Current Edition >> Archive Section >> Special Features >> November 2004
It is the experience of the FDC that the Free State is abounding
with business opportunities and that there is a decent living to be made in
the province by entrepreneurs through honest and hard work.
While it is the business of the FDC to assist as many entrepreneurs as is practically
possible, the resources of the Corporation are limited and therefore only some
of the host of meritable cases can be actively assisted. Nevertheless the FDC
salutes all those entrepreneurs, including specifically the youth, women and
the disabled, who are taking full advantage of the opportunities around.
The FDC is currently conducting an outreach programme in various regions in
the province and has recently visited Kroonstad and Sasolburg.
On this page a token sample is reflected of some current FDC clients, big and
small, who are seizing their opportunities to become beacons for others to follow.
Some exemplary case studies
Ahanang - invests in Sasolburg CBD
Ahanang Tourism Company of Sasolburg was granted a business loan by the FDC
to buy a large block of flats named Acquarius and comprising about 85 accommodation
units in Sasolburg's central business district. Besides Jabu Tshabala as CEO,
Ahanang's management team also has Sarah Mofokeng as the financial director
and Dr Tati Mancgwatywa as company secretary. In total the group of eleven includes
four women and three youth entrepreneurs.
The purchase of Acquarius is intended to serve as a springboard for the company's
plans to make inroads into the tourism sector in the Northern Free State / Vaal
Triangle.
Sam's Construction - building literally a future
Samuel Matsobane is one of scores of contractors who have benefited from the
FDC's innovative bridging finance aimed at unlocking bottlenecks to speed up
delivery. This mode of finance is provided to emerging and previously disadvantaged
contractors who have won government tenders to build RDP houses and other government
buildings. Sam's Construction was awarded a tender of more than R400 000 to
build a laboratory building for Senakangwedi School in Botshabelo. The business
is providing employment to 12 temporary and 8 permanent employees.
In total in the Free State the FDC has granted 143 bridging loans of almost
R104 million in the last financial year alone.
Back to Basics - in the best of restauranteering
Laura Mokuele was granted a business loan by the FDC to purchase an existing
restaurant in Zastron Street, Bloemfontein, which she aptly renamed Back to
Basics. “My ambition is not to be seen driving around in the latest luxury car.
I have far bigger ambitions… I want my business to grow, becoming liquid in
five to ten years,” she says. Her other concern is that the public and private
sectors should rather focus on creating and supporting fewer, but growing, catering
companies. “At present, the sector is overtraded”, she opinionates.
Apart from the restaurant business, Laura operates Spot-On - an events management
and catering company facilitating high-profile events around Bloemfontein.
S&V Industrial - leadering in industrial cleaning
The business of S&V Industrial Services based at Sasolburg is chemical cleaning,
high pressure water cleaning, waste removal and vacuuming. S&V is contracted
to Sasol 1 in Sasolburg, Sasol 2 in Secunda, Natref and Karbochem. Managing
director Jeanné Syson says the company is often also required to clean up major
chemical spillage on roads. Workers receive chemicals training as well as training
in hazardous chemicals and substances, having to be able to identify all kinds
of chemicals, often under extreme pressure.
The FDC has gone into a multi-million rand partnership with S&V, which is employing
60 permanent workers, with sometimes up to 40 additional casual workers.
Atlehang - laying foundations for accelerated housing
Atlehang Development Trust was established in January 2003 by Alex Lethoko and
his medical practitioner wife, Dr Masekhokho Marokane. The Trust obtained a
business loan from the FDC for the manufacturing of cement bricks for contractors
to build RDP houses throughout the Free State. “Our big advantage is that we
are able to move our brick-making machinery to various sites where construction
is taking place, cutting transportation overheads for all parties,” says Lethoko.
The projected sales in the current year is in the region of R2,6 million, aiming
at supplying construction projects with 30 000 bricks per day on site.
Nappies King - keeping thousands of babies happy
Having started off in 2001, Nappies King of Tebogo Mokone was recently granted
a R180 000 bridging loan by the FDC to enable him to tender for supplying disposable
nappies to state hospitals in the Free State, Gauteng, Limpopo, Mpumalanga and
Northern Cape. The enterprise currently manufactures more than 80000 nappies
a month from its premises in the Grootvlei area south-east of Mangaung, Bloemfontein.
The young Mokone has never been employed in the formal sector, starting off
as a photographer, then a taxi driver, and eventually an owner of five taxi's,
before taking a gap in the nappy industry. He now employs 17 workers, most of
them women. He aims to have paid off the FDC loan by June 2005.
The past weeks negative publicity was given by media reports on the alleged poor quality of water in various towns in the Free State. According to the reports, the quality of drinking water as well as wastewater in these towns is far below the acceptable standard drinking quality standard and therefore a threat to the health of local communities. In these reports criticism was especially levelled at some municipalities as the primary water supplying agents to their communities.
Since it is the provincial government department concerned, the Dept. of
Local Government & Housing has also been implicated in the matter.
In order to set the record straight and also to address a lot of ignorance
around the matter, the Department wishes to inform stakeholders, roleplayers
and the public herewith as follows :
Water quality management
The Free State Provincial Government, through the Department of Local Government
and Housing, the Department of Water Affairs and Forestry and the Department
of Health, put into operation the Water Quality Management programme to
monitor the quality of drinking water as well as treated wastewater at various
treatment facilities and towns in the province in conjunction with the relevant
water services authorities, i.e. respective municipalities.
