AMAJUBA ECONOMIC
FRAMEWORK
DISCUSSION DOCUMENT
PRESENTATION OVERVIEW

Key LED Challenges

IDP Priority Areas

Economic Vision

Development Opportunities

Key Performance Areas

Status of and Re-distribution

Proposed Interventions
o

Institutional Arrangement and Transformation

Agricultural Sector Development

Tourism Development

Infrastructure Development

Mining Development

SMME Development
Critical Success Factors
PURPOSE OF THE PRESENTATION

To appraise Political leadership and Council management about district LED Plans

To share Amajuba Economic /Business Case

To invite input towards the formulation of Economic framework

Allow political leadership to influence the Economic Direction and Strategy of the District

To solicit buy-in on the strategic focus areas and associated initiatives

To build a case for improved budget allocation towards planning and implementation of
LED initiatives
KEY LED CHALLENGES IN THE DISTRICT

Lack of meaningful participation of stakeholders in LED process

Lack of sufficient financial resources to support LED initiatives

Limited human capacity to manage LED programme

Minimal participation of political leadership in LED remains a challenge

Poor participation and co-operation of sector departments

Land Reform Projects have a high potential but lack leadership

Private sector has no faith and confidence in the municipal programmes

Failure in exploitation of opportunities

Mismatches of Interventions where projects which relate better to rural contexts are
often implemented in semi rural contexts
IDP PRIORITY AREAS

Economic Development

Integrated Service Delivery

Social Facilitation and Development

Institutional and Governance Development

Municipal Planning

Environmental Management
ECONOMIC DEVELOPMENT
FRAMEWORK
ECONOMIC VISION

Amajuba will be a fully developed district, with a vibrant and sustainable economy, a better
quality of life, preserved within its own cultural and traditional values.

Vibrant

Sustainable

Provision of opportunities
DEVELOPMENT OPPORTUNITIES

Battlefield development and Amajuba Tourism Route.

The Amajuba Birding Meander.

The development of tourism opportunities around the proposed dam sites (Ncandu, Tom
Worthington as well as Zaaihoek), the Drakensberg and the Noddle projects

The development of dams along the Buffalo River Catchment which will open up large
portions of the tribal areas for irrigation.

The development of the old Casino complex into a Office Park and Sport Complex.

The further development of the Balele Nature Reserve at Utrecht.
DEVELOPMENT OPPORTUNITIES

The development of a Fly-fishing Meander.

The development of Housing Estates and associated facilities in the Berg Foothills.

The roll out of ICT Broadband

Upgrading of the N11 free way to a dual carriage

Development of the Dannhauser, Dundee, Nqutu, Babanango, Melmoth Road Corridor

Poultry incubation

Implement an irrigation projects in Buffalo Flats as per Irrigation plan
DEVELOPMENT OPPORTUNITIES

The Development of a Regional Market and Agric Hub which will be linked to the Dube Trade
Port and other markets.

The development of opportunities along the MR483 Corridor linking the CBD to Madadeni and
Osizweni.

The implementation of the Urban Renewal Programme in the Newcastle CBD.

The development of a new Mall adjacent to the new Casino.

The development of housing projects as part of the implementation of the Housing Plans for
the three LM’s.

The development of the Amajuba Hydroponic Techno Park.

The identification of Newcastle as an Industrial Development Zone (IDZ).
DEVELOPMENT OPPORTUNITIES

Development Nodes have been identified in 4 areas namely, Utrecht, Botha’s Pass,
Normandien Pass and Dumblane/ Muller’s Pass. (The main aim of the Development Nodes is
to provide opportunities for the concentration of appropriate tourism development as opposed
to disperse, ad hoc development patterns).

