Johannesburg and

East London This is only accessible at Burgersdorp This

rail line has very little impact on public transport and the

conveyance of goods to and or from the area Infrequently

the line between Burgersdorp and Aliwal North is used

for goods

The line between Aliwal North and Barkly East is of

unique value and could be a significant tourist attraction

if effectively maintained managed and marketed

Airfields are found in most of the urban settlements

and form part of the function of local municipalities A

new airfield has been constructed in Sterkspruit by the

Department of Roads and Transport

Communities have raised the issue of improved telephone

services as a key pr iority There are also still police stations

clinics and schools without any telephone service and

this impacts on their ability to deliver services The

more remote areas of Elundini and Senqu are the worst

affected

Funding for an investigation into the possibility of

providing broadband internet connections in the district

area have been agreed to by the European Union This

could provide potential for Business Outsourcing

T E L E C O M M U N I C A T I O N S

According to the 2001 census more than 50 of the

population has access either to a private telephone or

one nearby but there is still a section of the population

that has no access to a telephone at all Urban areas

receive the best service Parts of the commercial farming

areas and rural areas are provided with telephone services

based on radio linkages to towers driven by solar panel

technology

Cellphone services are used by a large proportion of

the population However this service does not cover the

whole area The mountainous nature of the area affects

reception

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It is important to note that Wetlands cover 32 square

kilometres in Elundini which includes the Gatberg

wetland ndash the breeding ground for the endangered

wattled crane The conservation of wetland is

being attended to through the Working for Water

programme (an EPWP programme)

C O N S E R V A T I O N A R E A S

One provincial nature reserve the Oviston Nature

Reserve on the banks of the Gariep Dam is located within

the Ukhahlamba District There is discussion underway

between the Eastern Cape and Free State conservation

boards to amalgamate the management of the nature

reserves around the Gariep Dam There have also been

proposals to expand the area under conservation in

this area but it is likely that this will be in the form of

stewardships and not through the purchase of land by

the state

1 7

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S O C I A L S E R V I C E S

is clearly the improvement of services delivery while

health infrastructure needs to be addressed in the more

desperate municipalities of Elundini and Senqu

In the District 40 of clinics have no electricity and 50

have no piped water

The services delivery challenges are again greatest in

the eastern and more populous areas of Elundini and

Senqu Generally access to clinics and emergency health

services is lower here and often compounded by poor

access roads

Access to primary education within the more infrastructure

poor areas of Elundini and Senqu is well within the distric t

and provincial norm The focus in terms of education

Approximately 255 of the adult population does not

have any form of training or education with 402

only having completed grades 3-7 Only 33 of the

population has completed Grade 12 compared to 66

in the Eastern Cape Only 17 of the District population

has obtained a tertiary qualification

The Elundini area has the largest proportion of people

having only received primary education while the Gariep

area has the highest proportion of people (315) having

never received any form of education

This highlights the extremely low levels of education in

the District and the need to focus on education and skills

training This can only be accomplished if the backlog in

education facilities is met

E D U C A T I O N A N D S K I L L S

There is very limited access to higher education facil ities

in the district area Ukhahlamba has higher than the

national average of people between 5-24 years attending

school but lower than the national average for those

attending tertiary education

According to the latest information from the Departmentof Education since 1999 only five schools have been built

The ratio between learners and educators is 1 363 which

is a slight improvement

Number of Schools Learners and

Educators in Ukhahlamba DM

TYPE OF SCHOOL

Combined Primary Secondary Total

Schools 173 168 46 397

Learners 60 783 31 997 22 577 126 449

Educators 1 863 984 241 3 482

Census figures show that about 50 of the total

population is of school going age

1 8

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1 9

Other skills development initiatives will be geared

towards the Ugie development project

LGSETA is to fund a Learnership on Municipal Finance and

Administration as well other skills programme focusing

on the unemployed Other learnerships will be rolled out

to support the water and sanitation programmes andmore young people will be employed

Partnerships will be forged and individual MoUrsquos will

be entered into between the District Municipality and

the following Higher Education and Further Education

institutions

Ikhala Public FET College

University of Fort Hare

Walter Sisulu University of Technology

University of the Free State

University of Western Cape

University of Stellenbosch

and various SETArsquos including LGSETA

In partnership with the aforementioned stakeholders a

district wide skills development plan will be developed

as a post summit activity and it will be guided by the

summit resolutions

About 41 of the Ukhahlamba Districtrsquos workforce is

made up of elementary or unskilled workers which

is the highest percentage in the province In Gariep

elementaryunskilled workers make up 53 of the

workforce but the largest numbers of unskilled workers

are in the more densely populated Senqu (3 682) and

Elundini (3 253) municipal areas On average 14 of

Ukhahlambarsquos working people have professional skills

rising to 17 in Elundini and Senqu The less densely

populated parts appear to have more skilled people

in Maletswai 15 of working people are skilled and in

Gariep 13 are skilled

Ukhahlamba has lower levels of senior management

technical and clerical skills than the provincersquos other

district municipali ties This corresponds with low levels of

education in Ukhahlamba and indicates a need for skills

development and education programmes

STRATEGIC SKILLS

DEVELOPMENT INITIATIVES JIPSA

Ukhahlamba District Municipality will in partnership with

the Office Of the Premier civil society the business sector

sector departments community based projects and local

municipalities embark on a massive skills development

drive in the following sectors of the economy to support

the 6 economic growth of the district

1 Agriculture

2 Tourism

3 Infrastructure

4 Manufacturing

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2 0

H E A L T H C A R E

The Ukhahlamba area has 11 hospitals including health

care centres and 43 clinics with at least 2 clinics in each

magisterial district The most densely populated Mount

Fletcher and Sterkspruit areas have 13 and 10 clinics

respectively The District has about 998 hospital beds with

a serviced supply average of about 328 people per bed

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2 1

H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

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3 7

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3 8

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3 9

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4 0

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4 1

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42

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4 3

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4 5

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4 6

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4 7

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4 9

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5 0

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5 1

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52

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54

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5 5

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

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B A S I C S E R V I C E S

Free basic services are currently being implemented in

urban areas but still at differing levels A policy around

the matter is currently being developed

Excepting Maletswai (22) all local municipalities

in Ukhahlamba fall below the provincial average of

households not having any formal sanitation

The sanitation backlogs for Elundini and Senqu make up

three quarters of the district backlogs

Estimates of the cost of eliminating water and sanitation

backlogs in Ukhahlamba are R376 million and R332

million respectively

Service delivery backlogs are most acute in Elundini due

to the poor road network and historical factors related

to the peripheral nature of the area under the former

Transkei regime

W A T E R A N D S A N I T A T I O N

Significant inroads have been made in terms of extending

household water access in Ukhahlamba The more

populous eastern parts of the district (Elundini) faces

the greatest challenges as far a water backlogs with one

third of households (34) still relying on natural water

sources This is significantly greater than the provincial

average (28) According to Ukhahlamba DM 4337 of

the people are in need of water ser vices while 7555 are

in need of sanitation services

1 2

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1 3

E L E C T R I C I T Y

Some 16 of households in Ukhahlamba have been

linked to the electr icity grid between 2001-2006 with 70

and more households in Senqu Maletswai and Gariep

now accessing electricity Elundini however again faces

the greatest challenges as far as backlogs is concerned

Household electricity connections in Elundini more than

doubled between 2001-2006 This however amounts to

only slightly more than one quarter (28) of households

which is significantly below the district and provincial

averages (60 of households for Ukhahlamba and 67

of households for the Eastern Cape) A new 90km 132kV

line (costing about R58m) is required from Mount Frere

to Mount Fletcher to provide additional capacity to

eradicate backlogs

It is necessary to lobby for more Municipal Infrastructure

Grant (MIG) funding to achieve national targets There is

a clear need to revise Water and Sanitation Sector Plans

and in particular to calculate the MIG allocations that are

required to ensure that National water and sanitation

targets are met

The eradication of water and sanitation backlogs are being

used to expand the Expanded Public Works Programme

in the District and strengthen the construction industry

This is being implemented in the provis ion of water in

Mount Fletcher and in the construction of the water

pipeline to Steynsburg from the Fish River Tunnel It

could be expanded if there were funds available

About 50 of clinics in the district have no piped water

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1 4

W A S T E

Solid waste removal and disposal currently poses a

significant challenge to municipalities and communities

leading to inadequate compliance with legislation and

poor service delivery

There are however economic opportunities attached to

the management of waste in the form of recycling and

innovative concepts around space reduction in waste

processes This potential is largely connected to the

larger economic nodes but there are also opportunities

in smaller communities such as Rhodes using waste from

the large tourism establishment of Tiffendell

H O U S I N G

Due to the rural nature of the Ukhahlamba area and

having a low proportion of urbanization the prevalence

of informal houses (shacks) is below the provincial

average Although there are low levels of informal housing

across the District this does not mean there is no further

need for further RDP housing because the definition of

informal housing does not include traditional dwellings

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1 5

T R A N S P O R T

Of significant concern in the district with regard to its

future economic growth is that no public transport

services are offered between Venterstad and Burgersdorp

and between Lady Grey Aliwal North and Bark ly East This

has an impact on the potentials for economic and social

linkages and is highly frustrating for commuters and

does not support the spatial economic growth strategies

of the district area

The improvement of roads in the Elundini area is likely

to have a wide impact on passenger transport across the

district If the R56 becomes an alternative (even if not the

official alternative) to the N2 due to the route being shorter

(as identified in the Spatial Development Framework) this

will increase the amount of commuter traffic Services

for public transport will need to be provided in Mount

Fletcher Maclear Ugie and Steynsburg

Over the past five years taxi facilities were constructed in

Aliwal North (as a larger modal interchange) Maclear and

Mount Fletcher There is still a need to improve public

transport facilities in Senqu especially at Sterkspruit

Related to provision of public transport is the need for

basic essential services such as water sanitation and

shelters at key facilities There is a need to provide these

services at all the nodes (rural and urban) as defined in the

Spatial Development Plan Areas with high dependencyon public transport especially the primary and secondary

nodes should receive priority

R O A D M A I N T E N A N C E

While the district is covered by a network of tarred and

gravel roads the conditions of these are a significant

challenge for the growth of the economy

Without improved maintenance of urban streets access

roads district and provincial roads goods are unable

to get to market and the market cannot be effectively

accessed by residents of the area

Of significant importance is the constant maintenance

of key economic roads as identified as mobility corridors

in the Spatial Development Framework This should

be supported by maintenance of gravel access roads

especially in the Elundini and Senqu areas where

population numbers are higher and untapped economic

potentials are higher

The maintenance of tarred provincial roads will become

a significant issue of concern as they are already

deteriorating beyond reasonable repair and the timber

industry development in the Ugie area will further

exacerbate this issue

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1 6

Airfields are currently used fairly infrequently but form a

key element of the disaster management system as well

as the emergency medical system across the district area

There are also moves afoot to bring specia lised medica l

support to the district areas by flying in specialised

personnel and equipment

Tourism is also in need of improved air transport services

especially in the mountain areas This is due to the

remote location of this area from the main urban hubs

of South Africa but which could be a way of overcoming

the challenge of distance The area around the town of

Rhodes has motivated for a long time for such a facility

The maintenance of municipal airfields has received very

low priority from municipalities over the past years

With regard to railway transport services only one out of

the four railway lines existing in the district is effectively

operational ndash the main line between Johannesburg and

East London This is only accessible at Burgersdorp This

rail line has very little impact on public transport and the

conveyance of goods to and or from the area Infrequently

the line between Burgersdorp and Aliwal North is used

for goods

The line between Aliwal North and Barkly East is of

unique value and could be a significant tourist attraction

if effectively maintained managed and marketed

Airfields are found in most of the urban settlements

and form part of the function of local municipalities A

new airfield has been constructed in Sterkspruit by the

Department of Roads and Transport

Communities have raised the issue of improved telephone

services as a key pr iority There are also still police stations

clinics and schools without any telephone service and

this impacts on their ability to deliver services The

more remote areas of Elundini and Senqu are the worst

affected

Funding for an investigation into the possibility of

providing broadband internet connections in the district

area have been agreed to by the European Union This

could provide potential for Business Outsourcing

T E L E C O M M U N I C A T I O N S

According to the 2001 census more than 50 of the

population has access either to a private telephone or

one nearby but there is still a section of the population

that has no access to a telephone at all Urban areas

receive the best service Parts of the commercial farming

areas and rural areas are provided with telephone services

based on radio linkages to towers driven by solar panel

technology

Cellphone services are used by a large proportion of

the population However this service does not cover the

whole area The mountainous nature of the area affects

reception

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It is important to note that Wetlands cover 32 square

kilometres in Elundini which includes the Gatberg

wetland ndash the breeding ground for the endangered

wattled crane The conservation of wetland is

being attended to through the Working for Water

programme (an EPWP programme)

