Integrating Infrastructure in Limpopo
(An historical perspective, with a focus on issues of
governance)
Limpopo Infrastructure Summit
05 October 2010
1
Development is about people
• The fundamental concept,
underpinning both the earlier
Provincial Growth and Development
Strategy (PGDS) and our current
Limpopo Employment Growth and
Development Plan (LEGDP) is that
‘development is about people’ and
not about things and structures
Development is about people
• The paradigm shift: from structures to
relationships, from investing in knowledge as
opposed to things, from continuity to
discontinuity, underpinning not only
organisational change but scientific thought
itself, is a reality.
- is worship about a church building?
- is education about a school building?
- is communication about a meeting or a
forum?
(The answer is NO - appropriate infrastructure
Supports – it creates an enabling environment)
Development is about people
• The challenge of creating permanent
infrastructure for a shifting environment - the
impact of urbanisation and the quest for
integrated rural development
• There is need to move away from a
mechanistic approach in coping with change /
in planning – our competitive advantage is our
ability to change for which information
sharing and a shared vision is paramount, in
ensuring an infrastructure that talks to the
realities in rural communities, while building
competitiveness in a global economy
Development is about people
• The challenge of Apartheid as a closed system
(it failed in achieving true development,
despite tremendous infrastructural
achievements)
• The quest through the LEGDP is for a
developmental state and not to repeat the
contradictions of the past – we face the
challenge of addressing current infrastructure
challenges and opportunities while striving
towards improved quality of life and a
sustainable regional economy that is
integrated and accessible
The challenge of integration
• Integration is essentially a leadership
challenge i.e. information sharing, relationship
building and the need for a shared vision
• Integration is not only about efficiency in
construction as such but about putting the
appropriate infrastructure in the right place
for the right reason and at the appropriate
time – in order to best optimise our limited
resources
The challenge of integration
• Attempts to address challenges of integration
across government e.g. the Cluster approach,
IDPs, the many forums relating to
infrastructure
• We have Forums and endless meetings – why
have we all too often failed to work together,
take decisions and implement the various
infrastructure plans of the past?
• The answer lies in the lack of a truly shared
vision between all stakeholders in
infrastructure development
FROM THE PGDS TO THE LEGDP – towards
improved integration
The National Spatial Development Plan found that IDPs had an inward and almost
exclusive focus on needs, whereas a balance between needs and potential is essential
Resource Allocation
1.
To Balance resource
allocation between
needs and growth.
2.
Needs are pressing, but
cannot resolve
themselves.
3.
Growth creates more
resources to allocate
towards needs
Needs
Growth
LIMPOPO PGDS 2004: OBJECTIVES
(PGDS Objectives incorporated the objectives / priorities of the Manifesto the ruling party within
Government)
1.
2.
3.
4.
5.
Improve the quality of life of the Provincial Population using
Spatial Rationale (and ISRDS) to prioritize;
Promote economic growth through competitive cluster
formation (specific and rising annual targets to 2020);
Raise the institutional efficiency of government;
Address unique priorities as they arise, such as BEE, Poverty
reduction and HIV/AIDS, TB & Malaria.
Regional social & economic integration towards achieving the
objectives of NEPAD
PROBLEM STATEMENT
 Insufficient efforts made to place the Provincial ECONOMY ON A
SUSTAINABLE DEVELOPMENTAL PATH [GOVEN’T-LED] capable of
delivering decent work and sustainable livelihoods on A SCALE
THAT WILL ENABLE THE PROVINCE TO ACHIEVE THE TARGET OF
HALVING UNEMPLOYMENT BY 2014.
 The economy’s performance, especially i.t.o of job creation,
the quality of jobs, and reduction of poverty and inequality,
has fallen far short of our expectations and aspirations.
 Our efforts have not sufficiently addressed severe structural
imbalances and micro-economic constraints that impede the
economy from developing to its full potential [productive
capacity].
 It is clear that these imbalances and constraints cannot be
overcome by the market on its own, BUT require an appropriate
strategic role of the state.
10
CONTEXT
 In his State of the Nation address on 03 June,
President Zuma stated:
“The creation of decent work will be at the
centre of our economic policies and will
influence our investment attraction and jobcreation initiatives. In line with our
undertakings, we have to forge ahead to
promote a more inclusive economy.”
