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Projects to promote Local Economic Development (LED) are being launched in the Free State by municipalities, provincial government departments and other developmental agencies. But what become of these projects once they are launched and how successful is LED in the province?
In a joint report submitted by Rhodes University, the Human Sciences Research Council (HSRC) and the University of the Free State to the Premier's Economic Advisory Council of the Free State, it is stated that although LED as a concept has become well established in the Free State, there are challenges that are making successful implementation difficult. The problem areas seem to include shortages of funds, staff, skills and resources, particularly at local government level.
According to Mr. Lochner Marais of the Centre for Development Support at the University of the Free State, there is too much emphasis on LED projects while too little time is spent in analysing the local business environment. “The projects do not necessarily address economic development. Projects seldom lead to a functional viable business, although they have other benefits, for example poverty relief.”
Marais says that too many new projects or businesses are being launched. “About 70% - 80% of these businesses fail in any case and therefore the focus should rather be on the improvement of existing businesses and projects.”
Another problem Marais mentions is that municipalities make decisions without looking at the implications for the local economy. “Generally speaking, municipalities in the Free State, except for Mangaung, isn't geared for LED.” This is also stated in a report on LED in the Free State by the HSRC, which concludes that “municipalities' relationships with the business community are characterised by animosity, mistrust and mutual allegations of racism. By implication this makes co-operation to promote economic development almost impossible.”
Other challenges include regulations inhibiting the process of development and lack of consultation with local businesses. Moreover, the fact that big companies do not have offices in the Free State also inhibits LED. Smaller businesses don't have enough money to fund LED and the bigger companies do not have an emotional commitment to the Free State.
As for the involvement of local businesses, Marais says this is still lacking because people don't realise the desperation of the situation. “Businesses only want to make money, they don't want to take responsibility for their communities.” He feels that Free State businesses should get involved in skills development and reach out to municipalities. “They must reach across political barriers and incorporate the black business sector. People must think bigger than their own businesses. “LED should be the responsibility of the chambers of commerce, agriculture, the public sector and businesses in the Free State,” Marais concludes.
An Economic Regeneration Summit for the Lejweleputswa district, held on 3-4 February 2005 at the conference centre of the Kingdom Ministries at Welkom, was attended by some 400 persons. Some of the dignitaries attending: Mr. Sello Sefuthi (Lejweleputswa DM MMC for LED), Mr. Laurence Ntlokoa (Umsombomvu Youth Fund), Ms. Thembeka Mhleka (Dept. of Tourism, Environmental and Economic Affairs), Cll. Teboho Thosala (MMC CSOSD), Ms. Mathabo Mokapo (Lejweleputswa DM Executive Mayor), Mr. Lemmy Mule (Procurement Marketing Consultancy) and Ms. Dorcas Motshabi(MMC for Health - District Council).
Background
After 10 years of democracy one of the major challenges facing government, is addressing a housing backlog affecting 2,4 million households. In part, this is the result of, firstly, an average population growth of 2,1 % per annum, which over five years caused a population increase of 10,4% or over 4,2 million people; and secondly, a 30% increase in the absolute number of households, which meant a 20% greater demand for housing than had been previously projected.
Added to these, one fifth of current urban residents are new-comers to urban areas - a figure is expected to grow at 2,7% per annum.
Thus, despite a delivery of 1,6 million houses over the past 10 years, the national Department of Housing ran into an increase in the housing backlog from the 1990's. These and other circumstances demanded a new response to the housing challenge for the next 10 years.
Sustainable Human Settlements Plan
This led to the adoption of the Human Settlements Plan by Cabinet, as proposed by the Dept. of Housing, in terms of which inter alia all informal settlements in South Africa is to be upgraded by 2025 into quality, serviced and sustainable human settlements. Thus the Plan provides for all South Africans an opportunity to access homes in well-located, designed and serviced areas. At the same time the Plan is designed to accelerate the delivery of housing as a key strategy for poverty alleviation and major job creation. As the Plan, also, is to impact in a major way on the Free State province once implementation is in full swing. The basic lines of the Plan is sketched herewith for public and developmental information purposes. The new subsidy bands to come into force as from 1 April 2005, would be as follows:
The Plan prioritizes the development and provision of quality housing as opposed to quantity. This is a non-negotiable principle and the National Home Builders Registration Council (NHBRC) is the institution developed to ensure that this approach is enforced. Other set objectives of the Plan include bringing workers closer to work, upgrading of hostels, employer - assisted housing and transfer of old government houses to people.
Rounding up informal settlements
With the implementation of the Plan, disadvantaged communities will begin to have access to essential services, greater choice in the type of housing and, more importantly, a better life. The objective is to ensure that in 10 years, many of the informal settlements would have been replaced with formal housing structures. This is a new phased developmental approach that will firstly address emergency services and shelter needs, and ultimately deliver full service to people living in informal areas. As for the Free State, the Grassland informal settlement at Mangaung has been identified as a pilot project for Informal Settlement Upgrading. For development purposes, the previous informal settlements area had been sub-divided into seven sub-areas, viz. JB Mafora 2, Kagisanong Ext. 5, Turflaagte 2, Isithwalandwe, Turflaagte 1, JB Mafora 1 and Chris Hani 3, each with a designated private developer.
Through the various subsidy programmes under the Reconstruction Development Programme about 7250 houses had to be built in the year 2004 and 2005 within Manguang Municipality's areas of Rodenbeck, Turflaagte, Mafora, Thaba Nchu and Botshabelo. However, due to various problems and constraints only less than half of these designated houses have been built.
FS Strategic Housing Plan for 2005
The Dept. of Local Government & Housing has formulated a Plan for its human settlement development programme which includes strategic objectives, housing planning research, housing performance subsidies, urban renewal and housing asset management.
