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UMKHANYAKUDE DISTRICT MUNICIPALITY: LOCAL ECONOMIC DEVELOPMENT INITIATIVE

May 2003

Haley Sharpe Southern Africa (Pty) Ltd

Institute of Natural Resources

TABLE OF CONTENTS PAGE 1. INTRODUCTION...................................................................................................................... 1 1.1 PURPOSE ............................................................................................................................... 1 1.2 BACKGROUND ....................................................................................................................... 1 1.2.1 Umkhanyakude District ................................................................................................. 1 1.2.2 Need for Local Economic Development ......................................................................... 1 1.2.3 Terms of Reference........................................................................................................ 2 1.3 APPROACH ............................................................................................................................ 2 1.4 METHODOLOGY .................................................................................................................... 4 1.5 STRUCTURE OF THE REPORT .................................................................................................. 5 2. CONTEXTUAL FRAMEWORK .............................................................................................. 6 2.1 UMKHANYAKUDE WITHIN THE GLOBAL ENVIRONMENT ......................................................... 6 2.1.1 Great St Lucia Wetlands Park ....................................................................................... 6 2.1.2 UMkhanyakude as a Tourist Destination ....................................................................... 7 2.2 UMKHANYAKUDE WITHIN THE SADC REGION ....................................................................... 7 2.2.1 Lubombo Spatial Development Initiative........................................................................ 7 2.2.2 Lubombo Transfrontier Conservation Area.................................................................... 8 2.3 UMKHANYAKUDE AS AN INTEGRATED SUSTAINABLE RURAL DEVELOPMENT PROGRAM NODE 9 2.4 UMKHANYAKUDE IN KWAZULU-NATAL PROVINCE................................................................ 9 2.4.1 Gateway to KwaZulu-Natal and SADC Region............................................................... 9 2.4.2 UMkhanyakude as an Economic Unit ............................................................................ 9 2.4.3 UMkhanyakude and Service Delivery .......................................................................... 10 3. SOCIO-ECONOMIC PROFILE OF UMKHANYAKUDE DISTRICT................................. 11 3.1 DEMOGRAPHIC PROFILE ...................................................................................................... 11 3.1.1 Population Distribution............................................................................................... 11 3.1.2 Gender........................................................................................................................ 11 3.2 SIZE AND STRUCTURE OF THE ECONOMY .............................................................................. 12 3.2.1 Sectoral contribution to Gross Geographic Product..................................................... 12 3.2.2 Employment Profile..................................................................................................... 12 3.2.3 Income........................................................................................................................ 14 3.3 EDUCATION PROFILE ........................................................................................................... 14 3.4 SETTLEMENT PATTERN AND LAND USE ................................................................................ 15 3.4.1 Commercial Industrial ................................................................................................ 15 3.4.2 Subsistence Agriculture ............................................................................................... 15 3.4.3 Commercial Agriculture .............................................................................................. 15 3.4.4 Forestry ...................................................................................................................... 15 3.4.5 Conservation............................................................................................................... 16 3.4.6 Traditional settlements ................................................................................................ 16 3.5 LEVY BASE ......................................................................................................................... 16 3.6 HIV/AIDS .......................................................................................................................... 17 4. SECTORAL ANALYSIS: TOURISM ..................................................................................... 18 4.1 OVERVIEW OF TOURISM ACTIVITY IN THE UMKHANYAKUDE AREA ...................................... 18 4.2 TOURISM............................................................................................................................. 18 4.3 SIZE OF THE MARKET .......................................................................................................... 19 4.3.1 Market Mix ................................................................................................................. 19 4.3.2 Group Sizes................................................................................................................. 19 4.3.3 Packaging and Pricing................................................................................................ 19 4.4 POPULAR ATTRACTIONS USED BY TOUR OPERATORS ........................................................... 20 4.5 LENGTH OF STAY ................................................................................................................ 20 4.6 POPULARITY OF NORTHERN KZN ........................................................................................ 21 4.7 OVERNIGHT ACCOMMODATION USED .................................................................................. 21 4.8 HIGHLIGHTS AND DISAPPOINTMENTS ................................................................................... 21 4.9 COMMUNITY BASED TOURISM ............................................................................................. 21

4.10 4.11 5.

DEVELOPMENT OPPORTUNITIES ........................................................................................... 22 UMKHANYAKUDE DISTRICT MUNICIPALITY INVOLVEMENT IN THE TOURISM SECTOR ........... 23

SECTORAL ANALYSIS: AGRICULTURE........................................................................... 24 5.1 AGRICULTURAL POTENTIAL OF THE DISTRICT ...................................................................... 24 5.2 SUGARCANE ........................................................................................................................ 25 5.3 COMMERCIAL FORESTRY/TIMBER ........................................................................................ 27 5.4 COTTON .............................................................................................................................. 28 5.5 SUBSISTENCE AGRICULTURE................................................................................................ 28 5.6 USE OF NATURAL RESOURCES ............................................................................................. 29 5.6.1 Fibre........................................................................................................................... 29 5.6.2 Muthi Plants ............................................................................................................... 30 5.6.3 Wood .......................................................................................................................... 30 5.6.4 Fishing........................................................................................................................ 30 5.7 NICHE PRODUCTS ................................................................................................................ 31 5.7.1 Ground Nuts ............................................................................................................... 31 5.7.2 Pineapples .................................................................................................................. 31 5.7.3 Bee-keeping ................................................................................................................ 31 5.7.4 Cashews Nuts.............................................................................................................. 32 5.7.5 Essential Oils.............................................................................................................. 33 5.8 SUB-TROPICAL FRUITS ......................................................................................................... 34 5.9 VEGETABLES AND FRUITS .................................................................................................... 35 5.10 OPPORTUNITIES FOR AGRICULTURAL AND NATURAL RESOURCE USE .................................... 36 5.11 CONSTRAINTS TO AGRICULTURAL DEVELOPMENT ................................................................ 37 5.11.1 Access to Adequately Sized Agricultural Land.............................................................. 37 5.11.2 Land Claims................................................................................................................ 37 5.11.3 Management and Control of Communal Grazing Areas ............................................... 37 5.11.4 Subsistence Farming ................................................................................................... 37 5.11.5 Technical and Financial Support................................................................................. 38 5.11.6 Lack of Sector Strong Organization............................................................................. 38 5.11.7 Inadequate Processing and Storage Facilities.............................................................. 38 5.11.8 Poor Access to Water .................................................................................................. 38 5.11.9 Poor Access to Markets............................................................................................... 38 5.11.10 Lack of Integrated and Coordinated Development.................................................... 38

6.

SECTORAL ANALYSIS: TRADE, COMMERCE AND SMMES......................................... 40 6.1 SECTOR OVERVIEW .............................................................................................................. 40 6.2 KEY FEATURES OF THE TRADE AND COMMERCE SECTOR ...................................................... 40 6.2.1 Economic Activity Centres........................................................................................... 40 6.2.2 Hierarchy of Retail Facilities ...................................................................................... 41 6.2.3 Injections into the Local Economy ............................................................................... 41 6.2.4 Leakages..................................................................................................................... 41 6.2.5 Informal Trading......................................................................................................... 41 6.3 EFFORTS TOWARDS ENTREPREURSHIP SUPPORT ................................................................... 42 6.3.1 Department of Labour................................................................................................. 42 6.3.2 South Africa ­ Australian Government Partnership...................................................... 42 6.4 CONSTRAINTS TO THE GROWTH OF ENTREPRENEURS ............................................................ 43 6.4.1 Lack of Business Support Service................................................................................. 43 6.4.2 Poor Land Use Management ....................................................................................... 43 6.4.3 Poor Access to Capital ................................................................................................ 44 6.4.4 Lack of Appropriate Infrastructure .............................................................................. 44 6.4.5 Poor Skills Base and Culture of Entrepreneurship ....................................................... 44

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SECTORAL ANALYSIS: KEY INFRASTRUCTURE PROGRAMMES ............................. 45 7.1 7.2 7.3 7.4 7.5 7.6 LUBOMBO SPATIAL DEVELOPMENT INITIATIVE..................................................................... 45 PONGOLAPOORT DAM ......................................................................................................... 45 COMMUNITY BASED PUBLIC WORKS PROGRAMME ............................................................... 46 WATER SERVICES DEVELOPMENT PLAN ............................................................................... 46 CONSOLIDATED MUNICIPAL INFRASTRUCTURE PROGRAMME ................................................ 46 ROAD CONSTRUCTION AND MAINTENANCE .......................................................................... 46

8.

SWOT ANALYSIS................................................................................................................... 48

9.

STRATEGIC FRAMEWORK................................................................................................. 49 9.1 INTEGRATED DEVELOPMENT................................................................................................ 49 9.2 DEVELOPMENT VISION ........................................................................................................ 50 9.2.1 Municipal Development Vision.................................................................................... 50 9.2.2 The Role of the Municipality in Local Economic Development ..................................... 50 9.3 ECONOMIC DEVELOPMENT OBJECTIVES AND STRATEGIES .................................................... 51 9.4 LOCAL ECONOMIC DEVELOPMENT PROJECTS ....................................................................... 54

10.

