Andm Gds Profil

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Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Aims of the Summit. . . . . . . . . . . . . . . . . . . . . 4

Aims of this document . . . . . . . . . . . . . . . . . . 5

District Snapshot. . . . . . . . . . . . . . . . . . . . . . . 6

Economic Growth and Infrastructure . . . . . . 10

Economic Growth . . . . . . . . . . . . . . . . . . . . . 10

Infrastructure Development . . . . . . . . . . . . . 16

Provincial Infrastructure Expenditure Plans . 21

National Government . . . . . . . . . . . . . . . . . . 24

Unlocking Access to Land . . . . . . . . . . . . . . . 25

Skills Development . . . . . . . . . . . . . . . . . . . . 26

Spatial Development Planning . . . . . . . . . . . 29

Environmental and Disaster Management . . 31

Comprehensive Primary Health Care. . . . . . . 32

Food Security and Safety-Nets . . . . . . . . . . . 34

Crime Management and Prevention . . . . . . . 36

Institutional Capacity Building . . . . . . . . . . . 37

Service Delivery Mechanisms. . . . . . . . . . . . . 38

Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . 40

Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

GDS Agreement . . . . . . . . . . . . . . . . . . . . . . 42

C o n t e n t s


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Building on the results of the National Growth and Development

Summit (NGDS) 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 thenature 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 level s of growth, investment, job creation,

and people-centred development

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

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

A development path and programme for the district.

What each social partner (government, business, labour and

community sector) should contribute to the implementation of

the programme?

Strengthening of strategic thrust of the district to ensure

planning and implementation alignment between the spheres

of government, as well as public entities.

In this regard the GDS should seek to address the following

specific questions and issues:

1. The district s economic potential and which secto rs of the

economy should be promoted (this would need, whereapplicable, to be informed by the IDP, LED, RIDS, PGDP,

and ASGI-SA)

2. Commitments by government, business , labour and

community sector to ensure investment growth and

sustainability in each of the sectors

3. Actions required by government and each partner to deal

with constraints to such investments, including dealing

with bureaucratic delays, EIA processes and land use

management

4. Social and economic infrastructure programmes required

to facilitate and enabling business environment andprovide basic services to communities

I n t r o d u c t i o n


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5. Contribution by each partner to the construction of

such infrastructure, including possibility of public-

private partnerships (PPPs), and partnerships between

cooperatives and other business formations.

6. Second Economy interventions (EPWP including roads,

HBC & ECD, co-operatives, micro-credit, procurement,

land reform, entrepreneurship development, etc.) and the

role of each sector in such interventions

7. Promoting local procurement that is fair, aligned and

consistent with national and provincial practices and that

seeks to stimulate local economic and social development

what interventions are required?

8. Improving capacity of local government and contribut ion ofeach 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 and commitments by all to regular

engagement and collaborative activities that seek to assist

local government in effectively discharging its duties.

9. Establishing a par tnerships and/or regional g rowth

coalitions which will act as a mechanism for cooperative

action at all levels and a robust framework for monitoring

and evaluating progress

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

1. To present a coherent picture of the social, demographic,

and economic profile and service levels of the area

2. To present a picture of the challenges facing local

government especially in relation to capacity and

competitiveness-related issues

3. To identify the economic opportunities for, and constraints

on local economic growth and development and the

mechanisms for dealing with them.


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The District falls entirely within the Umzimvubu River Basin.

Most of the District is mountainous terrain (over 1000

metres above sea level) with steep valleys of the Tina, Kinira,

Umzimvubu and Mzintlava Rivers. The northern areas below

the escarpment have extensive palustrine wetlands (wetlands

that are not connected to any river), and the extreme south

(around the N2) is undulating.

Rainfall is relatively high (900-1500mm a year, rising towards

the escarpment) and there are very good agricultural soils in

the river valleys. However the district suffers from very high

evaporation rates.

The District is predominantly rural, containing only three small

towns: Mount Ayliff (the administrative centre), Mount Frere

and Matatiele/Maluti. In area, Alfred Nzo is the smallest District

in the Eastern Cape, and has a population of about 400,000

people (similar to the other smaller population rural Districts

in the Eastern Cape, Ukhahlamba and Cacadu). Population

density is relatively high at 0.57 people/hectare (but less than

OR Tambo and Amathole Districts).

BASIC FACTS

Municipal Area Area(Hectares)

Population(2001)

PopulationDensity

(People/ha)

Matatiele LM 435,230 194,577 0.45

Umzimvubu LM 250,644 197,962 0.79

Alfred Nzo DM 685,874 392,539 0.57

Source: The Presidency (NSDP Spatial Profiles)

The District is severely affected by the high incidence of land

claims and the sluggish pace of the land reform programme,

and it is currently estimated that at least two-thirds of the

District is under some sort of land claim.


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The Alfred Nzo District is the most impoverished area in the

Province, and the most underdeveloped of all the ISRDP nodes

in the country.

Private sector economic activity is very low and consequently

GGP per capita is only about 20% of the Provincial average,

poverty and unemployment rates are extremely high, and the

District economy could be characterised as stagnant as growth

is extremely slow. However, significant potential exists as is

highlighted later in this document.

Private sector economic activity is restricted to a small trading

sector (mainly in the three small towns), a small commercial

farming sector (on freehold land in the old Matatiele LM, equal

to 20% of the DM area), an unproductive and undercapitalisedsubsistence farming sector, and a small timber industry (mainly

situated in Mount Frere and Mount Ayliff).

The District occupies a fairly, far removed from the economic

hubs of Durban and East London. However, it has access to a

national road (the N2) which is 300km from the port of Durban

and Durban International Airport, and a railhead at Matatiele

that goes to Franklin and Gauteng.

Partly because of the mountainous terrain and dispersed

homesteads, social backlogs remain huge:58% of households have RDP-standard water

15% of households have RDP-standard sanitation

Only 5% of households have access to electricity

Only 12% of the adult population have completed secondary

schooling, the literacy rate is 55%, there are many mud schools,

and a shortage of qualified and dedicated teachers

Access roads are poor and generally impassable during bad

weather.

The District is a disaster-prone area and is characterised by

floods, veld-fires, snow-storms, violent electric storms and

tornados

The public sector dominates the District economy, and public

infrastructure spending is increasing to address these, and

other, backlogs.

Based on the most recent data from National Treasury, the

three municipalities previously comprising Alfred Nzo had a

combined total capital expenditure (capex) budget of R308m

in 2006/07 and a capex per capita of R560, which is relatively

high. The District Municipality accounted for 54% of this capex,and Umzimvubu accounted for 35%. Up to 88% of the total

capex budget was funded from grants and subsidies.

The total operating budget for the three municipalities was

R152.5m, or R277 per capita, the lowest in the Province. The

operating budget of the District Municipality was somewhat

larger than the two local municipalities. Rates cover 5% of

operating expenditure. Personnel costs account for 52% of

operating expenditure.

The economic future of the District lies both in improving theimpact of public sector spending, and ensuring that the large

tracts of land with high potential for agricultural cropping

(including irrigation), livestock production, new afforestation

and value-adding activities are utilized to their full potential.


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Tourism potential remains largely unexploited and can be

developed by utilising the Districts scenery and ruggedness,

diverse cultures and heritage, flora and fauna and the fact that

it falls within the Maloti-Drakensberg trans-frontier project

area in Matatiele

ASGISA could potentially help unlock the economic potential

of the District through three interrelated programmes:

The Umzimvubu Basin Project

The Forestry Hub Project

Bio fuels

To address the Provincial development challenges and

opportunities, the Provincial Growth and Development Plan

(PGDP) was launched in 2004, and the PGDP finds expression inall of the Districts IDPs. More recently, ASGISA has been launched

to accelerate economic growth throughout South Africa.

The present document aims to outline the elements of a

development strategy for the Alfred Nzo District. Specifically,

this document considers TENstrategic anchors of development

in the District:

1. Economic Growth and Infrastructure Development

2. Unlocking Access to Land

3. Skills Development

4. Spatial Development Planning

5. Environmental and Disaster Management

6. Comprehensive Primary Health Care

7. Food Security and Safety Nets

8. Crime Management and Prevention

9. Institu tional Capacity Building

10. Serv ice Delivery Mechanisms

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It is notable that only about 12% of the Districts working-

age population have matric or above. This points to the critical

importance of education and training for future employment

growth.