As point of departure the Dept of Local Government and Housing has proactively
employed the services of a CSIR-based enterprise, Emanti Management, to
run the Free State Water Quality Management programme for the monitoring
of the province's water on a monthly basis and to make recommendations for
amendments of any dangerous situation. The latest CSIR quarterly report
is the result of this proactive action.
Quality of drinking water
Based on their interpretation of the April - June 2004 Free State Water
Quality Management research report, some media coverage incorrectly identifies
Boshoff, Hertzogville, Fauresmith, Petrusburg, Luckhoff, Excelsior, Vrede,
Memel and Brandfort as having a code red status thus rendering the drinking
water quality unacceptable for short-term consumption but requiring improved
operational efficiency.
Correctly reported as class red, i.e. failing SABS 241-2001 status, are
the towns of Dealesville and Jagersfontein. The Department has since the
publication of the report, addressed the warning signs and as a result in
the case of Dealesville found that previous grading of red was mainly linked
to bacteriological pollution and poor disinfection. The September 2004 sampling
results indicated no faecal pollution; hence the grading has been revised
to yellow indicating limited acceptability.
On the other hand, the status of Jagersfontein has been found not to have
changed, but through the Provincial Infrastructure Grant (PIG), the Dept.
of Local Government & Housing has provided funding to rectify the situation,
i.e. upgrading of poor water quality and provision of adequate water. However,
in this respect Dr Phillip Kempster, Drinking Water Health Risk Specialist
of the Dept. of Water Affairs, commented that he is not troubled about the
alleged acute health risks, but that efforts should be made to prevent chronic
exposure i.e. consumption of longer than 7 years. The Dept. of Local Government
& Housing plans to address this concern swiftly.
Quality of wastewater
As for wastewater, from the said CSIR report the media correctly identifies
the following towns as of code red status: Allanridge, Ficksburg, Senekal,
Harrismith, Heilbron, Koffiefontein, Kroonstad and Viljoenskroon. The following
corrective measures have been taken:
At Koffiefontein, the upgraded wastewater works, has been commissioned and
is due for completion by end of October 2004. At Harrismith wastewater works
has been completed, which should result in positive changes in the current
situation. In Heilbron, a process of repairs to the wastewater works has
been initiated.
With regards to the other towns mentioned in the report, interaction between
the Dept. of Local Government & Housing and the respective Water Services
Authorities (WSAs) is such that these problems have been brought to their
attention together with immediate corrective measures, such as redirecting
and reprioritising funds for operation and maintenance.
On national level the Drinking Water Regulatory Strategy seeking to enforce
the norms and standards of the quality of drinking water, is being processed
towards finalisation. This process, which aims at providing a guiding tool
for roles and responsibilities in drinking water and also spells out regulatory
roles, should be finalised by the end of November 2004. This consultative
process includes all affected stakeholders such as regulatory bodies and
end users and consequently a draft document will be submitted to them for
their comments. Meanwhile, interventive action has been taken against municipalities
not monitoring their water quality.
Says Mr. Leonardo Manus, Deputy Director for Water Service Regulation at
the Dept. Of Water Affairs and Forestry in Bloemfontein: “In the Free
State the Department of Local Government and Housing, through the Water
Quality Management programme, has taken huge strides in ensuring the improvement
of drinking water quality. Progress has been made towards meeting the SANS
drinking water quality standards by establishing a provincial monitoring
system.”
The bigger picture
Of the many challenges facing the SA government, one of the more difficult
and pressing is that relating to the provision of adequate water services
to the non-metropolitan regions. In addressing this challenge, the Department
of Water Affairs and Forestry (DWAF) introduced the concept of a “water
ladder”; with the provision of access to a basic level of safe drinking
water as the first rung on the “water ladder”. Progress achieved
to date has indeed been impressive and as of 2004 some 10 million additional
people have been supplied with access to drinking water, thereby reducing
the drinking water supply backlog to some 4 million.
In order to ensure a safe acceptable quality drinking water supply to a
community, effective water quality management, based on adequate and proper
monitoring, is required. To this end, compliance with water quality standards
provides assurance that the water supplied to households is safe. An appropriate
water quality management programme therefore forms the basis for proactively
addressing problems in a structured and effective manner.
Free State situation
The Free State Province, through the Dept. of Local Government and Housing,
Dept. of Water Affairs and Forestry and the Dept. of Health, implemented
the Water Quality Management (WQM) programme with the primary objective
to monitor the quality of drinking water as well as treated wastewater quality
in the province.
On a monthly basis CSIR field technicians collect drinking water and treated
wastewater samples from approximately 81 towns at various municipalities
in the Free State, which are analysed for various microbiological physiochemical
parameters (depending on the water in question), utilizing internationally
accepted methods. Water quality data is then collated, verified and interpreted
according to required standards, e.g. SABS 241-2001, DWAF General Authorisation,
which helps to identify issues of concern requiring attention and highlights
improvements made in service delivery.
These quality results, are, moreover presented to local and provincial government
via monthly, quarterly and annual reports as well as monthly, quarterly
and annual feedback sessions. This assists in decision-making to progressively
ensure improvement in service delivery to the various communities in the
province.
It should be noted that Free State Water Quality Management (WQM) programme
has achieved recognition as national co-operative governance Best Practice
by a Provincial Government.
