KZN SMALL TOWN REHABILITATION PROGRAMME
PRESENTATION TO THE 2010/11 NOMINATED
MUNICIPALITIES
PRESENTATION BY MR MP DUZE
ACTING SENIOR GENERAL MANAGER :
BUSINESS SUPPORT SERVICES
30 AUGUST 2010
PRESENTATION OUTLINE
• Background
– PSEDS
– Corridor Development Programme
– Links to the small town programme
• Small Town Rehab Programme
– Programme Objectives
– Small Town Budget in MTEF
– Criteria for selection of towns
– Implementation Procedure
– Type of support
– Way forward
BACKGROUND
• The Department’s mandate is to support municipalities in
fulfilling the targeted outputs and achieving the outcomes of
improving the lives of the communities.
• One of these support initiatives is to support municipalities
fulfill their developmental local government obligations.
• A range of National and Provincial policies provide clear and
compelling mandates for the Provincial Government to
support small and rural municipalities with the rehabilitation
of small towns as local centres of economic activity and nodes
of concentrated and focused delivery of services
KZN GOVT PRIORITIES
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Rural Development and Agrarian Reform
Fighting Crime and Creating Safer Communities
Education and Skills for ALL
Health for all
Creating Decent Work and Ensuring Economic Growth
Nation Building and Good Governance
Social and Economic Infrastructure
Cohesive and Sustainable Communities
International Co-operation
Sustainable Resource Management
PSEDS
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The PSEDS recognises that:
– Social & economic development is never uniformly distributed
– Apartheid created an unnatural distortion of development
– This distortion must be addressed through an interventionist approach
Classification of Economic Potential
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The economic sector has identified four key sectors as drivers of economic growth
in the KZN Province. These sectors are:
• The Agricultural sector (including agri-processing)
• The Industrial sector
• The Tourism sector
• The Service sector (including government services)
PSEDS CONT’
The PSEDS is based on 4 pillars
1.
2.
3.
4.
Increasing investment in the province
Skills and capacity building
Broadening participation in the economy
Increasing competitiveness
The main programmes to support the strategies are
1.
2.
3.
4.
Foreign Direct Investment
Investment in Infrastructure
Sector Development
Corridor Development
DEFINITION OF CORRIDORS
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Primary Corridor (PC): A corridor with very high economic growth potential within all
three sectors which serves areas of high poverty densities;
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Secondary Corridor (SC): A corridor serving areas of high poverty levels with good
economic development potential within one or two sectors
PSEDS identified the following corridors in the province
• 3 Primary Corridors
– Ethekwini- Umhlathuze (PC 1)
– Ethekwini Msunduzi uMngeni ( PC 2)
– eThekwini –Ugu (PC 3)
• 14 Secondary Corridors
• The nodes and activity corridors don’t cover the whole province. They focus only on
those nodes and corridors which could have the most impact in halving poverty and
unemployment to meet the MDG targets.
• The rest of the province cannot be neglected but the major focus of fixed investment
should be directed at these nodes and development corridors
PSEDS
Nodes and Corridors
The key investment nodes
and activity corridors for the
cluster over the next 5 years
have been identified.
Primary Purpose of Activity Corridor
Multi-Sectoral Activity Corridor
Tourism Activity Corridor
Agriculture Activity Corridor
Existing Corridor
NODES IN THE PSEDS
• The PSEDS identifies 25 nodes as follows:
1
St Faiths
13
Mtubatuba
2
Harding
14
Hlabisa
3
Impendle
15
Mbazwana
4
Richmond
16
Jozini
5
Weenen
17
Manguzi
6
Winterton
18
Nkandla
7
Msinga (Tugela Ferry)
19
Melmoth
8
Nqutu
20
Maphumulo
9
Dannhauser
21
Ndwedwe
10
Utrecht
22
Mandini
11
Nongoma
23
Umzimkulu
12
Ulundi
24
Ixopo
25
Kokstad
SMALL TOWN REHABILITATION
• The 25 nodes make up the small towns in the
province
• The parent municipalities in these nodes are the
poorest with limited rates base-grant dependent
• The KZN government has made an MTEF allocation of
R244m towards the small town rehabilitation
progrogramme.