Each of the seven industries listed above is briefly profiled in

the following sections:

L ivestock Farming:

Livestock farming (primarily cattle, sheep and goats) is very

important in the District, but generally provides very low

incomes compared to commercial livestock farming elsewhere

in the Province. Livestock farming is being supported by theProvincial Department of Agriculture through construction of

stock dams, dipping tanks, shearing sheds, fencing (under

CASP) and veterinary services etc. The challenge is to increase

incomes from communal livestock farming. An industry action

plan would probably include:

Expansion of the effective NWGA model of support

Expand and improve existing programmes designed to facilitate

skills transfer between commercial and emerging farmers

Improved Agricultural Extension Services

Improved market access (e.g. drawing on experience of USAID-funded project in the Chris Hani District; Middle East goat

market)

Building animal feeds industry

Improved veldt management

Move to formal land administration

Upgrading access roads/farm logistics

E c o n o m i c G r o w t h a n d I n f r a s t r u c t u r e

E C O N O M I C G R O W T H

The Eastern Cape economy is haunted by the policies and

practices of the past. In particular, the Alfred Nzo District

has an almost non-existent industrial economy and a high

dependency upon primary economic activities.

In the context of the very high unemployment and poverty rates

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

private sector investments to create jobs and improve liveli-

hoods in the Alfred Nzo District. Based on existing economic

activity, market opportunities and present resource/assets/skill

bases the particular industries offering potential include:

Livestock farming (goats, sheep, beef and dairy)

Dry land farming and irrigated crop and horticultureForestry

Manufacturing

Construction and Mining

Trade and Business Services/ICT

Tourism

Each of these industries requires a coalition of committed

players, able to design realistic and sustainable sector

development strategies, and detailed Industry Action Plans,

specifying investments to be packaged, timelines and

milestones, stakeholders and responsibilities.

Preparatory work and the start-up of many municipal LED pilot

projects have already taken place for all these industries in

the Alfred Nzo District, and the main challenge is to galvanise

role-players to ensure accelerated and shared growth, and

good quality investments. In particular, the sustainability of

municipal LED pilots (in all industries) will require careful

attention, to ensure new private investment, expansion and

local replication.


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There are several initiatives to support increased production by

small-scale subsistence farmers:

PGDP Massive Food Programme

PGDP Siyazondla Programme

(to increase homestead garden food production)

ASGISA Bio fuels initiative

ASGISA Umzimvubu Initiative

There needs to be effective co-operation between the

Department of Agriculture and the District Municipality

in supporting increased maize production, and support

measures should be thoroughly evaluated, to identify

methods of improved support.

The ASGISA Umzimvubu Project contains a cropping component,

but this project is very large-scale and will inevitably take many

years to come to fruition.

Irrigated horticulture is both capital and skills intensive, indi-

cating that the growth of the sub sector will require bankable

projects, experienced management and thorough training.

The Umzimvubu Goat Project, which is focusing on commer-

cialisation of indigenous goat production, requires a private

sector partner and investment to scale-up activities, and

establish linkages to new markets.

While the District is suitable for dairy farming (and there is

a local market and Lesotho market) it is capital and skills

intensive, making it difficult to get off the ground from a low

skills and capital base in the district. However a dairy farming

initiative has been initiated in Tsoelike, Matatiele.

Dry Land Farmin g and

Ir r igated Hort icu lture Rainfall and soil quality make much of the District well-

endowed for agricultural production. Dry land farming is

generally of a subsistence nature, and there are large tracts

of uncultivated arable land. There is very good potential for

maize, sorgum, wheat, sunflower, hemp, beans, vegetables

(cabbages, potatoes, butternut, green pepper and spinach),

and deciduous fruits (peaches & apples). In particular, the

(titled) Ongeluksnek farms (north of Matatiele and Mount

Frere) are ideal for large-scale fruit and vegetable production.

Cut flowers at Goxe are produced in the Protea Belt northof Mount Ayliff at Puffudershoek Farm. This municipally-funded

community project should be scaled-up together with a private-

sector partner. The national Department of Agriculture and the

Agricultural Research Council is assisting with capacity building

and Longmore Flower Estates outside Port Elizabeth is to partner

with the project an provide technical and marketing support.

The Districts major rivers and fertile valley soils offer very good

irrigation potential. Major rivers in the District include the

Umzimvubu, Tina, Kinirha and Mzintlava rivers.


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The quality of the timber produced needs to be improved in

order to rake in higher income per yield (partnerships with

DWAF, Agriculture as well as research and academic institutions,

and others is a possibility)

Addressing issues around forestry management and protection,

as well as leveraging SMME opportunities in two different

ways, 1.) along the wood value chain, services provided to

the sawmills or 2.) in terms of auxiliary services rendered to

the foresters (e.g. security, fencing, crop harvesting within the

forests mushrooms).

Facilitate technology transfer and skills development to capitalise

on wood-related manufacturing.

Encourage the supply chain linkages between the timber and

wood industries and the construction industry. This will hingeupon quality and treatment improvement of the timber.

Hans Merensky is a Holding company for a number of

companies engaged in forestry, saw milling, and related

activities. The company has a majority stake in Singisi Forestry

Products, a consortium that includes the ECDC and the

Singalanga Trust. Singisi purchased the Eastern Cape North

forest lands (60,000 hectares) in a R45 million privatization

deal in 2001, and is currently logging and managing forests

in the Alfred Nzo District.

Hans Merensky is currently developing a large sawmill

and forestry product processing facility in Kokstad, a total

investment of R1.2bn. It is expected that the plant will

source its timber from forests in Alfred Nzo and other nearby

areas. This investment is as significant as the PG Bison Ugie-

Maclear investment in the Ukhahlamba District, and although

Kokstad falls within KZN, its proximity to Alfred Nzo with its

vast forests (and potential for more), provides unique and

competitive advantages for the District.

Forest ry

The District contains forestry plantations (mainly to the

north of Mount Frere and south of Mount Ayliff). Currently,

approximately 5 000ha is under forestry plantation in the

District, and there is estimated to be at least a further 10 000ha

suitable for forestry in the District. The largest plantations

in the District are Ntabana (1 049ha) and Amanzamnyama

(1 007ha) forests. ASGISA has identified forestry as a priority

area for intervention, and the District Municipality will be

working closely with ASGISA to develop this sector.

Pine, gum, wattle, and hardwoods are all feasible. A medium-

sized sawmill exists in Mount Ayliff and a number of small-

scale saw millers exist in Mount Frere.

The National government ASGISA programme has identified

forestry development as a key pillar to achieving the economic

growth and development targets, and has prioritised 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.

Plantation forestry is the foundation for a number of

downstream processing activities including wood chips, saw

milling, timber board, charcoal, furniture, pulp and paper. The

furniture, pulp and paper industries are at the higher end ofthe value chain. It is this part of the value chain that will

have a huge multiplier effect on the Alfred Nzo District if

successfully exploited.

Addressing the institutional arrangements around the wood and

timber cluster development programme that is already under

way.

Developing state markets through procurement policies targeted

at emerging furniture manufacturers.


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The agro-processing sub sector has the potential to grow on the

basis of increasing primary production. Examples include potato

processing (chips), maize milling, animal hides, stock feed,

peach processing, dairy etc. Umzimvubu Goats has a processing

facility in Mount Ayliff comprising of holding pens, a 40 goats

a day abattoir, meat processing plant, leather tannery and craft

production units directly benefiting about 2000 people.

The following are the major production factors and drivers

of the food processing industry, which also suggest areas for

interventions by all stakeholders.

Supply chains are highly important for the success of the food

processing industry. Therefore, it is important to ensure that all

members of the value chain are informed of consumer needsand technological innovations in the industry.

Logistics are critical to planning the development of a food

processing factory.