Way forward
While the ideal water quality levels may not have been reached yet, the
ultimate goal of providing all citizens with quality drinking water and
proper sanitation is being pursued rigorously as set out above, as well
as by way of the implementation of the Provincial Infrastructure Grant and
the Municipal Infrastructure Grant programmes.
For any further information, contact Mr. S.G. Gadzikwa of the Department at tel. (051) 403 3342.
The National Water Act (Act 36 of 1998) sets out the framework
for the management of water resources in South Africa. This framework provides
for the establishment of water management institutions, which include catchment
management agencies (CMA's) and water user associations (WUA's). The core
purpose of CMA's is to ensure the sustainable use of water resources in
their areas of operation, in line with the purpose of the Act. The purpose
of the Act is underpinned by the principles of equity, efficiency, sustainability
and representivity.
A CMA manages water resources within its Water Management Area (WMA). South
Africa has been divided into 19 WMA's as part of the progressive development
of the National Water Resource Strategy. This is illustrated on the accompanying
map.
Free State
The Free State Regional Office of the DWAF is responsible for the Upper Orange and Middle Vaal WMA. CMA's must develop and implement a catchment management strategy (CMS) for the water resources with their WMA. The Sand/Vet sub-catchment was the first to establish a CMS, the Modder/Riet is in the process of finalizing its strategy and the process has been initiated for the Schoon/Koekemoer sub-catchment. Catchment management strategies must be in harmony with the National Water Resource Strategy.
National Water Resource Strategy
The National Water Resource Strategy is the implementation strategy for
the National Water Act in practice. It provides a legally-binding framework
within which the water resources of SA will be managed in future. South
Africa is obliged by national policy and legislation, as well as by international
agreements to manage its water resources in a sustainable, equitable and
efficient manner in order to provide for the needs of the people and development
of the country.
The Constitution of South Africa (Act 108 of 1996) states that everyone
has the right to access to sufficient food and water and that everyone has
the right to an environment that is not harmful to their health or well-being.
Strategic Framework for Water Services
The Water Services Act (Act 108 of 1997) is the other important legislation that regulates the water sector. The Strategic Framework for Water Services is the umbrella framework for the water services sector and addresses the full spectrum of water supply and sanitation services. According to the 2001 census there were 44.8 million people living in SA at that stage, of which 5 million (11%) had no access to safe water supply and 18.1 million (41%) did not have adequate sanitation services. This Act and Framework elaborates on the roles and responsibilities of the Department of Water Affairs and Forestry and other governmental departments.
Water Quality Management Committee
This had led to the establishment of the Water Quality Management Committee
for the Free State, which monitors the quality of drinking water, as well
as treated wastewater from conventional works at various treatment facilities
and towns in the Province. Emanti Water and Environmental Management Services
has been appointed as the contractors responsible for the auditing function
and provides the Committee with Quarterly Review Reports.
The data which they produce will be available on a website from the end
of November 2004, in order to make the results freely available to the public
at large.
The Free State Water Quality Management Committee, comprising of experts
and Government representatives, renders assistance to the Dept. of Local
Government and Housing in ensuring that a proper communication strategy
is in place by which action needs to be taken according to a set protocol
to be used for intervention in case of non-compliance with standards. This
makes the Free State the first province with this kind of pro-active initiative
and is widely being applauded for its effort.
The DWAF has moreover initiated the development of a National Drinking Water
Quality Strategy and in this respect, the Free State model already implemented
for monitoring and auditing is considered to be a possible national model.
The DWAF: FS has also instructed Emanti to determine the status of oxidation
ponds in the Free State and from that develop a monitoring strategy for
these systems.
The DWAF Regional Office, Water Quality Management Section (Waste Discharge
and Disposal Section) is responsible for the regulatory administration of
the relative sections in the National Water Act regarding pollution of and
impacts on water resources. The public at large is invited to lodge any
complaints to the Department regarding pollution of our scarce water resources.
DWAF: FS therefore asssures the public that all the provincial roleplayers
are making every effort possible to provide best possible quality water
in the Free State.
The Motheo District Municipality has over the past three
years established the following eight formal tourism routes within its region
which are not only there for the benefit of tourists, but which are also
developmental, income-generating and job-creating in nature :
· BBT Heritage Route
· Maloti Tourism Route
· N8 Tourism Route
· Art Route
· Adventure Route
· Naledi Tourism Route
· Mangaung Township Route
· Agricultural Tourism Route
All aspects in the establishing and managing of these routes have socio-economic
developmental spin-offs. For instance, brochures and information material
on the individual routes had to be printed and distributed, which means
that SMME's had to be contracted to design and print. Moreover, tour operators
had to be trained and utilized to implement the routes; guesthouses, restaurants,
taverns and other tourism product owners along the routes generated income
and in turn having had to create additional jobs; signage had to be erected
along routes, which again meant opportunities for SMME's; etc. - thus a
whole chain reaction put into motion and still going.
Another spin-off is the enhancement and transfer of skills people needed to be trained as tour operators, other tourism entrepreneurs, chefs, waiters, service station attendants, etc. Thus also a constructive rippling effect right through the community.
All this stand in the sign of the government's overall commitment to push back the frontiers of poverty through structural developmental initiatives.
The latest addition to the Motheo tourist routes package is the Mangaung Township Route, which was put in place in Tourism Month September 2004. Many opportunities along this route, covering especially historic points and interesting sites in Batho Location, are awaiting further exploitation. Even the brown signage en route has already been put up.