The challenge to achieve the above through
appropriate infrastructure development
11
4. Conceptual Framework



LEGDP




Vision 2014
STRATEGIC OBJECTIVES OF THE SECOND
DECADE OF FREEDOM / MTSF
Decent work and
sustainable livelihoods
Education and skills
development /quality
education
Economic and social
infrastructure
Improved health care
Rural development,
land reform and food
security
Fighting crime and
corruption
Building cohesive and
sustainable communities
Sustainable resource
management and use
Building the
developmental state
Creation of a better
Africa and a better world
Halve unemployment and
poverty
Provide the skills required
by the economy
Ensure that all South
Africans are able fully to
exercise their constitutional
rights and enjoy the full
dignity of freedom
Compassionate
Government services to the
people
Improve services to
achieve a better national
health profile and reduction
of preventable causes of
death, including violent
crime, road accidents, HIV
and Aids
Significantly reduce the
number of serious and
priority crimes and cases
awaiting trial
Position South Africa and
Limpopo strategically as an
effective force in regional
and global relations
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Strategic Pillars – Key Action Programmes
1.
2.
Industrial Development Programme: Priority Growth Sectors
Enterprise Development: SMMES and Cooperatives
Development Programme
3. Regional Economic Development and Integration Programme
4. Public Infrastructure Investment Programme
5. Water Resource Development and Demand Management
6. Agriculture and Rural Development Programme
7. Education and Skills Development Programme
8. Health-Care Development Programme
9. Safety and Security Programme
10. Environmental and Natural Resources Development Programme
11. The Green Economy and the Creation of Green Jobs Programme
12. ICT and Innovation Enabled Industries Programme
13
Strategic Pillars – Key Action Programmes
1.
2.
Industrial Development Programme: Priority Growth Sectors
Enterprise Development: SMMES and Cooperatives
Development Programme
3. Regional Economic Development and Integration Programme
4. Public Infrastructure Investment Programme
5. Water Resource Development and Demand Management
6. Agriculture and Rural Development Programme
7. Education and Skills Development Programme
8. Health-Care Development Programme
9. Safety and Security Programme
10. Environmental and Natural Resources Development Programme
11. The Green Economy and the Creation of Green Jobs Programme
12. ICT and Innovation Enabled Industries Programme
14
The quest for improved partnerships in
infrastructure development
• Towards shared leadership within government –
within and between spheres of government
• Building partnerships between government, the
private sector and civil society – the need to shift
from dependence on government finance
towards a holistic approach
• Harnessing opportunities through PPPs
• Supporting the decision-making process of the
state through extending the cluster approach to
all stakeholders – building trust and commitment
through the Premier’s Advisory Council
(See institutional arrangements)
ALIGNMENT BETWEEN INSTITUTIONAL ARRANGEMENTS
OF GOVERNMENT & THE PREMIER’S ADVISORY COUNCIL
EXCO
CLUSTER POLITICAL COMMITTEES
PREMIER’S ADVISORY COUNCIL
TECHNICAL WORKING GROUPS
SOCIAL COHESION
SKILLS FOR THE ECONOMY
Towards VISION
2030
ICT&KNOWLEDGE ENABLED
INDUSTRIES
ECONOMIC CLUSTER
TRADE & INVESTMENT
INFRASTRUCTURE
CLUSTER
GREEN ECONOMY
SOCIAL CLUSTER
DEVELOPMENT
ENTERPRISE DEVELOPMENT
INDUSTRIAL DEVELOPMENT
GOVERNANCE AND
ADMINISTRATION
CLUSTER
INTERGRATED INFRATRSUCTURE
DVELOPMENT
CLUSTER TECHNICAL COMMITTEES
IMPLEMENTATION ACTION PLAN CLUSTER TECHNICAL
COMMITTEES
LEGDP - FOUNDATION 2010 TO 2014
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The importance of infrastructure development
in supporting the LEGDP
• Employment creation through infrastructure
development e.g. sustainable SMMEs in the
construction sector, appropriate skills
development in support of the construction
sector, local spend
• Improved quality of life through integrated
infrastructure development e.g. sustainable
human settlements, proper sanitation and access
to clean water, access to services, proper roads,
communication systems that work etc.
• Improved economic growth through prioritised
infrastructure development and maintenance e.g.
appropriate infrastructure in support of the
various competitive advantages of the Province
17
Challenges of Economic Infrastructure
– Rural transport remains inadequate, especially in
the former homeland areas. Many local roads in
the former homeland areas remain unpaved, and
many need maintenance;
– Lack of extensive rail infrastructure, which limits
exploitation of untapped mineral reserves and
agricultural potential;
– Under-utilization of the airport infrastructure –
exporting and linking agricultural produce
regionally and internationally; and
– Lack of mobility to access services and activities,
e.g. medical, welfare, schools – access to farming
communities, etc.