Technological innovations are critical for the food processing

industry as they reduce costs and provide opportunities to

satisfy the ever-changing demand of consumers.

The higher you go up the value chain, the higher and more acute

the demand for skills, so skills development programmes need

to target and match the economic opportunities that exhibit the

highest potential in the district.

There needs to be good co-operation between Alfred Nzo

Development Agency (newly established), Mount Ayliff

Development Agency (MADA), SEDA, ECDC and Thina Sinako

LED Programme etc. to attract major private investments to

realize enterprise growth opportunities.

A partnership established between ANDM and Ferntech

(a SEDA Technology Incubator Programme) resulted in the

establishment of a furniture incubator, training and technology

demonstration centre and local industrial park in Umzimkhulu

(KZN). A cross-boundary collaboration between Sisonke DM

(KZN), Ukhahlamba DM, OR Tambo DM, Chris Hani DM and

Alfred Nzo DM will result in forestry development in the North

Eastern Cape greatly benefiting the regions economy.

Manufactur ing

This sector is presently very small in the District, comprising

a saw-mill at Mount Ayliff and little else. However, the sectordoes have expansion potential. For example:

Timber-using industries

There are many smal l-scale garment manufacturers (e.g.

occupying old Transido workshop premises) that would benefit

from stronger business support.

The existing crafts sub sector is not insignificant. Craft workers

would benefit from more support with product development

and marketing, and from growth of the tourism industry in the

District.


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Tourism

Alfred Nzo has abundant natural beauty and a diverse array of

cultural groups, affording strong potential for eco, adventure

and cultural tourism. Attractions include:

Spectacular mountain scenery

Maluti Hiking Trails

Tshisa Hot Springs

Wetlands (wild horses and bird life)

Trout-fishing

Ongeluksnek Nature Reserve (136km2and uninhabited) in the

north west of the District, bordering Lesotho

Deep river valleys with cultural tourism potential that could be

based on literature and history related to the District.

In addition, the area of Umzimvubu is rich in diverse culture,which makes it very special and unique. There are amaBhaca,

amaHlubi, abaSotho, amaXesibe, and amaMpondomise to

name but a few. Local people are yet to exploit this diversity

of cultures. The cultural side of tourism will ensure that the

disabled; women; youth and the elderly are also part of the

economic regeneration through tourism.

An additional advantage is that the District is included in

the World Bank-funded Drakensberg-Maloti Transfrontier

Conservation and Development Area, which provides further

impetus for tourism and hospitality development.

A major constraint is the limited availability of good quality

accommodation for tourists in Alfred Nzo, rendering the district

a drive-through area. There are a number of B&Bs, lodges

and guesthouses in Matatiele and Maluti, and a small hotel in

Mount Frere and another one in Mount Ayliff, but with a few

exceptions, most accommodation in the area is of generally

needs to be developed.

Construct ion and Mining

The construction industry in the District is presently small, but is

likely to provide more job opportunities in the future, based on:

Rapidly increasing fiscal allocations for public infrastructure (see

section on Infrastructure).

The relocation of Provincial Government departments from

Kokstad to MT Ayli ff.

Expansion of the EPWP (there needs to be a District EPWP Plan,

with an M&E capability). It is reported that some 12000 jobs

have already been created especially in addressing the sanitation

backlogs in the district (ANDM IDP, 2006).

Increased house-building (human settlements) and retail

infrastructure.

The District Municipality has an Emergent ContractorDevelopment Programme which needs to be scaled up and

adequately resourced to capitalise on the opportunities that

characterise the District now and in to the future.

Small-scale Mining is presently restricted to sand mining and

quarrying related to construction activity but can be developed

into a formalised industry. There are deposits of slate,

sandstone, nickel and lime that need to be further explored.

Trade and Bus iness Serv ices / ICT

The three small towns in the District are all commercially busy,but require well-planned physical development to support the

growth of the trade sector (formal and informal) and the tourism

industry. In particular, the towns informal sectors display

entrepreneurial energy, and deserve better support.

ICT services support profitable business/co-op growth in all

other sectors. Access to financial services, especially banks, is

still concentrated in the three small towns with the large rural

communities having to travel great distances to reach them.


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It is imperative that the District develops a tourism strategy

and marketing effort. In particular, the AsgiSA Mzimvubu

Project should include a strong tourism component (similar

to the Lesotho Highlands Water Development Authority).

One possibility is an Mzimvubu Trail from Port St Johns to

Sehlabathebe Park in Lesotho.

The most pivotal action is the development of an integrated

marketing strategy that identifies the right target markets/

segments for the area, develops appropriate messaging and

identifies channels for effectively reaching these segments.

Cooperatives development has largely increased in the district

and has afforded the rural poor an opportunity to participate in

economic activities. However this is still at an infancy stage and

needs to be developed and supported further. EPWP buildingmethods are also increasingly being utilised in construction by

the municipality. Access to micro-credit remains a big challenge

to cooperatives and SMMEs.

ACCO MMO DATIO N AVAILAB I L I TY IN ALFRED N ZO

GuestHouses Hotels

B&B/Lodges

Other

Matatiele 3 1 12 1

Maluti 1 1 3

Cedarville 1 1

Mount Ayliff 1

Mount Frere 1 3 1

Source: ISRDP Nodal Study, 2006 and ECTB, 2006

There is a clear opportunity for the establishment of a luxury

lodge or time share in a secluded and scenic location, providing

high quality service provided for wealthy solitude seekers, and

could offer eco-tourism activities such as hiking, bird watching,

fishing and horse riding. In addition, the facility can cooperate

with managers of other attractions (such as white water rafting,

trout fishing) and offer guests package deals.

The relocation of Eastern Cape provincial government

departments from Kokstad to Mt Ayliff is likely to provide

further impetus to accommodation and hospitality investments

in the Alfred Nzo District.

However, tourism development is presently hindered by:

The absence of a tourism strategy for the District

The absence of any District tourism marketing effort The very limited tourism infrastructure (a few B&Bs around

Matatiele etc., and a few hiking and horse-riding trails).

The remoteness of the District

Competition from more easily accessible & developed KZN

Drakensberg Mountain resorts.


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In terms of social infrastructure, the priority interventions

necessary are;

Water (bulk water services, connections and treatment works,

as well as water reservoirs)

Sanitation (reticulation)

Housing (urban and rural settlements)

Recreational and sports facilities

The Districts ability to unlock the development potential

depends on focusing on the above infrastructure priorities, and

the infrastructure requirements are too large for government

alone to meet.

An analysis of the governments infrastructure commitments are

provided that indicate rising amounts of intended expenditure

over the current medium term cycle.

Munic ipal Inf rast ructure Grant (MIG)

The National Government provides infrastructure subsidies

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

infrastructure services. The benefits of this intervention are well

known, particularly in relation to the public good characteristics

of many ANDM services. The key objectives of the Municipal

Infrastructure Grant in the Alfred Nzo District are to: fully subsidise the capital costs of providing basic services to

poor households: this implies that priority must be given to

meeting the basic infrastructure needs of poor households,

through the provision of appropriate bulk, connector and

internal infrastructure in key services;

distribute funding for municipal infrastructure in an equitable,

transparent and efficient manner, which supports a co-ordinated

approach to local development and maximises developmental

outcomes;

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

It has been repeatedly suggested that one of the major factors

contributing to the low level of economic competitiveness and

social cohesion, and in a sense result in a failure to exploit

economic potential, has been the poor state of infrastructure

and infrastructure-related services.

Like all other regions in the province, Alfred Nzo District suffers

from acute backlogs in social and economic infrastructure. The

vast natural land, forest and water resources that exist within

the district, provides the basis for socio-economic development,

but it is well-planned, prioritised and strategic infrastructure

investments that will promote social development, and

stimulate sustainable economic growth.

In terms of economic infrastructure, the priority interventions

necessary are;

Road-surfacing and developments on the following routes

T17 Mbodleni to Cedarville, T98 Ntsizwa to Goxe, T12

Matatiele to Qashsnek, T13 Maluti to Ramatsiliso, T69 khoapa

to Queensmercy, T646 from R56 to Ongesluksnek.

