Current Edition >> Archive Section >> Special Features >> 20 November 2006
Tourism Lekgotla with Municipalities held on 19 September at Welkom
Following its launch on 1 September 2006, the Free State Tourism Authority (FSTA) embarked on an extensive consultative process with all stakeholders in the province in order to co-ordinate the development and further roll-out of the tourism strategy. This stems from the conviction of the FSTA that success for the industry as a whole as well as for each individual stakeholder lies in teamwork.
This consultative process also flows from deliberations between May and August this year between the Provincial Economic, Employment and Investment Cluster and District and Local Municipalities. The aim of this was to align municipal economic strategies as contained in their IDP's with the Provincial Growth and Development Strategy.
From these workshops it became clear that all District and Local Municipalities have identified tourism as a key economic sector. This led to the FSTA initiating an extensive Tourism Lekgotla process with a view to synergizing all provincial endeavors towards a common goal.
Consequently the first Lekgotla was with Municipalities and that was held on 19 September 2006 at Welkom in the Hall of Fame. Mayors, speakers, councillors and tourism officials of all District and Local Municipalities in the Free State were invited, as well as MEC's, members of the board and management of the FSTA and officials from the Dept. of Tourism, Environmental and Economic Affairs.
According to the CEO of the FSTA, Ms Phomolo Mokuele, the Tourism Lekgotla with the Municipalities can be described as highly constructive and successful. It established a critical base for further co-operation and networking in the province and set the tone for further development of the consultative process, which is to be with the business sector and then with the public in general.
Mokuele says the overall goal is to market the province as a “preferred inland tourism destination”. In this regard “charity begins at home” and it is for this reason that the FSTA is liaising with Local and District Municipalities with a view to mobilizing them for a competition about who is doing best to market it's own particular area as a preferred inland tourism destination.
The competition will be in various categories, e.g. for District Municipalities, Local Municipalities and even down the individual municipalities wards. However, the competition will not be limited to municipal level only, but will also be extended to include categories for taxi's, petrol stations, guesthouses, restaurants, parks, etc.
Mokuele points out that the drive is not only to market tourist attractions, but also to turn every local area into a tourist destination. In this regard the slogan “Experience / Explore / Enjoy” applies and this is relevant for every stakeholder.
Development of SMME's paramount for tourism industry - MEC
Speaking at the Tourism Lekgotla for Municipalities at Welkom on 19 September 2006, the MEC for Tourism, Environmental and Economic Affairs, Mr. Neo Masithele, pointed out the paramount importance of viable and sustainable small, micro and medium enterprises (SMME's) for the effective development of the tourism sector.
Masithele said: “If both Asgi-SA and the PGDS identify tourism as a key economic sector to reach the economic growth of 6% per annum, it poses a challenge to all of us to learn to 'hear one another' in order to begin to leverage opportunities provided by this new gold. Tourism is the new gold because during the past year statistics showed that it has become the second highest contributor to the gross domestic product.
“For us to address the challenge, we need to focus on how to broaden economic participation of the historically disadvantaged into the mainstream of the economy. One of the key mechanisms is to use the leverage of the First Economy to address the Second Economy. This is also why on 12 September 2006 the provincial BEE Charter was launched.
“The importance of the contribution of SMME's to economic development was confirmed by observations made in the third South African Employment Report, released on 25 April 2006. According to the report, the overall economic growth for South Africa was 2,4% and as part of this, 357 000 jobs were created in 2005, mainly by small and medium enterprises. 80% of jobs were created by SMME's and only 20% by large companies. Given this information, it is critical to focus on how more opportunities can be provided to SMME's in the tourism industry.
“Cognizant of this it is befitting to say to the Free State Tourism Authority, you know your mandate as prescribed by the Act, but you cannot act in isolation, especially because tourism takes place at local level. Therefore begin with the right step by engaging District and Local Municipalities to consolidate your programs and to talk to one another in a manner that will eventually position the province as the preferred inland destination of choice.”
Macufe SMME Village
As part of its marketing strategy, the FSTA is also involved in the presentation of the renowned annual Macufe Cultural Festival being held this year from 29 September to 8 October.
A key element of the Festival is the Macufe SMME Village being presented on the island of Loch Logan, where the best of the best SMME’s selected from the five districts in the province are showcasing their products. The artifacts and products on display are therefore of an exceptionally high standard and are able to compete even internationally.