18
ECONOMIC GROWTH THROUGH AN INDUSTRIAL CLUSTER VALUE-CHAIN
APPROACH
Infrastructure to support the
competitive advantages of Limpopo
Growth potential is identified according to competitive clusters (beneficiation) for increased
development impact and sustainability / noting the link between Clusters and the importance
of appropriate infrastructure
1. PGMs/Chrome in Sekhukhune & Waterberg
2. Petrochemical in Waterberg
3. Horticulture in Mopani and Vhembe
4. Logistics in Capricorn and other Growth Points
5. Red and white meat in all Districts
6. Tourism nodes and clusters in all Districts
7. Forestry in Mopani and Vhembe
(Logistics, R&D etc. cut across the various Industrial
Clusters)
HIGH GROWTH CATALYTIC PROJECTS
(the challenge of prioritisation)
Socio- Economic
Master Plan
Integrated District Master Plans
Infrastructure
Master Plan
Limpopo Accelerated State Capital
Expenditure Initiative
Tourism
Limpopo Mining and Mineral
Resource Beneficiation Initiative
Green Economy and Green
Industrialisation Initiative
High Impact
Catalytic Projects
Lephalalale Coal Energy
and Downstream
Chemical Industrialisation
Initiative
MUTASSHI
(Logistics Hub)
Mining Input Supply Hub
Polokwane Airport and
Limpopo Airport Authority
Ltd
Skills Master Plan
The ICT and Broadband
Infrastructure
Industrial Development
Master Plan
20
Challenges of Social Infrastructure
– Housing, electrification and water utilities
take priority due to immense mining and
energy investments taking place within the
Province; and
– Shortages of water and electricity in some
rural pockets of the Province have reached
alarming levels
21
An example of water resource development &
demand management as a KAP
The Importance of Water for Development:
• Development is about People – preserving the
environment and appropriately utilising our natural
resources
• Water is a critical component of the various industrial
clusters
• Water is critical for increased industrialisation,
beneficiation and employment creation within the
Province
• Quality of water and quality of life are fundamentally
the same thing
(The role of appropriate infrastructure development
in supporting the above priorities)
22
Terms of Reference (TOR) of the Integrated
Infrastructure Development TWG
The Integrated Infrastructure Development TWG agreed on the following TOR:
• To advise and facilitate on issues of infrastructure development across the
Province, as well as appropriate support – notably, regarding the public
infrastructure investment programme;
• To advise and support the Implementation Action Plan of the LEGDP;
• To advise with regard to issues of water resource development and
demand management;
• To facilitate linkages and support integrated planning towards the
promotion of an integrated infrastructure, as well as the building of
regional partnerships towards ensuring an integrated infrastructure in
support of regional socio-economic development / integration and the
optimal utilisation of resources;
• To advise and support issues of governance, leadership, finance, research &
development, policy regulation, skills and education, technology etc., as
impact on the quest for an integrated infrastructure; and
• To ensure that matters relating to the Integrated Infrastructure TWG are
reported on at the appropriate EXCO Cluster Committee.
The role of the Infrastructure TWG in supporting
integrated infrastructure development
• In supporting the water sector: While we
have Forums for MCWAP and ORWRDP,
consisting of all stakeholders which meet
bi-monthly, stumbling blocks hindering
the delivery of water to growth points
will be brought to the TWG to convey
such challenges to EXCO i.e. off-take
agreements, funding, affordability by
stakeholders, co-ordinated planning from
source to household etc.
The role of the Infrastructure TWG in supporting
integrated infrastructure development
The creation of streams (small Teams) to facilitate
improved integration, focus and support to infrastructure
development in support of the LEGDP – Steams in the
areas of:
•
•
•
•
•
•
•
Roads, Rail and Airports (Gateway),
Growth Points and Border Posts e.g. Lephalale, Burgersfort, Musina,
Mokopane, Polokwane etc. (Infrastructure support to Industrial
Development),
Health,
Education,
Water,
Energy, and
ICT (Telecommunication Infrastructure)
Conclusion
• Integration is essentially an issue of LEADERSHIP
i.e. the need for improved Information Sharing,
the need to build relationships and the need for a
shared vision across all sectors and between all
stakeholders – to adopt an approach of shared
leadership in building Limpopo and to refrain
from excessive control
• There is need for clearer role clarification with
regard to the infrastructure development and
maintenance processes and increased
accountability
Conclusion
• As Government must strive towards improved
institutional efficiency and co-operation, so
too, the private sector must work towards
improved co-operation within the sector
towards improved delivery, the building and
retention of skills (professional and in project
management) and the sharing of resources
• Of priority: Development is about people NOT
about things