Rehabilitation of mine sites which have closed

Consider setting up the Olive tree project

Develop Ntshingwayo Resort Game Park;

Develop Ncandu Nature Reserve / Incandu Forest Reserve; and

Determine and establish National Monuments.
KEY PERFORMANCE AREAS
Key
Performance
Indicator
Service
Preparation of credible Integrated Development Plans (IDP’s):
delivery and
• Assessment of the impact that the development of housing projects will have on bulk
Infrastructure
services.
• Updating of backlog information for Infrastructure Sector Plans, including Roads,
Electricity.
• Integration of Infrastructure Sector Plans in the family of municipalities.
• Development of an effective Municipal Turn Around Strategy.
KEY PERFORMANCE AREAS
Key
Performance
Indicator
Service
Establishment of core municipal systems:
delivery and
• The development of a Management Support System for the management of Water
Infrastructure
Services Providers.
• Ensure that projects are implemented in line with the requirements of the Construction.
• Industry Development Board (CIDB), Expanded Public Works Programme (EPWP),
• Municipal Infrastructure Grant (MIG) and municipal policy framework.
• The registration of key staff with the Engineering Council of South Africa (ECSA).
• Identification of and filling of critical posts.
• Strategies to be developed to remedy gaps and constraints in staff components.
KEY PERFORMANCE AREAS
Key
Performance
Indicator
Institutional
Develop strategies for the recruitment and retention for scarce skills.
• Fund and fill critical posts.
• Support from CGTA / SALGA to be intensified through MSIG, Siyenza Manje,
MAP, etc.
• Fast track skills development / competency standard and succession planning –
robust engagement with LGSETA and CGTA and SALGA.
• Shared services arrangements.
• Sector departments to intensify involvement through IGR Structures and render
necessary support.
• District Coordination Committee to become functional
KEY PERFORMANCE AREAS
Key
Performance
Indicator
Spatial
and
environmental
Spatial Framework
• Adoption of LUMS by 3 local municipalities once PDA takes effect from April
2010
• A drive to register all unregistered planners, particularly Newcastle
• A greater focus on linkages between Planning and LED at Newcastle
Environmental
• Newcastle to embark on the preparation of an EMF in 2010/11 financial year
(to address air quality issues)
• District municipality is finalizing Mountainous Areas Nodal Policy based on
extensive public consultation
• District municipality preparing an Area-Based Plan for the Normandien Node.
Similar plans to be prepared for other node
KEY PERFORMANCE AREAS
Key
Performance
Indicator
Local
• Strengthening of IGR structures
• Informal Trade Policy
• Poverty Alleviation Policy
• Sector Department participation
Financial
Improve payment factor
• Output /outcome revenue based budgeting
• Alignment of CIP to financial plan and sector plans
KEY PERFORMANCE AREAS
Key
Performance
Indicator
Good
• Ongoing support IGR Programmes
Governance
• Prioritization of the capacity building programmes for ward committees and CDW’s
• Enforce public participation on issues concerning local government
• Conduct quarterly constituency meetings in local municipalities
• Establish broad based plan on issues concerning good governance and public
participation
• Establish a unit to deal with all public participation matters
KEY PERFORMANCE AREAS
Key
Performance
Indicator
ICT
• ICT (Information Communication Technology) Development Policy
The broadband project
-The broadband plan co-ordinated by KZNDED is ready to roll out at Amajuba
District Municipality. An investment of several million is required from Amajuba
District Municipality for building a data centre.
STATUS OF LAND REDISTRIBUTION
STATUS OF LAND REDISTRIBUTION
YEAR
PROJECT NAME
SETTLED
PRODUCT
Sum of HECTARES
Adendorff
2009 Maize,Potatoes & Livestock
151.2517779
Aletta
2011 Grazing , cropping
402.2215785
Cardwell
2006 Commercial Farming
3.2425481
Doornsluiten (Bambanani
CPA)
2008 Maize&Livestock Farming
162.6220961
CPA)
2008 Maize&Livestock Farming
162.572347
Doornsluiten 14366
2004 No Data
162.5425605
Doornsluiten/ Hlosokuhle
2009 Maize, potatoes, livestock
158.8353615
2008 Maize&Livestock Farming
20.2119604
Doornsluiten (Sesikhona
Doornslutein (Sesikhona
CPA)
Maize, Potatoes, Livestock,
Elansklip
2010 grazing
KwaZi-Gugu
2008 Grazing & Dairy
596.59451
663.3207592
STATUS OF LAND REDISTRIBUTION
PROJECT NAME
YEAR
SETTLED PRODUCT
Sum of HECTARES
Masisukume Sakhe
2009 Guelderland (Masisukume Sakhe)
581.6671577
Schietnek
2009 Maize & Beef
2297.116883
Senzangakhona
Sterkfontein/Inkululeko/M
oss
Up & Down Farm
0 (blank)
2000 No Data
0 (blank)
1467.200949
252.9986635
308.5851732
Masisukume Sakhe
2009 Guelderland (Masisukume Sakhe)
581.6671577
Schietnek
2009 Maize & Beef
2297.116883
Senzangakhona
Sterkfontein/Inkululeko/M
oss
Up & Down Farm
0 (blank)
2000 No Data
0 (blank)
1467.200949
252.9986635
308.5851732
STATUS OF LAND REDISTRIBUTION -SUMMARY
REFERENCE
COMMUNITY
STATUS
Sum of HECTARES
East Heslerton
KRN6/2/2/31/0/0/53
Community
Gazetted
806.3719969
KRN6/2/2/E/0/0/42
Linda Edmund Thwala
Gazetted
23.2264378
KRN6/2/2/E/17/0/0/226
Wykeham Community
Gazetted
77.0091672
KRN6/2/2/E/31/0/0/10
Bulwerton Community
Gazetted
52.5525648
KRN6/2/2/E/7/0/0/201
Nxumalo Community
Gazetted
2557.326438
KRN6/2/2/E/7/0/0/48
Echibini Community
Gazetted
787.3463863
Settled
493.5120638
Longlands Farm No.
KRN6/2/2/E/7/0/0/743
8803 Community
INSTITUTIONAL ARRANGEMENTS
AMAJUBA BOARD OF BUSINESS
LEADERS