LOCAL ECONOMIC DEVELOPMENT PROGRAMMES............................................... 57

10.1 GROWING THE LOCAL ECONOMY ......................................................................................... 57 10.1.1 Tourism Development.................................................................................................. 57 10.1.1.1 Tourism Development Principles ......................................................................... 57 10.1.1.2 Tourism Development Strategies ......................................................................... 59 10.1.2 Diversifying the Agriculture Sector.............................................................................. 60 10.1.2.1 Agricultural Development Principles.................................................................... 60 10.1.2.2 Agricultural Development Strategies.................................................................... 61 10.1.3 Infrastructure Development......................................................................................... 61 10.1.3.1 Bee hive industries: ............................................................................................. 61 10.1.3.2 Water and Roads ................................................................................................. 61 10.1.3.3 Craft Centres ....................................................................................................... 61 10.2 SKILLS TRAINING AND CAPACITY BUILDING PROGRAMME .................................................... 62 10.2.1 Skills Training and Capacity Building ......................................................................... 62 10.2.1.1 Crafters ............................................................................................................... 62 10.2.1.2 Informal Traders.................................................................................................. 63 10.2.1.3 Small scale Farmers............................................................................................. 63 10.2.2 Technical Support ....................................................................................................... 63 10.2.2.1 Mentoring Programme......................................................................................... 63 10.2.2.2 Extension Service ................................................................................................ 63 10.2.3 Beneficiation/Value Addition....................................................................................... 64 10.3 MARKETING AND PROMOTION STRATEGY ............................................................................ 64 10.3.1 The Message ............................................................................................................... 64 10.3.2 The Target Audience ................................................................................................... 64 10.3.3 Communication Mechanism ........................................................................................ 64 10.3.4 The Feedback Mechanism ........................................................................................... 65 10.4 INSTITUTIONALIZING LOCAL ECONOMIC DEVELOPMENT ....................................................... 65 10.4.1 Umkhanyakude District LED Unit ............................................................................... 65 10.4.2 Umkhanyakude District Local Economic Development Agency .................................... 66 10.4.3 LED Forum................................................................................................................. 67 10.4.4 Project Committees ..................................................................................................... 68

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1. INTRODUCTION 1.1 Purpose This document presents an assessment of the current level of economic development, and constitutes a phase one-report in a multi-phased process towards the formulation of a local economic development (LED) plan for Umkhanyakude District. It considers internal and external factors influencing economic development, and provides an analysis of the key economic sectors within the District. 1.2 1.2.1 Background Umkhanyakude District Umkhanyakude District is located in along the north coast of KwaZulu-Natal and extends over 12 818km2. It is bounded by the Indian Ocean to the East, Mozambique to the North, Swaziland to the Northwest and the Districts of UThungulu and Zululand to the South and West respectively (refer to Map 1). It has a population of approximately 504 000 people who are distributed unevenly among five local municipalities. It includes Greater St Lucia Wetland Park and Hluhluwe-Mfolozi Game Reserve. Umkhanyakude is one of the four District Municipalities in KwaZulu-Natal that were selected as Presidential Nodes for the implementation of the Integrated Sustainable Rural Development Programme (ISRDP). As this programme seeks to redirect public funding to priority areas for poverty alleviation, Umkhanyakude District should ideally receive greater attention from various government departments and service providers. Secondly, it forms part of the strategic initiatives for social and economic development involving South Africa, Mozambique and Swaziland. 1.2.2 Need for Local Economic Development The need for a local economic development study for Umkhanyakude District arises from a number of factors. Firstly, Section 152 of the Constitution of the Republic of South Africa states that one of the objects of local government is to promote social and economic development. This mandated is developed further in Section 153 of the said Constitution which states that developmental duties of municipalities require them to structure and manage their administration budgeting and planning processes to give priority to the basic needs of their communities, some of which relates to economic development. Secondly, an Integrated Development Plan for Umkhanyakude District adopted in 2002, identifies the Local Economic Development Plan as one of the priority projects. The envisaged plan would give effect to the notion of developmental local government, and provide a framework for the redistribution of production assets, poverty alleviation and the creation of sustainable employment opportunities.

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Thirdly, the district is located generally covers a region with a high incidence of poverty, and that has experienced years of neglect in terms of economic development. The district has failed to attract industries while tourism is just picking-up. Urban centres such as Hluhluwe, Jozini and Mkuze mainly serve as service centres and agriculture in traditional authority areas has not developed beyond subsistence level. Finally, the district is well endowed with natural resources and is strategically located to benefit from national and Southern African Development Community (SADEC) initiatives. Natural resources include relatively good soils, protected areas and game reserves, sites of international significance and a range of other raw materials. The district is located along and forms part of the Lubombo Spatial Development Initiative and the proposed Transfrontier Peace Park involving Mozambique. 1.2.3 Terms of Reference The terms of reference are well outlined in the brief and should not be repeated in this document suffice to mention that they emphasise the need for local economic development that addresses the constitutional mandate of the District Municipality, built on the strengths of the area and position the district and local municipalities to benefit from the latent opportunities arising from national and international programmes covering Umkhanyakude District. They cover the following these: · A detailed analysis of the local resources that form the basis for local economic development. · Identification of opportunities and constraints for local economic development. · Formulation of strategies and action plans for local economic development. · Identification and packaging of lead projects. · Recommendations for the establishment of appropriate institutional arrangements for local economic development. The study has four main deliverables being: · · · · 1.3 Economic Status Quo Report Lead Project Identification and Packaging Implementation Framework Five Year Integrated Local Economic Development Plan

Approach Over the last few decades, local economic development as a theoretical framework has developed extensively in both conceptual and practical terms. This has given rise to many and varied approaches to local economic development. Each of these is based on a particular assumption about the local economy, its impact and the role of municipalities. Traditional approach is associated mainly with social development programmes and puts greater emphasis on local economic

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development as a strategy for addressing poverty and unemployment. Urban/rural efficiency approaches assumes that if municipalities creates a climate conducive for increased productivity by lowering costs of living and doing business locally, the economic fortunes of their areas will improve enormously. In terms of the entrepreneurial and sectoral approach, municipalities play an active role on the identification of actual and potential growth areas, and in providing support to the Small Medium Enterprises. This could take the form of information, funding and/or partnerships. The Silicon Valley in the United States of America was based on this approach. In South Africa, it has given rise to the Industrial Development Zones, eg Dube Trade Port in Durban. In addition, three types of progressive approaches could be identified. The first one puts more emphasis on the need to support industries that show potential for maximizing local social support. This includes development of local human resource base focusing mainly on the poor, and is aimed at sectors, which creates the right kinds of jobs for the poor. Community based progressive approach on the other hand, emphasizes the importance of working directly with the low-income poor communities or their organizations. Progressive redistribution approach promotes direct interventions for broadening access to production assets and thereby fostering redistribution of wealth. Project based on the land reform programme are a good example in this regard. FIGURE 1: INTEGRATED DEVELOPMENT APPROACH TO LOCAL ECONOMIC

NATIONAL AND PROVINCIAL POLICIES OPPORTUNITIES STRENGHTS SUPPORT RESOURCES PROGRAMMES

UMKHANYAKUDE LOCAL ECONOMIC DEVELOPMENT INITIATIVE

UNEMPLOYMENT POVERTY ECON. GROWTH

While each of these could be applied in Umkhanyakude with a certain degree of success and effectiveness, the approach adopted highlights the mobilisation of internal resources, capacities and skills, and the provision of support to emerging businesses in line with the sustainable development principle outlined in the district Integrated Development Plan and various government policies dealing

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with the subject of development. Within this context, local economic development is interpreted to mean a rigorous attempt to optimise the use of local resources (natural, human and otherwise), latent opportunities and available support mechanisms to unlock economic development potential and promote economic development taking into account that Umkhanyakude District forms part of the global economic community. 1.4 Methodology The study unfolded in three different phases, with the first being a broad scanning of the economic environment focusing mainly on external influences and internal issues (refer to Figure 2). The first phase involved both secondary and primary research. The former was mainly a desk-top analysis of the existing reports and policy documents while primary research was undertaken by means of stakeholder interviews and focused sessions with the local municipalities and the district municipality. FIGURE 2: PLANNING PROCESS AND METHODOLOGY

EXTERNAL INFLUENCES SITUATION ANALYSIS STRATEGIC FRAMEWORK IMPLEMENTATION FRAMEWORK

INTERNAL ISSUES

OBJECTIVES

SECTORAL PROGRAMMES INSTITUTIONAL MARKETING LEAD PROJECTS

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OPPORTUNITIES

STRENGTHS

PROJECTS AND PROGRAMMES

THREATS

STRATEGIES

ISSUES

NEEDS May 2003

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The second phase is essentially strategic framework for decision-making. It outlines economic development strategies and objectives in line with the municipality's development vision as outlined in the Integrated Development Plan (IDP). It also introduces projects and development programs. The last phase focuses on the formulation of development programs, identification of an appropriate institutional vehicle for the implementation of the LED program, funding issues and preparation of Business Plans for the lead projects. Only two business plans will be prepared. 1.5 Structure of the Report The report is structured as follows: Chapter one gives the introduction to the document, outlining the background to the study, the need for the study, the approach and methodology. Chapter two is the contextual framework and focuses on the context of the study in relation to the global environment, the SADS region, the ISRDP and KZN. Chapter 3 outlines the socio economic profile for UMkhanyakude and focuses mainly on the demographics, size and structure of the economy, the settlement pattern and land use. Chapter 4, 5 and 6 analyses the main sectors at play in UMkhanyakude being Tourism, Agriculture, Trade, Commerce and SMMEs. Chapter 7 gives an analysis of the key infrastructure Programs in the district while Chapter 8 outlines the strengths, weaknesses, opportunities and threats that have an impact on LED growth in the district. Chapter 9 outlines the key development issues in relation to the vision and mission, and brief on the strategies. Chapter 10 outlines the local economic development program.

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2. CONTEXTUAL FRAMEWORK Although UMkhanyakude District could be considered as an economic unit and a subject of local economic development, it forms part of larger economic systems and is affected by provincial, national and global economic development trends. These include the recent establishment of the Southern African Development Community (SADEC), New Partnership For Economic Development (NEPAD), etc. 2.1 2.1.1 UMkhanyakude Within the Global Environment Great St Lucia Wetlands Park The park is located to the Northeast of KZN extending 220km from the border with Mozambique. The GSLWP covers an area of 290 000ha (refer to Map2). This is a biosphere reserve that is unique on a global scale, with no other region having such wetland types occurring in a single protected area. The site was proclaimed a World Heritage Site in November 2000 in terms of the World Heritage Act, (Act 49 of 1999). This provides for the implementation of the World heritage convention in South Africa. Of the 30 distinctive natural wetland forms recognised by the Ramsar Bureau, not less than 20 occur in the GSLWP. The Park attained listing under three of the four criteria used by the World Heritage Bureau being: · Criterion 2- ecological processes · Criterion 3- Superlative natural phenomenon and scenic beauty · Criterion 4- Bio-diversity and threatened species. The proclamation promotes the fundamental commitment to conservation with an emphasis on the optimisation of the world heritage without compromising the cultural and ecological integrity of the community. Legislation on Restitution of Land Rights Act and the Development Facilitation Act still apply to the Park. The strategic objectives of the GSLWP are to protect and conserve the environment while promoting and empowering the historically disadvantaged community by encouraging sustained investment and job creation. A management Board was established in 2000, and it has issued a number of concessions for lodges and hotels in the three nodes of the Park. A levy is collected from the different leaseholders in the park and that levy is ploughed back into the community. Key features of the project are: · · · The development of 5000 tourist beds spread across at least 8 different categories of accommodation and 15 development nodes over a period of 10 years. Directly creating over 2100 sustainable new job opportunities during the first phase of the development. Generating estimated gross revenue of R1000 million per annum at the maturity of the project.