The last link in the current phase of the tourist routes packages, the Agricultural Tourist Route, is in a process of completion. It's aim is to capture and formalize the stream of visitors regularly calling on Bloemfontein and environs for agricultural purposes, such as shows, stock auctions, conferences, farmers' days, etc.
On the whole, the development of domestic tourism is a priority with Motheo, in accordance with the national theme "Short left, it's possible!".
For more information on the Motheo Tourism Routes - both to visit and to exploit business opportunities - please call (051) 447 1362/3
Tourism Month September 200 - Highlights
The full and hectic programme which the Motheo District Municipality presented during Tourism Month September this year, reflects the tremendous developmental power which the tourism industry has in the region. Some of the Motheo highlights during Tourism Month 2004 were:
The N8 Route Project has been identified as the prime tourism IDP project of Motheo District Municipality. From 7-8 September an Awareness Roadshow was conducted on the N8 Route from Bloemfontein to Kimberley serving as an interaction between councillors and officials of Motheo with their counterparts in Sol Plaatje Local Municipality and Frances Baard District Municipality, as well as the Tokologo Local Municipality, expressing mutual support for packaging and marketing the N8 Route.
The Motheo District Municipality sponsored the participation of six local SMME's in the Eskom National SMME Expo held on 9 September at Gallagher Estate, Midrand.
On 10 September a media and marketing tour was conducted in Greater Mangaung in conjunction with the Mangaung Local Municipality.
On 11 September the well-organized Capital-to-Capital cycle race was held from Kimberley to Bloemfontein, an event duly supported by all the municipalities concerned.
On 13 September a consultative workshop on the Free State Authority Bill was held at the Motheo Municipal offices. In terms of this legislation a Free State Tourism Authority Body responsible for marketing tourism in the Free State is to be established.
On 17 September 2004 the Two Nations Marathon held at Ladybrand, was duly supported by Motheo and other provincial government departments. The event seeks to strengthen relations between Lesotho and the Free State Province and was graced by the presence of MEC's, the High Commissioner of SA to Lesotho and senior officials from other provincial departments.
The weekend of 24 - 26 September 2004 the Botshabelo and ThabaNchu Route was launched.
From 24 - 25 September the series of the Caledon 400 off-road races were held near Tweespruit, an event also attracting participants and spectators from far afield. As for the future, the Motheo District Municipality would like this event to be located to the Naledi area, where it serves as an annual tourism highlight.
On 27 September 2004 the latest Motheo tourism marketing materials were launched.
On 28 September 2004 a training course commenced at the Awimaweh Holiday Resort for attendants.
On 30 September 2004 the erection of signage funded by the DEAT Poverty Relief Fund was launched in Mangaung township. Motheo District Municipality is responsible for maintenance and repair of the signs once the project is completed.
The Motheo District Municipality is at present planning to maintain the momentum of tourism development in the region and some ground-breaking announcements are envisaged in November and December this year. Besides the local developmental focus, it is also about gearing up for the Soccer World Cup hosting of 2010. This golden opportunity by the tourism sector in the Motheo region needs to be optimize in its own right and to this end the District Municipality stands ready to lend its best support.
In the final analysis the ultimate goal remains the utilization of all opportunities to push back the frontiers of poverty and to create a better life for all in the region as well as in the rest of the province and South Africa.
In our last article we talked about the responsibility of top management in building and maintaining strong brands. Our conclusion was that since branding is a top managements responsibility as it touches on issues of organizational strategic positioning, branding is the responsibility of top management. If we are in agreement on this, it means that we also agree that top management has a duty to protect the integrity of its organization and brand at all costs.
What are we protecting the brands against? The answer can only be against negative publicity.
The unfortunate fact is that brands don't have control over publicity but can only influence it. It therefore becomes crucial for businesses or institutions to take issues of corporate governance and risk management seriously in maintaining a reputable public image for their brand. The matters raised above contributed largely to the demise of the public image of Leisure Net (Health & Raquette Club) due to non-compliance of proper corporate governance principles. If we look closely at the Leisure Net case: The company was doing well under the brand Health & Raquette, which had acquired significant brand value in the fitness market.
We can naively say the brand was healthy until the discovery that the company
was not run in the best interest of its investors. Irrespective of the investment
that the company made over the years in building the brand through all forms
of advertising, the brand could not survive the storm. Ultimately the company
was liquidated and taken over by Virgin Active.
The point that I want to make is that the brand can survive the market and
do well, but if at organizational level it is not well managed, all efforts
are in vain. It therefore confirms that all aspects of the organizations
affect the brand and should be treated with outmost caution in order to
protect the brand.
A few weeks ago during a prime time radio show, the presenter was talking about the latest Vodacom "gimme summer" advert, saying that the agency which produced that advert, copied it from the MTN "yellow summer" advert. The next day the agency alleged to have copied the advert, released a statement that they were the first to develop the summer advert instead of the other agency and stated the facts justifying their stance.
The host of the show then apologized to the agency on her show and corrected the assumption. The only conclusion I could come to when listening to all this unfolding, is that the said agency has its ears on the ground and is jealously guarding its brand. When management appreciates the brand value of its business or institution, it will put all mechanisms in place to protect it against negative publicity.
The conclusion is thus that poor management systems can destroy a good
brand and that brands are not built only through advertising. Good corporate
governance and a proper risk management strategy are prerequisites for protecting
and building a strong brand.