Within this ambit the department is required to target 71 675 households to receive allocated funds of R398 908 375, 80 for the years 2005 to 2006. The expected outcomes
• Negotiate and acquire land in June 2005.
• Alienation and town registry opening June 2006
• Infrastructure installation by June 2006
• Housing construction June 2006
• Socio-economic facility construction by November 2006
These objectives are in line with directives from National Government.
Partnerships
Crucial to the success of the Sustainable human Settlement Plan, in the Free State, is effective partnerships not only between government and the public, but pertinently also between government and the private sector - notably the financial and construction sectors. To this end, the Dept. of Local Government & Housing would welcome proposals and inputs from roleplayers and stakeholders in the Free State.
Sneller vir ekonomiese ontwikkeling in Bethlehem
In Bethlehem as hoofdorp van die Oos- Vrystaat is opwindende nuwe ontwikkelings besig om plaas te vind en is die aanduidings dat die plaaslike ekonomie in n sterk opwaartse fase is.
Die Vrystaat Sake Bulletin het die dorp besoek en bied in hierdie oorsig 'n sleutelgatkykie op wat tans te Bethlehem plaasvind en wat die dorp bied vir entrepreneurs en beleggers.
Die georganiseerde besigheidsinstansie te Bethlehem is die Hoogland Besigheidsforum wat optree as sakestem vir besigheid in die Dihlabeng munisipale gebied.
Die voorsitter van die Hoogland Besigheidsforum (HBF), me. Rina Swanepoel, het aan die Vrystaat Sake Bulletin gesê dat die HBF is meer as ooit oorgehaal om te dien as sneller vir 'n sterk ekonomiese groeifase in Bethlehem. Sy sê bo en behalwe die huidige opwindende nuwe ontwikkelings wat op die dorp manifesteer, is omstandighede gevestig vir verdere versnelde groei.
In hierdie verband is gunstige faktore o.m. die feit dat twee-derdes van die besteebare inkomste van die dorpe rondom Bethlehem op Bethlehem gespandeer word. 'n Ander faktor is dat in die lig daarvan dat die omliggende landbousektor die “goud” van Bethlehem is, die boerderybedryf klimaatsgewys tans 'n uitstekende seisoen beleef.
Sy sê wat ook sterk positief is, is die goeie gesindheid en oop-deur houding wat die HBF van die kant van die Dihlabeng Plaaslike Raad ontvang.
Swanepoel sê die HBF is gerat om aan enige voornemende entrepreneurs en beleggers maksimum bystand te verleen en daarvoor kan die kantoor by (058) 303 6553 geskakel word, of syself by 083 630 6968.
Bethlehem something for everyone
Bethlehem, situated against the magnificent scenery of the Eastern Free State, was founded in 1864 on the farm Pretoriuskloof. Its Biblical name means “House of Bread”, which is most appropriate as it forms the centre of a fertile wheat-growing region. Today the town is an interesting mix of old and new. The early settlers hewed the warm-coloured local sandstone to create a proud legacy of buildings, many of which are proclaimed monuments like the Dutch Reformed Mother Church, the Strapp Building, the Town Hall/Civic Centre and St Augustines Anglican Church.
The beauty found in the wealth from the past is continued in the quality lifestyle of the present Bethlehem. This is reflected in the spacious parks, stylish gardens and homes, clear water streams and pure air and the flourishing of art and music. Browse in upmarket boutiques or gift and craft shops with a more local flavour.
Bethlehem as the capital town of the Eastern Free State, is a major agricultural, administrative and educational centre.
The current total population of the town is estimated at 180 000 - 25 000 in Bethlehem proper, 15 200 in Bohlokong and 3 000 in Bakenpark. The town boasts a technical college, a number of primary and high schools, some of which are tops in the Free State, plus a private and a special school. All the country's leading chain stores are represented here.
Mealtimes are a treat with a choice of excellent restaurants and coffee shops. Accommodation includes about 38 guesthouses both in town and on nearby farms, catering for every wish, as well as exquisite guest and game farms in the surrounding area.
With an Olympic-size swimming pool, 18-hole golf course, three vast lakes for watersport, provincial cricket matches and national cycling and hot-air ballooning events, the action does not stop. Apart from sporting events, Bethlehem offers a bustling social calender. The annual Wheat Festival offers fun for all and pulls the crowds with street parades, an open-air market and a playground fair.
Situated in one of the most fertile areas in the country, agriculture and the accompanying industries prosper in and around Bethlehem. The region produces 65% of the country's total wheat crop. Sasko's eight-storey flour mill is the largest in the country and one of the most modern in the Southern Hemisphere. Bethlehem, including its industrial area Groenvoerlande, abounds with agricultural-related businesses.
The Loch Athlone holiday resort and bird sanctuary on the banks of the Jordaan River is a must visit, while in the Wolhuterskop Game Reserve on the outskirts of town an abundance of wildlife is found. Whether you are game viewing by car or following the hiking trail, you will see large numbers of zebras, rooihartebees, eland, spingbuck, rooibuck, black wildebees and many other antelope species.
Easy day trips from Bethlehem to the nearby Maluti and Witteberg mountain regions, including the world-famous Golden Gate Park, is a shifting of shapes and colours.
Small wonder then that in 2004 the magazine FHM voted Bethlehem as the town in South Africa where people would most like to spend a weekend. Mossel Bay was second and Hazyview third.
Bethlehem is jaarliks die gasheer van een van die top lugskoue in die land en sekerlik die grootste in die sentrale binneland. As sulks bring duisende nasionale en internasionale deelnemers en toeskouers met alles wat hulle plaaslik spandeer, 'n ekonomiese inspuiting vir die dorp en omgewing.
Die lugskou, wat gepaardgaan met die SA Warmlugballonkampioenskappe, word vanjaar 2-7 Mei gehou.