C O N S E R V A T I O N A R E A S

One provincial nature reserve the Oviston Nature

Reserve on the banks of the Gariep Dam is located within

the Ukhahlamba District There is discussion underway

between the Eastern Cape and Free State conservation

boards to amalgamate the management of the nature

reserves around the Gariep Dam There have also been

proposals to expand the area under conservation in

this area but it is likely that this will be in the form of

stewardships and not through the purchase of land by

the state

1 7

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S O C I A L S E R V I C E S

is clearly the improvement of services delivery while

health infrastructure needs to be addressed in the more

desperate municipalities of Elundini and Senqu

In the District 40 of clinics have no electricity and 50

have no piped water

The services delivery challenges are again greatest in

the eastern and more populous areas of Elundini and

Senqu Generally access to clinics and emergency health

services is lower here and often compounded by poor

access roads

Access to primary education within the more infrastructure

poor areas of Elundini and Senqu is well within the distric t

and provincial norm The focus in terms of education

Approximately 255 of the adult population does not

have any form of training or education with 402

only having completed grades 3-7 Only 33 of the

population has completed Grade 12 compared to 66

in the Eastern Cape Only 17 of the District population

has obtained a tertiary qualification

The Elundini area has the largest proportion of people

having only received primary education while the Gariep

area has the highest proportion of people (315) having

never received any form of education

This highlights the extremely low levels of education in

the District and the need to focus on education and skills

training This can only be accomplished if the backlog in

education facilities is met

E D U C A T I O N A N D S K I L L S

There is very limited access to higher education facil ities

in the district area Ukhahlamba has higher than the

national average of people between 5-24 years attending

school but lower than the national average for those

attending tertiary education

According to the latest information from the Departmentof Education since 1999 only five schools have been built

The ratio between learners and educators is 1 363 which

is a slight improvement

Number of Schools Learners and

Educators in Ukhahlamba DM

TYPE OF SCHOOL

Combined Primary Secondary Total

Schools 173 168 46 397

Learners 60 783 31 997 22 577 126 449

Educators 1 863 984 241 3 482

Census figures show that about 50 of the total

population is of school going age

1 8

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1 9

Other skills development initiatives will be geared

towards the Ugie development project

LGSETA is to fund a Learnership on Municipal Finance and

Administration as well other skills programme focusing

on the unemployed Other learnerships will be rolled out

to support the water and sanitation programmes andmore young people will be employed

Partnerships will be forged and individual MoUrsquos will

be entered into between the District Municipality and

the following Higher Education and Further Education

institutions

Ikhala Public FET College

University of Fort Hare

Walter Sisulu University of Technology

University of the Free State

University of Western Cape

University of Stellenbosch

and various SETArsquos including LGSETA

In partnership with the aforementioned stakeholders a

district wide skills development plan will be developed

as a post summit activity and it will be guided by the

summit resolutions

About 41 of the Ukhahlamba Districtrsquos workforce is

made up of elementary or unskilled workers which

is the highest percentage in the province In Gariep

elementaryunskilled workers make up 53 of the

workforce but the largest numbers of unskilled workers

are in the more densely populated Senqu (3 682) and

Elundini (3 253) municipal areas On average 14 of

Ukhahlambarsquos working people have professional skills

rising to 17 in Elundini and Senqu The less densely

populated parts appear to have more skilled people

in Maletswai 15 of working people are skilled and in

Gariep 13 are skilled

Ukhahlamba has lower levels of senior management

technical and clerical skills than the provincersquos other

district municipali ties This corresponds with low levels of

education in Ukhahlamba and indicates a need for skills

development and education programmes

STRATEGIC SKILLS

DEVELOPMENT INITIATIVES JIPSA

Ukhahlamba District Municipality will in partnership with

the Office Of the Premier civil society the business sector

sector departments community based projects and local

municipalities embark on a massive skills development

drive in the following sectors of the economy to support

the 6 economic growth of the district

1 Agriculture

2 Tourism

3 Infrastructure

4 Manufacturing

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2 0

H E A L T H C A R E

The Ukhahlamba area has 11 hospitals including health

care centres and 43 clinics with at least 2 clinics in each

magisterial district The most densely populated Mount

Fletcher and Sterkspruit areas have 13 and 10 clinics

respectively The District has about 998 hospital beds with

a serviced supply average of about 328 people per bed

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2 1

H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

8122019 Udm Gds Profile

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

8122019 Udm Gds Profile

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3 7

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3 8

8122019 Udm Gds Profile

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3 9

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4 0

8122019 Udm Gds Profile

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4 1

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42

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4 3

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44

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4 5

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4 6

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4 7

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4 9

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5 0

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5 1

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52

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54

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5 5

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8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

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1 3

E L E C T R I C I T Y

Some 16 of households in Ukhahlamba have been

linked to the electr icity grid between 2001-2006 with 70

and more households in Senqu Maletswai and Gariep

now accessing electricity Elundini however again faces

the greatest challenges as far as backlogs is concerned

Household electricity connections in Elundini more than

doubled between 2001-2006 This however amounts to

only slightly more than one quarter (28) of households

which is significantly below the district and provincial

averages (60 of households for Ukhahlamba and 67

of households for the Eastern Cape) A new 90km 132kV

line (costing about R58m) is required from Mount Frere

to Mount Fletcher to provide additional capacity to

eradicate backlogs

It is necessary to lobby for more Municipal Infrastructure

Grant (MIG) funding to achieve national targets There is

a clear need to revise Water and Sanitation Sector Plans

and in particular to calculate the MIG allocations that are

required to ensure that National water and sanitation

targets are met

The eradication of water and sanitation backlogs are being

used to expand the Expanded Public Works Programme

in the District and strengthen the construction industry

This is being implemented in the provis ion of water in

Mount Fletcher and in the construction of the water

pipeline to Steynsburg from the Fish River Tunnel It

could be expanded if there were funds available

About 50 of clinics in the district have no piped water

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1 4

W A S T E

Solid waste removal and disposal currently poses a

significant challenge to municipalities and communities

leading to inadequate compliance with legislation and

poor service delivery

There are however economic opportunities attached to

the management of waste in the form of recycling and

innovative concepts around space reduction in waste

processes This potential is largely connected to the

larger economic nodes but there are also opportunities

in smaller communities such as Rhodes using waste from

the large tourism establishment of Tiffendell

H O U S I N G

Due to the rural nature of the Ukhahlamba area and

having a low proportion of urbanization the prevalence

of informal houses (shacks) is below the provincial

average Although there are low levels of informal housing

across the District this does not mean there is no further

need for further RDP housing because the definition of

informal housing does not include traditional dwellings

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1 5

T R A N S P O R T

Of significant concern in the district with regard to its

future economic growth is that no public transport

services are offered between Venterstad and Burgersdorp

and between Lady Grey Aliwal North and Bark ly East This

has an impact on the potentials for economic and social

linkages and is highly frustrating for commuters and

does not support the spatial economic growth strategies

of the district area

The improvement of roads in the Elundini area is likely

to have a wide impact on passenger transport across the

district If the R56 becomes an alternative (even if not the

official alternative) to the N2 due to the route being shorter

(as identified in the Spatial Development Framework) this

will increase the amount of commuter traffic Services

for public transport will need to be provided in Mount

Fletcher Maclear Ugie and Steynsburg

Over the past five years taxi facilities were constructed in

Aliwal North (as a larger modal interchange) Maclear and

Mount Fletcher There is still a need to improve public

transport facilities in Senqu especially at Sterkspruit

Related to provision of public transport is the need for

basic essential services such as water sanitation and

shelters at key facilities There is a need to provide these

services at all the nodes (rural and urban) as defined in the

Spatial Development Plan Areas with high dependencyon public transport especially the primary and secondary

nodes should receive priority

R O A D M A I N T E N A N C E

While the district is covered by a network of tarred and

gravel roads the conditions of these are a significant

challenge for the growth of the economy

Without improved maintenance of urban streets access

roads district and provincial roads goods are unable

to get to market and the market cannot be effectively

accessed by residents of the area

Of significant importance is the constant maintenance

of key economic roads as identified as mobility corridors

in the Spatial Development Framework This should

be supported by maintenance of gravel access roads

especially in the Elundini and Senqu areas where

population numbers are higher and untapped economic

potentials are higher

The maintenance of tarred provincial roads will become

a significant issue of concern as they are already

deteriorating beyond reasonable repair and the timber

industry development in the Ugie area will further

exacerbate this issue

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1 6

Airfields are currently used fairly infrequently but form a

key element of the disaster management system as well

as the emergency medical system across the district area

There are also moves afoot to bring specia lised medica l

support to the district areas by flying in specialised

personnel and equipment

Tourism is also in need of improved air transport services

especially in the mountain areas This is due to the

remote location of this area from the main urban hubs

of South Africa but which could be a way of overcoming

the challenge of distance The area around the town of

Rhodes has motivated for a long time for such a facility

The maintenance of municipal airfields has received very

low priority from municipalities over the past years

With regard to railway transport services only one out of

the four railway lines existing in the district is effectively

operational ndash the main line between Johannesburg and

East London This is only accessible at Burgersdorp This

rail line has very little impact on public transport and the

conveyance of goods to and or from the area Infrequently

the line between Burgersdorp and Aliwal North is used

for goods

The line between Aliwal North and Barkly East is of

unique value and could be a significant tourist attraction

if effectively maintained managed and marketed

Airfields are found in most of the urban settlements

and form part of the function of local municipalities A

new airfield has been constructed in Sterkspruit by the

Department of Roads and Transport

Communities have raised the issue of improved telephone

services as a key pr iority There are also still police stations

clinics and schools without any telephone service and

this impacts on their ability to deliver services The

more remote areas of Elundini and Senqu are the worst

affected

Funding for an investigation into the possibility of

providing broadband internet connections in the district

area have been agreed to by the European Union This

could provide potential for Business Outsourcing

T E L E C O M M U N I C A T I O N S

According to the 2001 census more than 50 of the

population has access either to a private telephone or

one nearby but there is still a section of the population

that has no access to a telephone at all Urban areas

receive the best service Parts of the commercial farming

areas and rural areas are provided with telephone services

based on radio linkages to towers driven by solar panel

technology

Cellphone services are used by a large proportion of

the population However this service does not cover the

whole area The mountainous nature of the area affects

reception

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It is important to note that Wetlands cover 32 square

kilometres in Elundini which includes the Gatberg

wetland ndash the breeding ground for the endangered

wattled crane The conservation of wetland is

being attended to through the Working for Water

programme (an EPWP programme)

C O N S E R V A T I O N A R E A S

One provincial nature reserve the Oviston Nature

Reserve on the banks of the Gariep Dam is located within

the Ukhahlamba District There is discussion underway

between the Eastern Cape and Free State conservation

boards to amalgamate the management of the nature

reserves around the Gariep Dam There have also been

proposals to expand the area under conservation in

this area but it is likely that this will be in the form of

stewardships and not through the purchase of land by

the state

1 7

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S O C I A L S E R V I C E S

is clearly the improvement of services delivery while

health infrastructure needs to be addressed in the more

desperate municipalities of Elundini and Senqu

In the District 40 of clinics have no electricity and 50

have no piped water

The services delivery challenges are again greatest in

the eastern and more populous areas of Elundini and

Senqu Generally access to clinics and emergency health

services is lower here and often compounded by poor

access roads

Access to primary education within the more infrastructure

poor areas of Elundini and Senqu is well within the distric t

and provincial norm The focus in terms of education

Approximately 255 of the adult population does not

have any form of training or education with 402

only having completed grades 3-7 Only 33 of the

population has completed Grade 12 compared to 66

in the Eastern Cape Only 17 of the District population

has obtained a tertiary qualification

The Elundini area has the largest proportion of people

having only received primary education while the Gariep

area has the highest proportion of people (315) having

never received any form of education

This highlights the extremely low levels of education in

the District and the need to focus on education and skills

training This can only be accomplished if the backlog in

education facilities is met

E D U C A T I O N A N D S K I L L S

There is very limited access to higher education facil ities

in the district area Ukhahlamba has higher than the

national average of people between 5-24 years attending

school but lower than the national average for those

attending tertiary education

According to the latest information from the Departmentof Education since 1999 only five schools have been built