• The programme is aimed at making the small towns
more attractive for investment as part of Rural
Development in line with priorities of government.
SMALL TOWN REHABILITATION
The budget allocation in the MTEF is broken down as follows:
Year
2009/10
2010/11
2011/12
Budget
R55m
R92.5m
R97.3m
PROGRAMME OBJECTIVES
• The programme has “ONE” aim and that is; to ensure that the
competitiveness of these small towns is enhanced in order
to attract investment and to retain the current investors.
• Support to the municipalities will be provided through grant
funding for initiatives that will enhance these rural towns and
create a clean and safe environment.
• The outcome will be the retention and attraction of
investment thereby retaining and creating new work
opportunities.
TYPICAL SMALL TOWN
5 STRATEGIC PILLARS OF SUPPORT
Small Town Rehabilitation Strategic
thrusts
Urban
Managem
ent
Infrastructu
re Upgrade
Support to
Economic
Sectors
Address
dilapidated
buildings
Well managed and inclusive small town
Ripple
Effect
Investment
STRATEGIC THRUSTS CONTINUED
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Urban Management includes: by law enforcement, management of informal
trading and safety in the small town including surveillance cameras, waste
management
Infrastructure upgrade includes maintenance of roads and storm-water, street
signs, robots, power networks and waste collection points.
Support to economic sectors includes assessment of those sectors with a potential
to grow the economy and contribute to the GGP. Clear strategies to promote
growth of these sectors in line with PSEDS should be identified informed by the
area strength and competitive advantage
Addressing dilapidated buildings involves implementation of building controls and
rehabilitation of disused buildings. This requires investment incentives and tax
rebates.
Promotion of ripple pond investments as catalysts for investor confidence. This
involves anchor developments that will result in the attraction of other investment
opportunities.
BALANCED LED STRATEGY
Three legs:
1) Retain and grow existing businesses
2) Create new enterprises
3) Attract investment from outside
For the above to occur, govt is required to make
a firm foundation by investing in:
– Hard (physical) and soft (economic)infrastructure
SOURCES OF JOBS
Studies have shown that in a
normal economy jobs are created as
follows:
•By attracting new business
•By creating new entities
•By expanding or retaining existing
Attract 10business
Since most jobs are from
retaining existing
business, we need to
make an effort as
government to make the
existing environment
attractive.
This Calls for a need to
prepare and implement
Business retention and
expansion strategies
20%
Create
15-20%
Expand
and Retain
60-80%
Expand
and Retain
60-80%
CRITERIA FOR SELECTION OF TOWNS
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Municipalities in the priority corridors as outlined in the
PSEDS
Towns that have not received any substantial support from
the Neighbourhood Development Partnership Grant (NDPG)
of the National Treasury
Towns that have a potential for growth and could present
an opportunity to provide quick wins to increase confidence
in the programme
Focus on a few municipalities for maximum impact – 7/8
per year
Each beneficiary municipality to confirm acceptance of
nomination through a council resolution
2009/10 SET OF SMALL TOWNS
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Richmond
Lady Smith
Tugela Ferry
Ixopo
Harding
Jozini
Nkandla
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2010/11 SET OF SMALL TOWNS
Mtubatuba
Hlabisa
Manguzi
Winterton
Nquthu
Utecht
Ezinqoleni
Maphumulo
IMPLEMENTATION METHOD
• Projects for implementation are packaged by the beneficiary
municipalities with the support of the department and sector depts
• The proposed projects should change the physical outlook of a targeted
town, be part of broader urban regeneration plan of a municipality, and
most importantly they should have economic potential.