Upgrading airstrips at Mt Ayliff, Matatiele and Cedarville

Revival of the district rail network from Matatiele to Franklin,

Gauteng and Durban

Factory space, trading and business premisesTourism infrastructure

Irrigation and other farming infrastructure

Energy infrastructure

Telecommunications (fixed line and cellular) infrastructure


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The MIG allocations, amounting to a total of R370.48m over

the medium term expenditure framework will not do much

in reducing the water (estimated at R560m) and sanitation

(estimated at R200 million) backlogs. Rising costs of

infrastructure provision linked directly to supply shortages in

the construction industry, will require significantly higher rates

of increase in MIG allocations to the Alfred Nzo if the targets

are to be met.

assist in enhancing the developmental capacity of municipalities,

through supporting multi-year planning and budgeting systems;

and

provide a mechanism for the co-ordinated pursuit of national

policy priorities with regard to basic municipal infrastructure

programmes, while avoiding the duplication and inefficiency

associated with sectorally fragmented grants.

The MIG Allocations to the Local Municipalities in the current

medium term expenditure framework are provided below:

MIG ALLO CAT IO N S

2007/08 2008/09 2009/10

Matatiele LM R 12 891 000 R 15 570 000 R 12 860 000

Umzimvubu LM R 11 620 000 R 14 030 000 R 11 600 000

Alfred Nzo DM R 91 440 000 R 109 740 000 R 90 700 000

Total R 115 960 000 R 139 340 000 R 115 170 000

Source: DORA, 2006

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Despite these gains though, almost one third of households in

Alfred Nzo continue to suffer the vulnerabilities associated with

using natural water sources (30.6%).

Water

Water Access by Household for local municipalities:

There seems to have been significant investment in household

water access in Alfred Nzo. This has mainly taken the form of

community stand pipes with the proportion of households

accessing standpipes rising significantly between 2001 and

2006 (52.8% in 2006 up from 31.3% in 2001).

WATER ACCESS IN ALFRED N ZO

Water on Site Community Stand Borehole/Tank Natural Water/Dam Water Vendor/Other

Census2001

RSS 2006Census2001

RSS 2006Census2001

RSS 2006Census2001

RSS 2006Census2001

RSS 2006

% % % % % % % % % %

Eastern Cape 37.4 41.8 25.3 25.1 4.0 3.8 31.4 28.0 1.9 1.4

Alfred Nzo 8.8 9.3 31.3 52.8 4.8 6.8 52.9 30.6 2.2 0.5

Source: StatsSA, 2001 and RSS, 2006

The decline in households not accessing any formal sanitation

has been due to a corresponding increase in the number of

households who now access VIPs (14% in 2006 up from 9% in

2001) and pit latrines without ventilation (68% in 2006 up from

57% in 2001).

Sanitat ion

Type of sanitation by household:

Households in Alfred Nzo appear to have benefited from

sanitation investments over the period 2001-2006. Households

reporting no formal sanitation have come down from 25% in

2001 to 15% by 2006. While this is below the provincial average

(22%) it is nevertheless an appallingly high level and clearly a

priority in eradicating backlogs.

SAN ITAT IO N ACCESS IN ALFRED N ZO

Flush Toilet(connected to sewerage)

Flush Toilet(with septic tank)

Chemical ToiletPit Latrine

(with ventilation VIP)

Pit Latrine(without ventilation)

Bucket Latrine None

Census2001

RSS2006

Census2001

RSS2006

Census2001

RSS2006

Census2001

RSS2006

Census2001

RSS2006

Census2001

RSS2006

Census2001

RSS2006

% % % % % % % % % % % % % %

Eastern Cape 30.9 31.1 2.2 1.3 2.0 0.6 5.6 7.2 23.1 33.9 5.6 4.0 30.6 21.8

Alfred Nzo 2.0 1.2 0.8 0.2 4.4 0.1 9.2 14.7 57.3 68.7 1.5 0.3 24.9 14.8



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Concludin g Remarks on Water and

Sanitation:

Some key issues that have been identified by local government

and various stakeholders:

Water and sanitation provision do not form part of an integrated

infrastructure development programme with the result the water

schemes are built without access roads and electricity

Housing development programmes are not linked to water

supply and provision needs

The ANDM needs to revisit the affordabili ty of services as

scenarios indicate a drop in household income

There is definitely a need to lobby for more capacity (human,

technical and administrative) to spend the MIG allocations to

achieve provincial (2014) targets, as well as national targets.

The eradication of water and sanitation backlogs can be used toboost employment and training under EPWP, and is a significant

platform for strengthening the construction industry in the

District.

Water and Sanitat ion Backlogs :

The estimated costs for eradicating backlogs in household

water and sanitation are R239m and R183m respectively. The

eradication of water and sanitation backlogs involves mainly

rural communities (97% of estimated water backlogs and 96%

of estimated sanitation backlogs).

Estimates of Water and Sanitation backlogs for Umzimvubu are

slightly lower (47% and 46% respectively) than for Matatiele

(53% and 54% respectively). Clearly both local municipal

areas face similar challenges and require equal prioritisation

in eradicating water and sanitation backlogs.

ESTIMATED WATER AND SANITATIONBACKLO G S FO R THE ALFRED N ZO D ISTR ICT

CategoryWater

DevelopmentCost

SanitationDevelopment

Cost

Matatiele LM Urban R 30 000 000 R 6 366 500

Rural R 400 000 000 R 77 060 455

Total R 430 000 000 R 83 426 955

Umzimvubu LM Urban R 186 932

Rural R 127 431 750 R 99 669 659

Total R 127 431 750 R 99 856 591

Alfred Nzo DM Urban R 6 543 800 R 6 553 432

Rural R 233 114 700 R 176 730 114

Total R 560 000 000 R 183 283 546

Source : DHLGTA and DWAF, 2006

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Hous ing

The provision of formal housing for low and middle income

residents is a core function of provincial and national

government, with local municipalities being spaces where

implementation takes place. Within the urban areas, housing

development is generally occurring, but within the rural or

communal areas, the provision of housing has still not been

addressed.

PREVALEN CE O F IN FO RMAL HO USIN G

Census 2001 RSS 2006

% %

Eastern Cape 10.9 5.3

Alfred Nzo 2.3 2.3


The low levels of informal housing reflects the overwhelmingly

rural nature of the district, as rural/traditional housing is not

considered as being informal housing settlements. Therefore,

the low informal housing figures should not imply that there is

sufficient availability of housing within the district, but rather

should be seen as a consequence of 90-95% of the population

residing in rural areas. The major towns in the district have

shortages in housing units.

The primary constraint with regards to the provision of housing

in rural areas relates to issues around land ownership and

registration of title. The current housing regulations also fail

to make provision for adequate land for making food gardens

that these poor households need for survival.

Electr ic i ty

It is estimated that about 5% of households have access to

electricity with an estimated backlog of 95 000 households.

The current electricity supply is very weak and is mainly single

phase for household use. Approximately 52% still use candles

and about 9% use paraffin. Improved electricity supply will

also improve the economic deve lopment of the area.

Alfred Nzo experienced some increase in the number of

households connected to the grid between 1994 - 2000.

Current projects are small special projects by Eskom in the

District. This is still way below the provincial average for

2006.

Eskom is planning to electrify a total of 10 897 households outof 95 000 not electrified from 2006/07 to 2010.

The District requires an upgrade of sub-stations supplying

it with electricity at an estimated cost of R 490m and an

estimated R 300m to address the 95 000 household electricity

backlog. To date Eskom needs R 790m to electrify the district.

This is excluding the additional building infrastructure to be

constructed in future.

Eskom clearly needs to be engaged in terms of their

electrification plans for the district, and it is estimated thatover R300m is required to upgrade electricity supply and

distribution in the district.


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Concluding Remarks : Hous ing

Low-cost housing backlogs are less prevalent than those

for water and sanitation in Alfred Nzo, and the opportunities

provide good stimulus for local economic activity.

There is an obvious link between housing plans and existing

backlogs with the EPWP and its related forward-backward

linkages to the construction industry and job creation.