Prerequisite for
• fostering economic growth
• creating job opportunities
• fighting poverty
• raising of living standards
• establishing sustainable development
Since Local Economic Developement (LED) is of crucial importance to economic growth and social advancement in the Free State, this Executive summary of the outcome of the first ever Summit on LED in the Free State is being presented herewith to the wider audience of all businesses, entrepreneurs, municipal officials and councillors and all other stakeholders in the province, with a view to indicate a foundation from which to work and to synergize in the best interest of all Free Staters.
The aim of the Free State Local Economic Development Summit held from 11
- 12 March 2004 at the Mangaung-University Community Partnership Programme
(MUCCP) Centre in Rocklands, Bloemfontein was to create a platform for kick-starting
local economic development (LED) in the Free State under the theme “Together
let us create jobs and push back the frontiers of poverty”. Essentially,
the theme affirmed the indispensability of partnerships among stakeholders
in utilizing LED as a key instrument to alleviate poverty.
The summit was attended by a total of 171 delegates from municipalities,
government departments, private sector, universities and non-governmental
organizations. Presentations were made by the Office of the Premier, Development
Bank of Southern Africa, NAMAC, the Centre for Development Support from
the University of the Free State, the Department of Agriculture, First National
Bank, LGWSETA, MUCCP and DISOP.
The following objectives were set for the summit :
• To provide a framework for the integration of LED with other programmes
• To discuss LED principles and possible strategies
• To elicit the commitment of stakeholders; and
• To share experiences and lessons derived from existing LED projects.
It was agreed at the summit that a provincial LED strategy be produced in a comprehensive report, which report has just been published by the Free State Dept. of Local Government & Housing. Herewith, for the information of all stakeholders and of the general public, is an executive summary of the report.
BACKDROP
The summit should be understood against the backdrop of a weeklong capacity-building
workshop on infrastructure and partnerships for LED hosted by the Department
which was sponsored by the Department of Provincial and Local Government
(DPLG). The workshop was conducted by the Centre for Urban Development Studies
of the Harvard University Graduate School of Design.
Together with this, the outcome of past and current LED initiatives, Xhariep
and Thabo Mofutsanyana LED mini-summits, as well as findings of LED research
done by the Premier's Economic Advisory Council (PEAC) need to be fed into
the development of a provincial LED strategy, which in future should be
aligned to national and local strategies.
On national level, the SA Government has mapped out a mission for developmental
local government that works actively in partnership with the citizenry to
identify and implement developmental strategies. LED is one of the tools
for municipalities in promoting socio-economic development. Furthermore,
LED, as an integral part of the municipal Integrated Development Plan (IDP),
should be mainstreamed into daily municipal core business processes such
as tendering and procurement as well as approaches to small medium and micro
enterprises (SMME's). This would potentially position municipalities to
grow local economies and contribute towards the broader developmental agenda
of job creation, poverty alleviation and redistribution of resources.
KEYNOTE ADDRESS BY DEPUTY MINISTER
In delivering the keynote address to the summit, the former Deputy Minister
for Provincial and Local Government, Ms. Ntombazana Botha, congratulated
former MEC Tsenoli, the Department and the province for convening such a
summit, thus setting a trend ahead of other provinces. The following are
some of the salient points Ms. Botha highlighted in her address :
• The role of municipalities in relation to LED would best be understood if located within objectives of local government as set out in section 152(1) of the SA Constitution, exhorting in particular municipalities to promote social and economic development.
• Poverty alleviation and job creation are the greatest challenges
facing local government today in the policy development reform arena.
LED is a strategic approach that focuses on enhancing revenue generation
and identifying key levers for spurring economic growth and development.
• LED should be a people driven approach tapping in on 'social capital', with ward committees becoming actively involved.
• Continuous activities informed by national economic policies, plans / frameworks, investments by private and public sectors, involvements of communities, resources (human, institutional, financial) are all indispensable characteristics of successful LED processes, projects / approaches.
• Municipalities should play a pivotal role in LED and act as agents for local economic changes. However, this should be done in partnership with national and provincial governments. Municipalities are expected to create an enabling environment in which economic growth can take place.
• An agreement has been concluded between the South African Government and its Italian counterpart to undertake a Bilateral Development Aid Programme concentrating on LED initiatives and requisite capacity building. Four district municipalities, including Lejweleputswa, have been chosen as torchbearers / pilots for the programme.
Some Summit Inputs
The following are brief summaries of presentations made to the summit by
participating organizations on their varied experiences and approaches to
LED :
Department of Trade and Industry (DTI)
Ms. Ludidi from the Enterprise Development Unit of the Department of Trade
and Industry, defined the terrain of LED within DTI through the following
strategies :
• Macro economic environment : An integrated Manufacturing Strategy
(IMS) has been developed to effect high levels of growth (sectoral focus),
increasing employment opportunities and greater social and economic equity
and
• An Enterprise Development Strategy placing emphasis on unlocking
entrepreneurial opportunities, enhancing capacity and implementing targeted
entrepreneurship development has been formulated.
Ms. Ludidi mentioned four current programmes in the DTI having a bearing
on LED :
• The Small Enterprise Human Development (SEHD) programme.
• A bidder-support facility to facilitate the integration of SMMEs
into sector strategies and enhancing SMMEs' capacity to manage assets contracts.
• Concept papers on critical areas such as integration of local business
service centres, revitalization of local economies and small town initiatives,
are currently being developed.