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FIGURE 3: ESTIMATED DEVELOPMENT COST FOR THE GSWLP

160000000 140000000 120000000 100000000 80000000 60000000 40000000 20000000 0 2001 2002 2003 7000000 2004 55000000 97000000 151000000

The initiative has resulted in a number of infrastructure developments that will also benefit the community at large. Expenditure for the Initiative between 2001 and 2004 is shown on Figure 3 above. 2.1.2 UMkhanyakude as a Tourist Destination The district offers a special variety of cultural and environmental assets to the tourist, and this has established UMkhanyakude as one of the prime tourist destinations for the foreign tourists in particular. These assets include the following: · Indian Ocean coastline with pristine beaches. · Coastal lakes such as Lake St Lucia, Lake Sibayi and Kosi Bay that have a high diversity of plant and animal life. · Game reserves (both private and public) that have all of the African Big Five as well as high population of endangered white and black rhino. · Rich and varied bird life. · GSLWP as a World Heritage Site. These features provide the basis for UMkhanyakude to become an international tourist destination. This receives further impetus from the LSDI and GSLWP. 2.2 2.2.1 UMkhanyakude within the SADC Region Lubombo Spatial Development Initiative Lubombo Spatial Development Initiative (LSDI) is a joint programme by South Africa, Swaziland and Mozambique to unlock economic development potential of the wider Lubombo sub-region within the framework of the South African Development Community (SADC). As indicated on Figure3 ,it covers an area extending from Umfolozi River in the south northwards along the coastal plain to Maputo on the Mozambican coast. It then stretches west to the Lubombo Mountains and the Eastern Swaziland and the surrounding lowlands, which runs

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from north to south through all these countries (Lubombo Spatial Development Initiative, 1998:3). Its priorities are as follows: · Generate economic growth by making maximum use of the inherent but under-utilized potential of the area. This includes maximizing private sector investment and creating an enabling framework for economic development. · Maximizing job creation and encouraging sustainable investment. This will help to ensure that new industries are sustainable in the long term. · Broadening ownership patterns in the regional economy. This includes stimulating new small businesses and encouraging outside investors to form joint ventures with local entrepreneurs and communities. · Cooperation between all countries involves or forming part of the Lubombo region so as to ensure efficient and effective implementation of the strategy. The Lubombo SDI is distinguished by a distinct and outstanding geographic beauty, which combines with high potential soils and subtropical climate to give the region a competitive edge in agriculture, nature conservation and tourism. The region is renowned for rich inter-linking eco-systems, bio-diversity and unspoilt coastline on the eastern seaboard of Africa. It identifies the lack of road infrastructure as the primary course for underdevelopment and inability to realise regional economic development potential. Apart from the N2 which links Richards Bay with Mpumalanga and Swaziland, the majority of link roads are gravel and very poor in condition. As a means to unlock investment potential, the SDI provides for the development of a new road infrastructure running from Hluhluwe town northwards through Mbazwana service centre up to Maputo in Mozambique. The SDI encourages cross-sectoral linkages between tourism, agriculture, agribusiness, building and construction, manufacturing and craft production. It thus creates clusters of economic activity around lead investment projects. The tourism developments in the SDI require services such as water, electricity and solid waste disposal and these should be provided by the adjacent municipalities together with the Greater St Lucia Wetland Park Authority (GSWPA). 2.2.2 Lubombo Transfrontier Conservation Area The South African Government, in partnership with the government of Mozambique, and Swaziland has committed itself to joint strategies for the planning and management of the Lubombo Transfrontier Conservation Area. An agreement to this effect was signed on 22 June 2000 in Durban at the World Economic Summit. This initiative gives effect to the aim and objectives of SADC and supports the broader aim of socio-economic upliftment of the Southern African region. This includes the following (Umkhanyakude District Municipality, March 2002:12): · Improvement of regional ecosystem management. · Economic development through appropriate maximum use of opportunities presented by the three countries.

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· Ecological and financially sustainable development, the sustainable use of natural resource base and the maintenance of ecosystems function through holistic and integrated environmental planning and management. · The development of joint strategies for transfrontier ecological planning and management. The primary objective of the TBNRM Programme is to protect globally significant biodiversity and contribute to community development through income generation nature based tourism". Given the country `s extreme poverty problem in the rural areas and especially in uMkhanyakude District, a pro poor approach to achieving local economic development is the key factor. 2.3 UMkhanyakude as an Integrated Sustainable Rural Development Program Node UMkhanyakude District is one of the 13 nodes for the implementation of the Integrated Sustainable Rural Development Programme (ISRDP). The concept of nodal development is based on spatial targeting where resources are directed to selected areas in response to identified problems and opportunities (ISRDP, 14 February 2002:30). The objective of this program is to create infrastructure to support social and economic development, and has potential to stimulate or kickstart local economic development. It focuses mainly on the following:

· · ·

· 2.4 2.4.1

Economic growth and development. Social development. Infrastructure development. Institutional and capacity development. UMkhanyakude in KwaZulu-Natal Province Gateway to KwaZulu-Natal and SADC Region In view of its location along the boundary with Mozambique and Swaziland, and the importance of the LSDI, UMkhanyakude is becoming an important entry point to KwaZulu-Natal and South Africa generally. The LSDI is intended to serve as a trade route linking South Africa and Mozambique and Swaziland. This creates an opportunity for UMkhanyakude District to capitalise on passing traffic and project itself as a prime tourist destination.

2.4.2

UMkhanyakude as an Economic Unit While it is acknowledged that the boundaries of UMkhanyakude District are administrative or local government boundaries, they are also economic boundaries in sense that economic trends were taken into account when the boundaries were demarcated. Moreover, the municipality has a constitutional mandate to promote and create an enabling framework for local economic development. This poses a challenge to the municipality to promote internal and external economic functional linkages.

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2.4.3

UMkhanyakude and Service Delivery UMkhanyakude District is one of the nine municipal districts forming the KwaZulu Natal Province. Its mandate includes service delivery, which covers the development of infrastructure for economic development. The Spatial Development Framework as indicated in the IDP emphasises the importance of an efficient service delivery system based on the model of development nodes, service centres and development corridors. These are differentiated by the role they play in this regard and the thresholds they serve. Mbazwana was developed as a pilot service centre intended to decentralise service delivery.

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3. SOCIO-ECONOMIC PROFILE OF UMKHANYAKUDE DISTRICT 3.1 3.1.1 Demographic Profile Population Distribution As indicated on Figure 4 below, UMkhanyakude has about 503 874 people who are distributed unevenly among the five local municipalities with the majority (33.44%) being in Hlabisa Municipality. Hlabisa only covers 11% of the total land area, which suggests substantially higher population densities (e.g. urban and periurban areas). Umhlabuyalingana and Jozini Municipalities accounts for 24.28% and 30.10% of the total population respectively. Only 2% of the population resides in the DMA, which covers 22% of the land area. FIGURE 4: POPULATION DISTRIBUTION

35% 30% 25% 20% 15% 10% 5% 0%

H lab isa Jo zin i A ZD M ali n. .. e.. . Fa ls Um hl ab uy M tu ba tu ba

34% 30% 22% 24% 24% 29%

11% 5% 2%

9% 5% 5%

K

POPULATION

AREA

3.1.2

Gender FIGURE 6: GENDER COMPOSITION OF THE DISTRICT POPULATION

District Municipality uMhlabuyalingana Mtubatuba KZDMA27 Jozini Hlabisa Big Five False Bay 45.6% 44.7% 49.5% 48.5% 46.3% 44.8% 46.9% 54.4% 55.3% 50.5% 51.5% 53.7% 55.2% 53.1%

0%

20%

40%

60%

Bi g

Fi ve

80%

100%

% MALE/FEMALE % MALE % FEMALE

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As indicated on Figure 6 above, gender composition of the population is skewed in favour of the females. Significant representation of the males indicates the extent to which job losses in the urban areas have forced men to come back and compete for opportunities and resources locally. 3.2 3.2.1 Size and Structure of the Economy Sectoral contribution to Gross Geographic Product FIGURE 7: SECTORAL CONTRIBUTION TO GROSS GEOGRAPHIC PRODUCT

COMMUNITY SERVICES AGRICULTURE TRADE FINANCE TRANSPORT MANUFACTURING CONSTRUCTION ELECTRICITY MINING

57.7% 9.9% 8.9% 7.6% 7.6% 4.4% 1.8% 1.4% 0.7% 10.0% 20.0% 30.0% 40.0% 50.0% % CONTRIBUTION TO GGP 60.0% 70.0%

0.0%

The total Gross Geographic Product for the UMkhanyakude was estimated at R1 219 million in 2000. Community services accounts for 57.7% of the local economy and this suggests general lack of economic diversification and dependence on government services. Agriculture contributes about 9.9% while trade constitute approximately 8.9% to the local economy. Only 4.4% is derived from manufacturing. The development of all sectors should receive attention with a specific focus on agriculture and tourism, as this is the sector where a competitive advantage exists. 3.2.2 Employment Profile TABLE 1: LEVEL OF UNEMPLOYMENT

MUNICIPALITIES EMPLOYED KZ271 KZ272 KZ273 KZ274 KZ275 KZDMA27 Total 6869 10049 3927 10388 5645 61 36939 UNEMPLOYED, LOOKING FOR WORK 11210 14466 1452 14400 1514 43042 TOTAL 18079 24515 5379 24788 7159 61 79981

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As indicated on Table1 above, unemployment is one of the major problems facing UMkhanyakude District. In 79 981 people who are able and willing to work, only 36 939 are employed. 43 042 are unemployment and are actively looking for work. This figure excludes the housewives and people who are not looking for work. The situation varies according to municipalities, with KZ274 and KZ272 being the most affected. FIGURE 8: EMPLOYMENT BY SECTOR

SOCIAL SERVICES FARMING TRADE PRIVATE HOUSEHOLDS MANUFACTURING CONSTRUCTION TRANSPORT BUSINESS MINING UTILITIES

0.0%

27.6% 20.4% 13.2% 10.4% 8.1% 6.5% 5.4% 4.1% 3.6% 0.7%

5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

BASED ON EMPLOYED WORKFORCE OF 30 244 PERSONS

The majority (27.6%) of the employed are involved in social services (refer to Figure 8). Only 20.4% and 13.2% works in the agricultural and trade sectors respectively. This confirms the domination of social services and its importance as the main source of employment within the district. Low representation of the agricultural, trade and manufacturing sectors indicates a low level of development and economic diversification. FIGURE 9: SKILLS PROFILE