The gathering of great local business minds

Developing or finding a common economic vision

Serve as an economic advisory body to both public and private sector investments

Assist in leveraging of resources

Keep government informed on levels of existing business confidence

Create business opportunities

Mentorship of the emerging or SMME sector within the district
AMAJUBA BOARD OF BUSINESS LEADERS
Amajuba
Sector Specific Committees
AMAJUBA FORUM FOR LED
Amajuba DM
Newcastle LM
Private Sector
(Inclusive of
professionals)
Utrecht LM
AFLED
Dannhauser LM
Public Sector
(inclusive of
professionals)
Stakeholders
ALEDPMU
Tourism
Agricultural
Members
Members
Commerce and
Industry
Members
Councilor's
WSAs
Officials
Nat and Prov Govt
Operators
DACs
Product Owners
Agric Unions
Prov Gov.
Co-ops
Officials and Councilors
Organised Business
Manufacturing
Trade
Mining
Construction
Officials & Councilors
Gov. Dept.
AMAJUBA DEVELOPMENT TOOLKIT
IGR Forum / ExCo’s
IMPLEMENTATION
MFMA + SCM + PPP +
….
Infrastructure
ADM EXCO
Municipal Manager &
Directorates
Workgroups
Water / Agri
Workgroup
Industry
Workgroup
Dev Corridor
Workgroup
IMPLEMENTATION
Business +Co-ops + …
Coordination
Workgroup
Investment
Workgroup
Economic Development
AFLED Sub-Committees
Agriculture
Sub-Committee
Trade / Industry
Sub-Committee
Tourism
Sub-Committee
PROPOSED PROGRAM MANAGEMENT UNIT

Sets up, runs, and supports an endogenous network able to catalyze development. The
essential mission of LED PMU is to:

Facilitate development to enable sustainable job creation

promote and support small and medium-sized businesses in the various branches of
production

improve the economic context and opportunity of the territory

Provides tools for economic development which accounts for the vulnerable

Facilitates and Co-ordinates businesses to play an active role in addressing poverty

Develops relationships of collaboration and cooperation across sectors

Allows the local government to be the direct actor
Research
and
Development
Unit
Other active
economic
Sectors
SMME Unit
Programme
Management
Unit
Investment
and Marketing
promotion unit
Business
Finance
Tourism unit
PROGRAMME MANAGEMENT UNIT
OBJECTIVES

Foster the economic development of the territory where it works

Capitalize on endogenous resources and concentrate on support for those groups with the
most difficult access to regular economic and financial circuits

Foster integration and coordination of local institutions and associations around a shared
vision of local economic development

Promote local small and medium sized business; create entrepreneurial culture

Plan and bring into being a system of services to public and private organizations that can
support local economic development

Pay special attention to identifying the most vulnerable social groups and identifying poverty
traps
CONCEPT DOCUMENT