• Finalization of a comprehensive LED strategy.
Development Bank of Southern Africa (DBSA)
In his address to the summit, Mr. Oupa Nkoane of the DBSA mentioned that
to contribute towards the realization of the mentioned objectives of LED,
DBSA has developed a new product called Development Credit, a mechanism
for maximizing developmental impact. He illustrated, as a road map, some
of the projects that would be implemented using funds leveraged from Development
Credit :
• Income-generating infrastructure tourism, agriculture
• Projects that enhance efficiency of the borrower-billing system
• Criteria have been set for selecting economically viable target
projects at ISRDP and URDP nodal municipalities and do include capacity
building of municipalities to manage these projects.
National Manufacturing Advisory (NAMAC) Trust
Mr. R. Buys from NAMAC indicated that having been established in July 1997
at the behest of the DTI, the core of the Trust are Ntsika, the National
Productivity Institute (NPI), CSIR and provincial governments.
A number of core programmes are currently being implemented viz :
• Manufacturing Advisory Centres (MAC)
• The Franchise Advice and Information Network (FRAIN)
According to Mr. Buys LED stands on three legs :
• Economic / business development
• Social / community development, and
• Infrastructure development.
Critically MAC is linked to the economic / business development leg of LED
as partners with municipalities for supporting existing and new businesses
as well as attracting foreign direct investment.
Centre for Development Support (CDS)
Having done extensive research on LED in the Free State, also as commissioned
by the Premier's Economic Advisory Council (PEAC), Mr. L. Marais of the
CDS made a highly enlightening input, listing inter alia the following constraints
:
• Too much emphasis on projects - since a project constitutes but
a small part of LED, there is a need to think beyond projects
• Projects vs. business existing LED projects are not being managed
with business ethos and practice and therefore the probability of failure
is great
• Projects are not being transferred to business entities and are
therefore not being expanded for the development of SMME's
• Although new projects and businesses are created, their success
rate is not great, given the lack of experience, capital and marketing
• A dire lack of LED strategy within municipalities
• The LED function is not being institutionalized in relevant provincial
sectoral departments.
Notwithstanding these, Mr. Marais highlighted opportunities such as the
following to circumvent constraints :
• Get an understanding of your local economy - its comparative advantages,
the business environment, economic players and marketing and production
changes;
• Develop a database of all economic roleplayers and their contributions
quantify what each sector is contributing to the economy, who is involved
in which sector and what are the needs of these sectors;
• Assess your local legal environment review by-laws and ascertain
their appropriateness and relevance;
• Assess the level of institutionalization;
• Consult with local business - create a forum for soliciting their
views and engaging them;
• Decide on approaches - how facets of LED, SMME's, industries, tourism
and special projects would be mutually reinforcing each other;
• Instituting a monitoring and evaluation framework with an early
warning system.
Department of Agriculture
Mr. W. Barnes, Head of the provincial Department of Agriculture, outlined
that the agricultural sector is one of the major employers in the province
and that therefore its contribution towards the provincial economy is significant.
He highlighted the Department's extensive role and pointed out that the
European Union has approved R45 million for the implementation of a number
of food producing and income generating projects in the Free State from
1 October 2003 to 30 September 2004.
Department of the Premier
Mr. A. van Rensburg of the Department of the Premier presented the monitoring
and evaluation system of the Free State Development Plan (FSDP) and indicated
that this could potentially provide a database for LED projects.
The key focus areas of the FSDP are economic development and job creation,
a sustainable infrastructure, people development, a safe and secure environment
and good and co-operative governance. Each key is then linked to different
strategies for implementation.
The FSDP's monitoring and evaluation system would provide potential benefits
to LED through linkages between critical stakeholders, ensuring access to
performance and project information. In so doing, all kinds of different
reports could be generated from the system.
Local Government Water Related Sector Education and Training Authority
(LGWSETA)
Mr. P. Gerstlauer from LGWSETA presented their LED Learnership Programme,
outlining the key steps to be followed by any municipality intending to
participate in the LED learnerships programme.
FEEDBACK FROM COMMISSIONS
At the LED summit five commissions were constituted to ensure greater participation
of delegations in the proceedings focusing on five district municipalities
in the Free State.
Each commission had to report back and from this the following salient points
emerged :
Proper understanding of LED
Assets / strengths at district level
Needs / constraints at district level
Priorities identified
General points captured
SUMMARY
According to feedback from delegates, the summit was a huge success, enabling
delegates to take home highly useful information. The highlights of the
presentations made can be summarized as follows :
• Provincial LED should be co-ordinated and aligned with national
strategies
• Local LED requires local commitment of facilitators (municipalities,
passionate people and local businesses)
• Financial resources are available but proper community planning
and social planning form an integral part of micro business development
• Several tailored training programmes are available for LED officers
/ managers / co-ordinators
• LED depends greatly on the establishment of partnerships and mentor
programmes as well as development agencies
• Promoting integrating development through IDP's
• LED is about the economical, social and infrastructural environment
• The beneficiation of international co-operation
• The strength of forming of partnerships
• The importance of district forums
• Striving for a broader spectrum of participants with the next LED
summit in the Free State.
In hindsight it is clear that the LED summit created an indispensable platform
for the future roll-out of local economic development in the Free State.
To this end, a district forum is to be established and to meet regularly
to promote LED in the Free State and formulate an implemental plan.