Elementary Plant Machine Craft and Trade Skilled Service Related Clerical Technical Professional Senior Management 831 1484 1368 4396 2535 4381 3435 3687 10129

0

2000

4000

6000

8000

10000

12000

31.5% of the employed is involved in various types of elementary activities or unskilled work, which do not require any formal training of skills level. Skilled and technical and professional workers accounts for 3435 (10.7%), 1368 (4.26%)

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and 4396 (13.7%) respectively. 4381 (13.3%) of the total labour force, works in the craft and trade related industries. This clearly indicates general lack of appropriate skills for economic diversification. It also highlights a need for skills training in order to position the labour force to exploit the emerging economic opportunities. 3.2.3 Income An analysis of the income profile of the population suggests that poor lowincome communities dominate UMkhanyakude district. 81.4% households earn less than R1 500 a month (refer to Figure 10). 25.7% of households have no formal income, which suggest a high dependency on subsistence activities for survival. More than 50% of households in the District have an income of below R500 per month. A key contributor to the low-income levels is the high rate of unemployment and the low wages paid in specifically the agricultural sector. FIGURE 10: INCOME PROFILE BY MUNICIPALITIES

uMhlabuyalingana

84.4%

Mtubatuba

57.5%

KZDMA27

76.3%

Jozini

85.2%

Hlabisa

80.6%

Big Five False Bay

82.4%

District Municipality 0% 10% 20% 30%

81.4%

40%

50%

60%

70%

80%

90%

% OF HOUSEHOLDS EARNING > R1 500 PER MONTH

3.3

Education Profile FIGURE 11: EDUCATION PROFILE

40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

35.40% 30.40% 16.80% 2.50% Unspecified <5yrs

14.30% 0.50% Tertiary

Secondary

Primary

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A relatively high level of functional illiteracy characterizes UMkhanyakude District. 35.4% of the total district population has not received any formal education while 30.4% has primary education only. The number of people with secondary education could be estimated to 16.8% of the total population. Only 0.5% has tertiary education. Lack of appropriate level of education and skills training has a negative impact on the potential of the working age group to compete effectively in the job market, hence the majority of the employed is involved in unskilled labour. The need for unskilled labour is slowly diminishing with improvements in technology and mechanization and hence this population has a limited potential to be in the job market. This introduces a need to equip the population with the necessary skills to increase their chances of employment. 3.4 3.4.1 Settlement Pattern and Land Use Commercial Industrial The commercial and industrial uses are concentrated on the urban settlements of Mtubatuba, Mkuze, Hluhluwe and Jozini. Most of the industries are spin offs from the agricultural and tourism sector. Only 0.01% of the District land is under commercial / industrial use. A number of banks have established branches in the region to tap on the new market of UMkhanyakude. Low and high order goods shops have been established around the main tourism and agricultural hubs of Mtubatuba, Jozini, Mkuze and Hluhluwe. 3.4.2 Subsistence Agriculture Subsistence agriculture takes approximately 10% of the bulk of the district land and is mainly located in the traditional areas of Hlabisa, Jozini and Umhlabuyalingana. It is mainly practiced in the low potential areas of the district. 3.4.3 Commercial Agriculture Commercial agriculture covers only 2.15% of the land and occurs in the form of irrigation schemes in areas with high potential soils. 3.4.4 Forestry Commercial forestry takes up approximately 2.15% of the total land and is found in clusters in areas such Mtubatuba to the West of St Lucia and to the North and South of Lake Sibaya. A number of plantations are also found in Umhlabuyalingana. Forests plantations within the Grater St Lucia Wetland Park are due to be removed to pave way for conservation.

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3.4.5

Conservation 28.65% of land is under public and private conservation with tourism related activities occurring in selected parts within these areas. These include Greater St Lucia Wetlands Park, Ndumo Game Reserve, Tembe Elephant Park, Kosi Bay Nuture Reserve, Mkuze Game Reserve, Phinda Game Reserve and the Hluhluwe Umfolozi Game Reserve.

3.4.6

Traditional settlements The bulk of the unclassified land falls within this category and accounts for 55% of the land. Most of the land falls within traditional authority areas and is settled in terms of Zulu customary law.

3.5

Levy Base As indicated on Table 2, the district levy base is small and this has serious implications for the ability of UMkhanyakude district to deliver and maintain services. The Department of Traditional and Local Government Affairs has initiated a process for the identification of informal and unregistered commercial establishments operating within the District. While this will increase the revenue base, this also emphasizes the need for UMkhanyakude District to promote investment and economic development within its area. TABLE 2: LEVY BASE BUSINESS SECTOR Agriculture, hunting, forestry and fishing Farming Quarrying Manufacturing Electricity, gas and water Construction Catering and accommodation Wholesale and retail Transport, storage, communications Banks Pension and medical aid funds Real Estate and business service Building societies Central Government Local Government Social and business services Professional personal services NUMBER 54 95 1 15 7 180 60 333 26 4 1 41 1 3 2 22 430

The bulk of levy income is collected in urban centres where the majority pf professional services, wholesale, retail and construction enterprises are located. Agriculture and tourism are practiced by a significant number of enterprises and

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the other sectors are support activities to the two main sectors. Wholesale and retail trade has 333 enterprises and this is bound to grow with the increase in infrastructure development and accessibility in the district. Manufacturing has only 15 enterprises. There are four banks and one building society paying levy to the district. 180 enterprises are in the construction sector. 3.6 HIV/AIDS HIV/AIDS is one of the fey factors that will affect economic development within the district. The exact figures of HIV/AIDS prevalence within the district are not available, but information received from the Department of Health suggests that UMkhanyakude has the largest HIV/AIDS prevalence in the province of KwaZulu-natal. HIV/AIDS is also identified in the Integrated Development Plan as one of the key issues and primary focus areas.

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4. SECTORAL ANALYSIS: TOURISM 4.1 Overview of Tourism Activity in the UMkhanyakude Area UMkhanyakude District is recognized by the KwaZulu-Natal Tourism Authority (KZNTA) as a unique tourist destination within the Province, and has potential to develop into a world-class destination. This is based on the districts rich and diverse natural resource base and the strategic location of the district, which positions it to benefit from the SADC development initiatives. The Lubombo Spatial Development Initiative, Lubombo Transfrontier Conservation Area and Umkhanyakude District Municipality all identifies tourism as a leading economic and growth sector that needs to be promoted within the district. The primary attractions within UMkhanyakude District include a combination of various wildlife and coastal zones, previously marketed as a component of `Zululand', with a number of individual tourism publicity associations focusing on individual areas such as Maputaland, Hluhluwe and St Lucia. It appears that the current status is one of being between a previous component of `Zululand' and developing its own identity. It would also appear that the areas contained within the District Management Area 27 Area (DMA27) are somewhat independent from the District Municipality from a tourism perspective. The area can currently be divided into the following tourism zones with the primary attraction types shown in brackets: · · · · · · St Lucia / Greater St Lucia Wetlands Park (Coastal & Wildlife) Sodwana Bay / Lake Sibayi (Coastal) Kosi Bay and the KZN Coastal Forest Reserve (Coastal) Ndumo Game Reserve / Tembe Elephant Park (Wildlife) Mkhuze / Hluhluwe Corridor (Wildlife) Local history and culture (Zulu, Thonga/Shangane and Swazi Cultures).

The area is well located being part of the multiple tourism destinations of northern KwaZulu-Natal, Mozambique, Swaziland and Mpumalanga, which, between Richards Bay and the Mozambique / Swaziland Borders, offer approximately 15,000 tourism beds of which an estimated 1,500 are up-market (4-5 star). It is estimated that occupancy levels average approximately 55% to 65%. 4.2 Tourism As part of market research exercise, 9 tour operators currently operating in the region were interviewed to determine their main focus, attractions and areas they visit, and the potential scope for new development in the area. The list of these operators is attached herewith as Annexure B.

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4.3 4.3.1

Size of the Market Market Mix The tour operators surveyed carry between 400 and 20 000 tourists per annum. Of these, 61,3% includes visits to northern KwaZulu-Natal. On average 95,6% of the tour operator business in the sample originates from the overseas market, and 4,4% from the domestic market. The main foreign tourism markets are Germany (34,7%); UK (32,6%); the Rest of Europe (mainly Netherlands, Belgium and France) (21,8)%; North America (4,7%); and Australia (1,7%).

4.3.2

Group Sizes The sizes of groups vary between 2 and 60, with an average group size of 12.

4.3.3

Packaging and Pricing Table 3 provides examples of tours currently offered by operators in the area. TABLE 3: POPULAR TOURS OFFERED IN NORTHERN KWAZULUNATAL TOUR DESCRIPTION PRICING

Full and half day trips to Hluhluwe-Umfolozi, Dumazulu, R165 pp (half day) False Bay Park (historic), St Lucia (boat cruises & walks), R375 pp (full day) Hluhluwe-Umfolozi, Private Reserves, Ilala Weavers. 3 Day Kosi Bay and Tembe Tour, includes a boat cruise, snorkeling, game drives & walks. Overnight accommodation in Tembe and Kosi Bay Diving day trips to Sodwana. R4000 per person, dinner, bed and breakfast included. R285 per person (picnic lunch included). 3 Day Zululand, including visits to Hluhluwe-Umfolozi, St Lucia & Dumazulu village 3 Day Game Reserve, including visits to Mkuze and Hluhluwe-Umfolozi Between R3300 and R3550 per person between R3400 R3650 per person

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4.4

Popular Attractions Used by Tour Operators Table 4 shows popularity of attractions in northern KwaZulu-Natal, by indicating the percentage of tours offered by operators in the sample that include these attractions. TABLE 4: POPULAR ATTRACTIONS USED BY TOUR OPERATORS PERCENTAGE TOURS/ ITINERARIES THAT INCLUDES: 100% 89% 56% 56% 33% 33% 22% 22% 22% 11% 11% 11% 11% 11% 11% 11%