The ratio between learners and educators is 1 363 which

is a slight improvement

Number of Schools Learners and

Educators in Ukhahlamba DM

TYPE OF SCHOOL

Combined Primary Secondary Total

Schools 173 168 46 397

Learners 60 783 31 997 22 577 126 449

Educators 1 863 984 241 3 482

Census figures show that about 50 of the total

population is of school going age

1 8

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1 9

Other skills development initiatives will be geared

towards the Ugie development project

LGSETA is to fund a Learnership on Municipal Finance and

Administration as well other skills programme focusing

on the unemployed Other learnerships will be rolled out

to support the water and sanitation programmes andmore young people will be employed

Partnerships will be forged and individual MoUrsquos will

be entered into between the District Municipality and

the following Higher Education and Further Education

institutions

Ikhala Public FET College

University of Fort Hare

Walter Sisulu University of Technology

University of the Free State

University of Western Cape

University of Stellenbosch

and various SETArsquos including LGSETA

In partnership with the aforementioned stakeholders a

district wide skills development plan will be developed

as a post summit activity and it will be guided by the

summit resolutions

About 41 of the Ukhahlamba Districtrsquos workforce is

made up of elementary or unskilled workers which

is the highest percentage in the province In Gariep

elementaryunskilled workers make up 53 of the

workforce but the largest numbers of unskilled workers

are in the more densely populated Senqu (3 682) and

Elundini (3 253) municipal areas On average 14 of

Ukhahlambarsquos working people have professional skills

rising to 17 in Elundini and Senqu The less densely

populated parts appear to have more skilled people

in Maletswai 15 of working people are skilled and in

Gariep 13 are skilled

Ukhahlamba has lower levels of senior management

technical and clerical skills than the provincersquos other

district municipali ties This corresponds with low levels of

education in Ukhahlamba and indicates a need for skills

development and education programmes

STRATEGIC SKILLS

DEVELOPMENT INITIATIVES JIPSA

Ukhahlamba District Municipality will in partnership with

the Office Of the Premier civil society the business sector

sector departments community based projects and local

municipalities embark on a massive skills development

drive in the following sectors of the economy to support

the 6 economic growth of the district

1 Agriculture

2 Tourism

3 Infrastructure

4 Manufacturing

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2 0

H E A L T H C A R E

The Ukhahlamba area has 11 hospitals including health

care centres and 43 clinics with at least 2 clinics in each

magisterial district The most densely populated Mount

Fletcher and Sterkspruit areas have 13 and 10 clinics

respectively The District has about 998 hospital beds with

a serviced supply average of about 328 people per bed

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2 1

H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

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3 7

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3 8

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3 9

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4 0

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4 1

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42

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4 3

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44

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4 5

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4 6

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4 7

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4 9

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5 0

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5 1

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52

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54

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5 5

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

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1 4

W A S T E

Solid waste removal and disposal currently poses a

significant challenge to municipalities and communities

leading to inadequate compliance with legislation and

poor service delivery

There are however economic opportunities attached to

the management of waste in the form of recycling and

innovative concepts around space reduction in waste

processes This potential is largely connected to the

larger economic nodes but there are also opportunities

in smaller communities such as Rhodes using waste from

the large tourism establishment of Tiffendell

H O U S I N G

Due to the rural nature of the Ukhahlamba area and

having a low proportion of urbanization the prevalence

of informal houses (shacks) is below the provincial

average Although there are low levels of informal housing

across the District this does not mean there is no further

need for further RDP housing because the definition of

informal housing does not include traditional dwellings

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1 5

T R A N S P O R T

Of significant concern in the district with regard to its

future economic growth is that no public transport

services are offered between Venterstad and Burgersdorp

and between Lady Grey Aliwal North and Bark ly East This

has an impact on the potentials for economic and social

linkages and is highly frustrating for commuters and

does not support the spatial economic growth strategies

of the district area

The improvement of roads in the Elundini area is likely

to have a wide impact on passenger transport across the

district If the R56 becomes an alternative (even if not the

official alternative) to the N2 due to the route being shorter

(as identified in the Spatial Development Framework) this

will increase the amount of commuter traffic Services

for public transport will need to be provided in Mount

Fletcher Maclear Ugie and Steynsburg

Over the past five years taxi facilities were constructed in

Aliwal North (as a larger modal interchange) Maclear and

Mount Fletcher There is still a need to improve public

transport facilities in Senqu especially at Sterkspruit

Related to provision of public transport is the need for

basic essential services such as water sanitation and

shelters at key facilities There is a need to provide these

services at all the nodes (rural and urban) as defined in the

Spatial Development Plan Areas with high dependencyon public transport especially the primary and secondary

nodes should receive priority

R O A D M A I N T E N A N C E

While the district is covered by a network of tarred and

gravel roads the conditions of these are a significant

challenge for the growth of the economy

Without improved maintenance of urban streets access

roads district and provincial roads goods are unable

to get to market and the market cannot be effectively

accessed by residents of the area

Of significant importance is the constant maintenance

of key economic roads as identified as mobility corridors

in the Spatial Development Framework This should

be supported by maintenance of gravel access roads

especially in the Elundini and Senqu areas where

population numbers are higher and untapped economic

potentials are higher

The maintenance of tarred provincial roads will become

a significant issue of concern as they are already

deteriorating beyond reasonable repair and the timber

industry development in the Ugie area will further

exacerbate this issue

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1 6

Airfields are currently used fairly infrequently but form a

key element of the disaster management system as well

as the emergency medical system across the district area

There are also moves afoot to bring specia lised medica l

support to the district areas by flying in specialised

personnel and equipment

Tourism is also in need of improved air transport services

especially in the mountain areas This is due to the

remote location of this area from the main urban hubs

of South Africa but which could be a way of overcoming

the challenge of distance The area around the town of

Rhodes has motivated for a long time for such a facility

The maintenance of municipal airfields has received very

low priority from municipalities over the past years

With regard to railway transport services only one out of

the four railway lines existing in the district is effectively

operational ndash the main line between Johannesburg and

East London This is only accessible at Burgersdorp This

rail line has very little impact on public transport and the

conveyance of goods to and or from the area Infrequently

the line between Burgersdorp and Aliwal North is used

for goods

The line between Aliwal North and Barkly East is of

unique value and could be a significant tourist attraction

if effectively maintained managed and marketed

Airfields are found in most of the urban settlements

and form part of the function of local municipalities A

new airfield has been constructed in Sterkspruit by the

Department of Roads and Transport

Communities have raised the issue of improved telephone

services as a key pr iority There are also still police stations

clinics and schools without any telephone service and

this impacts on their ability to deliver services The

more remote areas of Elundini and Senqu are the worst

affected

Funding for an investigation into the possibility of

providing broadband internet connections in the district

area have been agreed to by the European Union This

could provide potential for Business Outsourcing

T E L E C O M M U N I C A T I O N S

According to the 2001 census more than 50 of the

population has access either to a private telephone or

one nearby but there is still a section of the population

that has no access to a telephone at all Urban areas

receive the best service Parts of the commercial farming

areas and rural areas are provided with telephone services

based on radio linkages to towers driven by solar panel

technology

Cellphone services are used by a large proportion of

the population However this service does not cover the

whole area The mountainous nature of the area affects

reception

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It is important to note that Wetlands cover 32 square

kilometres in Elundini which includes the Gatberg

wetland ndash the breeding ground for the endangered

wattled crane The conservation of wetland is

being attended to through the Working for Water

programme (an EPWP programme)

C O N S E R V A T I O N A R E A S

One provincial nature reserve the Oviston Nature

Reserve on the banks of the Gariep Dam is located within

the Ukhahlamba District There is discussion underway

between the Eastern Cape and Free State conservation

boards to amalgamate the management of the nature

reserves around the Gariep Dam There have also been

proposals to expand the area under conservation in

this area but it is likely that this will be in the form of

stewardships and not through the purchase of land by

the state

1 7

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S O C I A L S E R V I C E S

is clearly the improvement of services delivery while

health infrastructure needs to be addressed in the more

desperate municipalities of Elundini and Senqu

In the District 40 of clinics have no electricity and 50

have no piped water

The services delivery challenges are again greatest in

the eastern and more populous areas of Elundini and

Senqu Generally access to clinics and emergency health

services is lower here and often compounded by poor

access roads

Access to primary education within the more infrastructure

poor areas of Elundini and Senqu is well within the distric t

and provincial norm The focus in terms of education

Approximately 255 of the adult population does not

have any form of training or education with 402

only having completed grades 3-7 Only 33 of the

population has completed Grade 12 compared to 66

in the Eastern Cape Only 17 of the District population

has obtained a tertiary qualification

The Elundini area has the largest proportion of people

having only received primary education while the Gariep

area has the highest proportion of people (315) having

never received any form of education

This highlights the extremely low levels of education in

the District and the need to focus on education and skills

training This can only be accomplished if the backlog in

education facilities is met

E D U C A T I O N A N D S K I L L S

There is very limited access to higher education facil ities

in the district area Ukhahlamba has higher than the

national average of people between 5-24 years attending

school but lower than the national average for those

attending tertiary education

According to the latest information from the Departmentof Education since 1999 only five schools have been built

The ratio between learners and educators is 1 363 which

is a slight improvement

Number of Schools Learners and

Educators in Ukhahlamba DM

TYPE OF SCHOOL

Combined Primary Secondary Total

Schools 173 168 46 397

Learners 60 783 31 997 22 577 126 449

Educators 1 863 984 241 3 482

Census figures show that about 50 of the total

population is of school going age

1 8

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1 9

Other skills development initiatives will be geared

towards the Ugie development project

LGSETA is to fund a Learnership on Municipal Finance and

Administration as well other skills programme focusing

on the unemployed Other learnerships will be rolled out

to support the water and sanitation programmes andmore young people will be employed

Partnerships will be forged and individual MoUrsquos will

be entered into between the District Municipality and

the following Higher Education and Further Education

institutions

Ikhala Public FET College

University of Fort Hare

Walter Sisulu University of Technology

University of the Free State

University of Western Cape

University of Stellenbosch

and various SETArsquos including LGSETA

In partnership with the aforementioned stakeholders a

district wide skills development plan will be developed

as a post summit activity and it will be guided by the

summit resolutions

About 41 of the Ukhahlamba Districtrsquos workforce is

made up of elementary or unskilled workers which

is the highest percentage in the province In Gariep

elementaryunskilled workers make up 53 of the

workforce but the largest numbers of unskilled workers

are in the more densely populated Senqu (3 682) and

Elundini (3 253) municipal areas On average 14 of

Ukhahlambarsquos working people have professional skills

rising to 17 in Elundini and Senqu The less densely

populated parts appear to have more skilled people

in Maletswai 15 of working people are skilled and in

Gariep 13 are skilled

Ukhahlamba has lower levels of senior management

technical and clerical skills than the provincersquos other

district municipali ties This corresponds with low levels of

education in Ukhahlamba and indicates a need for skills

development and education programmes

STRATEGIC SKILLS

DEVELOPMENT INITIATIVES JIPSA

Ukhahlamba District Municipality will in partnership with

the Office Of the Premier civil society the business sector

sector departments community based projects and local

municipalities embark on a massive skills development

drive in the following sectors of the economy to support

the 6 economic growth of the district

1 Agriculture

2 Tourism

3 Infrastructure

4 Manufacturing

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2 0

H E A L T H C A R E

The Ukhahlamba area has 11 hospitals including health

care centres and 43 clinics with at least 2 clinics in each

magisterial district The most densely populated Mount

Fletcher and Sterkspruit areas have 13 and 10 clinics

respectively The District has about 998 hospital beds with

a serviced supply average of about 328 people per bed

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2 1

H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

8122019 Udm Gds Profile

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

8122019 Udm Gds Profile

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3 7

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3 8

8122019 Udm Gds Profile

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3 9

8122019 Udm Gds Profile

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4 0

8122019 Udm Gds Profile

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4 1

8122019 Udm Gds Profile

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42

8122019 Udm Gds Profile

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4 3

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44

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4 5

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4 6

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4 7

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4 9

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5 0

8122019 Udm Gds Profile

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5 1

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52

8122019 Udm Gds Profile

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54

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5 5

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8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