Each district municipality was requested to nominate two officials to form
part of this district forum, to be co-ordinated by the Department of Local
Government and Housing.
It was concluded that this event would be held annually, at which feedback
on progress would be given, new experiences shared and further possibilities
for LED to be explored
On Thursday, 14 October 2004, the first ever Taxi Lekgotla
for the Free State was held at the conference centre of Phakisa Raceway
between Welkom and Odendaalsrus. It was called on the initiative of the
MEC for Public Works, Roads & Transport, Mr. Seiso Mohai, with the format
of “lekgotla” meaning that it was a general meeting open to
everyone concerned down to grassroots level.
The Taxi Lekgotla was attended by some 1 200 persons representing the taxi
associations, regional taxi councils and Provincial Taxi Council in the
Free State under the chairship of, Mr. Philip Taaibosch; MEC Seiso Mohai
and senior officials from his Department; the Chairperson of the SA National
Taxi Council (SANTACO), Mr. Tom Muofhe ; and other interested persons.
The basic idea with the Taxi Lekgotla was to affirm the place of the taxi
industry in the mainstream economy of the Free State and to deliberate how
the industry can contribute towards economic development, with job creation
and raising of standard of living as the major spin-offs.
In light of this, the Lekgotla paid attention to the following five main
focus areas :
• Training - of taxi operators and drivers as businesspersons
• Road safety - for commuters, vehicles and other road users
• Recapitalisation - the process initiated by national government
to phase in improved vehicles
• BEE - how black economic empowerment can be implemented within the
national framework
• Taxi co-operators - which is to serve as the business wing of the
industry, especially as to parts, filling-stations, etc.
Against this background, in its deliberations the Lekgotla aimed at achieving
the following :
• Identify the key issues affecting taxi operations on a daily basis
• Discuss projects that would promote the taxi industry
• Forge a relationship between industry and government with a view
to collectively take the transport service forward
• Deliberate on mechanisms that would ensure that passenger service
is safe, affordable, accessible and readily available.
To this end, MEC Mohai delivered his address to the provincial industry, the industry in turn presented its views from grassroots level up, the Chairperson of SANTACO made his contribution with a view to synergizing with national strategy, the Lekgotla broke up for detail discussions in five working groups acting as commissions and based on these the Lekgotla adopted a range of resolutions. These resolutions are now serving as policy guidelines for the further roll-out of the taxi industry in the Free State.
Excerpts from statements
at the Lekgotla
MEC for Public Works, Roads & Transport, Mr. Seiso Mohai
“ The Taxi industry transports close to 70% of commuters in the province.
The safety, reliably and efficiency of the taxi industry is therefore key
to its growth and development, and such will have impetus not only to the
whole transport industry, but to the entire economy of the province.
“ The Taxi industry continues to play an active positive role in our
economy :
1. The industry is contributing immensely toward the economic growth and
development of the country through the purchase of fuel, motor parts, and
vehicle fleet, which in turn assist in creating thousands of jobs in manufacturing,
wholesales, retail stores, and various suppliers by the Government to push
the industry to an extend that will ensure its inclusion into the main stream
of the land transport passenger service.
2. Close to 70% travelling passengers largely commuters, are conveyed on
a daily basis by the taxi passenger services to various destinations.
3. In the Free State Province alone, approximately 14 000 jobs are provided
to taxi drivers, rank marshals, administrative clerks etc.
“ To date 74 Taxi Associations are registered with the Office of the
Registrar. All of these Associations have gained recognition by the Government
and therefore quality for any support that the industry may identify. A
roll-out plan for full registration is in an advanced stage of development.”
“The training needs and human resource development, which will contribute
towards capacitating taxi owners, enhancing driver behaviour as well as
improving their skills,
need serious attention. The Transport Education Training Authority (TETA),
has been established with a view to facilitate a framework of learning through
a delivery system that enhances the levels of skills in the workplace and
transport sector.”
“Taxi Co-operatives is one important subject that must not escape
the attention of this meeting. By a Taxi Co-operative we are referring to
a democratically controlled organization wherein a number of persons and
/ or Taxi operators have voluntary joined together to achieve a common end
are making equitable contributions to the capital required and accepting
a fair share of the risks and benefits of the undertaking in which members
actively participate. “
• Chairperson of the FS Provincial Taxi Council, Mr. Philip Taaibosch
“For the sake of a stable and lucrative industry we understand that
we need to move away from the old system of radius-based permits to route-
based operating licenses.
“I sincerely believe that as an industry we must transform ourselves
into a sound entity that provides a safe and affordable public transport.
We must begin to operate in a structured, legal environment, which is adequately
enforced. The industry must be an empowered taxi service that has the capacity
to compete and enter into contract with the public and private sectors to
render transport services. It must be a service that employs well-trained
and skilled people who render professional services to commuters.”
• Chairperson of the SANTACO, Mr. Tom Muofhe
“The reason why my speech underlines TRANSFORMATION in its various
forms, is because we believe that the taxi industry should change its outlook.
It must move beyond what has traditionally been known as the collection
of fares from commuters into actively participating in the mainstream economy
of the country. Our project of putting phones in vehicles is one such telling
example of our strategic goals of realizing addition of revenue apart from
fare collection.
“The other part of this goal is that we ensure that we are partners
of tyre companies, fuel companies and spares outlets to mention a few as
we are the largest consumers of these products.