ATTRACTIONS VISITED Hluhluwe-Umfolozi St Lucia DumaZulu Shakaland Mkuze Ilala Waevers Kosi Bay UMgungundluvo Ondini Tembe Elephant Park Sodwana Bay Ithala KwaNzimela Babanango Nkandla Tours on Zulu Kings ­ around Eshowe 4.5 Length of Stay

Most tours to the region are full or half day outings, with operators spending between 2 and 4 hours at one place. Most overnight tours on offer are between 2 and 5 days. 78% of the tour operators indicated that there is scope for an extended stay in northern KwaZulu-Natal. Operators indicated that should they increase the length of stay in the region, they would include another day or two in northern Maputaland rather than in the southern area. Mkhuze, Kosi Bay and Sodwana were specifically mentioned as areas for potential scope to increase the length of stay. A new emerging market for tour operators is the cruise liners that stop over in Richards Bay. These tourists are all interested in seeing wildlife and culture. Due

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to the size of the groups they are currently taken to larger establishments, such as Hluhluwe-Umfolozi and Shakaland. 4.6 Popularity of Northern KZN The tour operators advised that their main focus is on Hluhluwe-Umfolozi, St Lucia Wetland Park, Cultural Villages and the Battlefields of the area. 4% of the tour operators interviewed include attractions the in uThungulu area in their tour itineraries, while over 90% include the uMkhanyakude area. The Hluhluwe has all the elements for a popular overnight stay. It has close proximity to major attractions and is on-route between Swaziland and Durban. 4.7 Overnight Accommodation Used Tour operators use a broad spectrum of accommodation depending on the type of clientele. St Lucia, close to the lake, and Hluhluwe, close to the main reserves are popular overnight spots. False Bay Bush Camp, Zulu Nyala, Ubizane Lodge, Bonamanzi, Hluhluwe River Lodge, Bayala, Hluhluwe Inn, Namib lodge and The Bridge, were specified. 4.8 Highlights and Disappointments According to the operators interviewed the highlights of the northern KwaZuluNatal area are as follows: · · · · · Hluhluwe-Umfolozi, game viewing, especially the Big 5. The reserves in KwaZulu-Natal are less crowded and provide a better wildlife experience that the Kruger National Park; Natural Environment (fascinated by the 5 different eco-systems in the area); Cultural heritage; Unspoilt beaches; St Lucia World Heritage Site.

The following disappointments were recorded: · · · · Quality and level of services at overnight establishments are sometimes disappointing to guests. Mistakes at KwaZulu-Natal Wildlife Reservations are causing major disappointments for overseas tourists that are turned away as a result of over bookings. Zulu villages - clients expect the cultural experiences to be more 'real'. Lack of good quality public facilities, such as ablutions, picnic sites, etc. to cater for larger groups. Big groups, especially coming from major cruise liners queue for hours at public facilities. Community Based Tourism Community based tourism offers a unique opportunity for including previously disadvantaged communities in tourism development. These include:

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· ·

Ownership of tourist facilities by the community outright or through shared equity. Management and associated employment opportunities 9eg accommodation owners, tour guides, booking agents, curio and craft shops, etc).

Local people often possess immense natural and cultural knowledge of their local environment. With some basic training they can become outstanding tour guides. A good example in this regard is the NGO sponsored community resource optimization programme in KwaDapha in Kosi Bay and the Ban Pan Safari lodge in Ndumo area. 4.10 Development Opportunities The research of tour operators in the region shows that the number of tours stopping over in northern KwaZulu-Natal as well as the length of stay in the area is increasing. Tour operators indicated that visitors want to stay longer in area, but spend less time in one place mainly as a result of a variety of new products and experiences emerging in the market. 89% of tour operators indicated that there is a demand for new attractions and facilities in northern KwaZulu-Natal. Cultural and wildlife attractions are plentiful; According to operators the area requires a diversity of products that are authentic. The following projects were mentioned in respect of development requirements: · · · · · Requirement for one big curio and craft outlet near a `Big 5" reserve, selling local arts and crafts (not imported crafts from all over Africa); A need for another cultural village in the St Lucia area was identified; (The proposed Dukuduku village might be ideal); There is a need for facilities to cater for families with children (aquariums, touch farms, etc); There is a need for more up market accommodation in Big 5 reserves; Requirements for more adventure activities to accessible to the foreign and local business market (rafting, quad bikes, paintball games, etc.)

22% of the respondents indicated that they will visit new developments in the Uthungulu area and King Shaka Cultural Route, while the other 78% indicated that they focus on Hluhluwe-Umfolozi, St Lucia and Maputaland and would not consider other areas at this stage. Hluhluwe seems to be the most popular location amongst overseas tourists, with 100% of the respondents indicating that they are prepared to incorporate new visitor attractions in this area into their tour itineraries. Table 5.below, provides an indication of the current (2002) statistics of tourist numbers impacting on uMkhanyakude District:

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TABLE 5: TOURISTS VISITING UMKHANYAKUDE DISTRICT CATEGORY OF TOURIST Foreign Tourists to KZN Foreign Tourists to North Coast Foreign Tourists to Maputaland Domestic Tourists to KZN Domestic Tourists to North Coast Domestic Tourists to Maputaland ESTIMATED TOURIST NUMBERS 400,000 121,000 145,000 5,800,000 235,000 217,000

The principal means of tourism access into uMkhanyakude is north and southwards along the N2 freeway, which also carries an estimated number of flowthrough tourists, en route to other destinations, of approximately 1 million. Local airport and cruise tourism accessibility is available through Richards Bay and Durban and a study is currently underway to investigate ways of improving air traffic accessibility within uMkhanyakude. It is estimated that approximately 3,000 people are employed within the tourism sector in the uMkhanyakude area at present. 4.11 UMkhanyakude District Municipality Involvement in the Tourism Sector Within UMkhanyakude District Municipality political structures, tourism matters fall within the competency of the Economic Development Portfolio Committee. In terms of management and implementation (Officials) jurisdiction, tourism matters fall within the responsibility of the Department of Development Planning and Tourism. Tourism Publicity Associations are understood to exist within the Hluhluwe, Mkhuze (Maputaland) and St Lucia areas, but appear to be individually operated from a local perspective with little overall `District' coordination. Community Tourism Associations do not appear to have been put in place as yet. The primary function of the Publicity Associations, are to provide tourism marketing and information services to visitors who are already in the uMkhanyakude area, with a limited degree of outward marketing to tourist-source markets via trade shows, with assistance from TKZN. Whilst this is an important aspect of tourism marketing, a greater level of focus should be given on the `outward' marketing functions within the context of a more holistic tourism marketing strategy for the uMkhanyakude District.

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5. SECTORAL ANALYSIS: AGRICULTURE UMkhanyakude District covers approximately 1.4 million hectares of land. 67% of this area is arable in so far as the development of pastures, and livestock and game farming is concerned. Only 10.8% of the area has high potential soils suitable for crop production. The main commercial agricultural activities are sugar cane production and timber while a small proportion of the land is under sisal, livestock farming, pineapple and vegetable production. Commercial agriculture occupies only 2.15% of the land i.e. 275km2. 32km2 of the land is in low potential areas, 150km2 is in medium potential land and 93km2 is in high potential land. Subsistence farming is prevalent in the communal areas and this is characterized by livestock production and limited crop production around homesteads. Ownership, tenure issues and such aspects as start up capital for irrigation are the main issues determining the use of land other than the soil types and climatic conditions. There is 58% of underutilized land mostly under Tribal Authority, which should be considered for commercial agriculture. 5.1 Agricultural Potential of the District Agricultural potential of Umkhanyakude district varies considerable from areas of high potential to areas with marginal production potential. Areas of high agricultural potential are located within the Mtubatuba Local Municipality on the coastal plain to the south and west of the Greater St. Lucia Wetland Park System, and extend as a coastal strip northwards all the way to the Mozambique border. It covers approximately 2600km2 or 20.28% of district with a significant portion falling on the boundaries of the GSWP. Areas with moderate agricultural potential also occur along the coastal plain, between the narrow coastal belt of higher potential to the east, and the low potential agricultural land lying within the Lebombo Mountains, and drier areas to the west of the towns of Mkuze and Hluhluwe. This area of medium potential agricultural land is most extensive in the north of the district, within UMhlabuyalingana Local Municipality, and forms a more narrow belt of land that extends westwards and southwards through the other local municipalities of the district. It covers about 6618km2 or 51.63% of the district. In the western areas, including a significant amount of Hlabisa Local Municipality, agricultural potential is limited broken topography and low mean annual rainfall. To the west of the Lebombo Mountains, soil and topographic conditions are more favourable for commercial agriculture, but rainfall is the limiting factor in preventing the full realization of the agricultural potential of this area, unless irrigation is used. The collective effects of topography, low rainfall and poor soils in areas along the western border means that the areas of low agricultural potential lie along the western side of the district, except within some of the area of the Umfolozi ­ Hluhluwe Game Reserve, and in some of the areas of the Hlabisa Municipality to the west of this reserve. In total, the area of low agricultural potential within the district is 3100km2, or 24.18% of the total area. Significant features within the district, which have implications for the realization of its agricultural potential, are as follows:

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·

·

The extensive floodplain along the Pongola River to the east of the Lebombo Mountains and the level and low lying areas within the coastal floodplain on the landward side of the barrier dune systems and its associated water bodies (such as Kosi Bay and Lake Sibaya ) are well suited to aquaculture, for fish and prawn farming for example. The Pongola Dam is a major reservoir of good quality fresh water that is largely underutilized, and has great potential to be further used for irrigation projects.

