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Sustaining Nodal Economies Urban and Rural Development Programme
Oupa Nkoane
Chief Director Urban Renewal Programme
Introduction
• ISRDP/URP are cross cutting programmes
• Develop through programmes of other sectors
• Intention “To capitalize on the potential synergies of the various government programmes in order to promote and support more rapid and equitable development”
• Promotes integrated service delivery through coordinated planning, resource allocation and implementation by government and other stakeholders as a way of fast tracking service delivery in order to improve the quality of life of the citizens
Some Key Success Factors
• Directed to selected areas based on identified local development
problems and opportunities
• Responds to indicators of poverty and economic opportunities
• Local needs and priorities- alignment with IDPs
• Build on existing programmes of government while developing new programmes
• Benefits the poor and the vulnerable groups ( youth, women & disabled)
• Inter-sectoral inter-sphere and inter-cluster planning (Integrated planning)
• Channeling resources and funding from all three spheres of government
and external stakeholders to the nodes
• Empower communities and strengthen their capacity to participate in the government programmes and share in growth
Location of the Rural Nodes
Location of the Urban Nodes
Findings of Impact assessment studies conducted in four nodes: July 2007
Objectives of the study• To assess the impact that has been made through the implementation of
the Urban and Rural Development Programmes• To determine areas that need further attentionConclusions• There has been an improvement in service provision and this is impacting
positively on beneficiaries • However beneficiaries are not fully enjoying the benefit of electricity
provision due to cost Recommendations• Provision of basic services by municipalities should not be seen as an end in
itself• Renewed efforts must be made to ensure that beneficiaries that have
capacity to pay for these services through improved economic opportunities• Need to strengthen economic development in the nodes including realistic
Response: Nodal Economic Profiles
The project objectives were therefore to provide:
Detailed analysis of the economies of the nodes
Identify barriers and constraints
Identify opportunities for public and private investment
Recommend strategic interventions by the public sector to improve the nodal business climate
Results
– Economic profiles developed for all the nodes
– Economic opportunities identified
– Support needs identified ( specific interventions)
Key sectors: Identified
• Agriculture- agro –processing
• Forestry
• Tourism
• Mining ( Central Karoo, Sekhukhune, Kgalagadi, Maluti-a-Phofung)
• Manufacturing ( Umzinyathi, Bushbuckridge and Maluti-a-Phofung )
Node Overview
Node Node OverviewOverview
The Nodal Economy
The Nodal The Nodal EconomyEconomy
The Enabling Environment The Enabling The Enabling EnvironmentEnvironment
High-Level Issues Focused Analysis
Sector Analysis Sector Sector
AnalysisAnalysisInvestment
Opportunities Investment Investment
OpportunitiesOpportunities
What is Node X?How is it performing against key development indicators?What critical high-level development al issues and challenges is it facing?
What kinds of economic activity take place within and around the node?
What are the main sectors?
Which sectors offer the greatest potential for growth and employment?
What factors are constraining the development of a favorable investment climate?What is “holding back” the key sectors from realizing their growth potential?
What specific sector-level investment opportunities exist?
What specific enterprise- level investment opportunities exist?
Node Overview Node Overview Structure
SnapshotSnapshot
Area SummaryArea Summary
Key ChallengesKey Challenges DemographyDemography
Income and EmploymentIncome and Employment
HealthHealth
Development ScorecardDevelopment Scorecard
GovernanceGovernance
IDP AssessmentIDP Assessment
EducationEducation
IntroductionIntroductionIntroduction Key Data PointsKey Data PointsKey Data Points Current ActionCurrent ActionCurrent Action
Introduces the node; summarizes key issues
Lists pertinent acts and figures
Describes current interventions
Geography, Vegetation, Climate, Soil
Geography, Vegetation, Climate, Soil
Spatial DevelopmentSpatial Development
Development ProjectsDevelopment Projects
Local People PortraitLocal People Portrait
Post Indaba: Action Agenda
• Identify 2-3 bankable project in support of economic growth for each node
• Engage key actors and secure commitment for resolving current obstacles by sector departments.
• Design an institutional support program for economic knowledge and capacity building within nodal municipalities for creation of an enabling environments for economic growth.