Concept Document serves a formal application

Details the socio-economic condition of the area

Develop a clear business case for Amajuba

Highlights sector based economic opportunities

Identifies possible catalytic projects for the district

Organisational structure

Action plan

Application submitted to IDC
AGRICULTURAL DEVELOPMENT AND
DIVERSIFICATION
PROGRAMME 1:
AGRICULTURE SUPPORT UNIT

Focus on resuscitating economic activity within Land Reform Farms

Involve and encourage communities to resuscitate crop fields – in order to ensure food
security

Investigate modern technologies that could be employed in the region to expedite the growth
of agricultural sector (agri-processing)

In partnership with the Marketing incumbent source markets for agric products
(Agronomists to drive the program)
PROGRAMME 2:
LAND REFORM PROGRAMME

Prioritizing this programme for implementation

Support land reform forums

Profiling of farms

Available hectares for grazing and crop farming

Feasibility Assessments

Business planning

Funding mobilisation for a group of projects (e.g Soya beans, goat and cattle
farming)

Capacity and capability
PROGRAMME 3:
COMMUNITY BASED SUPPORT

Identification of existing agricultural co-operatives in partnership with DEDT

Restructuring of programmes and initiatives to take advantage of existing and potential
opportunities

Engage traditional leadership and introduce community based support schemes that will
focus on tilling of idle land and provision of seedlings thereby create a sustainable food
security base.

Make available ADM Mechanisation unit to the communities
PROGRAMME 4:
MECHANIZATION UNIT

Sustain and expand on the functional Mechanisation Unit

Solicit support from the province to supply more tractors and implements and to engage
in the mechanised unit to ensure co-ordination of activities

Manage and maintain the scheme

Avail services to community members at the recommended nominal fee for the
sustainability of the Unit
PROGRAMME 5:
AGRI-PROCESSING UNIT

Identify agri-processing initiatives or projects

(LED study has identified few projects)

Prepare terms of reference for feasibility studies

Undertake detailed and thorough feasibility assessments

Compile Business Plans for feasible projects

Marketing of feasible projects

Undertake or partake in trade missions to market the district

Mobilise local investor to invest in feasible initiatives
PROGRAMME 6:
SKILLS DEVELOPMENT UNIT

Identify required Agri-technical skills through the agronomist engaged by the District

Partner with service providers

Sign MOU with Department of Agriculture to provide skills through CEDARA training centre

Targeted training for communities and organised groupings

Maintain the incubation concept within Agri-support unit

Engage mentors or employ specialists on contractual basis to support initiatives across the
sector board ( crop farming, dairy, livestock farming, timber processing, etc)

Organize internship placement from bodies such as CEDARA for skills development
TOURISM DEVELOPMENT
TOURISM DEVELOPMENT

Re-select stakeholder partnerships in tourism

Review of Tourism strategy

Identify clear cut opportunities within the sector

Branding of local products

Establish community based Tourism Organisations

Develop distinct tourism concepts and implement (Spatial development nodes)

Marketing of the district
INFRASTRUCTURE DEVELOPMENT
INFRASTRUCTURE DEVELOPMENT
SUPPORTING LED

Water for commercial use (dams, accessibility of existing water schemes for agricultural
use)

Increase agricultural areas under irrigation

Access roads to the farms

Main corridor roads (N11 as a dual carriage, D96, etc)

Trading space for informal traders within the small towns with necessary facilities

Partnership with Ithala to invest in Industrial Park development initiative

Roads improvement for mining (transportation of coal)
MINING DEVELOPMENT
MINING DEVELOPMENT

Increase in mining interest

New jobs are created

New business opportunities
Consider:

Support services to the mining sector

Participation in the implementation of Social Labour Plans

Enquire about availability of mining or prospecting rights in Amajuba
SMME DEVELOPMENT
SMME DEVELOPMENT

Establish SMME support unit

Integration of current incubation units

Introduce business development component
SMME Unit
Agri
Support
Construction
Business
development
Support and facilitate the establishment of Amajuba Business Support Centre with
satellite offices in LMs. Forge partnership with DEDT and Seda provincial level.
CRITICAL SUCCESS FACTORS

Exco resolution / Council Resolution from all LM’s

LMs Buy in

Financial Commitment to the Initiative (improved- budget allocation to LED)

Technical Support to LMs

Identification of additional projects
THANK YOU