Current Edition >> Archive Section >> Special Features >> March 2003
In line with the pledge by the SA Government to take government to the people in order to enhance service delivery and to promote progress, the Department of Tourism, Environmental and Economic Affairs of the Free State Provincial Government has in February 2003 taken the huge step by opening up regional offices in the five regions of the province.
The five regional offices are at :
Phuthaditjhaba for the Thabo Mofutsanyana district (eastern region)
Welkom for the Lejweputswa district (Goldfields region)
Trompsburg for the Xhariep district (southern region)
Sasolburg for the Northern Free State district (northern region)
Bloemfontein for the Motheo district (central region)
Local one-stop
At these regional offices, now fully operational, all the services of the Dept of Tourism, Environmental and Economic Affairs will be available, e.g. SMME services, trade and invest promotion, tourism, conservation, consumer affairs, liquor licensing, etc. Thus people can access these services in their own region under one roof in a one-stop shop situation.
SMME services
However, the emphasis is on SMME services, support and promotion, for the Department is of the view that this is the most developmental function of all. In a province and a country with relative high levels of unemployment and poverty, the biggest source of job creation and the most important stimulator of economic growth, is small, medium and micro enterprises - the SMME sector. As in the developed countries of the world, like the USA and Western Europe, the trend clearly is that more than half of national GGP is being produced by the SMME sector, this is also quite rightfully the target in SA and in the Free State province.
Therefore at the Departmental regional offices all possible support is being given to SMME's and prospective entrepreneurs as regards business registration, financing, marketing, managing, expanding, etc. In this regard it should, however, be pointed out clearly that the Department does not do business itself or provide direct financing - it only creates an enabling environment. The functioning of the Departmental regional offices is of key importance in the compilation of database of all SMME's in the Free State province to be backed-up by:
Develop and maintain a database of all SMME Service Providers in the Free State.
Develop a provincial plan for the rolling out of support institutions.
Develop an infrastructure for linking SMME's with provincial and national networking.
As far as SMME development is concerned, what would also be of critical significance, is that there should be a move towards manufacturing as the strongest beneficiator to the economic process; the importance of supporting local suppliers; and an emphasis on quality in both service and product.
Wider networking
In providing services at the Departmental regional offices, the Department is linking up with a network of other developmental agencies and roleplayers - on local, provincial, national and even international level. This implies that districts municipalities and DTI development agencies (TEO, NPI, NTSIKA, KHULA, BRAIN, NAMAC, SABS, CSIR, and others) all link-up with the regional offices to provide a proper and effective-service to the people at grassroots level. More importantly, partnerships are being forged with key roleplayers in the SMME sector, in the private sector and other strategic partners within Government departments.
Key strategies
The key strategies to be followed are :
Strengthening the competitive advantage of the Free State Province.
Promoting the creation and expansion of SMME's.
Increasing the diversifying of the agricultural sector (agro-processing).
Increasing the tourism market share and investment in the economy.
Adding value to viable mining products and petrochemicals.
Sustaining a viable industry.
Developing and expanding the transport and distribution industry (expansion of warehousing).
Overall vision
At the opening of the regional offices, the MEC for Tourism, Environmental and Economic Affairs, Mr Sakhiwe Belot, spelt out the overall vision of his Department as follows :
The vision of the Free State Provincial Government is to develop a sustainable, growing, accessible, affordable, broadly-based and structurally interdependent economy through the maximum utilization of human, financial and other material resources to mobilize and manage all resources of the Province to support the activities that would provide a better life for all its citizens, in harmony with the environment.
Decentralisation
With a view to fulfilling this overall vision, the decentralisation of the Department to regional offices, is viewed as a key step of huge importance. The Department therefore calls upon the public, the private sector, partners and all stakeholders to join it on the road towards sustainable development in the Free State province.
Almost out of place in the gentle sloping topography of the Free State, the larger part of the eastern section of the province is starkly rugged and mountainous, with the Drakensberg and Maluti Ranges peering over the Free State to the left and Lesotho to the right like schoolmasters. Within this region so richly endowed by nature, in time ingenious efforts by man has brought about multitudinous economic development. Besides bearing the rich heritage of the Basotho people, the Eastern Free State is also characterized by quaint and prosperous towns and farms reflecting the dynamism of modern progress. It is this region that is spanned by the boundaries of the Thabo Mafutsanyane District Municipality, with it's head office at Phutaditjhaba in Qwa-Qwa.