• Develop a Central Nodal Management command point (Project Team for resource coordination and accountability)
Water for Growth
• Water related challenges that hinder exploiting the identified economic opportunities have been identified
• Specific support needs have been identified by the nodes
Important to consider
• Programme emphasises projects with Multiple spin-off and linkages within sectors
• Inter-sphere and inter sector integration
• Local needs and challenges need to be addressed to ensure local and regional sharing
• Regional planning parameters
Example of water project with multiple spin-offs: Inyaka Dam – Water for tourism
Main Objective
Provide water for household and agricultural purposes
Linkages
Used for tourism and sports
• Water sports in the dam• Chalets have been built around the dam to accommodate tourists
Benefits to local communities- sharing in growth• Income generating activities• Local agricultural products can be /are sold to the hospitality industry
around the dam - partnerships• Local people could participate as tour guides• Local people could sell local crafts to tourists• The area is rich in African Dance- local people can provide entertainment
Example of water project with multiple spin-offs: Zoeknog Dam - Bushuckridge
Major challenge – Water:• Inyaka and Hoxani water schemes can only cater for potable water due to
population 950,000
Main Project• Dam rehabilitation
Other projects linked to provision of water through the dam• Dairy farming• Rice farming & processing• Coffee farming & processing• Maize farming• Justicia egg production• Casteel/Dwarsloop, tunnel/shade netting farming• Citrus farming Agincourt,Lillydale, Hluvukane
Benefits to local communities• Water fro agricultural purposes• Income generation through products• Labour intensive jobs ( skills training and jobs)
The role of government
• The role of government include:
– Creating the enabling environment for business to invest in the nodes
– Ensuring access to water for household and business use
– Providing water for agricultural purposes
– Providing water / water infrastructure for economic development- including tourism
– Ensuring that the nodal communities benefit from labour intensive jobs related to projects aimed at the provision of water
– Exploiting linkages to ensure benefits from spin offs
• Explore project involving communities benefit from provision of alternative water- particularly in the rural communities
Index of opportunitiesProject name / description Node Economic Sector
Improvement of Storage and Transport Facilities for Farmers
Umkhanyakud e
AgricultureProduction of Starch from Cassava
High-End Hotel Resort DevelopmentTourism
Budget Game Lodge within Local Community
Upgrading of the Mkuze Regional AirportOther
Development of a Hydro-Electric Power Plant at Jozini Dam
Development of the Port Shepstone Beachfront
Ugu
TourismThe Banana Express
Honey Production in the Umuziwabantu Municipality Agriculture
Upgrading of the Margate Regional AirportOther
Low-Middle Income Housing Project
Aliwal SpaUkhahlamba
TourismThe Madiba Route
Bottled Water Retailing
Index of opportunitiesProject name / description Node Economic Sector
Mkambathi Nature Reserve
OR Tambo
TourismThe Freedom Route
Commercial Dairy Enterprise
AgricultureOR Tambo Maize Production
Mqanduli Milling Plant
Xolobeni Mineral Sands Mining
Fruit Growing Industry
Alfred Nzo
Agriculture
Commercial Maize Growing
Growth of Canola for Biofuel Production
Cultivation of Flowers for Export
Commercial Dairy Farming
Sale of Goat products
Tshisa Hot Springs SpaTourism
Luxury Lodge
Index of opportunitiesProject name / description Node Economic Sector
Lilani Hot Springs
Umzinyathi
TourismTalana Museum
Ngome Community Game Reserve
Kwashushu Hot Spings
Orange Grove Dairy ExpansionAgriculture
Soya bean production
Cell phone chargerOther
Umzinyathi Community Education Centre
Sugar mill / ethanol plant on the Makhatini Flats
Zululand
Agriculture / Agro- Processing
Commercial cattle farming
Commercial soya bean farming for bio-diesel production
BioSwiss organic vegetable production
Revitalize Nongoma tea estate
Infrastructure upgrades / airport
TourismProperty / tourism development on Pongolapoort Dam
Lodge(s) in the eMakhosini (Valley of the Kings)
Index of opportunitiesProject name / description Node Economic Sector
Dordrecht Cheese Factory Expansion Project Chris Hani Agriculture
Platberg – Game Farm and Lodge
Maluti-a- Phofung
TourismBasotho Cultural Village
Sterkfontein Dam Resort Expansion
Footwear Plant Manufacturing
Maluti Dairy
Agriculture / Agro- Processing
Dry Bean Depot
Black Commercial Farming
Hydroponics Farming
Mining Sector Support Business
Sekhukhune
Mining
Bio-Diesel ProductionAgriculture / Agro- ProcessingVegetable Processing Plant
Tunnel Production
Flag Boshielo Dam Development
TourismKlein Drakensberg Mountain Resort
Tsate Heritage Site
Marble Hall Cultural Centre
Index of opportunities List of projects by node (5/6)Project name / description Node Economic Sector
Vegetable Farming
Kgalagadi
Agriculture / Agro-Processing
Livestock Abattoir Goat Processing PlantPoultry ClusterWonderwerk Caves Expansion
TourismBothithong Cultural VillageCold Storage Facility
Central Karoo
Agriculture / Agro-ProcessingBeaufort West Hydroponics Expansion
Skin ProcessingPallet, Crate & Dry-rack Manufacture
Manufacturing Central Karoo Leather ExpansionKaroo National Park Expansion TourismCorrectional Facility Other
Index of opportunitiesProject name / description Node Economic Sector
Community Input Based Agro-Processing
Bushbuckrid ge
Agriculture / Agro-Processing
Escarpment Bluegum PlantationChicken HatcherySaringwa Citrus EstateBeef Processing / TanneryInjaka Dam
Tourism
Game Reserve DevelopmentsBushbuckridge Nature ReserveBlyde River Canyon National ParkKNP Access Roads TourismVuyanikaya Tourism RouteTeacher Training College
OtherClay Mining and Bricks Production