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1 5

T R A N S P O R T

Of significant concern in the district with regard to its

future economic growth is that no public transport

services are offered between Venterstad and Burgersdorp

and between Lady Grey Aliwal North and Bark ly East This

has an impact on the potentials for economic and social

linkages and is highly frustrating for commuters and

does not support the spatial economic growth strategies

of the district area

The improvement of roads in the Elundini area is likely

to have a wide impact on passenger transport across the

district If the R56 becomes an alternative (even if not the

official alternative) to the N2 due to the route being shorter

(as identified in the Spatial Development Framework) this

will increase the amount of commuter traffic Services

for public transport will need to be provided in Mount

Fletcher Maclear Ugie and Steynsburg

Over the past five years taxi facilities were constructed in

Aliwal North (as a larger modal interchange) Maclear and

Mount Fletcher There is still a need to improve public

transport facilities in Senqu especially at Sterkspruit

Related to provision of public transport is the need for

basic essential services such as water sanitation and

shelters at key facilities There is a need to provide these

services at all the nodes (rural and urban) as defined in the

Spatial Development Plan Areas with high dependencyon public transport especially the primary and secondary

nodes should receive priority

R O A D M A I N T E N A N C E

While the district is covered by a network of tarred and

gravel roads the conditions of these are a significant

challenge for the growth of the economy

Without improved maintenance of urban streets access

roads district and provincial roads goods are unable

to get to market and the market cannot be effectively

accessed by residents of the area

Of significant importance is the constant maintenance

of key economic roads as identified as mobility corridors

in the Spatial Development Framework This should

be supported by maintenance of gravel access roads

especially in the Elundini and Senqu areas where

population numbers are higher and untapped economic

potentials are higher

The maintenance of tarred provincial roads will become

a significant issue of concern as they are already

deteriorating beyond reasonable repair and the timber

industry development in the Ugie area will further

exacerbate this issue

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1 6

Airfields are currently used fairly infrequently but form a

key element of the disaster management system as well

as the emergency medical system across the district area

There are also moves afoot to bring specia lised medica l

support to the district areas by flying in specialised

personnel and equipment

Tourism is also in need of improved air transport services

especially in the mountain areas This is due to the

remote location of this area from the main urban hubs

of South Africa but which could be a way of overcoming

the challenge of distance The area around the town of

Rhodes has motivated for a long time for such a facility

The maintenance of municipal airfields has received very

low priority from municipalities over the past years

With regard to railway transport services only one out of

the four railway lines existing in the district is effectively

operational ndash the main line between Johannesburg and

East London This is only accessible at Burgersdorp This

rail line has very little impact on public transport and the

conveyance of goods to and or from the area Infrequently

the line between Burgersdorp and Aliwal North is used

for goods

The line between Aliwal North and Barkly East is of

unique value and could be a significant tourist attraction

if effectively maintained managed and marketed

Airfields are found in most of the urban settlements

and form part of the function of local municipalities A

new airfield has been constructed in Sterkspruit by the

Department of Roads and Transport

Communities have raised the issue of improved telephone

services as a key pr iority There are also still police stations

clinics and schools without any telephone service and

this impacts on their ability to deliver services The

more remote areas of Elundini and Senqu are the worst

affected

Funding for an investigation into the possibility of

providing broadband internet connections in the district

area have been agreed to by the European Union This

could provide potential for Business Outsourcing

T E L E C O M M U N I C A T I O N S

According to the 2001 census more than 50 of the

population has access either to a private telephone or

one nearby but there is still a section of the population

that has no access to a telephone at all Urban areas

receive the best service Parts of the commercial farming

areas and rural areas are provided with telephone services

based on radio linkages to towers driven by solar panel

technology

Cellphone services are used by a large proportion of

the population However this service does not cover the

whole area The mountainous nature of the area affects

reception

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It is important to note that Wetlands cover 32 square

kilometres in Elundini which includes the Gatberg

wetland ndash the breeding ground for the endangered

wattled crane The conservation of wetland is

being attended to through the Working for Water

programme (an EPWP programme)

C O N S E R V A T I O N A R E A S

One provincial nature reserve the Oviston Nature

Reserve on the banks of the Gariep Dam is located within

the Ukhahlamba District There is discussion underway

between the Eastern Cape and Free State conservation

boards to amalgamate the management of the nature

reserves around the Gariep Dam There have also been

proposals to expand the area under conservation in

this area but it is likely that this will be in the form of

stewardships and not through the purchase of land by

the state

1 7

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S O C I A L S E R V I C E S

is clearly the improvement of services delivery while

health infrastructure needs to be addressed in the more

desperate municipalities of Elundini and Senqu

In the District 40 of clinics have no electricity and 50

have no piped water

The services delivery challenges are again greatest in

the eastern and more populous areas of Elundini and

Senqu Generally access to clinics and emergency health

services is lower here and often compounded by poor

access roads

Access to primary education within the more infrastructure

poor areas of Elundini and Senqu is well within the distric t

and provincial norm The focus in terms of education

Approximately 255 of the adult population does not

have any form of training or education with 402

only having completed grades 3-7 Only 33 of the

population has completed Grade 12 compared to 66

in the Eastern Cape Only 17 of the District population

has obtained a tertiary qualification

The Elundini area has the largest proportion of people

having only received primary education while the Gariep

area has the highest proportion of people (315) having

never received any form of education

This highlights the extremely low levels of education in

the District and the need to focus on education and skills

training This can only be accomplished if the backlog in

education facilities is met

E D U C A T I O N A N D S K I L L S

There is very limited access to higher education facil ities

in the district area Ukhahlamba has higher than the

national average of people between 5-24 years attending

school but lower than the national average for those

attending tertiary education

According to the latest information from the Departmentof Education since 1999 only five schools have been built

The ratio between learners and educators is 1 363 which

is a slight improvement

Number of Schools Learners and

Educators in Ukhahlamba DM

TYPE OF SCHOOL

Combined Primary Secondary Total

Schools 173 168 46 397

Learners 60 783 31 997 22 577 126 449

Educators 1 863 984 241 3 482

Census figures show that about 50 of the total

population is of school going age

1 8

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1 9

Other skills development initiatives will be geared

towards the Ugie development project

LGSETA is to fund a Learnership on Municipal Finance and

Administration as well other skills programme focusing

on the unemployed Other learnerships will be rolled out

to support the water and sanitation programmes andmore young people will be employed

Partnerships will be forged and individual MoUrsquos will

be entered into between the District Municipality and

the following Higher Education and Further Education

institutions

Ikhala Public FET College

University of Fort Hare

Walter Sisulu University of Technology

University of the Free State

University of Western Cape

University of Stellenbosch

and various SETArsquos including LGSETA

In partnership with the aforementioned stakeholders a

district wide skills development plan will be developed

as a post summit activity and it will be guided by the

summit resolutions

About 41 of the Ukhahlamba Districtrsquos workforce is

made up of elementary or unskilled workers which

is the highest percentage in the province In Gariep

elementaryunskilled workers make up 53 of the

workforce but the largest numbers of unskilled workers

are in the more densely populated Senqu (3 682) and

Elundini (3 253) municipal areas On average 14 of

Ukhahlambarsquos working people have professional skills

rising to 17 in Elundini and Senqu The less densely

populated parts appear to have more skilled people

in Maletswai 15 of working people are skilled and in

Gariep 13 are skilled

Ukhahlamba has lower levels of senior management

technical and clerical skills than the provincersquos other

district municipali ties This corresponds with low levels of

education in Ukhahlamba and indicates a need for skills

development and education programmes

STRATEGIC SKILLS

DEVELOPMENT INITIATIVES JIPSA

Ukhahlamba District Municipality will in partnership with

the Office Of the Premier civil society the business sector

sector departments community based projects and local

municipalities embark on a massive skills development

drive in the following sectors of the economy to support

the 6 economic growth of the district

1 Agriculture

2 Tourism

3 Infrastructure

4 Manufacturing

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2 0

H E A L T H C A R E

The Ukhahlamba area has 11 hospitals including health

care centres and 43 clinics with at least 2 clinics in each

magisterial district The most densely populated Mount

Fletcher and Sterkspruit areas have 13 and 10 clinics

respectively The District has about 998 hospital beds with

a serviced supply average of about 328 people per bed

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2 1

H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

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3 7

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3 8

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3 9

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4 0

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4 1

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42

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4 3

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44

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4 5

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4 6

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4 7

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4 9

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5 0

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5 1

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52

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54

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5 5

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

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1 6

Airfields are currently used fairly infrequently but form a

key element of the disaster management system as well

as the emergency medical system across the district area

There are also moves afoot to bring specia lised medica l

support to the district areas by flying in specialised

personnel and equipment

Tourism is also in need of improved air transport services

especially in the mountain areas This is due to the

remote location of this area from the main urban hubs

of South Africa but which could be a way of overcoming

the challenge of distance The area around the town of

Rhodes has motivated for a long time for such a facility

The maintenance of municipal airfields has received very

low priority from municipalities over the past years

With regard to railway transport services only one out of

the four railway lines existing in the district is effectively

operational ndash the main line between Johannesburg and

East London This is only accessible at Burgersdorp This

rail line has very little impact on public transport and the

conveyance of goods to and or from the area Infrequently

the line between Burgersdorp and Aliwal North is used

for goods

The line between Aliwal North and Barkly East is of

unique value and could be a significant tourist attraction

if effectively maintained managed and marketed

Airfields are found in most of the urban settlements

and form part of the function of local municipalities A

new airfield has been constructed in Sterkspruit by the

Department of Roads and Transport

Communities have raised the issue of improved telephone

services as a key pr iority There are also still police stations

clinics and schools without any telephone service and

this impacts on their ability to deliver services The

more remote areas of Elundini and Senqu are the worst

affected

Funding for an investigation into the possibility of

providing broadband internet connections in the district

area have been agreed to by the European Union This

could provide potential for Business Outsourcing

T E L E C O M M U N I C A T I O N S

According to the 2001 census more than 50 of the

population has access either to a private telephone or

one nearby but there is still a section of the population

that has no access to a telephone at all Urban areas

receive the best service Parts of the commercial farming

areas and rural areas are provided with telephone services

based on radio linkages to towers driven by solar panel

technology

Cellphone services are used by a large proportion of

the population However this service does not cover the

whole area The mountainous nature of the area affects

reception

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It is important to note that Wetlands cover 32 square

kilometres in Elundini which includes the Gatberg

wetland ndash the breeding ground for the endangered

wattled crane The conservation of wetland is

being attended to through the Working for Water

programme (an EPWP programme)

C O N S E R V A T I O N A R E A S

One provincial nature reserve the Oviston Nature

Reserve on the banks of the Gariep Dam is located within

the Ukhahlamba District There is discussion underway

between the Eastern Cape and Free State conservation

boards to amalgamate the management of the nature

reserves around the Gariep Dam There have also been

proposals to expand the area under conservation in

this area but it is likely that this will be in the form of

stewardships and not through the purchase of land by

the state

1 7

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S O C I A L S E R V I C E S

is clearly the improvement of services delivery while

health infrastructure needs to be addressed in the more

desperate municipalities of Elundini and Senqu

In the District 40 of clinics have no electricity and 50

have no piped water

The services delivery challenges are again greatest in

the eastern and more populous areas of Elundini and

Senqu Generally access to clinics and emergency health

services is lower here and often compounded by poor

access roads

Access to primary education within the more infrastructure

poor areas of Elundini and Senqu is well within the distric t

and provincial norm The focus in terms of education

Approximately 255 of the adult population does not

have any form of training or education with 402

only having completed grades 3-7 Only 33 of the

population has completed Grade 12 compared to 66

in the Eastern Cape Only 17 of the District population

has obtained a tertiary qualification

The Elundini area has the largest proportion of people

having only received primary education while the Gariep

area has the highest proportion of people (315) having

never received any form of education

This highlights the extremely low levels of education in

the District and the need to focus on education and skills

training This can only be accomplished if the backlog in

education facilities is met

E D U C A T I O N A N D S K I L L S

There is very limited access to higher education facil ities

in the district area Ukhahlamba has higher than the

national average of people between 5-24 years attending

school but lower than the national average for those

attending tertiary education

According to the latest information from the Departmentof Education since 1999 only five schools have been built

The ratio between learners and educators is 1 363 which

is a slight improvement

Number of Schools Learners and

Educators in Ukhahlamba DM

TYPE OF SCHOOL

Combined Primary Secondary Total

Schools 173 168 46 397

Learners 60 783 31 997 22 577 126 449

Educators 1 863 984 241 3 482

Census figures show that about 50 of the total

population is of school going age

1 8

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1 9

Other skills development initiatives will be geared

towards the Ugie development project

LGSETA is to fund a Learnership on Municipal Finance and

Administration as well other skills programme focusing

on the unemployed Other learnerships will be rolled out

to support the water and sanitation programmes andmore young people will be employed