Bethlehem is 17 jaar al die gasheerdorp vir die jaarlikse Suid-Afrikaanse warmlugballon-kampioenskap en die Dihlabeng-munisipaliteit is ook 'n borg vir die kampioenskap.
Die organiserende komitee verwag 'n hele paar nuwe vliegtuie wat van die buiteland vir die eerste keer na Suid-Afrika kom. Onderhandelings met die SA Lugmag om met volle sterkte aan die lugskou deel te neem, vorder goed. In 2004 het 28 vliegtuie 32 vertonings gelewer en vanjaar gaan meer vliegtuie meer vertonings lewer.
'n Nuutjie vanjaar is die nuwe terreinuitleg van die vliegveld as gevolg van die belangstelling van talle nuwe gehalte-uitstallers.
Mense wat belang stel om deel te wees van die uitstallings kan me. Anita Henning by (058) 303 5115 bel.
Algemene navrae oor die lugskou kan aan Stephan Fourie by (058) 303 6862 gerig word.Bethlehem is jaarliks die gasheer van een van die top lugskoue in die land en sekerlik die grootste in die sentrale binneland. As sulks bring duisende nasionale en internasionale deelnemers en toeskouers met alles wat hulle plaaslik spandeer, 'n ekonomiese inspuiting vir die dorp en omgewing.
Die lugskou, wat gepaardgaan met die SA Warmlugballonkampioenskappe, word vanjaar 2-7 Mei gehou.
Bethlehem is 17 jaar al die gasheerdorp vir die jaarlikse Suid-Afrikaanse warmlugballon-kampioenskap en die Dihlabeng-munisipaliteit is ook 'n borg vir die kampioenskap.
Die organiserende komitee verwag 'n hele paar nuwe vliegtuie wat van die buiteland vir die eerste keer na Suid-Afrika kom. Onderhandelings met die SA Lugmag om met volle sterkte aan die lugskou deel te neem, vorder goed. In 2004 het 28 vliegtuie 32 vertonings gelewer en vanjaar gaan meer vliegtuie meer vertonings lewer.
'n Nuutjie vanjaar is die nuwe terreinuitleg van die vliegveld as gevolg van die belangstelling van talle nuwe gehalte-uitstallers.
Mense wat belang stel om deel te wees van die uitstallings kan me. Anita Henning by (058) 303 5115 bel.
According to the chairperson of the Bethlehem Tourism Committee, Mr. Pieter Olivier, new objectives for the development of local tourism have been set. The Committee forms part, together with similar committees for the other four towns in the municipal area, the Dihlabeng Tourism Forum.
Olivier says one of the main steps planned is the opening of a private sectorly driven tourism and business information centre situated at the Municipal complex. The office is to be a partnership between the Tourism Committee, the Highlands Business Forum and a private entrepreneur.
Other objectives include a sustained drive to blend the restoration of old buildings into new development projects, big or small; better marketing of the tourism strengths of Bethlehem; and a co-ordinated calender of annual events in and around the town. On the photo right, members of the Bethlehem Tourism Committee, from left Rina Swanepoel ( HBF), Fanyana Taioe (local guesthouse owner), Dr. Clem Harrington (HBF), Pieter Olivier (Chairperson) and Teresa Momsen (events organiser).
He heeded the entrepreneurial voice inside him and in September 2004 opened Thuthukani Guesthouse in Bohlokong at Bethlehem. Well-laid out, well furnished, well serviced. Safe. Wants to earn a living form his own enterprise with good growth prospects. That is Fanyana Taioe.
When visiting Bethlehem to gather information on this special feature on the Highland Business Forum, Taioe was one of the businesspeople we met with. He also took an advertisement in the feature.
In this day and age with so much talk about job creation and social advancement, Taioe is a case in point. Somebody in the private sector not waiting for something to be done for him, but getting up and get going himself. To us that's the way to go.
However, in the conversation with Taioe he mentioned incidentally and by the way that as regards his guesthouse enterprise “the government people support me, but no leisure tourist has as yet visited us.”
That is another case in point - black entrepreneurs pulling themselves up by their own bootstrings and are worth their salt, need to be better supported and synergised by the mainstream economy. Of course it also concerns a question of marketing, but do you get our point?
Having consulted with the local business community at Bethlehem not very wide, but nevertheless representative it is evident to the Free State Business Bulletin that the main town in the Eastern Free State is experiencing some exciting economic growth, with huge potential for further expansion and development. Bethlehem is indeed by all criteria a fine investment prospect.
There are, however, also evidently constraints, like a high unemployment rate, a lot of squatting, a measure of instability in the leadership to be expected from the Dihlabeng Local Council, infrastructure maintenance and supply that is not always what it should be and, as everywhere, sometimes too much pursuit of self-interest amongst roleplayers.
Against this background, the following points would be dotted down as constructive challenges facing economic and business growth and social advancement at Bethlehem:
•Creation of more agro-processing industries the district of Bethlehem has an abundance of raw agricultural produce, but these need to be beneficiated locally through job-creating, value-adding industries. In this way unemployment could be addressed tangibly.
•The business sector should unite more strongly and plan accordingly. For this the Highland Business Forum is the existing, logical instrument, but the Forum needs to be strengthened and expanded much more, whilst more definite business growth objectives should be set and pursued.
•Without judging anybody or anything, it remains a foregone conclusion that if the political municipal leaders (mostly black) and the business leadership (mostly white) do not cooperate and synergise effectively, optimal development of the local economy will not be achieved.
•Balanced physical development of and in Bethlehem is needed, i.e. at and in all areas and communities of greater Bethlehem. In this the salient character of the town with its architectural and cultural heritage should be maintained and extended.
•The tourism sector in its various facets has still large untapped potential, also as regards linking up with the rest of the Eastern Free State.