The district's northeastern coastal plains are one of the rare areas with tropical climate within South Africa. Besides the high productivity offered by this climate in terms of the rates of plant growth and length of the growing season, it also allows certain crops to be grown in these parts, or for crops to have earlier ripening times, than elsewhere in the country. This is a potential competitive advantage for these areas of the district. 5.2 Sugarcane South Africa is the largest producer and exporter of sugar in Southern Africa. 52% of the sugar produced in this region is for domestic use while the remainder is exported. Sugar cane is grown on the Eastern Coast of South Africa with the warn current of Mozambique and most of the sugar plantations are rain fed with only 15% under irrigation. The industry is divided into sugar cane cultivation, factory production of molasses, raw and refined sugar. KwaZulu Natal houses 15 sugar mills, with seven being owned by Illovo Sugar Limited, five being owned by Tongaat- Hulett Sugar Limited, two by Transvaal Sugar Limited and one by Union Cooperative Limited. Over 15 000 people are employed in the sugar milling companies of KZN. The cane produced in the Mkhanyakude district is sent to the Phongola and Umfolozi Mills that are both owned by Illovo. In Mkhanyakude District sugar production is by both small-scale growers and commercial farmers. The South African Sugar Association in terms of finance, transport subsidies and specialist services, which enhance the profitability, global competitiveness and sustainability of the sugar industry, supports the small-scale growers. Sugarcane is grown in the areas located to the extreme south of the district in the Mtubatuba Municipality and this has expanded to include the new areas of Mkuze Sugar Estates along the N2. The area is under irrigation from the Phongola Dam and has good soils with a high agricultural potential. The Makhathini Flats also provide a substantial amount of sugar cane although the area under sugarcane plantation is small to warrant high returns. The low returns are also compounded by the loss of sugar content during the transportation to the milling factories in Mtubatuba and Phongolo Mills in the Northwest. Figure 12 below gives statistics for cane crushed by mills in South Africa in 2001. 27% of the cane was from the Zululand region, which includes Umkhanyakude region.

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FIGURE 12: CANE CRUSHED BY MILLS IN SOUTH AFRICA IN 2001

14%

16% 21%

22% 27%

Northern irrigated Midlands

Source: Institute of Natural Resources

Zululand South Coast

North Coast

In the Makhathini Flats sugar has been grown since 1992 and is limited to a production of 120 000 tones of cane on an estimated area of below 2000 hectares. There are a total of 240 small-scale sugar growers on the Makhathini Flats delivering 72 tones of cane per hectare. The farmers are not realizing the full potential of cane production due to the small plots that they have under sugar (10ha per person). The SASA employs contractors who cut the sugar and transports it to the millers. Large-scale commercial sugarcane production is limited and occurs mainly in the Mkhuze area. However, there is potential for this to increase as an addition area has been cleared for this purposes also in the Mkhuze area. Currently 1000 hectares is under plantation and a further 500 hectares is being developed. The project is anticipated to create employment and provide settlement for farm workers on the 100ha of land set aside for residential development. The proposed development will not have an impact on the Makhathini Flats, as the demand for sugar is very high locally and internationally. In addition, there is a proposal to develop an organic sugar mill in Makhathini Flats (INR, 18). This will require and additional 1500ha of land as the existing land contains chemical residues. In the Makhathini Flats organic matter must be added to the soil in order to meet the growing requirements of sugar cane. There will be additional labour costs for weeding, while pest and disease control would have to be well managed. Although the IDC has indicated an interest in co-funding this project, establishment costs could be a serious limitation in this regard. Secondly, there is no known market for organic sugar despite it being a niche market product. Sugar is a crystal, which means that once it is in this format the

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origins and process including those of growing the cane cannot be traced back and do not have an impact on composition and quality of the crystal. 5.3 Commercial Forestry/Timber MONDI and SAPPI are the major global players in the wood industry with a total of seven milling plants located along the coast. About 30% of the local pulp is exported. Nine of the 13 Pulp, Paper and Board Mills are located in KZN. 40% of South Africa`s forest plantations are located in KZN and 50% of timber conversion takes place in KZN. 60% of the door market is supplied by KZN. Capital investments in timber in KZN alone is as follows: · · Plantations R4 billion Timber processing R10 billion

KZN's contribution to Gross Geographic product for forestry is 1.5% and forest products contribute 10.7%. The main species of the commercial tree plantations in the region are Eucalyptus (gum), Pinus (pine) and Acacia Mearnsi (black wattle). The wattle industry is a partnership between South African Wattle Growers Union and the South African Wattle Extract Manufacturers Association. The wattle industry in the region is based on the black wattle of which 96% of the products are exported. The main application from wattle extract is tanning used in the production of vegetable tanned leather for shoes, bags, saddles etc. Bondtite used in the manufacture of weatherproof and boil proof particle board, plywood, cardboard while wattle timber is used in the paper pulping process and596% is exported in chip and log form. Other uses locally include building and fencing poles and the production of charcoal for export. Forestry statistics for small timber grower enterprises are as follows: · · · · Small growers involved Area under timber Estimated investments Estimated current revenue earned 15 000 26 000 ha R50 million R45 million

The district accounts for at least 10% of the timber produced from three main areas namely Manzengwenya Plantation in the north, Mbazwana plantation below lake Sibiya and the plantations between Mtubatuba and Hluhluwe all the way along the N2. There are also smaller woodlots, generally under 10 ha which small growers within the tribal areas have planted up. Mondi and SAPPI are supporting small grower timber production. Amakhos's are responsible for the identification of land that is then subject to an environmental impact assessment, after which permits are issued. The impacts of afforestation, on water resources, visual impacts and other aspects of resource conservation need to be carefully assessed in each case.

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The existing state forestry plantations within the district are in the process of being privatized, and the areas of commercial forestry within the Greater St. Lucia Wetland Park area will be systematically eradicated over time. Besides the impact of the areas of commercial forestry eradicating the natural vegetation of the area, they also have a significant and generally negative impact on its landscape qualities, particularly within the context of the level landscape and comparatively low vegetation of the coastal plain. It is generally considered that there will not be significant increases in the areas of commercial forestry within the district. 5.4 Cotton Cotton is mainly gown in the Makhathini flats and two major players are the Makhathini Cotton Company and Vunisa Cotton. Cotton is popular due to its high cash value and the fact that it requires less management and can be continuously grown without crop rotation. TABLE 6.: COTTON PRODUCTION BY PROVINCES

AREA HECTARES IRRIGATI ON DRYLAN D YIELD IRRIGA TION DRYLA ND PRODUCTION COTTON LINK 2000/01 2001/02

Mpumalanga Northern Province Northern Cape KZN North West Orange River RSA Total

9768 3506 2781 528 208 1748 18539

10 29351 0 3587 5205 0 38153

3422 3299 3835 3000 2600 3589 3455

650 508 0 1150 350 0 593

61041 51002 19463 10419 4312 11278 157515

26058 29556 1061 12608 5670 7464 82437

Adopted from Cotton Market Reports

A number of people in UMkhanyakude have benefited from the cotton out grower schemes on the Makhathini Flats whereby the Land Bank allocates finance via Makhathini Cotton Company and Vunisa Cotton to small-scale farmers who have an obligation to sell cotton back to them. Cotton is however not so popular currently due to the international fall in cotton prices. Other crops provide a more competitive return. Reports from the Cotton Market however indicate that UMkhanyakude accounts for the bulk of the dryland cotton. The table below indicates cotton production per province for the year 2001. 5.5 Subsistence Agriculture Subsistence agriculture is practiced throughout the traditional authority areas within the district. It consists of largely small gardens and fields close to the homesteads, with crops for domestic consumption (such mealies, beans and sweet potatoes) and cattle and smaller livestock grazed on communal land. Land used for crops are generally small and fragmented, and inputs in the form of technology, fertilizer, irrigation and other forms of capital investment are low. Several projects for community gardens have been initiated throughout the district. The nature of their

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funding, implementation and success is in the process of being investigated throughout the district, but these are not based on any strategic framework. Notwithstanding the relatively high densities of people within the tribal area, there are large tracks of vacant land occurring in areas of medium agricultural potential. However, some of these are used as grazing land for livestock, particularly cattle. This creates potential to increase agricultural productivity in traditional authority areas subject to the development of appropriate infrastructure. Some of these are being considered for cotton plantations (eg Nondabuya and KwaMpotshane). 5.6 5.6.1 Use of Natural Resources Fibre The use of natural resources is very significant in Umkhanyakude District. This is due to both the prevalence of rural, traditional life styles within the area, and the particularly rich and unique availability of natural resources that occur within parts of the district. The extensive wetland and floodplain areas of the district provide a rich supply of reeds and hygrophilous for weaving purposes. Very large quantities are extracted and uses for this purpose, both locally and exported to other regions. Due to the high productivity and extensive nature of these resources, if properly harvested these can be used in a long term, sustainable manner. The north-eastern parts of the district, in particular the Umhlabuyalingana Municipality is notable for the prolific growth of palms in this area. Besides the Wild Date Palm ( Phoenix reclinata ) and Lala Palm ( Hyphaene coriaceae ) which, occur elsewhere in the province, a colony of wild Kosi Palm (Raphia australis ) is unique to the Kosi Bay area and on the shores of Lake Amanzimnyama. Besides their distinctive and ornamental contribution to the landscape, these palms are all used by the local people for crafts and construction and significant quantity of the palm fronds (in particular the Lala Palm) are exported out of the area for use by craft workers elsewhere. The sap of Wild Date Palm, and in particular the Lala Palm are used for the production of an intoxicating, nutritious palm wine (ubusulu, mjemane ). This drink is bartered and transported some distance for sale. Tapping of palms for sap and the use of fronds for weaving and other purposes can be destructive but, with controls and active planting of palms, the palmveld areas of the district could support these important local industries on a sustainable basis. As a means to ensure sustainability, the sale of palm material for craftwork outside of the district should to be curtailed. Sisal and natural fibres have been found to have a great potential for economic development. Ilala and sisal products are promoted by a company called Ilala weavers which offers a market to over 2 000 women who weave and sell their products to the company. The women work from their homes and earn at least R500 per month.

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5.6.2

Muthi Plants The district is also particularly noteworthy for the use of special endemic plant material for muthi purposes, by both local people, and also for export to other parts of the country. Besides this existing social and economic value, there is also the potential use of these plants as the basis of the development of various pharmaceutical and medicinal products. As an area of high endemism and biodiversity, this is a potentially large and extremely valuable market. The need to carefully manage this potential use in a sustainable manner, and in a manner that maximises the benefits for the local people is absolutely essential in any further development of this field of natural resource use. The options to sustainable supply are the intensive cultivation of the plants on the woodlands and grasslands especially in KZN Northern region. This could provide a source of income in the long run and Projects could be set up in DC27 involving Forestry Department. Forestry would provide assistance in setting up nurseries and medicinal plant gardens. The community needs training in medicinal plant propagation, cultivation and conservation. The project could be targeted at traditional healers in the region, as they would have a great interest. The project could be developed to include the: · · · · · Selling of seedlings Packaging of medicine Traditional healing Fortune telling Traditional healing village for tourists

5.6.3

Wood The woodland and forest areas contain many tree species used for craftwork such as woodcarvings, for both tourism and domestic use. However, the use of the most popular and striking forms of wood, such as from the Tamboti tree (Spirostachys africana), for commercial purposes is probably unsustainable in the long run.