PROVINCIAL DEPARTMENT INFRASTRUC TURE EXPENDITURE PLANS

FROM 06 /07 08 /09 IN THE ALFRED NZO D ISTR ICT

Provincia l Department of Health :

The provincial health department has planned and budgeted for

a total health infrastructure spending of R151m in the current

medium term expenditure cycle for the Alfred Nzo District

declining from R57m in 06/07 to R51m in 08/09.

This provincial health infrastructure expenditure in Alfred Nzo

amounts to 7% of total health infrastructure spending by the

provincial government over the medium term cycle.

The allocation to the District is divided into New Construction

(R34m), Rehabilitation and Upgrading (R41m), and routine and

recurrent maintenance (R76m). Rehabilitation and upgrading

will involve 11 clinic revamps and 3 hospital revitalisations

within the District.The allocation for new construction that consists of clinic revamp

and hospital revitalization will target 8 clinics and 2 hospitals.

These large allocations to relatively few health institutions in the

District suggests a strategic shift to focus more on improving

the quality of health services, as opposed to improving access

to health services. So the issue is one of quality, not necessarily

access.

Provincia l Department of Educat ion:

Education is a key element of social and economic development.

The Provincial Department of Education has planned and

budgeted up to R255m on education infrastructure in the

Alfred Nzo District over the current medium term expenditure

cycle (06/07 08/09), representing approximately 9% of total

departmental education infrastructure investment.

The bulk of the spending is targeted at rehabilitation and

upgrading (R151m) with recurrent maintenance budgeted at

R15m emphasizing a focus on improving the quality of the

education infrastructure. Up to 80 schools have been targeted

in the District for this upgrade through provincial government

funding, involving the eradication of mud-structures and generalroutine maintenance of existing concrete-structures.

These upgrading and maintenance amounts are crucial in two

respects, 1) by maintaining and protecting existing assets

ensuring guarantee of returns well into the future, and 2) direct

and indirect cash injections boost local economies, as routine

maintenance activities are generally labour-intensive.

A total of approximately R89m over the medium term is budgeted

for New Construction of two public schools in Maluti and

Mount Frere (Sive Special School, and Nolitha Special School).


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Provincia l Department of Publ ic Works :

The Alfred Nzo District is set to receive up to R60m from the

Provincial Department of Public Works.

This amount represents about 13% of the total provincial

allocation to all Districts and the Metro.

The per capita spending on public works amounts to R148 per

person.

It is not clear what projects the budgeted money will be spend

on.Provincial Department of Roads and Transport:

Another key element of required infrastructure development in

the District is the road network. The Alfred Nzo District suffers

from quite significant road infrastructure backlogs given the

largely rural character of the District.

In light of these backlogs, and recognising the key enabling

role that transport infrastructure has for economic and socialdevelopment, the provincial roads and transport department

has allocated approximately R556m to road infrastructure in

the Alfred Nzo District area, rising from over R90m in 06/07 to

R177m in 07/08 and then to over R288m in 08/09.

The major road project is: Mt Frere to R56 (Phases 1 to 3) at

a total spend over the medium term of R400m representing

72% of total district road infrastructure allocation.

The rest of the spending on road infrastructure in Alfred Nzo

by the Provincial Department will be on recurrent and routine

maintenance (including the Vukuzakhe Programme) of R135m,

and access to resorts, and access to Great Places (R21m).

Provincia l Department

of Socia l Development :

The provincial department has planned but not budgeted for in

the current medium term cycle, the new construction of the Mt

Fletcher Multi-purpose Centre at an estimated cost of R3m.

An amount of R0.3m is allocated for maintenance and upgrade

of park homes, and routine maintenance of existing social

development infrastructure.

Provincia l Department of Agr iculture:

The Alfred Nzo District has huge untapped agriculture, forestry

and water resources, and these resources are at the heart of

any sustainable growth potential and economic activity in the

District.

Given this exist ing natural resource base, the Provincial

Department of Agriculture plays an important catalyst role in

promoting subsistence farming (food security) and small and

large scale commercial agriculture.

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

Provincial Department of Agriculture will spend approximately

R24m in the Alfred Nzo District, representing 12% of the total

infrastructure spend (R200m over the medium term) by the

provincial department in the District.

The allocation rises from R5.5m in 06/07 to R8.6m in 07/08 andto over R9.5m in 08/09 and is targeted largely at fencing, stock

water, irrigation, storage and shearing sheds, and tunnels. A

total of R21.5m is allocated towards these schemes and projects

across the entire District.

Provincia l Department

of Sport , Recreat ion, Art s and Culture:

The total Provincial Department allocation to Alfred Nzo amounts

to just over R12m over the current medium term expenditure

cycle.

The Alfred Nzo District is receiving R3.5m in the 06/07 financialyear for the new construction of, 1) Mt Ayliff Arts Centre (R1.5m),

and 2) the Maluti Museum (R2m). The same amount (R3.5m) is

allocated for 07/08 for the continuation of the Mt Ayliff Arts

Centre and the Maluti Museum. An amount of just over R5m

is allocated for 08/09 for the new construction of the Mt Frere

Library.

The Alfred Nzo allocation of the Departments infrastructure

budget represents 15% of total departmental infrastructure

spending throughout the Province.


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Provincia l Government Infrast ructure

Expenditures Conclus ions :

These significant provincial infrastructure expenditure plans in

the Alfred Nzo District will provide a meaningful platform for

social and economic development given the opportunities such

spending opens up in both the first and second economies.

Relative to the Districts in the Eastern Cape, the Alfred Nzo

District, in total provincial infrastructure spend, will receive

approximately 9% over the current medium term cycle.

It is important for social and economic infrastructure to

complement each other, thereby mutually reinforcing the sum

total of benefits derived from the infrastructure expenditure and

its economy-wide linkages.

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

Maintenance of existing infrastructure needs to also be prioritised.Currently, maintenance of the Departments immoveable assets

is poor inevitably leading to rapid deterioration of buildings

and other assets. Maintenance funds have always and may

probably remain limited. Much of the limitations with respect to

maintenance can be attributed to poor levels of definition with

respect to the responsibility for maintenance budgeting.

The distinction between levels of responsibility between Public

Works and User departments as reflected by the infrastructure

plans will go a long way towards regularizing maintenance

planning.

Finally, it is commendable that a paradigm shift is evident throughthe infrastructure allocations within the Alfred Nzo District, with

the focus on the quality of infrastructure and services, as opposed

simply to the quantity, especially in education and health.

Department of Hous ing, Local

Government and Tradit ional Affair s :

The provincial department is assisting the ANDM with social

infrastructure investment in housing. Some of the projects

(budgets unavailable) are provided below;

DHLG &TA HO USIN G PRO G RAMMES IN ALFRED N ZO

Name ofProject

No. ofUnits

FundsApproved

Current Status

Extension6/Tyoksville(Mount Ayliff)

700 Approved 565 housing units havebeen completed

Extension 3 MountAyliff (RLD)

138 Approved Services by DHLGconveyancer and engineer tobe approved

Santombe (RLD)

Mount Ayliff

450 Planning

Stage

Proforma agreement has

been signed

Extension 7Mount Frere

340 Approved 341 housing units to bebuilt | 170 units havebeen completed

Silver City (RLD)Mount Frere

500 PlanningStage

Proforma agreementshas been signed | Serviceproviders need to beappointed

Mphemba RuralMount Frere(not yet planned)

1 000 Notsubmitted

Application still to besubmitted | Planning andsurvey of land to be done

Lubhacweni RuralMount Frere

1 000 NotApproved

Land claim still an issue

Maluti Township 809 PlanningStage

Has been cancelled due toland invasion

Low IncoimeHousing ProjectPhase 2

809 PlanningStage

Mvubukazi RuralHousing

500 PlanningStage

Application has beensubmitted | Beneficiaryapplication forms are 90 %complete

Source: Alfred Nzo IDP, 2007


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N A T I O N A L G O V E R N M E N T

Department of Water Affairs and Forestry:

With regard to service delivery of water services the

department assists the municipality in the planning water

supply delivery projects and then monitor the implementation

to ensure that projects that are implemented are contributing

to service delivery of water and sanitation, including the

bucket eradication. Support to the service delivery includes the

appointment of twenty one engineers nationally to assist the

development of plans, i.e. project pans for sanitation to ensure

service delivery

DWAF have developed an infrastructure sustainability audit to

municipalities. The audit gives the status of infrastructure, theage and the size of piping for the purpose of maintenance and

refurbishment.