•The water from the Lesotho Highlands Water Scheme passing through Bethlehem via the Ash River and Liebenbergsvlei Spruit towards Gauteng, can be utilised industrial as well as tourism-wise, much better.
•Another specific potential development project: Research and planning for a hydro power station at the Saulspoort Dam (Sol Plaatjie) is in an advanced stage and if this could be realised, possibly with Dutch investors having showed interest already, it could open a whole new development avenue.
At a media briefing prior to the opening of the Free State Legislature, the Speaker of the Free State, Mxolisi Dukwana,set the tone for the 2005 Session of the Legislature by stating: "The vision of the Free State Legislature is to create an institution wich upholds the Constitution in an effort to promote governance through participatory democracy.
"This is key in our programme for this year. We are going to embark on a massive public participation and education campaign and we believe we can achieve these by taking the Legislature to the people of our province.
"Therefore the Free State Legislature intends to have its sittings in various parts of the province. This is in view of the inability for our people to attend the sittings in Bloemfontein and is in line with our 'Doors of Parliament have been opened to all' campaign.”
Premier opening '05 Legislature Highlights
In opening the 2005 Session of the Free State Legislature on 18 February 2005, the Premier, Ms. Beatrice Marshoff, highlighted inter alia the following:
"Government, through the Department of Safety, Security and Liaison and the SAPS will, among others, embark on a campaign to popularise the Service Charter for Victims of Crime within the Province.
On education we have committed ourselves to various challenges confronted by especially learners in disadvantaged rural communities. This is in line with our commitment that no child will be denied an opportunity quality education.
A Policy Co-ordination, Monitoring and Evaluation Unit has been established in the Department of the Premier to advise on and monitor the implementation of government policies and programmes.
We identified areas of intervention that would enable us to stimulate economic growth and development:
• Restructuring of the FDC;
• Establishment of the Tourism Authority;
• Formulation of the Free State Growth and Development Strategy;
• Implementation of the Urban Renewal Plan;
• Petro-chemical down-streaming;
• Gold jewellery manufacturing.
The economic growth and development of our province is intrinsically linked to skills development. The enrolment statistics show that we can definitely make a difference by providing the skills required by the economy and building capacity to encourage self-employment.
Local Government poses the biggest challenge for service delivery in the Province. It is the single area where the greatest risk is to be found as a result of inadequate municipal capacity for delivery. The provincial government will implement the intervention strategy Project Consolidate, a programme that is aimed at finding new, creative and practical ways of supporting and working with local government.
The recently established Premier's Coordinating Council will play a critical role in identifying priorities to enable accelerated service delivery.
The imperative of infrastructure development compels us to initiate the development of a comprehensive Provincial Integrated Infrastructure Plan that will cover such developmental issues as roads, transport, schools, housing, water, sanitation and other infrastructural imperatives.
We will continue to improve access to quality health services by, among others, improving the infrastructure and facilities through the Hospital Revitilisation Programme and the Clinic Upgrading and Improvement Programme.
For the year 2005/2006 R25 million has been allocated for the construction, upgrading and maintenance of buildings including 12 new libraries.
The Municipal Infrastructure Grant allocation for 2005/2006 amounting to R349 million will be utilized to accelerate the infrastructure delivery in the Province to render basic services.
With the assistance of the FDC the Province will be embarking on the development of a logistical hub pilot project in Harrismith. This Public Private Partnership investment will bring a capital injection of R400 million and with the multiplier effect, a net effect on the economy of ± R1,6 billion over 5 years, and creation of 3 000 new jobs in construction, warehousing, tourism, housing and retail.
Given the envelope of infrastructure spend we will be making sure that we address BEE for women, the youth and the disabled.
It is our duty as the Free State to ensure that this province positions and markets itself as an ideal investment destination within South Africa. This calls inter alia for the urgent finalization of the Free State Provincial Growth and Development Strategy as well as the Provincial Spatial Development Framework.
Last year we announced that the Free State Province will focus on the agro-industry as one of the key drivers of our provincial economy. Since then we have consulted with a large number of stakeholders with the aim of identifying high impact projects.
Identifying the problem in SA
Lack of service delivery in its various facets has been duly noted and recognized by all spheres of government in South Africa - from national down to provincial and municipal levels. Notwithstanding considerable progress in the delivery of services during the past 10 years of democracy, a backlog in service delivery exists in most municipalities across SA.
In his 2005 State of the Nation Address, Pres. Thabo Mbeki emphasized the need to “… improve the management, organizational and technical capacities of government so that it meets its objectives.”
Within this context the Minister for Provincial and Local Government, Mr. Sydney Mufamadi, announced special measures to revitalise ailing municipalities in the country. Launching Project Consolidate, the Minister said that despite enormous strides in tackling poverty and providing basic services, there were still a substantial number of households without access to electricity, adequate sanitation or clean drinkable water.
In her State of the Province Address on 18 February 2005, the Premier of the Free State, Ms. Beatrice Marshoff, stated inter alia : “Local Government poses the biggest challenge for service delivery in the Province. It is the single area where the greatest risk is to be found as a result of inadequate municipal capacity for delivery. Consequently the provincial government will implement the intervention strategy Project Consolidate, a programme aimed at finding new, creative and practical ways of supporting and working with local government.”
It is against this background that in this special feature the Free state Dept. of Local Government & Housing, as the Department primarily responsible for overseeing service delivery at municipal level and for implementing Project Consolidate in the Free State, in conjunction with other Departments and roleplayers, wishes to disseminate relevant public information. This information concerns the problem of service delivery at municipal level in the Free State and how it is being addressed through Project Consolidate.