Therefore everyone interested in these products and / or to enter into promotional trade with the SMME’s concerned, is encouraged to visit the SMME Village.
Further lekgotas
Details about further lekgotlas – with the business sector and with the public in general respectively – are to be released shortly through the media.
The CEO of FSTA, Phomolo Mokuele, points out that matters especially relevant in the tourism consultative process include packaging of local tourism strengths; compiling viable tourism routes; fostering entrepreneurship; grading of tourism products; marketing and branding; transformation to include increasingly PDI's; the requirements of responsible tourism; co-ordinating of events; synergy between the public and private sectors; and optimizing opportunities relating to 2010 for the entire province.
Meanwhile, any inputs from stakeholders to Mokuele and her team are being welcomed.
In opvolging van die voorbladberig in die Vrystaat Sake Bulletin van 15 September 2006 onder die opskrif “Dwelmhandel in Bloemfontein verstommend goed georganiseerd”, het die Vrystaat Sake Bulletin 'n gesprek gevoer met iemand wat dwelms intensief gebruik het en ten nouste met die bedryf gemoeid was.
Wim Pienaar* woon tans in Bloemfontein. Ons het by 'n restaurant vir ligte etes ontmoet en lank gepraat. Sy verhaal is 'n oogoopmaker, 'n waarskuwingsirene vir enige iemand wat aan dwelms vat en sommer net 'n dankgebed.
Wim is 23 jaar gelede in Kimberley gebore, sy ouers is geskei en hy het in die kinderhuis beland. Op St. 8 is hy uit die skool uit en het by sy halfbroer in Kaapstad gaan woon. Dié het dwelms gebruik – Ecstacy, “Rocks” en LSD. Sy broer het tye oorsee gewerk, goed geld verdien en dit dan in Kaapstad op dwelms kom blaas.
“In die begin het ons elke derde naweek dwelms gebruik, toe elke naweek, toe drie of vier dae per week en uiteindelik elke dag. Ons het selfs tot R1 000 per dag op dwelms gespandeer. Ek het veral “Rocks” oftewel “crack cocaine” – 'n wit poeier wat jy in 'n tuisgemaakte pyp rook – gebruik. Dit sit jou op 'n “trip”, of “rush”, soos hulle dit noem. Dit laat jou ongelooflik goed voel, maar as dit uitgewerk is, was ek absoluut “down” – paranoïes.
“Ek sou enige iets doen om “Rocks” in die hande te kry. Die dwelmsmouse in Kaapstad, meesal Nigeriërs, het ons met tuisaflewerings bedien en ons het met kredietkaartfasiliteite betaal. Wanneer ek uit geld uit geraak het, het ek mal geword en het selfs gesteel om geld in die hande te kry. Ek is ook as dwelmkoerier na die buiteland gebruik en het selfs 'n paar dae in die tronk op Antigua beland. Genadiglik het ek spoedig daaruit gekom en terug in SA het ek probeer “skoon” kom, maar weer in dwelms verval.
“Ecstacy gee 'n mens 'n baie “lekker” gevoel en jy wil net dans. Die effek duur so 8-10 ure, afhangende van die kwaliteit. “Crack” maak jou skerp, maar paranoïes en letterlik skelm. Die “rush” duur so 5-10 minute. Kokaïne laat jou “soos God” voel. Jy voel jy is absoluut baas en ek dink dit is hoekom dit gewild is onder filmsterre en ander “celebs”. Durasie 45-60 minute op 'n keer.
“In 2004 was ek by geleentheid weer hoog op dwelms. Ek gaan na die woonstel van 'n ouer vrou en sit op die balkon op 'n stoel. Iets gebeur, ek storm na die reling, spring bo-oor en val ses verdiepings na benede. Gelukkig stuit 'n boom my val en ek breek nie te veel bene nie. Belangrikste egter ek oorleef die val en hoewel dae lank in 'n koma, herstel ek wonderbaarlik en kry al my liggaamsfunksies 100% terug.