Partnerships will be forged and individual MoUrsquos will

be entered into between the District Municipality and

the following Higher Education and Further Education

institutions

Ikhala Public FET College

University of Fort Hare

Walter Sisulu University of Technology

University of the Free State

University of Western Cape

University of Stellenbosch

and various SETArsquos including LGSETA

In partnership with the aforementioned stakeholders a

district wide skills development plan will be developed

as a post summit activity and it will be guided by the

summit resolutions

About 41 of the Ukhahlamba Districtrsquos workforce is

made up of elementary or unskilled workers which

is the highest percentage in the province In Gariep

elementaryunskilled workers make up 53 of the

workforce but the largest numbers of unskilled workers

are in the more densely populated Senqu (3 682) and

Elundini (3 253) municipal areas On average 14 of

Ukhahlambarsquos working people have professional skills

rising to 17 in Elundini and Senqu The less densely

populated parts appear to have more skilled people

in Maletswai 15 of working people are skilled and in

Gariep 13 are skilled

Ukhahlamba has lower levels of senior management

technical and clerical skills than the provincersquos other

district municipali ties This corresponds with low levels of

education in Ukhahlamba and indicates a need for skills

development and education programmes

STRATEGIC SKILLS

DEVELOPMENT INITIATIVES JIPSA

Ukhahlamba District Municipality will in partnership with

the Office Of the Premier civil society the business sector

sector departments community based projects and local

municipalities embark on a massive skills development

drive in the following sectors of the economy to support

the 6 economic growth of the district

1 Agriculture

2 Tourism

3 Infrastructure

4 Manufacturing

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2 0

H E A L T H C A R E

The Ukhahlamba area has 11 hospitals including health

care centres and 43 clinics with at least 2 clinics in each

magisterial district The most densely populated Mount

Fletcher and Sterkspruit areas have 13 and 10 clinics

respectively The District has about 998 hospital beds with

a serviced supply average of about 328 people per bed

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2 1

H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

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3 7

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3 8

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3 9

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4 0

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4 1

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42

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4 3

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44

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4 5

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4 6

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4 7

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4 9

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5 0

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5 1

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52

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54

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5 5

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8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

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It is important to note that Wetlands cover 32 square

kilometres in Elundini which includes the Gatberg

wetland ndash the breeding ground for the endangered

wattled crane The conservation of wetland is

being attended to through the Working for Water

programme (an EPWP programme)

C O N S E R V A T I O N A R E A S

One provincial nature reserve the Oviston Nature

Reserve on the banks of the Gariep Dam is located within

the Ukhahlamba District There is discussion underway

between the Eastern Cape and Free State conservation

boards to amalgamate the management of the nature

reserves around the Gariep Dam There have also been

proposals to expand the area under conservation in

this area but it is likely that this will be in the form of

stewardships and not through the purchase of land by

the state

1 7

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S O C I A L S E R V I C E S

is clearly the improvement of services delivery while

health infrastructure needs to be addressed in the more

desperate municipalities of Elundini and Senqu

In the District 40 of clinics have no electricity and 50

have no piped water

The services delivery challenges are again greatest in

the eastern and more populous areas of Elundini and

Senqu Generally access to clinics and emergency health

services is lower here and often compounded by poor

access roads

Access to primary education within the more infrastructure

poor areas of Elundini and Senqu is well within the distric t

and provincial norm The focus in terms of education

Approximately 255 of the adult population does not

have any form of training or education with 402

only having completed grades 3-7 Only 33 of the

population has completed Grade 12 compared to 66

in the Eastern Cape Only 17 of the District population

has obtained a tertiary qualification

The Elundini area has the largest proportion of people

having only received primary education while the Gariep

area has the highest proportion of people (315) having

never received any form of education

This highlights the extremely low levels of education in

the District and the need to focus on education and skills

training This can only be accomplished if the backlog in

education facilities is met

E D U C A T I O N A N D S K I L L S

There is very limited access to higher education facil ities

in the district area Ukhahlamba has higher than the

national average of people between 5-24 years attending

school but lower than the national average for those

attending tertiary education

According to the latest information from the Departmentof Education since 1999 only five schools have been built

The ratio between learners and educators is 1 363 which

is a slight improvement

Number of Schools Learners and

Educators in Ukhahlamba DM

TYPE OF SCHOOL

Combined Primary Secondary Total

Schools 173 168 46 397

Learners 60 783 31 997 22 577 126 449

Educators 1 863 984 241 3 482

Census figures show that about 50 of the total

population is of school going age

1 8

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1 9

Other skills development initiatives will be geared

towards the Ugie development project

LGSETA is to fund a Learnership on Municipal Finance and

Administration as well other skills programme focusing

on the unemployed Other learnerships will be rolled out

to support the water and sanitation programmes andmore young people will be employed

Partnerships will be forged and individual MoUrsquos will

be entered into between the District Municipality and

the following Higher Education and Further Education

institutions

Ikhala Public FET College

University of Fort Hare

Walter Sisulu University of Technology

University of the Free State

University of Western Cape

University of Stellenbosch

and various SETArsquos including LGSETA

In partnership with the aforementioned stakeholders a

district wide skills development plan will be developed

as a post summit activity and it will be guided by the

summit resolutions

About 41 of the Ukhahlamba Districtrsquos workforce is

made up of elementary or unskilled workers which

is the highest percentage in the province In Gariep

elementaryunskilled workers make up 53 of the

workforce but the largest numbers of unskilled workers

are in the more densely populated Senqu (3 682) and

Elundini (3 253) municipal areas On average 14 of

Ukhahlambarsquos working people have professional skills

rising to 17 in Elundini and Senqu The less densely

populated parts appear to have more skilled people

in Maletswai 15 of working people are skilled and in

Gariep 13 are skilled

Ukhahlamba has lower levels of senior management

technical and clerical skills than the provincersquos other

district municipali ties This corresponds with low levels of

education in Ukhahlamba and indicates a need for skills

development and education programmes

STRATEGIC SKILLS

DEVELOPMENT INITIATIVES JIPSA

Ukhahlamba District Municipality will in partnership with

the Office Of the Premier civil society the business sector

sector departments community based projects and local

municipalities embark on a massive skills development

drive in the following sectors of the economy to support

the 6 economic growth of the district

1 Agriculture

2 Tourism

3 Infrastructure

4 Manufacturing

8122019 Udm Gds Profile

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2 0

H E A L T H C A R E

The Ukhahlamba area has 11 hospitals including health

care centres and 43 clinics with at least 2 clinics in each

magisterial district The most densely populated Mount

Fletcher and Sterkspruit areas have 13 and 10 clinics

respectively The District has about 998 hospital beds with

a serviced supply average of about 328 people per bed

8122019 Udm Gds Profile

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2 1

H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

8122019 Udm Gds Profile

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

8122019 Udm Gds Profile

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

8122019 Udm Gds Profile

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3 7

8122019 Udm Gds Profile

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3 8

8122019 Udm Gds Profile

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3 9

8122019 Udm Gds Profile

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4 0

8122019 Udm Gds Profile

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4 1

8122019 Udm Gds Profile

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42

8122019 Udm Gds Profile

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4 3

8122019 Udm Gds Profile

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44

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4 5

8122019 Udm Gds Profile

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4 6

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4 7

8122019 Udm Gds Profile

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8122019 Udm Gds Profile

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4 9

8122019 Udm Gds Profile

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5 0

8122019 Udm Gds Profile

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5 1

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52

8122019 Udm Gds Profile

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54

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5 5

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

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S O C I A L S E R V I C E S

is clearly the improvement of services delivery while

health infrastructure needs to be addressed in the more

desperate municipalities of Elundini and Senqu

In the District 40 of clinics have no electricity and 50

have no piped water

The services delivery challenges are again greatest in

the eastern and more populous areas of Elundini and

Senqu Generally access to clinics and emergency health

services is lower here and often compounded by poor

access roads

Access to primary education within the more infrastructure

poor areas of Elundini and Senqu is well within the distric t

and provincial norm The focus in terms of education

Approximately 255 of the adult population does not

have any form of training or education with 402

only having completed grades 3-7 Only 33 of the

population has completed Grade 12 compared to 66

in the Eastern Cape Only 17 of the District population

has obtained a tertiary qualification

The Elundini area has the largest proportion of people

having only received primary education while the Gariep

area has the highest proportion of people (315) having

never received any form of education

This highlights the extremely low levels of education in

the District and the need to focus on education and skills

training This can only be accomplished if the backlog in

education facilities is met

E D U C A T I O N A N D S K I L L S

There is very limited access to higher education facil ities

in the district area Ukhahlamba has higher than the

national average of people between 5-24 years attending

school but lower than the national average for those

attending tertiary education

According to the latest information from the Departmentof Education since 1999 only five schools have been built

The ratio between learners and educators is 1 363 which

is a slight improvement

Number of Schools Learners and

Educators in Ukhahlamba DM

TYPE OF SCHOOL

Combined Primary Secondary Total

Schools 173 168 46 397

Learners 60 783 31 997 22 577 126 449

Educators 1 863 984 241 3 482

Census figures show that about 50 of the total

population is of school going age

1 8

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1 9

Other skills development initiatives will be geared

towards the Ugie development project

LGSETA is to fund a Learnership on Municipal Finance and

Administration as well other skills programme focusing

on the unemployed Other learnerships will be rolled out

to support the water and sanitation programmes andmore young people will be employed

Partnerships will be forged and individual MoUrsquos will

be entered into between the District Municipality and

the following Higher Education and Further Education

institutions

Ikhala Public FET College

University of Fort Hare

Walter Sisulu University of Technology

University of the Free State

University of Western Cape

University of Stellenbosch

and various SETArsquos including LGSETA

In partnership with the aforementioned stakeholders a

district wide skills development plan will be developed

as a post summit activity and it will be guided by the

summit resolutions

About 41 of the Ukhahlamba Districtrsquos workforce is

made up of elementary or unskilled workers which

is the highest percentage in the province In Gariep

elementaryunskilled workers make up 53 of the

workforce but the largest numbers of unskilled workers

are in the more densely populated Senqu (3 682) and

Elundini (3 253) municipal areas On average 14 of

Ukhahlambarsquos working people have professional skills

rising to 17 in Elundini and Senqu The less densely

populated parts appear to have more skilled people

in Maletswai 15 of working people are skilled and in

Gariep 13 are skilled

Ukhahlamba has lower levels of senior management

technical and clerical skills than the provincersquos other

district municipali ties This corresponds with low levels of

education in Ukhahlamba and indicates a need for skills

development and education programmes

STRATEGIC SKILLS

DEVELOPMENT INITIATIVES JIPSA

Ukhahlamba District Municipality will in partnership with

the Office Of the Premier civil society the business sector

sector departments community based projects and local

municipalities embark on a massive skills development

drive in the following sectors of the economy to support

the 6 economic growth of the district

1 Agriculture

2 Tourism

3 Infrastructure

4 Manufacturing

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2 0

H E A L T H C A R E

The Ukhahlamba area has 11 hospitals including health

care centres and 43 clinics with at least 2 clinics in each

magisterial district The most densely populated Mount

Fletcher and Sterkspruit areas have 13 and 10 clinics

respectively The District has about 998 hospital beds with

a serviced supply average of about 328 people per bed

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2 1

H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

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3 7

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3 8

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3 9

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4 0

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4 1

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42

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4 3

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44

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4 5

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4 6

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4 7

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4 9

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5 0

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5 1

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52

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54

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5 5

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

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1 9

Other skills development initiatives will be geared

towards the Ugie development project

LGSETA is to fund a Learnership on Municipal Finance and

Administration as well other skills programme focusing

on the unemployed Other learnerships will be rolled out

to support the water and sanitation programmes andmore young people will be employed