Addressing the problem through Project Consolidate
Nationally
In starting to address the problem, the national Dept. of Provincial and Local Government analysed all 284 municipalities in South Africa, looking at critical service delivery indicators and diagnosing the main problems and bottlenecks. As a result, the department has developed what it calls a “hands-on engagement…to address the main challenges, by focusing on capacity building and support to 136 priority municipalities”.
This should deepen the thrust and impact of existing policies and programmes directed at local government over the next two years and should allow national and provincial government, together with key partners in the private sector, to find new, creative and practical ways of supporting and working with local government.
The primary focus is on areas requiring immediate and direct action. Teams have been deployed to work at municipal level to assist in addressing practical issues of service delivery and local governance. Specific areas include indigent policy, free basic services, billing systems and municipal debt as well as local economic development, performance management and public participation.
An important element of Project Consolidate is focusing on the billing problems in municipalities, bringing together established and prospective service providers. In this respect, Mr. Mufamadi observed : “Municipal billing systems have come to occupy a unique position in our new system of developmental local governance. They are, in an important sense, the cement that holds together the compact between residents and their local government.”
Free State
As to the Free State, Premier Marshoff in her 2005 State of the Province Address envisaged : “To emphasize our commitment to service delivery at local government level, we will be undertaking the following measures to ensure that Project Consolidate is a success:
a.A Provincial Working Group has been established which will oversee the implementation of Project Consolidate and the Municipal Infrastructural Grant (MIG). Myself and the MEC's of Local Government and Housing, Social Development and Public Works, Roads and transport lead this advisory Group.
b.The provincial launch of Project Consolidate will take place before the end of March 2005. The success of the project depends on the consultation we will undertake with all 12 municipalities affected. Therefore a Cluster of MEC's and senior civil servants will undertake service delivery imbizo's in all identified 13 municipalities between March and April 2005.
c.The Department of the Premier will hold imbizo's with the private sector, civil society, the NGO sector, parastatals, donor agencies and stakeholders to solicit their support and commitment to the success of Project Consolidate. This consultative imbizo will be part of the provincial rollout process of the Project Consolidate.
d.The Provincial Executive Council will ensure that the existing monitoring and evaluation systems are strengthened for the continuous evaluation of the performance and impact of Project Consolidate.
The Premier then mentioned : “The Municipal Infrastructure Grant allocation for 2005/2006 amounting to R349 million will be utilized to accelerate the infrastructure delivery in the Province to render basic services. The amount will be allocated directly to district and local municipalities. Among others this investment in infrastructure will stimulate local economic development and job creation in the various communities across our province.”
Within the ambit of Project Consolidate, two other government intervention programmes are being run, namely the Municipal Infrastructure Grant (MIG) and the Community Development Workers' Programme. MIG is a national public infrastructure investment to deal with the provision of basic infrastructure services, while Provincial Infrastructure Grants (PIG) is a provincial intervention on the basic infrastructure backlog to supplement MIG. The Community Development Workers Programme (CDWP) is aimed at ensuring that communities access services provided by government and that they are actively involved in development initiatives. This programme is DBSA funded.
Implementing Project Consolidate in the Free State
In the Free State, the Dept. of Local Government & Housing, in conjunction with the national Dept. of provincial Government & Housing, together with other stakeholders, identified the following 11 Local Municipalities and one District Municipality as experiencing the most acute service delivery shortfalls in varying ways :
Maluti-A-Phofung LM
Phumelela LM
Setsoto LM
Tswelopele LM
Tokologo LM
Kopanong LM
Mohokare LM
Matjhabeng LM
Moqhaka LM
Naledi LM
Nala LM
Xhariep LM
During this time civic protests occurred over the last seven months, started in Harrismith and spreading to other municipalities: Phumelela, Dihlabeng, Masilonyana, Mohokare, Matjhabeng, Metsimaholo, Setsoto and others. Concerns revolve around poor service delivery, lack of employment opportunities, housing, non-involvement of communities in municipal governance, allocation of tenders and alleged corruption.
The measure of support needed by these Municipalities in certain specified focus areas according to set criteria is illustrated in the diagram below :
Progress
At the end of January 2005 the progress monitored at these 12 Municipalities stood as follows :
1. Maluti-a-Phofung allocation is R37,6 million and expenditure is R21,4 million, equivalent to 57,1%
2. Phumelela allocation is R13,3 million and expenditure is R7,8 million, equivalent to 58,3%
3. Xhariep District allocation R9,6 million and expenditure is R6,3 million, equivalent to 65,8%
4. Kopanong allocation is R2,2 million and expenditure R1,6 million equivalent to 74,3%
5. Mohokare allocation is R4,4 million and expenditure is R3,7 million, equivalent to 84,6%
6. Matjhabeng allocation R50,2 million and expenditure is R14,8 million, equivalent to 29,4%
7. Tswelopele allocation R4,3 million and expenditure is R4,3 million, equivalent to 100%
8. Tokologo allocation is R4,2 million and expenditure is R479 452.00, equivalent to 11,4%
9. Moqhaka allocation is R19,5 and expenditure is R5,4 million, equivalent to 27,5%
10. Setsoto allocation is R13,7 million and expenditure is R4,2 million, equivalent to 30,6%
11. Naledi allocation is R1,5 million and expenditure is R431 259.00, equivalent to 28,4%
12. Nala allocation is R4,7 million and expenditure is R2,9 million, equivalent to 62,1%
Thus out of the 12 municipalities, five were below 50% expenditure rate as on 31 January 2005.
Therefore the intervening support of the Dept. of Local Government & Housing is prioritizing these factual situations.
The figures for February 2005 are still being pressed at the time of going to print of this feature.