• The projects should promote job creation, local economic development
and skills transfer and should have measurable impact on the lives of
people on the ground.
• The municipalities Business Retention and Expansion Strategies will inform
most of the initiatives
• Private sector and business will play an important role in informing
municipalities on what is required to ensure their business is retained in
these small towns
INSTITUTIONAL ARRANGEMENTS
• Municipalities were encouraged to put
together institutional arrangements to
enhance the implementation of the
programme.
• The proposed arrangement promotes
participatory development and democratic
local governance by ensuring the participation
of the relevant business communities in
matters that concern business.
Council
LED Portfolio
Committee
(Section 80 Committee)
Town Rehabilitation Advisory
Committee
(Section 79 Committee)
Town Rehabilitation Task Forces headed by line
function managers
INSTITUTIONAL ARRANGEMENTS CONT’
• The Town Rehabilitation Advisory Committee will be made up of the Business
Chamber, Rate Payers Association in the CBD, Taxi and public transport
association, informal traders association, SMME support groups etc.
• The Advisory committee is informed by task forces headed by line function
senior managers as follows:
– Infrastructure Component– to look into roads, storm water, street
lighting etc
– Law Enforcement Component – Informal trading control , building
control and traffic control
– Land use Component – Land use Management, Squatters, informal
Traders location , zoning of land
– Clean up & Greening Component - Illegal dumping, Waste
management, public ablutions, town beautification
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PARTNERSHIPS DURING IMPLEMENTATION
Beneficiary municipalities
Trade and investment arm of govt- TIKZN
Department of Economic Development
Department of Transport
Department of Agriculture and Environmental
Affairs- waste management
Private sector – CSI
Organised business
Informal Business Associations
TYPE OF SUPPORT
• Grant funding for
– Project conceptualisation , packaging and detailed
business planning
– Capital funding for implementation
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Construction
Refurbishment, upgrading, or extension
Projects to be implemented using EPWP principles
Municipalities need to commit to funding the O and M
aspects of the project
FOCUS OF SUPPORT
The nature of support will be focusing on, but not limited
to interventions such as:
• the upgrading of road infrastructure in the central business areas;
• storm water management in the central business areas;
• street lighting in the central business areas;
• Parking facilities
• public transport facilities in the central business areas;
• ensuring that there are adequate and appropriately zoned and serviced
land available to attract and support investment;
• developing appropriate and sustainable incentive packages to attract
business interest in the PSEDS economic sectors; and
FOCUS OF SUPPORT
• Developing a real estate, or land development framework for these small
towns, aligned to the SDF and LUMS of the municipality
• Town beautification and greening
• Clean towns – waste management
• Provision of social and economic infrastructure.
• Improving the physical environment in towns.
• Support to the informal sector
• Upgrade and improve quality of open space.
• Enhance place competitiveness
• Improvement in quality of transport infrastructure
• Safe environment
EXPECTED OUTCOMES
• Productive towns
Looking into matters of economic growth and employment,
information and communication technologies as well as good
transportation systems.
• Inclusive towns
Through effective and efficient service delivery by the
municipalities as well as the physical rehabilitation of the
small towns.
• Sustainable towns
Through the creation of a climate conducive for investment
opportunities
WAY FORWARD
• Presentation to full Exco for political buy-in where necessary
• Affirmation by Municipalities that they would like to
participate (Resolution)
• Packaging of comprehensive all inclusive business plans in
liaison with organised business and LED Portfolio Committee
• Partnerships- rand for rand agreements with the municipality
and outline of incentives for business
• Presentation of business cases to STRP Forum for evaluation
• MOA on approved projects with municipality
• Transfer of grants by October and full implementation
• Monthly progress Reporting by the 6th of each month
• Project Close out report
THANK YOU
Contact details:
mthokozisi.duze@kzncogta.gov.za
barbara.mgutshini@kzncogta.gov.za