“The development of taxi ranks, introduction of colour coding system
as well as a Training Academy are amongst other projects we have to robustly
get involved in.
Resolutions adopted at the Taxi Lekgotla
Training
1. The following training needs have been identified :
1.1. Leadership skills
1.2. Legal framework / legislation
§ Labour law
§ Tax law
§ PFMA
§ NLTTA
1.3. Business skills
§ Best business practice
§ Financial management
§ Marketing
§ Tendering
1.4. HIV/AIDS training and Train the trainer courses
1.5. ABET: To address basic literacy and numeracy imperatives
1.6. Information technology (packages and computer skills)
1.7. Road safety
1.8. Business establishments, e.g. Section 21 companies, co-ops, etc.
1.9. Basic motor mechanics (vehicle maintenance)
1.10. Transport management courses
2. It is further proposed that:
2.1. All training be provided by accredited service providers
2.2. Training must be properly planned
2.3. Certificates be issued upon completion of training
2.4. National and provincial training initiatives be co-ordinated to avoid
possible duplication and omissions. (TETA and Office of the Provincial Transport
Register).
2.5. Training must be done in smaller groups for effectiveness
2.6. Training never to be targeted for specific positions, but must be broader
2.7. Industry must be involved in the procurement process of acquiring a
training service provider
2.8. Current training committee is acceptable, in conjunction with regional
and Association training officers
2.9. Training must be followed up and be monitored to ensure achievement
of positive end-results
2.10 Finally, that a Training Academy be established to take care of the
long-term training and development needs of the industry
Road safety
1. Road Safety Education and Awareness Campaign
1.1. Campaign to address the challenges of:
§ Ignorance and negligence on roads
§ Illiteracy and innumeracy of road users
§ Compliance with road traffic signs and regulations
§ Tolerance among road users
1.2. Target groups in respect of above:
§ School children
§ Pedestrians
§ Cyclists
§ Motorists and truckers
2. Road conditions
2.1. Authorities requested to address the challenges of:
§ Potholes and damaged pieces of road leading to tyre punctures, breakdowns,
collisions and other accidents
§ Long grass growing alongside the road leading to concealment of dangerous
objects and spots
§ Poor, invisible and non-existence of road markings leading to accidents
§ Unfenced areas alongside provincial and national roads leading to
stray animal crossings and accidents
§ Adequate resting places on the provincial road as well as stopping
areas in the residential areas
3. Driver training
It is further proposed that drivers be encouraged to go for defensive driving
techniques to sharpen their driving skills.
4. Partnership
Enhancement of a positive relationship between the industry and the law
enforcement is highly recommended.
5. Road safety management and strategy
It is recommended that the Provincial Road Safety Committee (of PTC); Regional
committees (RTC); Road Safety Office and Law enforcement, meet once every
month to review the frequency and the nature of road incidents and offences.
6. Drinking and driving
It is recommended that law enforcement be intensified on this subject.
7. Road blocks
It is recommended that critical areas, seriously in need of road blocks,
be identified for law enforcement purposes.
8. Road rage
It is recommended that road users be conscientised about the senseless eruption
of road rage and be taught to exercise patience and tolerance.
9. Other critical areas
§ Unroadworthy vehicles
§ Participation and assistance by municipalities on road safety
§ Unavailability of rank marshals
§ Non-adherence to speed limits
§ Overloading
§ Disfunctional safety belts
§ Unsafe road crossings
§ Lights-on campaign
Recapitalization
1.The taxi recapitalization process be accelerated
2. Information regarding progress in the recapitalization process be disseminated
to all parties concerned
3. Spares of such vehicles be easily accessible
4. New vehicle pricing to accommodate everybody
5. Supply and demand from various areas be looked at
6. The process to be extended to all modes of vehicles, e.g. 4+1 and 16
seaters
7. Operators must have a broader choice of vehicles - even those out of
the shortlist
Black Economic Empowerment
1. Tendering
1.1 The industry associations should be given preference in all taxi related
tenders, namely,
(i) erection of ranks
(ii) construction of roads
(iii) designing and putting up of
transport related bill-boards
1.2 Operators should be given access to capital and training in order to enable them to partake in BEE activities.
2. Diversification
2.1 The government should assist the industry to diversify its business
activities to include, amongst others,
(i) Filling stations
(ii) Spares outlets
(iii) Passenger accommodation
(iv) Food stores
(v) Many other transport-related businesses
3. SANTACO is mandated to engage banks and other financial institutions to make credit accessible to operators.
Taxi Co-operatives
1. Government must accelerate the passing of legislation relating to co-operatives.
2. Government to assist co-operatives to become the business wing of the industry.
3. In the initial stage, government to assist with the setting up of one co-operative establishment in each region, in addition to a centrally established head office.
4. Government should allocate funding for the said establishments.
5. Provincial leadership to fast-track acquisition of equity shares in Maluti and Interstate Bus companies.
6. Provincial leadership to kick-start discussions with taxi associations on the format for taxi subsidies. Policy to include the purchasing of new vehicles as well as maintenance.
7. For the 2010 Soccer World Cup :
7.1 The speeding up of the recap process
7.2 The establishment of maxi taxi fleet
7.3 Negotiations with Department of Tourism as well as the hospitality industry
(including travelling agencies) to list co-operatives as preferred service
providers
7.4 Co-operatives to be established as Section 21 companies to render major
business transactions.
8. Regarding investments, the leadership is requested to research viable
investment options for the industry.
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