Progress made in various support nodes
PIG
R7.6 million of the Provincial Infrastructure Grant (PIG) has been allocated to four (Phumelela, Moqhaka, Tokologo and Maluti-a-Phofung) of the selected 12 municipalities to implement infrastructural projects. These projects are :
• Upgrading of gravel roads and storm water
• Water reticulation
• Upgrading of purification works and installation of high mast lights
• Surveying and development of an infrastructure layout plan
• Procurement processes have started
MICBG
Selected municipalities were given R4,5 million from the Municipal Infrastructure Capacity Building Grant (MICBG) for maintenance and operation of their water and sanitation treatment plants, namely Moqhaka, Phumelela, Maluti-a-Phofung, Tokologo, Kopanong, Setsoto, Matjhabeng and Mohokare.
CSIR
The CSIR has been enlisted to assist selected municipalities to deal with immediate challenges related to management of works e.g. determination of operational needs, development of crisis intervention action plans, training to enhance plants optimisation and provision of ongoing technical advice.
Moreover, municipalities have been visited by CSIR during the week of 31 January - 4 February 2005 to conduct functional assessment interviews, site visits to water and waste water treatment facilities and interactions with on-site staff. Immediate operational needs have been determined and are currently being acted upon.
Technicians
Resources have been provided to enlist three technicians (water and sanitation) for Phumelela and Naledi Local Municipalities on a 12 months contract period as these municipalities experience acute staff shortages in their technical departments. Recruitment processes have started.
Other progress
In partnership with the DBSA starting on 11 February 2005, selected municipalities are being assisted in developing their Housing Sector Plans and implementation of Performance Management Systems.
Phumelela Local Municipality is supported in conducting a comprehensive Section 78 process on water and sanitation as required by the Municipal Systems Act (MSA). The project started on 11 February 2005.
District Implementation task teams (comprising reps from critical stakeholders - banks, DBSA, SITA, DWAF, SALGAFS) are meeting monthly to indicate additional resources leveraged and take stock of progress made.
Capacity building at the Department
In partnership with ASALGP, a five week project started on 24 January 2005 to develop a capacity building plan for the department that will have a bearing on the refinement of the Project Consolidate Operational Plans: 96 CDW learners have been recruited and will start their training programme on 28 February 2005. Recruitment processes (posters, adverts) for the remaining 225 CDW learners have started first week of February 2005.
Housing
An investigation has been completed on the People Housing Process, resulting in recommendations for a new model. At the same time some identified housing projects have been cancelled and de-committed. The Department is currently working on means of quantifying uncompleted projects in order to determine how much is needed to complete these projects.
All these measures form part of the Sustainable Human Settlements Plan initiated by the national Dept. of Housing aimed at presenting disadvantaged communities access to essential residential services, greater choice in type of housing and, more importantly, a better life.The objective is to replace within 10 years many of the informal settlements with formal housing structures.Also in the Free State a pilot project in Mangaung is already underway, but as this forms a subject of its own, it will be reported on seperately.
Water quality report for FS - February '05
Whereas concerns have been raised regarding the quality of drinking water in the Free State, the quarterly report for February 2005 by the Water Quality Management project as being administered by the Dept. of Local Government and Housing, shows an astounding 98,9% bacteriological compliance against national drinking water standards and that serious concerns regarding drinking water quality only occur at 3 of the 84 towns tested.
These 3 towns are Boshof, Hertzogville and Jagersfontein, where existing problems are, however, being addressed through assistance rendered in terms of MIG. Whilst drinking water challenges no doubt still exist, greater challenges are being posed regarding sanitation, with serious concerns about waste-water works at 9 of 84 towns.
In the Free State, the Dept. of Local Government and Housing's Water Quality Management programme is being used to spear-head the drive to address water services shortcomings. The programme, run with assistance from CSIR and BEE water engineering specialists Emanti Management, is recognised as the only water quality management Best Practice by a provincial government in SA.
Whilst the responsibilities for control of water services (including conformation to minimum norms and standards) are vested principally with District and authorised Local Municipalities, the Free State Dept. of Local Government and Housing has had the foresight to see the value and need of its overseeing an externally based consultative auditing function to assist municipalities. Information gathered from the programme is shared with key water sector stakeholders, including the Departments of Water Affairs and of Health, on a monthly basis via both traditional means and a novel internet accessible data-base system. Importantly, the Dept. of Local Government and Housing uses the information from the project to manage infrastructural and capacity building support to Municipalities, including Project Consolidate initiatives, MIG and Capacity Building Grant allocations.
Way forward
As to a glimpse on the way forward, plans are at an advanced stage with LGWSETA to start water and sanitation learnerships.
The second training programme for remaining 225 CDW learners is due to start later this month.
The establishment of Project Management Unit (PMU) in local municipalities to monitor and fast-track the implementation of MIG is to be finalised soon.
As to mobilising other stakeholders and resources for Project Consolidate, a Provincial Ward Committee Conference is to be held on 25 and 26 March 2005 targeting ward committee members and the developing of an action plan for strengthening ward committees in the province.
Thus Project Consolidate constitutes a mammoth task to raise the standard of service delivery at Municipal level to where it could rightfully expected to be. However Government - national, provincial and local - cannot do it alone. The cooperation, support and synergy in every way from the public as well as the private sector is required to make of Project Consolidate a success and success is in the best interest of everyone concerned.
Call to synergy
It certainly is in a constructive cycle if service delivery is up to standard, the payment situation for services is apt to improve, which in turn means better infrastructure, leading to increased opportunities for business and economic growth, resulting in job creation and raising in standard of living, and so on.
Therefore the Dept. of Local Government & Housing call on all roleplayers and stakeholders involved in service delivery at Municipal level in the Free State to render their full support to Project Consolidate in the best interest of everyone concerned.
Background
Bloem Water was established in 1991 by virtue of the then Water Act (56 of 1956) subsequently changed to the Water Services Act of 1997 and is a Schedule 3 National Government Business Entity. Bloem Water reports to Parliament via the Minister of Water Affairs and Forestry subject to the provisions of the Public Finance Management Act 1999 and Water Services Act 1997. As such Bloem Water was established to administer the sourcing of and supply of water to Bloemfontein, Botshabelo and Thaba Nchu.