With regard to free basic water, the department supports

the municipalities through the supply of free water meters

to manage the system. Currently all the jurisdiction areas

have accessed the support and are implementing the project

of installing those water meters to ensure proper control.

Municipalities report to the developed system monthly progress

and that is monitored.

The DWAF assists Municipalities in the implementation of bulk

water supply. Currently the allocation for the 07/08 is R 26

750 00 (for all municipalities nationwide) of which over R17m

is allocated to the Eastern Cape, and s divided as follows.

DWAF EXPEN DITURE PER D ISTR ICT

District Amount

O.R Tambo R 12 500 000

Amathole R 2 250 000

Alfred Nzo R 1 000 000

Chris Hani R 1 000 000

Cacadu R 500 000

Source : DWAF, 2007

Furthermore, DWAF has a forestry development programme

involving partnerships, capacity building, and a planned sector

summit and post-summit arrangements. This is set to benefit

the Alfred Nzo District due to the vast existing forests as well

as the huge potential to put more land under forests.

Concluding Remarks

In conclusion, these infrastructure expenditure outlays on

the part of the various government departments in the Alfred

Nzo district represent an increase in public expenditure, but

this, unfortunately, is not matched by increases in private

investment. An investment promotion strategy should be

incorporated is a key element of the growth and development

strategy of the Alfred Nzo district. And obviously, we need to

redouble the efforts in fighting poverty, as no economy can

grow sustainably amidst a sea of poverty.


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It has also been cited that the delays in land claims and

deeds office processing are contributing to land invasions and

occupations that further act as an impediment to development

in the District.

In addition to speeding up the processing of land claims and

deeds registration, the government also needs to expedite

the transfer of state land owned by various and different

departments and spheres of government.

It goes without saying that It should be a top priority for all

social partners to speed up the resolution of land claims and

land transfers.

In this regard, it is critical for the ANDM and LMs to:

liaise and engage with Land Claims Commission, Department

of Land Affairs (DLA), the Deeds Office and beneficiary

communities

to acquire or develop comprehensive information on land

ownership data

urgently conduct a Land use and management audit, and

liaise with the department of land affairs to conduct workshops

within the district municipality pertaining to the Land Act, land

rights and other related issues.

U n l o c k i n g A c c e s s t o L a n d

The Alfred Nzo District suffers from unusually high occurrences

of land claims. Almost two thirds of the entire District is

under some claim or the other, and the slow pace at which

these claims are processed, against the background of a high

propensity to institute land claims amongst communities in the

District, have all but crippled development opportunities in the

District.

Although quite a lot of the productive land in the area has

been returned to communal ownership, yet remains highly

under-utilised by local communities. In addition, lack of title

deeds deters private investment, and long delays at the Deeds

Office have become common practice in the District, much tothe detriment of investment opportunities.

Land ownership has always been a problem in the delivery of

housing due to land claims. There is even a lack of land for the

implementation of LED projects, resulting in under-expenditure

by departments and donors, and leading to loss of investments

and its associated spill-over effects.


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A successful growth and development path hinges on, among

other factors, the availability of skills and human resource

development practices that encourage skills development on

an ongoing basis. Indeed, the challenge facing sustainable

economic development in Alfred Nzo largely lies with the

regions ability to prioritise and harness its citizens skills

capabilities.

One of the main aims of human resource and skills

development is to facilitate an improvement in the accessibility

of skills development programmes for communities in a

manner that is conducive to an improved availability of sk illed

labour. The improvement of the labour force is integrated

with the improvement of the skills and literacy levels of the

community.

SCHOOL ATTENDANCE IN ALFRED NZO

Source: ISDRP Nodal Study, 2006

There are 480 schools in the district, many of them built by local

communities, but the main issue is the quality of education that

these schools provide. School physical structures are in poor

condition and are often located far away from settlements;

children have to walk long distances each day to reach them.

Add to this, a shortage of qualified and dedicated teachers,

and the pupil to teacher ratio in the District is rising (ISRDP

Nodal Study, 2006).

The Alfred Nzo district has a literacy rate of 55%. About 23% of

the population has no formal education, 65% fall in the grade

0-Grade 9 category, 8% having attained a Matric certificate

and only 4% above Matric. Of all the magisterial districts,

Matatiele and Mount Ayliff have the lowest literacy rates at

52% of the population who can read and write. Changes musthave occurred over the years but the municipality is still in the

process of compiling data in this regard.

A number of reasons may be attributed to the low levels of

education, including:

Parents lack the money to send children to school

Limited number of school facilities, and a significant number of

poorly constructed and maintained schools

There is a significant lack of libraries within the District,

resulting in school children and other learners being unable to

access information they require for their studies. Lack of adequately trained and motivated educators

Lack of pre-primary, secondary and tertiary institutions in the

region

Lack of educational equipment

Lack of adult literacy programmes

High rate of teenage pregnancy

S k i l l s D e v e l o p m e n t

0%

22%25%

None Pre-School & School Tertiary

Alfred Nzo

All Nodes

Rest of South Africa

30%

78%

74%

67%

0% 1%3%

20%

40%

60%

80%


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EDUCATIO N LEVELS IN ALFRED N ZO

Source: ISDRP Nodal Study, 2006

The Department of Education, in conjunction with local

municipalities and the District Municipality, must, therefore,

concentrate on a two-pronged approach:

1. whereby learners have access to well equipped and

maintained school buildings, creches and pre-primary

facilities, and

2. the necessary funds being made available to encouragelearners to complete their high school education.

Furthermore, the provision of sports and recreational facilities

has been directly associated with the development of a

healthy society. However, there is a significant lack of sports

and recreational facilities within the District, especially in the

former homeland areas. This may be directly attributed to the

policies of the former government, which did not take into

cognisance the health and welfare of people living in the then

homelands.

In many instances, youth who become involved in gangsterism

and crime do so out of boredom. Furthermore, the development

of healthy and well-developed children depends upon their

being able to play. A lack of playing may result in children with

underdeveloped motor skills and co-ordination. In adults and

children, alike, participation in sports is considered to promote

healthy bodies a lack of exercise and unhealthy eating habitslead to obesity.

0%

23%

No Schooling Some Primary Complete Primary Some Secondary

Alfred Nzo

All Nodes

Rest of South Africa

Std 10/Grade 12 Higher Education

20%

40%

60%

29%

15%

27%

19%

15%

9%6% 6%

29% 28%

32%

8%

13%

22%

4%

5%

9%


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Skills development can also be addressed through internships,

learnerships and incubation programmes. The absence of

tertiary institutions, save for an FET college and a branch of the

University of the North-West, also contributes to the low levels

of graduates in the area. There is an acute shortage of skilled

artisans, engineers, project managers, business management

skills and technical skills in agriculture, tourism, forestry and

environmental management.

The low skills base in the District requires urgent and

systematic interventions. The huge backlog in the district

and the need to turn the situation around requires a work

force in local government that posses the right skills. The

building of roads, bridges, etc. requires engineers, financial

experts, architects, etc. The Priority Skills Acquisition initiative

is a critical component of service delivery. In this regard, the

District should investigate the possibili ty of linking up with the

national JIPSA initiative to deal with the acquisition of priority

skills.

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S p a t i a l D e v e l o p m e n t P l a n n i n g

What is surprisingly evident, and which informs this debate,

is unlike other parts of the country facing similar challenges,

agricultural land and the associated settlement pattern has

remained fairly stable from a spatial point of view, (which

can also attributed to this notion of community), where now

huge tracts of agricultural land remain intact but are not used

productively.