5.6.4

Fishing The floodplain and lake areas, and in particular the Kosi Bay lake systems are used for a local fishing industry, using special local fish traps or kraals within these water bodies.

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5.7 5.7.1

Niche Products Ground Nuts Groundnuts projects were identified in the uMhlabuyalingana area. Large-scale production is planned in the Mboza area where a business plan has been prepared by the Institute of Natural Resources, and the first phase of the project is being implemented. According to INR, world markets for ground nuts grew at a rate of 5% per annum over the last five years with the market for premium quality nuts growing by an average of 8% per annum. Local markets maintain that there is shortage of supply and they are unable to meet their domestic and export market targets. The main demand lies with Star Foods a local company, which prepares and exports groundnuts. The local producers have failed to meet demand and hence Star Foods has resorted to importing from Zimbabwe where it has secured contracts with farmers. The potential for groundnuts is very high in UMkhanyakude District and there is need to pursue opportunities for farmer training and assistance with Star Foods and the South African Peanut Forum, which sets standards for the production of groundnuts. The coastal climate and the white sandy soils are very favourable for the production of clean groundnuts and the crop could be grown twice a year in Maputaland hence it offers increased profitability. However, this potential is limited at present by poor access to water.

5.7.2

Pineapples There is a large scope for pineapple production in the sandy soils north of Hluhluwe. Cayenne pineapples still have markets especially in the canned state. KZN Department of Agriculture together with some Danish Investors has expressed interest in establishing a canning venture. The plantations are found in the Big Five Falls Bay Municipality in the Hluhluwe area. A number of farmers grow the fruit and sell along the main road on make shift vending stalls as shown in the snap short below. The main market for the fruit is in Durban where it is used for archer production. The market for the Queen pineapple is almost reaching saturation point.

5.7.3

Bee-keeping This is practiced by the community to a limited extent in the forests owned by Mondi and Sappi in UMkhanyakude. However, prospects for its development are high given the large areas of forestry and suitable flowering plants growing naturally. Honey production can be a lucrative business venture for community development. It has: · Very little initial capital costs · Little management is required · Promotes the retaining of indigenous trees in the area.

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It is ideal for resource poor farmers, as it requires low cost technology, minimum infrastructure and no land ownership. Eucalyptus trees provides excellent source for pollen and these are found extensively in the District and another opportunity exists in the natural forests in the game parks The department of forestry is willing to offer support and training in bee keeping as it encourages the retention of natural resources. In its organized form, bee keeping can provide a good source of income and also ensure food security. Large scale bee-keeping is more sophisticated and requires capital investments for hives and pack-house and these keep between 1 000 ­ 7 000 hives. There are very few large-scale beekeepers in South Africa. The following could be attributed to lack of interest in large-scale bee keeping: · Theft of hives. · Bee disease threats which affect production of honey The following are the advantages of bee keeping: · · · · No specialized equipment is required Honey can be stored indefinitely ­ has indefinite shelf life Market opportunity is high and steady One can begin at a very small scale and gradually increase the size without too much capital investment.

According to INR, the main nectar sources offering opportunities for bee keeping in Umkhanyakude include: · Cotton plantations. · Indigenous forests. · Forestry plantations. Traditionally, plantation managers have discouraged bee farming on plantations due to the risk of veld fires. However, this attitude is slowly changing with the realisation of the potential controlled bee keeping offers for rural communities neighbouring to forestry plantations. Local prices for honey have been stable increasing by an average of 10% per annum for a long period of time. In addition to local retail markets, honey can be produced for European markets such as health cereal manufactures. However, European markets require guaranteed supply from reliable suppliers. 5.7.4 Cashews Nuts In the mid 1980s, the Industrial Development Corporation initiated a research project aimed at promoting the development of cashew industry in the Maputaland area. As a result, of the positive feedback from this study, project based on the joint venture between Ithala Development Corporation and the Industrial Development Corporation was established and it resulted in the formation of Coastal Cashews (Pty) Ltd. Initially, the project intended to develop about 850ha of cashew nuts at an estimated cost of R36m. In 1994, the scheme was broadened to include out grower farmers in the Manguzi area. In 1996, the

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Department of Agriculture funded to a tune of R2.4m the establishment of infrastructure required for a total of 3000ha of small individual out growers. The development of the cashew outgrower block is based on four agricultural production enterprises, namely: · · · · Essential oils. Peanuts Honey Cashews.

The first two enterprises are phased in and out over a period of 11 years. Whilst the cashew orchards are being established and are developing to full production. While bees will improve cross-pollination, they will also serve as source of revenue through the production of honey. A processing plant was also established on the core estate a decision was taken in 1993 to establish a commercial cashew nut project. Cashew nuts are grown in the areas around Umhlabuyalingana where the soils are most favourable. A research programme was launched as a joint venture between Ithala Bank, Industrial Development Corporation and Coastal Cashews Private Limited. The project is 10 years old and is not yet financially viable. At present 600 ha of cashews has been planted and these produce 70 tones of cashews in a year. The demand for cashews in South Africa exceeds 1000 tones therefore there is still demand and opportunities in the sector. A total of 106 permanent workers are employed on a permanent basis on the farm and another 150 are employed seasonally to pick the nuts. The company has 2 foreign employees with the rest being from the Mkhanyakude District. Currently the factory is operating under capacity and hence it introduced an out grower programme together with Maputaland Cashew Nuts Association. The project is at an advanced stage with a business plan and finances in place. Planting might commence in June as land has already been identified for the establishment of the project. Coastal Cashews is willing to support any out grower scheme and have identified the best varieties for the area. The core product is the nuts and other possible products are fresh juice, peanut butter and oil for industrial but these can only be implemented once the business become profitable. 5.7.5 Essential Oils South Africa produces essential oils that rank among the best in the world. There is a great demand for aromatherapy products worldwide with the rise in health consciousness. This has been identified as a niche market that is high risk but with high profits and export potential. At least two projects of this nature have been proposed in Umkhanyakude, that is Lubombo Essential Oils Project and Mosi in north-eastern Ingwavuma area. The former is a commercial joint venture between KZN Agricultural Development

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Trust and Agriman and Associates. It involves growing, distillation and value adding to organically grown and certified essential oils. The core plantation will be approximately 430ha in extent, and will be supported by various plantations owned by previously disadvantaged emerging framers or contract growers. The CSIR in association with a UK based essential oils marketing company Biosys would provide the seedlings and marketing services, but this will be phased out as the venture matures. In fact, the project will be implemented in three phases with the first phase being a trial phase. It will be conducted at Makhathini Research Station, and will cost about R1, 9 million. The second phase is scheduled to commence early in 2003. It will cover about 400ha of land and includes the establishment of a distillery. Phase 2 marks the establishment of the core scheme. The third phase will commence in 2005, and will focus on the extension of the plantations by incorporating local emerging farmers as contract growers who will grow for the company and acquire share holding in the company based on their production capacity. This phase includes the development of a marketing capacity and value adding facility, and its budget is estimated at R4 million. The initial investigations into the production of "rose geraniums" on the sandy soils which prevails in the coastal belt indicates that this could be achieved with a reasonable degree of success. The project is looking at developing itself with a larger cashew out grower project currently being planned for the area and will generate an essential cash flow for the project in the initial years of establishment (INR, 30). 5.8 Sub-tropical Fruits Umkhanyakude District's tropical climate makes it the most favourable for tropical fruits in South Africa. Siyasisiza Trust is involved in the District in supporting farmers on subtropical fruit projects. 32 farmers have received seedlings to date. However, the sector is not well developed in DC27 due mainly to the length of time it takes before farmers realize production (2-5 years) and the high initial capital costs/establishment costs. Proposals are underway to establish fruit canning ventures in the District. The following range of fruits would require further investigation: · · · · · · Litchi Papaya Granadilla Guava Avocado Mango

A banana scheme is underway in the Makhathini Flats and is run by Zamukuphila Fruit and Vegetable Cooperative on a trial basis and there are 13 farmers already in business with one hectare of banana plantation each. The bananas are of poor quality and the farmers have not established a stable market. At the moment hawkers' buy the bananas in bulk from the farmers and the farmers do not have

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transport costs or commission costs. The farmers are left with little or no bargaining power. A number of small-scale producers have established banana production on a small scale in the Mangusi wetland area and the bananas are also of poor quality to be highly marketable. 5.9 Vegetables and Fruits UMkhanyakude District has very good climate for the fruit and vegetable gardening venture. The region is mostly frost- free. The Makhathini Flats have good production climates for fruits and vegetables and these can be produced all year round with no out of season problem. The in season prices are normally lower than the out of season prices and hence the area presence a competitive advantage. The community with the help of the Department of Agriculture and the District Municipality has established a number of community gardens around homesteads and on irrigation schemes all around the District and these are mainly for food security and to a limited extent for selling to the community. The farmers produce at a small scale and hence do not realize much profit as the vegetable business is highly depended on quantities and the freshness of the product at the time of delivery. The vegetables grown in the area are as shown below: · · · · · · · · Baby Marrows Butternut Beans Peas Pepper Onions Potatoes Pumpkins · · · · · · · · Tomatoes Sweet potatoes Gemsquashes Patty pans Beetroot Cauliflower Brinjals Chillies

Fruit and vegetables have a great potential especially in the Makhathini Flats where the Zamukuphila Community Cooperative is in the process of setting up a fruit and vegetable venture. The main problems with the fresh produce business directed at delivering to fresh produce markets were identified by the farmers in the area to be as follows: · · · · Potential markets for fresh produce require large volume production Transport costs are very high The price is not stable and depends highly on supply and demand There is no guarantee for a sale unless a market is established in the first instance

Retail outlets are another potential market for the vegetables grown in the area but the market is difficult to penetrate, as it needs more organized groups. The price offered by retailers is better than fresh produce markets prices. However retail outlets require fresh and well-packaged supplies of high quality. This requires wellorganized groups who can afford to do a continuous supply on a fixed contract.