Partnerships will be forged and individual MoUrsquos will

be entered into between the District Municipality and

the following Higher Education and Further Education

institutions

Ikhala Public FET College

University of Fort Hare

Walter Sisulu University of Technology

University of the Free State

University of Western Cape

University of Stellenbosch

and various SETArsquos including LGSETA

In partnership with the aforementioned stakeholders a

district wide skills development plan will be developed

as a post summit activity and it will be guided by the

summit resolutions

About 41 of the Ukhahlamba Districtrsquos workforce is

made up of elementary or unskilled workers which

is the highest percentage in the province In Gariep

elementaryunskilled workers make up 53 of the

workforce but the largest numbers of unskilled workers

are in the more densely populated Senqu (3 682) and

Elundini (3 253) municipal areas On average 14 of

Ukhahlambarsquos working people have professional skills

rising to 17 in Elundini and Senqu The less densely

populated parts appear to have more skilled people

in Maletswai 15 of working people are skilled and in

Gariep 13 are skilled

Ukhahlamba has lower levels of senior management

technical and clerical skills than the provincersquos other

district municipali ties This corresponds with low levels of

education in Ukhahlamba and indicates a need for skills

development and education programmes

STRATEGIC SKILLS

DEVELOPMENT INITIATIVES JIPSA

Ukhahlamba District Municipality will in partnership with

the Office Of the Premier civil society the business sector

sector departments community based projects and local

municipalities embark on a massive skills development

drive in the following sectors of the economy to support

the 6 economic growth of the district

1 Agriculture

2 Tourism

3 Infrastructure

4 Manufacturing

8122019 Udm Gds Profile

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2 0

H E A L T H C A R E

The Ukhahlamba area has 11 hospitals including health

care centres and 43 clinics with at least 2 clinics in each

magisterial district The most densely populated Mount

Fletcher and Sterkspruit areas have 13 and 10 clinics

respectively The District has about 998 hospital beds with

a serviced supply average of about 328 people per bed

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2 1

H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

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3 7

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3 8

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3 9

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4 0

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4 1

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42

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4 3

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44

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4 5

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4 6

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4 7

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4 9

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5 0

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5 1

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52

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54

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5 5

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

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2 0

H E A L T H C A R E

The Ukhahlamba area has 11 hospitals including health

care centres and 43 clinics with at least 2 clinics in each

magisterial district The most densely populated Mount

Fletcher and Sterkspruit areas have 13 and 10 clinics

respectively The District has about 998 hospital beds with

a serviced supply average of about 328 people per bed

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2 1

H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

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3 7

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3 8

8122019 Udm Gds Profile

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3 9

8122019 Udm Gds Profile

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4 0

8122019 Udm Gds Profile

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4 1

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42

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4 3

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44

8122019 Udm Gds Profile

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4 5

8122019 Udm Gds Profile

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4 6

8122019 Udm Gds Profile

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4 7

8122019 Udm Gds Profile

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8122019 Udm Gds Profile

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4 9

8122019 Udm Gds Profile

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5 0

8122019 Udm Gds Profile

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5 1

8122019 Udm Gds Profile

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52

8122019 Udm Gds Profile

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54

8122019 Udm Gds Profile

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5 5

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8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

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2 1

H I V A N D A I D S

HIV and AIDS will have a major impact on growth and

development and the daily lives of people in Ukhahlamba

Ukhahlamba District had an antenatal prevalence rate1 of

224 in 2004 up from 190 in 2002 which is well below

the average for the Eastern Cape (2803 in 2004)

According to the HSRC 2003 household survey HIV

prevalence is generally higher in urban informal and

urban formal settlements and lower in farm and tribal

settlements This may account for the Districtrsquos slightly

lower prevalence rate There is not a signi1047297cant difference

in HIV prevalence among those working and those

unemployed However economic status de1047297nes access to

health facilities education and information assumed to

have an impact on HIV incidence quality of life while living

with HIV and mortality Unlike the results for South Africa

as a whole the Eastern Cape survey shows an increasing

HIV prevalence with increasing education up to matric 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 evens out (ECAC 2004)

The Depar tment of Health has embarked on a range

of prevention care and treatment interventions As of

November 2006 Ukhahlamba had only one medical

facility accredited for dispensing anti-retroviral treatment

treating a total of 825 patients Hence there is still a need

to accredit additional points and increase the number of

people on treatment

Voluntary Counselling and Testing (VCT ) is officered at all

service points and in 2006 775 of those visiting public

clinics in the district would undergo VCT with 7196 in

Elundini Local Service Area (LSA) 7584 in Maletswai

LSA and 8814 in Senqu LSA 263 of males attending

clinics did undergo VCT (DHIS)

Within the health sector the following challenges have

been identified

Improved access roads is a necessity in order to deliver an

improved service

Water electricity and sanitation to rural clinics

Land lines cell phone networks for fixed clinics radios for

mobile clinics

Plans to recruit scarce skills and train locals incentives

to attract staff The lack of key skills such as pharmacists

doctors and dentists negatively affects the delivery

of services

Stipends for community participation structures as

without active clinic committees primary health care

cannot improve and meet the needs of communities

Mobile services ndash replace fleet and increase to provide

equitable services The current mobile clinic service does

not cover the whole district area and is unreliable

Build new clinics and renovate existing clinics

24 hour PHC services are lacking in the district

Emergency services are lacking in the district and with

expected economic growth it is essential that these

services improve

Availability of drugs and clinic supplies is problematic

Roll out of ARV programme is moving slowly

1 Antenatal prevalence refer to the percentage of pregnant women attending publicclinics who test positive for HIV Data is only available per district and it is difficult toextrapolate this data for the entire population

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

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3 7

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3 8

8122019 Udm Gds Profile

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3 9

8122019 Udm Gds Profile

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4 0

8122019 Udm Gds Profile

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4 1

8122019 Udm Gds Profile

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42

8122019 Udm Gds Profile

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4 3

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44

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4 5

8122019 Udm Gds Profile

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4 6

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4 7

8122019 Udm Gds Profile

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8122019 Udm Gds Profile

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4 9

8122019 Udm Gds Profile

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5 0

8122019 Udm Gds Profile

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5 1

8122019 Udm Gds Profile

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52

8122019 Udm Gds Profile

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54

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5 5

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8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

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22

According to the RSS 2006 there has been a radical

decrease in the number of households reporting

no household income between 2001-2006 This is

accompanied by a significant increase in households

with incomes in the lower income categories accounted

for by the widespread uptake in social grants

With a poverty index of 420 Ukhahlamba is the fourth

poorest district in the province

The HDI (Human Development Index) is a reliable indicator

of development as it measures the overall achievements

in longevity knowledge and standard of liv ing by utilising

life expectancy literacy and income level statistics The

table below indicates the HDI as provided by ECSECC

HUMAN DEVELOPMENT INDEX

Approximation of Areas 1996 2001 2004

Gariep

Albert (Burgersdorp Magisterial Area) 049 051 050

Venterstad 049 050 050

Steynsburg 039 044 043

Maletswai

Aliwal North 052 055 054

Senqu

Lady Grey 043 047 045

Barkly East 045 048 047

Sterkspruit (Hershel) 040 045 044

Elundini

Maclear 043 047 045

Mt Fletcher 041 46 045

Ukhahlamba District Municipality 043 047 046

NGOs CBOs and other community based organisations

play a major role in prevention treatment care and support

of people infected or affected by HIV and AIDS Much of

the work of such organisations goes unrecognized and

funding for activities is a problem The district and local

AIDS councils should integrate the response such that it

is more effective and that services of community-based

organisations is utilised more effectively to complement

the heavy burdens on Departments of Health and Social

Development

P O V E R T Y

HOUSEHOLDS WITH AN IN COME OF LESS THAN R 1 500 PER MONTH

Elundini 806

Senqu 651

Maletswai 584

Gariep 581

In the context of the very high unemployment and

poverty rates mentioned above there is clearly an urgent

need for new investments to create jobs and improve

livelihoods in Ukhahlamba District Based on existing

economic activity market opportunities and present

resourceassetsskill bases the particular industries

offering potential include

Livestock farming Crop production

Agro-processing

Forestry and Wood-using industry

Construction

Trade

Tourism

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

8122019 Udm Gds Profile

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

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3 7

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3 8

8122019 Udm Gds Profile

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3 9

8122019 Udm Gds Profile

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4 0

8122019 Udm Gds Profile

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4 1

8122019 Udm Gds Profile

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42

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4 3

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44

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4 5

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4 6

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4 7

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4 9

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5 0

8122019 Udm Gds Profile

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5 1

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52

8122019 Udm Gds Profile

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54

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5 5

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8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

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2 3

add-on to the programmes being implemented in the

district area or as a stand-alone programmeproject not

recognizing that women comprise more than 50 of the

population of the area

Womenrsquos programmes are still often viewed as projects

and often there are sustainability issue These are often

due to the low level of skills lack of economic and

business knowledge and a high level of dependency

There is a strong demand for women to be their own

entrepreneurs but at the same time there is an indication

that the majority of women want a job but do not wish

to take the risks attached to being entrepreneurs

Within the political realm there has been an increase in

the number of women councilors but their skill level is

fairly low This is likely to impact on their ability in the

future to shape programmes

W O M E N

Within the Ukhahlamba area there is an active Women

Economic Empowerment forum representing black

women in the economic sphere Localised representation

per municipality is however not efficient There are also

women agricultural groups within the white population

as well as a number of fai th based and political groupings

across the district area

It is difficult at present to get a representative perspective

of the state of women in the district area and to determine

their priorit ies However based on the information at hand

it seems as if economic development and activism against

violence are of priority Women are also still prominent in

the social issues such as health care education HIV and

AIDS but play a very limited role in shaping issues around

agriculture infrastructure and governance

Within womenrsquos organisations there is still a deficit in

leadership skills and the womenrsquos agenda is still not fully

bought into by all Often ldquowomenrsquosrdquo programmes are an

There are distinct factions within organized youth resulting

in conflicts differences of opinion and misinformation

There are faith based youth organisations as well as

political youth structures that cover the whole area

Y O U T H

A Youth Council exists in the district area but organization

at a local level is still a challenge

Economic issues are high on the agenda of the youth with

a strong focus on skills development and empowerment They seem to have an understanding of mainstreaming

of their issues into the functioning of government

A lack of localised information on the status of youth

in economic development results in a perception that

they are not involved in the economy and governance of

the area

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

8122019 Udm Gds Profile

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

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The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

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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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

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LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

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3 6

G D S A G R E E M E N T

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3 7

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3 8

8122019 Udm Gds Profile

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3 9

8122019 Udm Gds Profile

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4 0

8122019 Udm Gds Profile

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4 1

8122019 Udm Gds Profile

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42

8122019 Udm Gds Profile

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4 3

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44

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4 5

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4 6

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4 7

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4 9

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5 0

8122019 Udm Gds Profile

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5 1

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52

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54

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5 5

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8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

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24

E L D E R L Y

The elderly have prioritized the following areas as critical

points of intervention

Increase services to the elderly such as bringing services

to the people

Raise awareness around safety and security issues

affecting the elderly

Seek appropriate ways for the elderly to be cared for

Improve pensiongrant payout points to make them

more conducive for the elderly

Improve health care and awareness of health issues

among the elderly

Prioritise the elderly in the provision of basic housing

Increase the number of activities involving the elderly

Involve the elderly in education (ABET) programmes and

small income generating programmes

D I S A B L E D

There is a Disabled Forum active in the district area Local

and district act ion is however limited This is possibly due

to the historic marginalisation of disabled people and

this has impacted on their confidence organization and

leadership resulting in programmes are not prominent in

the district area

Economic issues are high on their agenda but they also

have highlighted social issues such as access care and

education

Often ldquodisabledrdquo programmes are seen as projects

or poverty alleviation activities and often there are

sustainability challenges and a lack of integration into

the main economy and programmes of government

These are often due to the low level of skil ls lack of

economic and business knowledge and a high level of

dependency

There is insuffic ient sporting activi ties and social

activities for the whole community to be involved in

There is also often a negative educator-learner

relationship between teaches and learners

There is an increase in the number of street children

There is ostracization of returning prisoners and an

exclusion of them from community life There is no organized structure runningcoordinating

moral regeneration in the district

M O R A L R E G E N E R A T I O N M O V E M E N T C H A L L E N G E S

The moral regeneration movement consisting of

traditional leader faith based organisations government

and CBOs has been initiated in the district area

Abuse of girl children

High abuse of liquor and drugs

Women and child violence and abuse

(both community and domestic) Lack of knowledge around human rights

Escalating rate of commercial sex

Absence of bylaws to regulate taverns

shebeens and bars

Illegal immigration into the area and also xenophobia

Perception of an escalating

crime situation in Ukhahlamba

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probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

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affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

8122019 Udm Gds Profile

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

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To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

8122019 Udm Gds Profile

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3460

3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3560

32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3660

The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3760

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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3860

LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3960

3 6

G D S A G R E E M E N T

8122019 Udm Gds Profile

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3 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4160

3 8

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4260

3 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4360

4 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4460

4 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4560

42

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4660

4 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4760

44

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4860

4 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4960

4 6

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5060

4 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5160

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5260

4 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5360

5 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5460

5 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5560

52

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5660

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5760

54

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5860

5 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5960

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 6060

eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 2860

probably Improved as a result of ISRDP However as

already mentioned there are several areas where

cooperation seems to be lacking

The municipalit ies would be assisted by the Provincial

Departments ndash always planning spatially (using DM

and LMs as the geographic units) and by Departments

consulting DMrsquosLMs at District level when preparing

their Strategic Plans

MUNICIPALNATIONAL

DEPARTMENTSSOES COOPERATION

Cooperation with relevant National DepartmentsSOEs

could also be improved A particular case is the need to

work with Eskom regarding the electrification backlogs

INTEGRATED DEVELOPMENT PLANS IDPs

All Ukhahlamba Municipal IDPs give attention to building

their own delivery capacities The filling of critical vacancies

(eg Municipal Managers etc) is critical as are measures to

attract and retain critical skills IDPs have improved over

the last few years and are generally aligned to PGDP etc

However there are some important gaps (eg housing

EPWP) IDPs are in process of integrating the activities of

all three levels of Government active in their areas

MUNICIPALBUSINESS COOPERATION

It is necessary for municipalities to give a higher priority

to improving communication with local business

MUNICIPALPROVINCIAL

DEPARTMENTSAGENCY COOPERATION

The District IDPs show some evidence of cooperation

with Provincial Departments and this cooperation

stable administrations and therefore service delivery and

the other three municipalities having some instability

and perceptions of poorer service delivery

The relationship between the head of administration

and the political leadership needs to be close Political

instability and or administrative instability has an impact

on the other

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

In all municipalities over the past five years there have

been municipal managers In Senqu and Ukhahlamba

District the municipal manager post has been the most

stable while in Maletswai the Municipal Manager did not

serve a full five years and in Elundini and Gariep there

have been challenges and interim arrangements made

during the period

The stability of the head of administration has had an

impact on the administration of municipali ties as a whole

It has resulted in Senqu and Ukhahlamba having more

G O V E R N A N C E amp A D M I N I S T R A T I O N 2 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 2960

affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

8122019 Udm Gds Profile

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GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3160

To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3260

GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3360

c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3460

3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3560

32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3660

The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3760

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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3860

LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3960

3 6

G D S A G R E E M E N T

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4060

3 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4160

3 8

8122019 Udm Gds Profile

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3 9

8122019 Udm Gds Profile

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4 0

8122019 Udm Gds Profile

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4 1

8122019 Udm Gds Profile

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42

8122019 Udm Gds Profile

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4 3

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44

8122019 Udm Gds Profile

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4 5

8122019 Udm Gds Profile

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4 6

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4 7

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8122019 Udm Gds Profile

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4 9

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5 0

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5 1

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52

8122019 Udm Gds Profile

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8122019 Udm Gds Profile

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54

8122019 Udm Gds Profile

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5 5

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8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 2960

affected their income Challenges around the spending

of funds in municipalities has been more skewed

towards the previously disadvantaged and has meant

that maintenance of infrastructure (such as tarred roads

in Aliwal North) have deteriorated beyond reasonable

repair This impacts on the ability of the municipality to

attract and or retain commercial enterprises that could

generate income for the municipality

In Elundini there has been income (higher population

and that means higher equitable share) but the efficient

and strategic management of allocation of the funding

has been a challenge This has resulted in large under

expenditures in some areas skewed expenditure in

others high expenditure on staff salaries but the overall

impression is that of poor service delivery deteriorating

services and poor administration Elundini is a prime

example of the issue of deteriorating services creating

animosity between communities and the municipality

and this has under the new political leadership required

careful and tactful handling

F I N A N C I A L R E S O U R C E

C H A L L E N G E S O F M U N I C I P A L I T I E S

Within the Ukhahlamba area the most stable municipality

in terms of financial administration and security has

been Senqu This has been due to historic as well as

current management factors The stability of finances

in a municipality have an impact on the ability of the

municipality to deliver services keep their staff happy

and respond effectively to community needs

Gariep and Maletswai have both had challenges around

the amount of income available for them to deliver

services There have been times over the past five

years when their financial viability as municipalities has

been questioned Due to their small population size

(even though this is disputed) they receive only a small

amount of equitable share This coupled with the fact

that they have urban areas with old infrastructure which

is of a high level of service but which still needs to be

maintained they are not drawing in much income from

the sale of services to these communities They have not

managed to implement systems around levying rates

on the commercial farmland and this has negatively

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3060

GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3160

To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

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GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

8122019 Udm Gds Profile

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c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

8122019 Udm Gds Profile

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3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

8122019 Udm Gds Profile

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32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3660

The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3760

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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3860

LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3960

3 6

G D S A G R E E M E N T

8122019 Udm Gds Profile

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3 7

8122019 Udm Gds Profile

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3 8

8122019 Udm Gds Profile

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3 9

8122019 Udm Gds Profile

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4 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4460

4 1

8122019 Udm Gds Profile

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42

8122019 Udm Gds Profile

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4 3

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44

8122019 Udm Gds Profile

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4 5

8122019 Udm Gds Profile

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4 6

8122019 Udm Gds Profile

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4 7

8122019 Udm Gds Profile

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8122019 Udm Gds Profile

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4 9

8122019 Udm Gds Profile

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5 0

8122019 Udm Gds Profile

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5 1

8122019 Udm Gds Profile

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52

8122019 Udm Gds Profile

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8122019 Udm Gds Profile

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54

8122019 Udm Gds Profile

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5 5

8122019 Udm Gds Profile

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8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 6060

eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3060

GOVERNANC E AND ADMINI STRATION

Building of partnerships and relations

and improving cooperation and coordination

Access to information

Institutional Capacity Development

Democratic Governance

INTERNAL LOCAL GOVERNMENT PRIORIT Y ISSUES

Basic Service Delivery

Municipal Institutional Development and transformation

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

Ukhahlamba District-wide priority issues are

E C ONOM IC GR OW TH

Stimulation of the Economy

Skills development

Environmental awareness

Economic infrastructure

S OC IA L GR OW TH

Water and Sanitation provision across the District

Social infrastructure

Addressing of Social Issues

P R I O R I T Y I S S U E S 2 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3160

To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3260

GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3360

c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3460

3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3560

32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3660

The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3760

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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3860

LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3960

3 6

G D S A G R E E M E N T

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4060

3 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4160

3 8

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4260

3 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4360

4 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4460

4 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4560

42

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4660

4 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4760

44

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4860

4 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4960

4 6

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5060

4 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5160

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5260

4 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5360

5 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5460

5 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5560

52

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5660

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5760

54

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5860

5 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5960

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 6060

eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3160

To improve the l iteracy rate of the province

by 50 by 2014

To eliminate gender dispar ity in education

and employment by 2014

To reduce by two thirds the under-five

mortality rate by 2014

To reduce by three quarters the

maternal mortality rate by 2014

To halt and begin to reverse the

spread of HIVAids by 2014

To halt and begin to reverse the

spread of tuberculosis by 2014

To provide clean water to all by 2008

To eliminate sanitation problems by 2010

To provide all houses access to electr icity by 2012

To eradicate bucket systems by 2007

The Strategy for development in Ukhahlamba is based

on six key elements Three that are strongly connected

to the economy and three that are support for the

growth of the economy Therefore it can be seen that the

economy forms the basis for the development strategy of

the Ukhahlamba area

V IS ION

An improved quality of life for all residents

M IS S ION

Fight poverty through stimulating the economy and by

meeting basic needs improving service delivery quality

and capacitating government and communities

HIGH LEVEL TARGETS

The key performance indicators (KPIs) related to the

millennium goals national KPIs and provincial (PGDP)

targets defined as follows -

To increase the growth rate to 6 per annum by 2014

To halve the unemployment rate by 2014

To reduce by between 60 and 80 the number of

households living below the poverty line by 2014

To reduce by between 60 and 80 the number of

people suffering from hunger by 2014

To establ ish food self sufficiency in the District by 2014

To ensure universal pr imar y education (UPE) by 2014

with all children proceeding to the first exit point in a

secondary education

S T R A T E G Y F O R D E V E L O P M E N T

2 8

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3260

GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3360

c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3460

3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3560

32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3660

The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3760

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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3860

LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3960

3 6

G D S A G R E E M E N T

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4060

3 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4160

3 8

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4260

3 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4360

4 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4460

4 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4560

42

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4660

4 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4760

44

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4860

4 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4960

4 6

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5060

4 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5160

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5260

4 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5360

5 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5460

5 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5560

52

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5660

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5760

54

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5860

5 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5960

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 6060

eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3260

GOAL 4 Improve Service Delivery Quality (through

efficiency economy effectiveness and ethics)

GOAL 5 Capacity-building programmes for

government and communities

GOAL 6 Meet basic needs

Cutting through these strategic areas are cross cutting

multisectoral priority programmes that are listed in the

following section

GOAL 1 Grow Agriculture agri-businesses forestry

and timber industries and household food security

programmes

GOAL 2 Grow Tourism trade and related business

development programmes

GOAL 3 Grow labour-intensive and pro-poor

development programmes

G

R

O

W

A

G R

I C U

L T U

R E

A

G R

O - I N

D U S T

R I E

S F O

R E S T

R Y A N

D

T

I

M

B

E

R

I

N

D U

S T

R I E S

A N D

S T R

E N

G T H E N

H O U

S E H O

L D F O

O D S E C U R

I T Y

G R O W L A B

O U R I N T E N S I V E AND P R O - P O O R P R

O G R A

M M E S

G R O W T O U R I S M

T R A

D E A N D

T O U R

I S M

R E L A

T E D

B U

S

I

N

E

S

S

E

S

I MPRO VE SERVI CE

DEL I VERY Q UAL I TY

(EF F ECTI VENESS

ECO NO MY EF F I CI ENC Y

AND ETHI CS)

I MPRO VE THE

CAPACI TY O F

GO VERNEMENT

AND CO MMUNI TI ES

M E E T

BASI C

N E E D S

2 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3360

c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3460

3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3560

32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3660

The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3760

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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3860

LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3960

3 6

G D S A G R E E M E N T

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4060

3 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4160

3 8

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4260

3 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4360

4 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4460

4 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4560

42

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4660

4 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4760

44

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4860

4 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4960

4 6

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5060

4 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5160

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5260

4 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5360

5 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5460

5 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5560

52

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5660

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5760

54

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5860

5 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5960

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 6060

eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3360

c Maximizing agricultural potentials development

programme (maximizing economic potentials)

d Eradication of backlogs in water and sanitation (pro-

poor programme that also meets basic needs)

e Service upgrading in primary and secondary towns key

rural nodes and mobility corridors (maximizing spatial

priorities and structural elements of the district economy

maximizing economic potentials)

f Improvement of access and linkages to basic services

to support the economy (support for the maximizing of

economic potentials and spatial structural elements)

g Creation of a secure social safety net (from the NSDP

pro-poor programmes)

h Governance and administration development

programme (support for the growth of the economy)

P R I O R I T Y P R O G R A M M E S

O R ldquo A N C H O R P R O J E C T S rdquo

These cut across the various other projects and

programmes packaging elements of each to create

the key integrated programmes These are the revised

Integrated Sustainable Rural Development Programme

priority projects for the Ukhahlamba area and form an

integral part of the development of the district area

Further to this these programmes support the national

programme of accelerated and shared growth and

combine contributions from government business civil

society labour and higher education These stakeholders

will all participate in the Growth and Development

Summit held on the district in February 2007 These

programmes directly link to the programmes discussed

in the summit agreement

a Timber cluster development programme (a mega

project of ASGISA and the province)

b Tourism Gateway to the District and Province

development programme (maximizing economic

potentials preparation for 2010 world cup)

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3460

3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3560

32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3660

The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3760

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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3860

LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3960

3 6

G D S A G R E E M E N T

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4060

3 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4160

3 8

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4260

3 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4360

4 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4460

4 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4560

42

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4660

4 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4760

44

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4860

4 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4960

4 6

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5060

4 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5160

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5260

4 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5360

5 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5460

5 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5560

52

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5660

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5760

54

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5860

5 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5960

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 6060

eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3460

3 1

The only new construction planned in the district over

the medium term is the R65m Amasango Special School

in Aliwal North

The budget for routine maintenance in Ukhahlamba

over the medium term amounts to a total of R43m

R7m in 0607 R15m in 0708 and R21m in 0809 These

maintenance amounts are crucial in two respects 1) by

maintaining and lsquoprotectingrsquo 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