During the mid-nineties Bloem Water embarked on a number of major capital projects to expand its infrastructure capacity, e.g. plants and bulk reticulation works, thereby laying the foundation for ensuring that currently and for the foreseeable future its client base in its service area has no water shortage problems. These steps led to the establishment of the Welbedacht Dam in the Caledon River near Wepener as the main dam for its functions, supported further by die Knelpoort, Rustfontein, Groothoek and Maselspoort Dams in ranging capacities, together with several water treatment plants.
In 2000, the function and purposes of Bloem Water were broadened to include in its service area the inhabitants of rural areas, in addition to formal urban areas, while considering further options in terms of service delivery and revenue generation. In 2002 the service area of Bloem Water was extended even further by the Minister to include parts of the Eastern Free State up to the town of Ladybrand and the Ukhahlamba District Municipality in the Eastern Cape Province.
With municipalities being its main clients, the current consumer groups of Bloem Water consist of Greater Bloemfontein, Dewetsdorp, Botshabelo, Grootvlei Prison, De Brug Military Site, Country Bird Chicken Farm, Thaba Nchu, Reddersburg, Edenburg, Bethulie, Trompsburg, Springfontein, Wepener, Gariep town, Philippolis and individual farmers.
Water our product
Bloem Water's principal business is to provide cost effective water related services and guidance to municipalities within its service area, specifically:
The provision of purified water, in bulk, to Water Services Authorities and other institutions in terms of the SABS standard.
The provision of unpurified (raw) water, in bulk, to Water Services Authorities.
Effluent treatment and disposal where necessary.
The provision of purified water to end consumers where necessary.
The right to access of 6 000 litres of water is allocated to each household monthly in accordance with the government's free basic water programme.
Bloem Water is moreover positioned to provide water related services beyond traditional bulk water provision and encompasses elements such as reticulation, sanitation, catchment management, water quality reporting and a range of other related consulting services.
Quality of water
For quality of drinking (potable) water, mainly three considerations stand up front for Bloem Water: health of consumer, estethical acceptability and economic considerations. Monitoring of water quality is conducted by Bloem Water's personnel at the plant, as well as through laboratory services of the University of the Free State, the Mangaung Local Municipality and the Dept. of Health.
Bloem Water can control and manipulate water quality up to the point of delivery, but it cannot control downstream of point of delivery - that is the function of the Municipality concerned as the retail supplier.
Corporate governance
The non-executive board of directors, bringing a wealth of divers expierence as the executive authority of Bloem Water. It is constituted of nine members appointed in a transparent manner by the Minister of Water Affairs and Forestry for a 4-year term of office. Non-executive directors are appointed on the basis of experience, reputation and expertise in their fields of specialization.
The chairperson, Ms. M. Matsabu, provides leadership and guidence to the board while ensuring sound standards for the organisation in line of King II, the Water Services Act, the PFMA and Treasury Regulations.
The Chief Executive Officer of Bloem Water is Mr. Lehlohonolo Pelepele, who is responsible for operations.
Financials and statistics
The annual turnover of Bloem Water is approximately R142 million, with the operating profit about R53 million and the nett profit about R1,7 million.
Volume of water sales (bulk treated, bulk raw, retail) per annum amounts to some 56 million m³. Plants in operation are 7, pumpstations 20, reservoirs 33 and dams 7, utilizing a total pipeline length of 630 km.
Of the total operational expenditure of Bloem Water, about 13% is for electricity, 6% for chemicals, 33% for staff expenditure and 12% for raw water, meaning that in total these items represent 64% of total maintenance and operating expenditure.
BEE, training and employment equity
In terms of its procurement policy Bloem Water conducts training for emerging contractors to ensure the acquisition of experience and the transfer of skills, while promoting black economic empowerment. Allocation of tenders to women and historically disadvantaged individuals is also done on a preferential basis.
Bloem Water conducts employee related training, in accordance with the skills development plan, management development programmes, operator training and literacy training.
An employment equity policy is being applied to ensure that equitable levels of employment are met and to speed up the process of appointing suitably qualified and experienced persons from designated groups through all levels of the organisation.
Social responsibility
Bloem Water maintains high ethical and social standards as embodied in campaigns and social responsibility programmes. Corporate responsibility is considered as a mechanism to plough back into local communities and enhance the standard of living of people.
What is also being undertaken, is community orientated training, i.e. the Bloemfontein Technology Project where Bloem Water donates annual financial assistance to train youth on generic technological related issues.
Bloem Water donates annually from towards a range of anti-HIV/Aids programmes. A number of educational projects were undertaken in the Southern Free State, in consultation with municipalities, with the objective of improving payment of services. Bloem Water also participates in educational and awareness programmes to capacitate communities relating to 20/20 Vision, Arbor Week, Oral Week, Water Week and others.
Bloem Water provides financial support to various sporting events including the Free State cross-country championships and the Bloem Water/UFS marathon.
Young talent has been identified as a result of this event This is a mechanism of re-investing into communities.
Regional and international partnerships
Bloem Water has entered into a number of co-operation agreements and memoranda of association with both regional and international water utilities. The intent of these is to exchange management, financial and other community experiences to the benefit of both utilities.
Further instalments
Flowing from this general bird's eyeview survey of the place and role of Bloem Water, in following editions of the Free State Business Bulletin specific relevant aspects will be highlighted in further instalments.
Mangaung Fresh Produce Market,(MFPM) based in Bloemfontein prides itself in providing with fresh fruits and vegetables at affordable prices. This market is gradually becoming a significant player amongst the economic drivers of the Free State.