Favourable climate, landform and knowledge must be rekindled

in turning agriculture around. Whilst current efforts which

focus on communal market gardening must be commended,

the impacts of these geographically and spatially represents a

small start to what must become more widespread considering

the scale of the district and the need to reach as many as

possible within the district. Therefore a key requirement offuture spatial planning must be giving spatial expression to

agriculture as a key driver.

Critical to the success of agricultural led growth, and in

sustainable rural development is the idea of the Natural

Resource Base being a key asset which needs to be

enhanced, protected and sustainably used. Identifying the

non-negotiables for development must underlie future

planning. Not only are there significant opportunities to

energise agricultural land, the dramatic landscapes of Alfred

Nzo present opportunities for pursuing eco-tourism and thelike. Years of under-utilisation of agricultural land coupled with

over-grazing, poor management of natural water systems have

resulted in severe degradation and erosion.

Enhancing and protecting this natural resource base requires

efforts at improved environmental management and

interventions in restoring as best possible a suitable natural

platform. The severity of the issue must be clearly understood.

The status of mans development is fundamentally tied to the

status of the natural resource base. At present whilst the district

Spatial development planning is a critical component that guides all

development activities, and provides spatial definition of economic,

social, environmental and institutional activities.

In developing a conceptual position for Alfred Nzo a fundamental

starting point suggested is that future development must be

based on pursuing a rural futurefor Alfred Nzo. As basic as

this statement may seem, recent evidence suggests, not just

in Alfred Nzo but in other districts with similar characteristics,

that concerted efforts are placed on pursuing the urban ideal

that concentration, which starts with the centralised location

of municipal functions, coupled with the search for that elus ive

international investor with the hope of some new factory, once

again located centrally, as being desirable warrants this basic

statement.

A key motivating reason for this is that the extent and spread of

need within Alfred Nzo far surpasses the range of hope that any

new and thriving urban centre could reach. What this means is

that in pursing a rural future, getting the basics right and making

rural development work must be placed high on the agenda.

Efforts toward getting the basics right of course may include

extending urban services and functions throughout the district

but here the focus must be on delivering services in a way which

makes sense in rural terms.

Existing settlement patterns organised along kinship are very

real and stable. The notion of community as experienced

in Alfred Nzo must inform service delivery. A primary starting

point is that future development must be premised on the

idea of a rural future. Allied to this rural future is the need to

pursue rural based economic strategies, which in the context

of Alfred Nzo falls squarely in the arena of maximising on

Agriculture as a key driver. Given the extent and spread of

need, agriculture spatially has the ability to stretch opportunity

throughout the district.


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Spatia l Transport Issues

Despite some investments in new roads and maintenance in

the district many local communities remain trapped in isolated

and disconnected local communities with very poor road

infrastructure. This disconnection has significant consequences

in terms of local economic development as well as services

delivery, most evident from the accessibility to emergency

ambulance services.

Currently the process of maintenance and upgrade is severely

hampered by the lack of clarity with regards to roles and

responsibilities between various roads role players. The process

is currently under discussion at all levels, thus providing some

hope for a resolution in the near future.

Transport whether motorised or non-motorised experiences

many problems within the Alfred Nzo District. These can be

summarised as follows:

1. Poor conditions of roads especially rural roads and within former

urban townships

2. Stray animals

3. Inadequate pedestrian signs and markings and off loading areas

especially within the few urban areas

4. Limited traffic calming measures within areas of high accidents

5. Low visibility of traffic officials and law enforcement

6. Non-availability of traffic lights, let alone at major intersections7. Unavailability of adequate public transport facilities especially

for the disabled

8. Lack of cooperation between public transport operators and the

municipal authorities

9. Lack of institutional capacity at Local and district Municipal level

to manage transport planning and implementation

10. Insufficient supply of taxi related infrastructure

11. Outdated/non-existent information at the taxi registrar

12. Lack of pedestrian and non-motorised transport facilities

confronts poverty at scale and at the same time has vast tracts of

unproductive agricultural land coupled with a degrading natural

environment, we stand at a critical juncture. Left unattended any

further degradation of the resource base will translate into a

degradation of rural livelihoods. No amount of factories in urban

centres will fix this.

A key underlying feature informing the overall position is the notion

of a stable settlement pattern and sense of community.

Outside of the various towns, settlement within Alfred Nzo has

remained fairly stable and is organised around kinship. Whilst

on the one hand this represents an important social logic and

coping mechanism in contexts of extreme poverty and need,

this also presents challenges in the distribution of centres andrational planning. The importance of this however is considered

to be paramount and is historically and culturally significant. This

requires that a balanced approach needs to be sought and that a

high level of decentralisation of facilities and activities would need

to be made.

This sense of community must be nurtured as this presents a

range of opportunities beyond the spatial planning realm that

needs to be embraced.

The current relocation of people from rural to urban areas hasresulted in a number of informal settlement developments on

vacant land in towns. Invasion of prime land has occurred in

some areas due to municipalitys lack of capacity to respond to

urbanisation pressures and deal with the housing demand.

There is a need for an effective institutional system to manage

growth and ensure that there is coordination between local

municipalities, district municipality as well as the departments

responsible for housing and land provision.


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prevalence of above 40%. There are no estimates for percentage

of the total population or population of working age living

with HIV in the district. However for the Eastern Cape, 10%

of the total population is estimated to be HIV positive, and

19.2% of adults (20-64 years) (ASSA 2003 Model).

In general very little data exist on HIV and AIDS specific to

local and district municipal areas.

HIV PREVALEN CE IN THE ALFRED N ZO D ISTR ICT

2002 2003 2004

Eastern Cape 23.60 % 27.10 % 28.03 %

Alfred Nzo DM 28.30 % 30.10 % 27.65 %

Source: Dept. of Health antenatal Survey, 2004

For the province as a whole, women have higher HIV

prevalence than men, the African population is at higher

risk, and the epidemic is growing fastest among youth (15-

25 years). 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.

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

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

new infections even out (ECAC, 2004).

The Department of Health has embarked on a range of

prevention, care and treatment interventions. In Alfred Nzo 3

health facility points are accredited for dispensing anti-retroviral

treatment, treating a total of 1237 patients in January 2007

(DOH, 2007). There is a need to accredit additional points and

increase the number of people on t reatment. Treatment for TB

and STIs (Sexually Transmitted Diseases) is also a challenge.

1 Antenatal prevalence refers to the percentage of pregnant women attending public clinic

who test positive for HIV. Data is only available per district, and it is difficult to extrapolate

this data for the entire population.

The Alfred Nzo District suffers from a relatively high incidence

of inadequate access to health facilities for primary health

care purposes. Alfred Nzo has 2 district hospitals, and the

construction of a new 250-bed hospital is currently under way.

There are 33 clinics in the area, most of them need repairs

and there is a programme in place to renovate them, and

improve the quality of services offered. Furthermore, there is a

health centre in Maluti which is currently being extended and

renovated (ANDM IDP, 2006/7).

Poor health infrastructure, lack of health personnel and poor

access to basic medicine contributes to the inaccessibility of

primary health care to the rural population of Alfred Nzo.

The infant mortality rate in Alfred Nzo is very high (65 per1000 child births), with diarrhoea being one of the causes.

Prevalence of diarrhoea (20%) is alarming, being the worst

in the Eastern Cape. This prevalence results from the poverty

and unemployment in the area. Poor water and sanitation

combined with lack of general hygiene also exacerbates the

situation.

The ANDM has made significant strides in immunization of

children, reaching a coverage of 90% by the end of 2006.

H IV & AIDS HIV and AIDS has a major impact on growth and development

in the ANDM. Alfred Nzo District had an antenatal prevalence

rate1 of 27.65% in 2004, down from 28.3% in 2002. This

has been slightly above the provincial average in 2002-2003,

however it is below the average for the Eastern Cape (28.03%)

in 2004.

The slightly above average figures may be accounted for by

the proximity to Kwazulu-Natal, a province with an antenatal

C o m p r e h e n s i v e P r i m a r y H e a l t h C a r e


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The HDI is a measure of development which includes life

expectancy, literacy and income. It thus provides a composite

index of development presenting these three dimensions in

one indicator. The HDI for ANDM increased between 1996 -

2005 but remains significantly be low the provincial average.