Profile
To the north, Thabo Mofutsanyana borders on the Northern Free State and Mpumalanga, KwaZulu Natal to the east, Lesotho to the south and the Motheo and Lejweleputswa municipal districts to the west. The local municipalities falling within the area of Thabo Mofutsanyana are Setsoto, Nketoana, Phumelela, Dihlabeng, Maluti a Phofung and Golden Gate, covering the towns and townships of Phuthaditjhaba, Bethlehem, Harrismith, Tshiame, Kestell, Clarens, Fouriesburg, Ficksburg, Clocolan, Marquard, Rosendal, Senekal, Paul Roux, Steynsrus, Arlington, Lindley, Petrus Steyn, Reitz, Cornelia, Vrede, Warden and Memel. On a surface area of 2 827 286 km Thabo Mofutsanyana is home to an estimated population of 728 400 people, with 43% living in urban areas and 57% living in rural areas. This represents 25,97% of the entire population of the Free State, with a density of 25,76 people per km. Maluti a Phofung has the highest concentration of people (54%) in the region, whilst the same area is regarded as the third most densely populated area in the Free State at 88 people per km.
The total GGP of the region is R4 484 039 million, to which Setsoto contributes 16,8%, Dihlabeng 27,9%, Nketoana 9,1%, Maluti a Phofung 41,4% and Phumelela 4,9%. The GGP per capita is calculated at R4 415 per capita. In terms of the new local government dispensation that came into effect on 5 December 2000, the Thabo Mafutsanyane District Municipality, as one of five of it's kind in the Free State, has been entrusted with inter alia the overall economic development of the region. Following from this, an Interim Integrated Development Plan (IIDP) has been drawn up for the region and is now being implemented with a view to finalizing the Integrated Development Plan (IDP).
Local economic development
From the outset it has been the mission and vision of the Thabo Mofutsanyana District Council (TMDC) to lead the region to the fullest possible realisation of it's economic potential, thereby maximising economic growth, the employment rate and the socio-economic level of the population. The TMDC is firmly convinced that the key to unlocking the potential of the region lies in economic development and the creation of conditions conducive to this. It is along these guidelines that the TMDC is setting out to fulfill it's mandate and to serve it's constituents. It is also against this background that the TMDC is not only encouraging and facilitating local entrepreneurship, but also reaching out to attract and promote investments from outside the region. In a combination of it's natural attributes, it's fast-developing infrastructure and it's population dynamics, the Thabo Mofutsanyana region has become one of the best investment destinations in South Africa. Rarely would one find such scenic beauty, modern infrastructure and facilities, exciting tourism products, tranquil environs, high grain and livestock productions, a wealth of cultural heritage, relatively low criminality and proximity to other fast developing centres in SA, as in the encapsulation of Thabo Mofutsanyana. Truly an investment destination par excellence ! In this special focus the TMDC wishes to emphasize this point and to offer it's full co-operation to everyone wishing to contribute towards fulfilling the potential of the Thabo Mofutsanyana region. To this end, below some primary focus areas are being highlighted.
Agriculture
The Eastern Free State is regarded as one of the most fertile areas in the Free State and consequently one of the most productive agriculture areas. The agriculture sector does, however, experience financial strain with high production costs, while other inhibiting factors are natural disasters and in need of upgrading roads. The government and commercial farmers are in effort to build capacity with emerging farmers from previously disadvantaged sections of the population. Maize, wheat and sunflower are some of the largest crops, while the region is exceptionally strong in cattle and sheep stocks. Agro-processing, by which local beneficiation to agriculture product is done, offers tremendous potential and business opportunities. In this respect the Free State Development Corporation (FDC), with regional offices at Phuthaditjhaba, is offering excellent incentives.
Some main agricultural concentration points include:
Marquard for beef production - a huge feedlot transports cattle to abattoirs across SA.
Ficksburg for the production of asparagus, cherries and gherkins, exporting to Europe, Asia, etc.
The areas around Bethlehem and Reitz for crop production, sunflower and maize.
The areas around Harrismith, Warden, Memel and Vrede for dairy, beef and mutton production.
Focus is being placed on the diversity of farming, e.g. Bethlehem and Reitz for flowers and fruit production.
Clarens for trout fishing and even perhaps catfish farming.
Tourism
The Highlands of Thaba Mofutsanyana are one of the most popular tourist destinations in SA. The Golden Gate and Qwa-Qwa National Parks stand side by side with their formidable red sandstone buttresses and impressive mountain vistas. Within the park is the Basotho Cultural Village - a must to visit. South of nearby Phuthaditjhaba is the carpark for The Sentinal - a day's hike up the back of the Drakensberg Amphitheatre.
The commercial centre of the region is Bethlehem, with outstanding shopping facilities, schools, medical services, industries and guesthouses. The massive Sterkfontein Dam outside Harrismith is ideal for watersports and the Salpeterkrans sandstone overhang near Fouriesburg is a bizarre example of wind erosions. The bird watching mecca of Seekoeivlei Nature Reserve near Memel is a wetland with RAMSAR status and is surrounded with private game and holiday farms. The TMDC is striving to extend participation of previously disadvantaged communities into the pulsating tourism industry and exciting opportunities in this regard exist. Although the entire Eastern Free State is well-known for it's tourist attractions, Clarens is regarded as the main focus area and is sometimes referred to as the jewel of the Free State. Clarens has therefore been identified as the main centre for tourism development, linking Reitz and Bethlehem with the entire Highlands border area, stretching from the southernmost parts (Ladybrand, Kestell and Harrismith) up to and including Memel and Vrede.