Education infrastructure spending per capita in

Ukhahlamba over the three year period is R425 however

on an annual basis it ranges from R103 to R115

DEPARTMENT OF HEALTH

The provincial health department has planned and

budgeted for a total health infrastructure spending of

R131m in the current medium term expenditure cycle

for the Ukhahlamba district rising from R34m in 0607 to

R50m in 0809

These amounts in total will revamp rehabilitate and

upgrade 23 clinics and 2 hospitals in the District

The allocations will be spent on clinic and hospital revamps

and upgrading and not on any new construction

The proportion of the Ukhahlamba allocat ion relative tothe total provincial health infrastructure spend ranges

from 4 - 6 reflecting a relatively small share that the

district receives relative to other districts

The provincial health infrastructure spending per capita

in the Ukhahlamba district rises from R97 in 0607 to

R131 in 0809

It has been repeatedly suggested that one of the major

factors contributing to the low level of economic com-

petitiveness and failure to exploit economic potential

has been the poor state of infrastructure and infrastruc-

ture-related services This section of the district pro1047297le at-

tempts to summarize the physical infrastructure develop-

ment 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 Ukhahlamba

The total infrastructure spend directed to Ukhahlamba

by Eastern Cape provincial government departments

amounts to a total slightly above R1bn over the current

medium term expenditure cycle This represents

significant public sector infrastructure investment that

hopefully crowds in private investment

DEPARTMENT OF EDUCATION

Education is a key element of social and economic

development The Provincial Department of Education

has planned and budgeted up to R149m on education

infrastructure in Ukhahlamba over the current medium

term expenditure cycle (0607 ndash 0809)

The Department is spending R36m in 0607 R48m in

0708 and R65m in 0809 representing approximately

5 of total departmental education infrastructure

investment The spending is targeted almost exclusively

at rehabilitation upgrading and recurrent maintenance

(ie focus on quality)

It is planned that through this expenditure 19 mud

structures will be upgraded over the medium term that

FET schools get a R5m boost and better school quality

becomes the focus Excluding the 19 mud structures

that are going to be rehabilitated a total of 26 schools

and colleges in the District are targeted by the provincial

department of education

P R O V I N C I A L

D E P A R T M E N T I N F R A S T R U C T U R E

E X P E N D I T U R E P L A N S

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3560

32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3660

The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3760

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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3860

LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3960

3 6

G D S A G R E E M E N T

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4060

3 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4160

3 8

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4260

3 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4360

4 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4460

4 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4560

42

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4660

4 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4760

44

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4860

4 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4960

4 6

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5060

4 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5160

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5260

4 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5360

5 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5460

5 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5560

52

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5660

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5760

54

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5860

5 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5960

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 6060

eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3560

32

DEPARTMENT OF ROADS AND TRANSPORT

Another key element of required infrastructure devel-

opment in the district is the road network Although

Ukhahlamba has relatively good inter-connectivity to the

major centres in the province and beyond there is still

quite a large backlog in terms of connectivity between

areas within the district as well as access roads within

various local municipal areas especially access to areas

with economic potential ndash tourist resorts lsquogreat placesrsquo

agricultural markets

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 a whopping

R715m over the current medium term cycle with over

R330m planed and budgeted for 0607 financial year

The Ugie-Langeni new road construction represents

the largest road infrastructure project in the district

accounting for up to R475m over the current medium

term This road is linked to the massive forestry and

timber development at Ugie-Maclear as well as opening

up links to the Madiba Tourism corridor

The other significant road investments over the

medium term for the district include the upgrading and

rehabilitation of the Maclear to Mt Fletcher road (R215m)

and the Sterkspruit to Telle bridge road (R25m)

The rest of the spending on road infrastructure will beon recurrent maintenance (R20m) access to lsquogreat placesrsquo

(R05m) and access to resorts (R2m)

DEPARTMENT OF AGRICULTURE

The potential for agricultural expansion in Ukhahlamba

is undoubted but is dependent on the level of targeted

infrastructure that can unleash this economic potential

Over the current medium term period (0607 ndash 0809)

the provincial department of agriculture will spend just

under R24m in the Ukhahlamba District representing

just above 10 of total agriculture infrastructure spend

by the department over the medium term

Amounts of R55m are allocated for 0607 as well as R8m

and R9m for 0708 and 0809 respectively

These amounts represent an infrastructure per capita

spend of R16 in 0607 rising to R25 in 0809

The department will spend the entire Ukhahlamaba

allocation on new infrastructure such as stock handling

facilities shearing and storage sheds dip tanks fencing

stock waterboreholes irrigation systems and soil

conservation These are positive developments that seek

to enhance productivity of the land and profitability for

farmers especially emerging and small scale farmers

The spending is spread (not evenly) across all local

municipal areas (Gariep Senqu Maletswai and Elundini)

with Elundini receiving by far the highest allocation (50

of the total district allocation) underlying its strategic

importance in the district as an agricultural hub

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3660

The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3760

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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3860

LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3960

3 6

G D S A G R E E M E N T

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4060

3 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4160

3 8

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4260

3 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4360

4 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4460

4 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4560

42

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4660

4 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4760

44

8122019 Udm Gds Profile

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4 5

8122019 Udm Gds Profile

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4 6

8122019 Udm Gds Profile

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4 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5160

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5260

4 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5360

5 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5460

5 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5560

52

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5660

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5760

54

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5860

5 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5960

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 6060

eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3660

The Ukhahlamba allocation of provincial roads and

transport budget represents approximately 15 of the

total provincial allocation This is obviously a huge boost

for the district and the road infrastructure has very

strong complementarity linkages to forestry and timber

and tourism

The road infrastructure spending per capita in the district

over the medium term is an impressive R2000 per person

of infrastructure spend

DEPARTMENT OF SPORT

RECREATION ARTS AND CULTURE

The Ukhahlamba district is receiving R5m in the 0607

financial year for the new construction of 1) the Sterkspruit

Arts Centre in Senqu (R15m) 2) Steynsburg Indoor Sports

Complex in Gariep (R25m) and 3) Venterstad Sport Field

in Gariep (R1m)

There is no budget allocated from this provincial

department to the district in the next two years of the

three-year medium term expenditure cycle

The infrastructure per capita spending for the department

in the district lies at R15 per person of infrastructure

spend

DEPARTMENT OF SOCIAL DEVELOPMENT

The provincial department has allocated just under R7m

in infrastructure spending over the current medium term

expenditure cycle to the Ukhahlamba District

The expenditure is targeted at new construction of 1)

Aliwal North Community Development Centre (R27m)

and 2) Sterkspruit Multi-purpose Centre (R36m)

A further R05m is allocated for maintenance and upgrade

of park homes and routine maintenance of existing social

development infrastructure

The social development infrastructure per capita

spending over the medium term is approximately R20

per person

3 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3760

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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3860

LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3960

3 6

G D S A G R E E M E N T

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4060

3 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4160

3 8

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4260

3 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4360

4 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4460

4 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4560

42

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4660

4 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4760

44

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4860

4 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4960

4 6

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5060

4 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5160

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5260

4 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5360

5 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5460

5 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5560

52

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5660

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5760

54

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5860

5 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5960

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 6060

eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3760

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

The Ukhahlamba District is clearly grappling with very

entrenched problems of poverty and unemployment

and progress seems to have been quite slow so far in

addressing these problems It is of concern that while

public investment in the District is increasing there

seem apart from the Steinhof timber investment to be

very few substantial private sector projects in the pipe-

line The Summit is potentially very important for setting

in motion processes to improve municipal planning and

management capacities particularly with respect to

cooperation with other arms of Government and with

Business The private sector business-support agencies

and the municipalities need to work together to develop

the detailed priority industry action plans

The outcome of the Summit should be the development

of a ldquoFramework Agreementrdquo 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 on the decisions reached and the governance

framework for ongoing dialogue and feedback among

the social partners

C O N C L U S I O N

34

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3860

LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3960

3 6

G D S A G R E E M E N T

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4060

3 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4160

3 8

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4260

3 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4360

4 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4460

4 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4560

42

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4660

4 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4760

44

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4860

4 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4960

4 6

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5060

4 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5160

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5260

4 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5360

5 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5460

5 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5560

52

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5660

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5760

54

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5860

5 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5960

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 6060

eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3860

LGSETA Local Government Sector Education and

Training Authority

LMS Local Municipalities

LSA Local Service Area

M IG Municipal Infrastructure Grant

NGOrsquoS Non Governmental Organisations

NS DP National Spatial Development Perspective

NSF National Skills Fund

NW GA National Wool Growers Association

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PPP Public - Private Partnerships

R DP Reconstruction and Development

Programme

R IDS Regional Industrial Development Strategy

R IDZ Rural Industrial Development Zone

RSS Rapid Services Survey

SEDA Small Enterprise Development Agency

SETA Sector Education and Training Authority

SOES State Owned Enterprises

UKDM Ukhahlamba District Municipality

UPE Universal Primary Education

US A ID United States Agency for International

Development

VC T Voluntary Counselling and Testing

A IDS Acquired Immune Deficiency syndrome

A R V Anti Retro Virals

A S GIS A Accelerated and Shared Growth Initiative

of South Africa

ATMrsquoS Automated Teller machines

C BD Central Business District

CBOrsquoS Community Based Organisations

DHIS Department of Health Information System

DLA Department of Land Affairs

ECDC 14 Eastern Cape District Council

(Ukhahlamba District Municipality)

ECAC Eastern Cape Aids Council

E C DC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio ndash Economic

Consultative Council

EIA Environmental Impact Assessment

E PW P Expanded Public Works Programme

FE T Further Education and Training

GDS Growth and development Summitt

GGP Gross Geographic Product

HDI Human Development Index

HE T Higher Education and Training

HIVHuman Immune Virus

HS R C Human Science Research Council

IDP Integrated Development Plan

J IPS A Joint Initiative for Priority Skills Acquisition

KPIrsquoS Key Performance Indicators

LE D Local Economic Development

A C R O N Y M S 3 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3960

3 6

G D S A G R E E M E N T

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4060

3 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4160

3 8

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4260

3 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4360

4 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4460

4 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4560

42

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4660

4 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4760

44

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4860

4 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4960

4 6

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5060

4 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5160

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5260

4 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5360

5 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5460

5 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5560

52

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5660

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5760

54

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5860

5 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5960

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 6060

eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 3960

3 6

G D S A G R E E M E N T

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4060

3 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4160

3 8

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4260

3 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4360

4 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4460

4 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4560

42

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4660

4 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4760

44

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4860

4 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4960

4 6

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5060

4 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5160

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5260

4 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5360

5 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5460

5 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5560

52

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5660

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5760

54

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5860

5 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5960

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 6060

eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4060

3 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4160

3 8

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4260

3 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4360

4 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4460

4 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4560

42

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4660

4 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4760

44

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4860

4 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4960

4 6

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5060

4 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5160

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5260

4 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5360

5 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5460

5 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5560

52

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5660

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5760

54

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5860

5 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5960

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 6060

eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4160

3 8

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4260

3 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4360

4 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4460

4 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4560

42

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4660

4 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4760

44

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4860

4 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4960

4 6

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5060

4 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5160

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5260

4 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5360

5 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5460

5 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5560

52

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5660

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5760

54

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5860

5 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5960

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 6060

eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4260

3 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4360

4 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4460

4 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4560

42

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4660

4 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4760

44

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4860

4 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4960

4 6

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5060

4 7

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5160

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5260

4 9

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5360

5 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5460

5 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5560

52

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5660

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5760

54

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5860

5 5

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 5960

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 6060

eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4360

4 0

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4460

4 1

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4560

42

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4660

4 3

8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 4760

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8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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eastern cape socio-economic consultative council

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E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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

E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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eastern cape socio-economic consultative council

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8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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E-Mail infoecseccorg | Internet wwwecseccorg

8122019 Udm Gds Profile

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8122019 Udm Gds Profile

httpslidepdfcomreaderfulludm-gds-profile 6060

eastern cape socio-economic consultative council

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8122019 Udm Gds Profile

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eastern cape socio-economic consultative council

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E-Mail infoecseccorg | Internet wwwecseccorg