The customers of Mangaung Fresh Produce Market include wholesalers, supermarkets, hawkers and private individuals. Presently there is an increase in the number of caterers, event coordinators, and individuals buying from this business.
The market agents ensure that high quality fresh produce is procured from the producers. All producers, including emerging enterprises, are invited to negotiate with the market agents for access to the market trading.
Traders and consumers are invited to visit the market and experience the freshness and healthy lifestyles the business promotes. The trading hours are 05:00 to 10:00 Monday to Friday, and 05:00 to 09:00 on Saturdays. The business is closed on holidays. The security has been upgraded ensuring customer's safe trading.
Since 1999 the turnover increased from R0,1 billion to R0,16 billion, positioning this business as the largest trader of fresh fruits and vegetables in the Free State. The success is due to the increased efforts of our market agents to offer the producers and customers excellent prices, as well as increasing the choice for the customers.
The quality of service, trading environment, management processes and operational systems provide producers and customers with an excellent atmosphere to trade in.
A new strategy to empower small traders, whilst also increasing access to distant customers was initiated through provision of 'steel covers' to hawkers within Mangaung Local Municipality. These hawkers now provide healthy fresh food in line with the standards of health.
For any enquiries, please contact Judy at (051) 433 2989 daily before 13:00.
Finding your way at MFPM
Is as easy as ABC: No cash transactions - use credit facilities
• Creating credit
• Buyers may buy the credit card from the cashier. Only the credit card should be used for transactions.
• After each and every transaction the credit card will show the balance. If necessary, the buyer may approach the cashier for depositing more cash into the credit card account.
• Cancellation of transactions
• Cancellations should be done by the relevant market agent.
• Effected cancellations will reflect as credit reversal on the credit card account.
• Security and safety checks
• All produce leaving the trading floor should be checked by the security - please cooperate.
• Your purchases may be checked for quality - do note that you will not be allowed to leave with inferior produce.
• Complaints
• Complaints should be addressed with affected parties as quickly as possible.
• Management may only be approached if all have failed.
Die markagente
Sout van die aarde, dit is hoe die Vrystaat Sake Bulletin, na jarelange verbintenis, die markagente by die Mangaung Varsproduktemark sou opsom. Almal van hulle het hul kantore by die Mark en dit is waar hulle besigheid doen so van 04:00 op weeksoggende tot so ±12:00.
Almal van hulle is al jare daar - die meeste al dekades lank.
Iets meer van hulle - in alfabetiese volgorde:
• Bloemfontein Algemene Markagentskappe: Met Steve Swanepoel en August de' Andrade as die vennote, bygestaan deur Leon Stoop en Tony Flanigan, bestaan die firma al meer as 26 jaar. Van die produsente wat by hul lewer, soos bv. die Van Aswegens van Bainsvlei, trek al by die derde geslag - oupa, seun en kleinseun! Steve sê hul sterkpunt is persoonlike, flink diens - hulle werk self direk met die produsente en het bv. geen kantoordame nie.
• Modise Market Agency: Die alleeneienaar is Modise Mokgela, bygestaan deur Jozua en Andries Erasmus en Mias - 'n span bekwame markagente met gesamentlik meer as 'n kwarteeu markervaring. Hulle was die eerste swart bemagtigingsmarkagentskap in die land en gaan van krag tot krag. Terwyl hulle groot sowel as klein produsente bedien, spesialiseer hulle in die smoushandel.
• RSA Agents: As deel van 'n landswye onderneming, staan die Mangaung-kantoor onder Dave Oracki, bygestaan deur 'n entoesiastiese en toegewyde span agente en administratiewe personeel. RSA Agente is oorspronklik in 1974 by die Johannesburg Varsproduktemark gestig en het sedertdien stapsgewys landwyd uitgebrei totdat dit die meerderheidsaandeel in die agentskap A.Aboud & Co in Bloemfontein bekom het, wat weer so lank terug as 1901 gestig is.
• Vrystaat Markagentskap: Die huidige eienaar, Dries Naudé, se pa, Charles, het die markagentskap in 1970 begin. Vandag is Dries se seun, Charles jnr., ook in die besigheid, tesame met sy twee susters, Madeleine en Carika. Madeleine se man, David Lindecke, is as agent ook in die besigheid, terwyl Jannie Schwartz die swaer van Dries is en getroud is met Hester, wat ook 'n agent is! Boonop gaan Dries se jongste seun, Eduan, ook nou tot die plaaslike bedryf toetree, hoewel in 'n eie aparte besigheid.
• Subtropico: Subtropico, met hoofkantoor in Johannesburg en 11 nasionale varsproduktemarkte, waarvan Bloemfontein een is, verkoop meer as R380 miljoen se varsprodukte op 'n jaarbasis namens produsente.Die Bloemfontein-span van markagente is al jare saam en vorm 'n hegte eenheid.
Philip van der Berg sê die profiel van die Mangaung Varsproduktemark het die laaste paar jaar verander na oorwegend swart en hiermee het Subtropico deeglik tred gehou met die bemagtiging wat vir smouse verskaf word en die skepping van die eerste SEB markagentsskap in Bloemfontein en in SA, Modise Market Agency.
Doing business
The General Manager of the Mangaung Fresh Produce Market (MFPM), Mr. Ronnie Moleme, told the Free State Business Bulletin that one of the main objectives of the market is to build the local economy and to empower communities. Trading at MFPM is guided by the Market Agents' By-laws as well as those determined by the Mangaung Local Municipality.
Producers may of course choose any market agent they wish to do business with, while the market agents from their side may choose whose products they wish to sell. Sellers and buyers determine the price at which products are sold, taking into consideration the dynamics of the market environment.
Buyers at the Market deal directly with the market agents and it is therefore important that all issues be resolved with the market agent. Any intervention by the Market management will only be as a last resort.
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