“Ek sit in my kamer en skrik vir my gesig in die spieël. Ek besef as ek aangaan met dwelms, gaan dit my binnekort eenvoudig vernietig. Dit is asof 'n stem vir my sê: 'Los dit, Ek sal vir jou sorg.” Ek begin bid en Bybellees en gee later my hart vir die Here. Dinge begin geleidelik beter word en ek raak uiteindelik heeltemal skoon. Ek verlaat die Kaap en vestig in Bloemfontein, waar my pa ook woon. Ek kry werk as 'n monteertegnikus / bemarker, raak ernstig met 'n meisie en raak verloof. Ek woon tans by haar en haar ma. Ek bedank my werk vir 'n aanbod met beter vooruitsigte, maar op die nipper word die nuwe pos deur die vorige bekleër gevul en sit ek werkloos.
“Tans is ek steeds sonder vaste werk, maar doen los werkies. Ek het darem 'n dak oor my kop en kos om te eet. Ek stel ontsettend belang in rekenaars en het vir myself 'n goeie een opgebou. Ek glo ek kan goed doen as rekenaartegnikus en deur met sagteware te werk. Ek wil graag opleiding ontvang en sou eendag my eie besigheid wil begin.
“Ek is heeltemal skoon van dwelms, hoewel dit 'n moeilike pad bly. Dwelms was letterlik hel en dit is net deur die wonderwerk van Jesus Christus dat ek daarvan verlos is. Die versoeking is sterk, maar die Heilige Gees is almagtig. Ek was in geen rehabilitasiesentrum nie. Ek is ingeskakel by die Hebron Gemeente in Andries Pretoriusstraat, Bloemfontein.
“Dwelms is 'n vuur wat 'n mens kan verteer. Die langtermyn gevolge is gewoonlik verskriklik – OCD (“Obsessive compulsive disorder”), skisofrenie, fisiese breinskade, e.d.m. Dit bring ook depressie, negatiwiteit, skuldgevoelens, misdaadkompulsie, selfmoordneigings, ens. Dit is inderwaarheid satanies.”
*Wim Pienaar is 'n skuilnaam.
Sy selnommer is 072 592 1482.
The rationale for the existence and functioning of Bloem Water is in line with governmental policy to supply water, as a most basic human commodity, in an affordable manner to every citizen of South Africa.
Against this broad background, Bloem Water (BW) was established in 1991 to serve within the water administrative framework in the country as a Water Service Provider (WSP) in the Central and Southern Free State. As such, BW is purchasing raw water from the Dept. of Water Affairs & Forestry (DWAF) and then supplying and selling treated water to local Municipalities or so-called Water Services Authorities (WSA) in its service area. The latter in turn then delivers to end-users.
Bloem Water reports to Parliament via the Minister of Water Affairs & Forestry subject to the provisions of the Public Finance Management Act, 1999 and Water Services Act, 1997.
Operational scope
Having embarked during the mid-nineties on a number of major capital projects to expand its infrastructure capacity, e.g. plants and bulk reticulation works, BW has laid the foundation for the foreseeable future that its client base in its service area does not encounter water shortage problems. These steps led inter alia to expansion of bulk water infrastructure at the Welbedacht Dam in the Caledon River as the main storage dam of BW and supported further by the Knellpoort Dam. Extensions were also undertaken at the Rustfontein Dam in the Botshabelo and Thaba Nchu areas.
In 2000 the operational scope of Bloem Water was broadened to include amongst others the Ukhaklamba District in the Eastern Cape Province. With municipalities being its main clients, the current consumer groups of Bloem Water consists of Greater Bloemfontein, Dewetsdorp, Botshabelo, Grootvlei Prison, De Brug Military Site, Country Bird Chicken Farm, Thaba Nchu, Reddersburg, Edenburg, Bethulie, Trompsburg, Springfontein, Wepener, Gariep Dam, Philippolis and individual farmers.
To do this distribution, the primary BW clients are the Local Municipalities of Mangaung, Kopanong, Naledi and Mantsopa. As for the Mangaung Local Municipality, it obtains 69% of its water from BW, the remaining 31% being obtained from its own storage dam at Maselspoort.
Bloem Water's principal business is to provide cost effective and quality water as follows:
• Purified water in bulk to WSA's and other institutions.
• Unpurified (raw) water, in bulk to WSA's.
• Purified water to end consumers where necessary.
BW is, moreover, positioned to provide water-related services beyond traditional bulk water provision encompassing elements such as effluent treatment and disposal where necessary, reticulation, sanitation, catchment management, water quality reporting and other related consulting services.
The chalenge of affordable water
Against this background of its operational scope, the challenge of the key contribution by BW to the provision of affordable water could be explained in this feature.