HDI FO R ALFRED N ZO

1996 2005

Eastern Cape 0.49 0.53

Alfred Nzo DM 0.41 0.46

Source: Global Insight, 2005

The number of people in poverty is an indicator of householdmembers who reside in households whose total income falls

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

Global Insight data which use the Bureau for Market Research

(BMR) Minimum Living Level (MLL) which ranges from R893

for a single person household to R3314 for an eight person

household. Based on this measure the levels of poverty (an

economic measure of household income) in the ANDM have

actually increased significantly with an estimated three

quarters (75%) of district residents living in poverty.

PEO PLE L IV IN G IN PO VERTY IN ALFRED N ZO

1996 2005

Eastern Cape 54.3 % 64.7 %

Alfred Nzo DM 67.3 % 75.1 %

Source: Global Insight, 2005 Social Grant Dependency

Food Secur i ty

The DOA has allocated R1.5m for the Siyazondla food security

scheme in the District over the medium term. This is generally

targeted towards household vegetable gardens and maize

production. This programme caters for disadvantaged people

to fight poverty. 169 projects throughout the region have been

identified including those of Social Development.

In addition, there is a Siyakhula and Massive Food Production

programme which is a rural economic development initiative

that targets grain food production through subsidizing of all

operations by means of conditional grants.

Under these food security schemes, maize is being grown in a

total area of 1072 ha.

Safety Nets

The high levels of unemployment recorded for Alfred Nzo

are a reflection of the limited local economic and livelihoods

opportunities currently characterising the district. The

unemployment levels for the district are significantly higher

that the provincial average and have increased significantly

between 1996-2005.

UN EMPLO YMEN T FO R ALFRED N ZO ( EXPANDED DEF INIT ION)

1996 2005



Source: Global Insight, 2005

F o o d S e c u r i t y a n d S a f e t y - N e t s


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Improvement of management systems dealing with Installation

of Management Systems in the District.

Cooperative governance dealing with Co-ordination and

Change Management, with other sister departments and

Municipalities

Major chal lenges : -

Shortage of transport, staff and office accommodation in, Mt

Frere, Maluti and Umzimvubu Area office.

Bad roads make access to some areas very difficult, particularly

during bad weather conditions.

There are no plans in place for provision of more institutions,

however de-institutionalisation and Community Based Care is

under way. Current institutions are:-A place of safety in Maluti is used as an alternative measure

for children in need of care.

Maluti Development Centre is still utilised as offices for Social

Development in Maluti.

A Child and Family Counselling Centre is currently used as

offices for Umzimvubu Area office.

The Nolitha Special School in Msukeni, Mt. Ayliff is being

assisted with funds to promote Aftercare of children and

people living with Disabilities. The project has since been

handed over to the Department of Education.

Mt Ayliff Service office has since moved to newly completedstructure opposite Child and Family Centre.

More than two thirds (69%) of ANDM residents access a social

grant. This is significantly higher that the provincial norm

(64%) and again reinforces the picture emerging from other

poverty indicators for the district - that local residents are

heavily dependent on state safety nets in the face of limited

economic and livelihood opportunities.

WHETHER HOUSEHOLD MEMBER IS RECEIVING SOCIAL GRANT

YES NO



Source: RSS, 2006

The ANDM and the local municipalities have developed

frameworks for social development in the District, with the

following focus areas: -

Transformation of social welfare services dealing with

unemployed youth, promotion of the Batho Pele principle, Foster

care placement, probation services and establishment of Child

Care Control Units

Anti-poverty dealing with funding of Pre-schools and

Agricultural projects, Child and Youth Care Systems, Reception

Acceptance Referral programmes

Integrated Comprehensive Social Security System Child Support

Grants, Disability and Old Age pension grants, Care dependency,

foster care programmes, Grant in Aid, War Veterans and Social

Relief of Distress.

Special Development Areas dealing with HIV/AIDS, Substance

abuse, Victim Empowerment programme, People living with

Disabilities and Age management

District Development Dealing with the restructuring of the

Social Development department, phasing out Regions and

Placement in Districts


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strategy in the District. The Strategy must pay particular

attention to safety for citizens, investors and tourists. It is also

necessary for the Department of Safety and Liaison to scale

up capacity of Community Policing Forums in the Alfred Nzo

District.

An important aspect of crime prevention is increased visibility

of police and capacity and effectiveness of personnel within the

Alfred Nzo District. In addition, the ANDM needs to develop and

enforce stricter by-laws that govern the licensing, operations

and conduct of shebeens and taverns in the district.

The Alfred Nzo District, in conjunction with the SAPS and

communities, need to develop a comprehensive crime

awareness and prevention strategy. It is clear that the police

alone cannot deal effectively with the problem of crime.

The crime situation in the District is characterised by cross-

border (Lesotho) stock theft, crime linked to alcohol and

substance abuse, illegal occupation of land, and youth

joblessness.

It is necessary for ANDM to lobby the Department of Safety and

Liaison, SAPS, to become involved with and all other partners

to implement an effective, comprehensive crime prevention

C r i m e M a n a g e m e n t a n d P r e v e n t i o n

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I n s t i t u t i o n a l C a p a c i t y B u i l d i n g

Engagement meetings between the ANDM and the LMs have

raised issues about how municipalities can be brought up to

speed to address the priorities interventions required to unlock

the social and economic potential in the their local areas.

It was identified that the Municipalities need to address bye-laws,

policies and performance governing/in relation to, amongst other

issues, trade regulation, procurement, land use, zoning, plans for

the sectors, resources like staff and funding/budgets required to

implement the priorities.

Stakeholders within the Alfred Nzo community business,

labour, farmers, civil society have, among others, identified

the following as constraints they face in dealing with the

municipalities:Lack of communication between business and local government

impeding on access to information on existing business

opportunities. There is a clear need for a business-local

government-labour forum to share in a joint vision and strategy

to tackle the growth and development challenges in the district

Insufficient basic infrastructure e.g. roads, public toilets,

cleanliness

Lack of a clear and simple Incentive strategy for new businesses,

and support for informal traders

Avoidable delays in land servicing and preparation for housing

development, and uncertainty around land claims and landuse.

Lack of effective policing, and a lack of coordinated strategy

towards combating crime

Supply chain management policy does not create a conducive

environment for business (e.g. surety), and is hampered by long

periods to wait before bids are awarded, a lack of understanding

of statutory requirements for procurement, and a perception of

the lack of transparency in the awarding of bids/tenders.

The Alfred Nzo District Municipality Council consists of twenty

five Councillors. The Council is led by the Speaker, the Executive

Mayor, the four full-time Mayoral Committee members and

Councillors. There has been a delegation of powers from

Council to the Executive Mayor and the Executive Mayor

in turn has delegated some of the powers to the Mayoral

Committee members. Mayoral Committee led by the Executive

Mayor functions through the following standing committees

that assist in decision- making and making sure that there is a

conducive political environment for service delivery:

Planning and Infrastructure Services

Social Development

Economic Development, Tourism, Environment and Disaster

Management

Treasury and BudgetingHuman Resources and Special Programmes

The District has a functioning inter-governmental forum (IGF)

which has been arranged into the following clusters:

Economic growth and infrastructure

Social needs

Justice, peace, safety and security

Governance and administration

There is currently a staff component of 168 employed by

Council, headed by the Municipal Manager. The organogram isin the process of being filled and this process is improving at

a faster rate. A concerted effort aimed at building the capacity

of Officials and Councillors is be ing embarked upon.


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Bus iness Development Serv ices

One of the key trends in small enterprise development

has been a move away from direct-market substitution by

international donors and local governments towards a focus

on facilitating private business development service (BDS)

market development. This approach emphasises the limited

ability of the public sector and/ or donor organisations to

deliver services to small enterprises effectively.

This approach is premised on the fact that the Municipality

should encourage and promote private service providers of

business development services, instead of the municipality

itself trying to be a provider of such services. So this approach

emphasises the need to promote the private sector supplier

Andm Gds Profil

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