As they say in Sesotho - "tlo bone" - come and see !
Industrial development
Some of the best industrial premises in the country -totalling some 300 000m under roof - are located at Phuthaditjhaba and at Tshiame near Harrismith. Under the auspices of the FDC, these are made available together with highly competitive incentives and joint venture options. Some specific advantages as regards individual investments in the Thabo Mofutsanyane region:
Abundant supply of water, inter alia vicinity of Sterkfontein Dam, SA's third largest dam.
Well-situated for export via shipping, road and rail.
A captured regional market.
A generally lower cost base, which in turn impacts on investment and operating cost.
A huge labour pool, with a record of productivity, stability and pragmatism.
Three large established industrial areas.
A current over supply of commercial and industrial premises of varying sizes.
Top quality, multi-faced supporting infrastructure.
Opportunities for backward or forward integration with existing industries.
In various respects excellent quality of life.
A culture of success. A huge number of success exporters is in evidence.
Private sector
The TMDC is committed to utilize income from business levies to enhance maximally the general operational environment of the private sector in order to stimulate further business expansion - a constructive cycle that has to be maintained. In this respect inter alia a comprehensive business registration process is currently underway. In order to broaden the basis of the private sector as far as previously disadvantaged individuals (PDI's) are concerned, the tendering and procurement policy of the TMDC is in line with existing national and provincial directives. In this regard much scope for joint ventures exist, to which the TMDC is highly favourable disposed.
What the TMDC regard as of crucial importance, is the development of small, medium and micro enterprises (the so-called SMME sector). As this sector is the actual stimulator of growth and creator of employment, the TMDC allocates top priority to it. Especially the promotion of entrepreneurship and the enabling of people to sustain their own livelihood and to be competitive in the market, even in global content, cannot in the view of the TMDC be over-emphasized. Moreover, within the realm of the SMME sector, manufacturing is regarded as the most beneficiating to the economy and is therefore being dealt with as such by the TMDC. What should also be mentioned is that an economic node has been identified along the main road links between activity node has been identified along the main road links between Bethlehem, Kestell, Qwa-Qwa and Harrismith where various forms of commercial and other development are to be supported. There are a number of border posts along the common boundary with Lesotho, namely at Ladybrand, Ficksburg, Fouriesburg and three in the Qwa-Qwa area, with those most often used by tourists those between Ladybrand, Ficksburg and Fouriesburg.
Social services
Health : The existing regional facilities (level 2 hospitals) are situated at Bethlehem and Phuthaditjhaba respectively. Urban areas are mostly serviced by clinics and health care centers, whilst rural areas are serviced by mobile clinics. There are 69 primary health care clinics in the district, while 18 functioning mobile clinics providing basic primary health care services. HIV/Aids is like, elsewhere, a huge problem to contend with.
Education : The district is well integrated into the provincial school system, while various technical colleges provide tertiary tuition. The University of the Free State has a branch at Phuthaditjhaba.
Good governance
The TMDC under stewardship of it's Executive Mayor, Ms Mathokoana Mopeli, is committed to total integrity and good governance in all respects, while in terms of the IDP a bench-marking system has been put in place to measure the performance of the Council and it's functionaries in a number of specific ways. The TMDC is, in short, aiming to be an exemplary institution of it's kind by any standard in SA.
Challenges
Thabo Mofutsanyana District is one of the areas that has been identified by the State President as a Nodal Point due to the prevailing circumstances. These circumstances are high levels of poverty, unemployment and a population growth regarded as the highest in the Province. Therefore the main development challenges in the Eastern Free State / Thabo Mofutsanyana District is how to create improved sustainable livelihoods and how to create job opportunities for majority of the population in the region in a sustainable way. That represents the core focus of Local Economic Development.
However, sight should not be lost of the bigger picture and that is that macro prosperity, achieved especially through new investment and entrepreneurship, is due to raise the socio-economic level of the entire region, whilst remaining vigilant that a widening of the gap between rich and poor does not take place.To this end, healthy public-private partnerships are of critical importance. Other major challenges is the combatting of HIV/Aids, maintaining and developing sound infrastructure in terms of roads, streets, electricity, water, sanitation, etc.
Open invitation
Thus in a bird's eyeview the unmistakably unique and highly competitive features of the Eastern Free State /Thabo Mofutsanyana region as an investment and entrepreneurial destination par excellence. Therefore the Thabo Mofutsanyana District Council extends an open invitation to all prospective investors and entrepreneurs to call upon its office for any assistance and facilitation that might be required. The Directorate Local Economic Development and Tourism of the Council, under Monyane Sefantsi and his staff, stands ready to serve you - tel (713) 0012/3 fax(713) 0015 - email:victoria@efstatetourism.co.za
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