The basic principle is that the only source of income of BW is revenue from water sales and that against this income all expenditure has to be calculated. This calculation has to be done in such a way that BW is able to fulfill its role as WSP in the supply chain between DWAF and the WSA's, and that the end-user is serviced with affordable water, i.e. below the general inflationary level.
This makes the annual revised tariff structure of BW the crucial element in its operational set-up. The challenge thus is to produce a budgeted tariff structure year by year complying with the requirements of affordable water. This can best be understood if the structure on which the calculation of tariffs is based, is seen as follows in perspective according to the graph to the left.
Top of the log is the Capital levy being utilized to repay loans for capital projects implemented from the inception of BW to develop essential infrastructure. Capital assets include 7 plants in operation, 20 pump stations, 33 reservoirs, 7 dams and a total pipeline length of 630 km. The capital levy is adjustable.
Next is the Capex program with Capex an abbreviation for Capital Expenditure Program. This program is drawn up in such a way that the funds will be available when the projects are due to start. As details are refined, figures might differ from the original estimated cost regarding the total project cost. The Capex is therefore merely an indication of what lies ahead concerning the estimated project costs for the next five years. The purpose of the Capex program is to plan and make proper preparations for the funds needed for the different projects that come about with specific reference to tariffs.
Then follows Operations & Maintenance, which cover expenditure of items such as chemicals, electricity, salaries, infrastructural maintenance, etc. and comprising in total about 10% of the budget of Bloem Water. These are fixed and have little leverage for adjustment.
Next again is Loans, which derive from R80 million borrowed from DWAF, followed by a further R300 million borrowed from the Development Bank of Southern Africa (DBSA) and other banks. This is also a fixed item.
Lastly is cost for buying raw water from DWAF. The going rate of some R0,18 / kiloliter is also rather fixed and non-negotiable. BW purchases in excess of 40 million kl of water annually from DWAF.
The annual turnover of BW is approximately R180 million, with the operating profit about R67 million and total income exceeding total expenditure with some R1,7 million.
This all adds up that the annual rise in the tariffs of BW is between 5% and 6% - well within the inflation rate.
Other salient features of tariff structure
BW purchases raw water from DWAF at about R0,18 / kl and then sells treated water to municipalities (WSA's) at R1,80 / kl.
Municipalities (WSA's) provide first 6 kl free of charge to end consumers in accordance with the government's policy of free basic water, with water more than that charged for on a sliding-scale as determined by each Municipality.
The tariffs of BW and those of the Municipalities within its area of jurisdiction is highly competitive in comparison with tariffs in the rest of SA – as such it could indeed by all accounts be rated as affordable water.
Whilst BW can calculate tariffs only in accordance with its sales of water, Municipalities on the other hand dispose of other revenue sources, such as electricity sales, taxes, etc. to cover its expenditure side.
The turnover of BW per annum is about R180 million, or R15 million per month.
BW sells about 48 million kl of water per annum – a figure showing a 1% increase p.a., which is regarded as relatively healthy.
BW cannot count on 100% payment by its WSA's – for instance Kopanong Local Municipality defaulted eight years ago and is currently some R12 million in arrears. This is equal to 6,7 million kl of annual sales of water or 14% of BW’s total sales which equates to loans for one year for Capex.
Therefore in its budgeting, BW cannot afford to work on a break-even point – it has to budget sufficiently for covering the unforeseeable.
Conclusion
From the aforegoing it is clear that for the following reasons the position and function of BW is essential in order for consumers in its area of jurisdiction to eventually receive and pay for the affordable water:
The infrastructure – storage dams, reticulation plants, pipelines, etc. – which BW has to operate and maintain between DWAF and the WSA's is so sophisticated and extensive that only BW has the expertise and capacity in the particular region to operate.
The success which BW has achieved in terms of its vision and mission over the past 11 years is simply due to sound financial management of limited financial resources. There has been potential growing pains, but notwithstanding, the Bloem Water ship has been steered on course towards effective affordable water.
According to its statuary framework, BW is not allowed to make profit, but simply to break even. BW in any case has no redundant funds at its disposal. What could be described as profit, is being ploughed back into the Capex program and / or is utilized to keep water tariffs within inflation.
BW has also managed to keep the basic commodity of water out of the political arena and not allow it to become a political football. Water to BW remains a commodity to be well-managed and affordably supplied to every citizen within its service area.
By all accounts BW can point to a track record to be proud of, with due modesty.
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