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The retail outlet avenue is worth pursuing for the growth of the fresh produce industry and local economic development for the District. Other potential markets for fresh produce within the district include the following: · · · · Supermarkets Hotels and lodges Hospitals Prisons

Training for the vegetable production industry is available from the Department of Agriculture. 5.10 Opportunities for Agricultural and Natural Resource Use There is the need within the district to increase the agricultural production and benefits from the existing subsistence home and community based subsistence farming. This is desirable in the light of the high levels of unemployment within the district, and the need to ensure basic food security for the people within it. However, over and above this, there is the need to develop the potential for an appropriate, commercially based agricultural industry of the district. The main commercial agricultural potential within the district is seen as lying in small scale and more specialized farming initiatives, and in the intensively agricultural irrigation practices that are possible on such areas as the Makhathini Flats, Railway Valley and Pongola Floodplain areas using water from the Pongola Dam. These should, ideally from the socio ­ economic transformation perspective, involve black emerging farmers and community based initiatives with the black local people. Some of the opportunities, which have the potential to be realized within the District, are, identified below as follows (PS2 Consortium, 2001:77). · The use of specialized, high value cash crops that are suited to the area, and where there might be a competitive advantage to growing them locally. Examples of such crops are in tropical fruits and nuts, herbs and spices, medicinal and cosmetic plants, and flowers. The development of aquaculture, in the form of estuarine and freshwater fish for consumption, prawns, and tropical fish. The development and management of the natural resource base of the area, and the sustainable commercial use of the products. This applies to the use of material used for weaving, perhaps other activities such as hand made paper, carving, and also the use of the game of the area for consumption and hunting related to the conservation areas.

· ·

Besides their production, the processing and packaging of these products within the area to add value and reduce the net transport costs are highly desirable. Positive characteristics of these above activities are that they are highly productive within relatively small areas of land, and are generally labour intensive, which is considered to be an advantage within the district with its high unemployment rates.

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Potentially problematic aspects are that the generally need a high level of expertise, are capital intensive, and need to be able to get their goods rapidly to distant markets. 5.11 Constraints to Agricultural Development

5.11.1 Access to Adequately Sized Agricultural Land People residing in traditional authority areas do not have access to sufficient land that could be regarded as an economically viable agricultural unit. The settlements are dispersed, unplanned and are not based on the notion of commercial agriculture. This has led to a uniform spread of settlements over the landscape, with no substantial blocks of suitable land being available for agricultural production. This situation is compounded by the fact that settlement densities tend to occur on land with a higher agricultural potential. Agriculture has either to adapt to the relatively small parcels of land available or there has to be the consolidation and movement of settlements to obtain larger parcels of agricultural land. The second option can be undertaken in a small scale and where adopted, it should cause minimal social disruption as possible. 5.11.2 Land Claims The majority of state land is subject to land restitution claims, which means that such land cannot be made available for development until such land claims have been resolved. The most affected area is Makhathini Flats. 5.11.3 Management and Control of Communal Grazing Areas The stocking and management of communal grazing land is difficult to manage and control from an agricultural efficiency perspective. Overstocking tends to be endemic, pasturage is not managed or maintained, and livestock tends to also have negative impacts on other areas such as croplands due to insufficient control of their movements, and also impacts negatively on the conservation of the natural resources of the area. 5.11.4 Subsistence Farming Food security is naturally the prime motivation for crop selection and general agricultural practice. The change to producing a commercial cash crop has real risks associated with it, and it is difficult to overturn the habits and rituals of many generations. Way of minimising risks, and appropriate ways of introducing commercial ventures into the areas where subsistence agriculture is practised need to be employed.

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5.11.5 Technical and Financial Support The production of high value cash crops or niche market products requires a certain level of technical expertise and knowledge, which is presently lacking within the district. Effective extension services, access to appropriate technology and finance to emerging farmers all need to be enhanced within the district to support emerging farmers. 5.11.6 Lack of Sector Strong Organization Although farmers groups do exist, and some activities such as ploughing may rely on the sharing of resources, there are generally not strong and effective agricultural organisations within the tribal areas. This denies the farmers benefits that could be derived from joint buying of seeds or fertilisers, collective use of machinery, collective marketing and transport strategies. 5.11.7 Inadequate Processing and Storage Facilities Processing and storage facilities are absent or lacking within the district, especially if high valuable, perishable and / or produce requiring processing is required. This is particularly so in the more remote, north eastern parts of the district, where the conditions are most conducive to tropical fruit production and aquaculture, where these facilities would be in the most demand (PS2 Consortium, 2001:78). 5.11.8 Poor Access to Water Irrigation areas have recently been extended within the Mkuze area using water from the Pongola Dam, and there are plans to extend irrigation within the Makhathini Flats area. Lack of a reliable source of water for irrigation has been identified as one of the major constraints to the Mboza groundnuts project and establishment of cotton scheme in Nondabuya. More extensive areas of irrigation would be required to be linked to most agricultural initiatives. 5.11.9 Poor Access to Markets The district is relatively distant from local markets of high populations and high disposable incomes, such as the Durban and Gauteng domestically, and overseas markets, where the distance to international airports is high. This is of particular importance with high value, perishable products. The situation is improving progressively however, with the completion of the SDI Road and the proposed airport in Mkhuze. 5.11.10 Lack of Integrated and Coordinated Development The various role players, such as the KZN Department of Agriculture, the District and Local Municipalities, organized commercial agriculture, local small

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farmers and their communities and other interested parties are required to better integrate their efforts and work together in a more collective manner in the development of agriculture in the district. The roles of certain bodies in agricultural development, for example of the District and Local Municipalities need to be more clearly defined (Ibid).

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6. SECTORAL ANALYSIS: TRADE, COMMERCE AND SMMEs 6.1 Sector overview Commerce and trade is the second largest economic sector in Umkhanyakude District. It contributes about 8.9% to the local Gross Geographic Product (GGP) and accounts for 13.2% of the total employed labour force. It includes the both office and retail sub sectors. Poor development of this sector reflects the effect of the lack of investment and economic neglect, and also confirms a low buying power that characterizes the district. As already indicated, unemployment rate is estimated at 54%. The majority of the employed is involved in elementary sectors and earn very little in terms of income. As a result, the district has been identified as a poverty node and is subject of the Integrated Sustainable Rural Development Programme. 6.2 6.2.1 Key Features of the Trade and Commerce Sector Economic Activity Centres Trade and retail activities in Umkhanyakude are concentrated in the urban centres spread unevenly throughout the district. Umkhanyakude is unique in the sense that there is no clear hierarchy of centres or differences in roles with the exception of St Lucia, which is largely a tourist town. These centres have emerged as major towns in the district as a result of locality, economic base, access to resources, level of infrastructure and services. Small towns located within the district include: · · · · · Mtubatuba Hluhluwe Mkhuze St Lucia Jozini

These centres serve a number of functions and provide service to expansive rural areas. The following are some of the key functions of these centres: · Service delivery, which includes providing access to various government services. · Retail centres, which include location of different types of retail activities and order of goods. · Transport interchanges. · The majority of these centres is serviced with taxi ranks and provides access to both local and long distance transport service. Other smaller centres occur in areas such as Hlabisa, Manguzi and Ngwavuma. They also provide service to the rural hinterland albeit at a lower scale compared to their counterparts (small towns). Commercial development in these urban centres (small towns and rural service centres) has occurred in an adhoc manner resulting in a mixture of land uses found

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within the commercial zones. Some of the land uses are incompatible. Industrial zones have also been used for other purposes. In Mkuze for instance, about 40% of service industrial sites has been developed as residential and other nonindustrial uses. Some of the vacant sites are in private ownership and have since not been developed. Also important is the need for the formalization of these towns. It is believed that the implementation of the Land Use Management Systems (LUMS) will facilitate this process and create a framework for effective and efficient land use pattern. 6.2.2 Hierarchy of Retail Facilities The trade and commerce sector, particularly its retail and office components develops into a hierarchical system of higher and lower order facilities reflecting the role of the area where a facility is located in the regional economy. Most headquarters of large companies are located in major urban centres, with regional and satellite offices locating in small towns. The same pattern can be observed with regard to the retail sector, with the exception of a few chain stores that targets the rural markets (eg Spar, Boxer Cash and Carry, etc). The hierarchy also reflects a complex interplay of buying power, shopping trends, transport costs and mode of transport. The majority of shops in the small towns within the district are geared towards serving poor low-income rural communities who depend on public transport. 6.2.3 Injections into the Local Economy Injections into the local economy occur mainly through the tourism industry and passing traffic. The N2 and various world class tourist destinations such as the Great St Lucia Wetlands Park plays a key role in this regard. It is expected that the Lubombo Spatial Development Initiative will have the same impact. 6.2.4 Leakages Income leakages occur when the local residents do their major shopping away from the local shopping facilities. While the majority of shopping takes place within the district in the above-mentioned urban centres, the district still experiences a significant income leakage as the majority of shopping facilities are controlled and owned outside the district. Moreover, they are supplied with goods by wholesalers, which are located in major urban centres such as Richards Bay and Durban. 6.2.5 Informal Trading The size of the informal economy within the district is unknown, but it is certain that this activity accounts for a significant amount of job opportunities and income generated within the district. It occurs in both urban centres and along major transport routes. The following are the main categories of informal trading found in Umkhanyakude:

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· · · ·

Fruits and vegetables. Arts and craft Car repairs and the related activities. Tuck Shops and Spaza Shops

The majority of those involved in the informal enterprises are survivalists where the income generated is less than the minimum income standard or poverty line. The activities are basically the same being either fruit and vegetable vending, community gardens or art and craft. The activities are highly competitive due to overcrowding of activities and labour intensive with very low returns. Most of the players in this sector are women and these are involved in hawking due to the low barriers to entry. Competition becomes very intense and profit margins are low due to high bargaining power of buyers who have a wide choice. The lack of a wide product range and diversity in type of products has been attributed to a lack of access to credit. This has resulted in the upcoming entrepreneurs buying small amounts of the cheapest goods or raw materials leading to low profit margins. Due to a lack of predetermined markets for products, the informal sector is susceptible to sudden changes to the working environment, disease epidemic e.g. cholera and they are vulnerable to adverse weather conditions due to a lack of proper market stalls and vending bays. Traders require specific social services and infrastructure such as access to sheltered market stalls, transport to markets for their products, access to water and sanitation and these fall within the ambit of the Municipalities. 6.3 6.3.1 Efforts Towards Entrepreurship Support Department of Labour One such initiative has been the Department of Labour and Danida Skills Development Programme and the ongoing Australian South African Government Partnership for the empowerment of women entrepreneurs. The Department of Labour in association with the Danish Government has jointly implemented a Skills Development Programme in the District with objectives of creating an enabling environment for job creation and skills development. The Programme targets rural women, as they have been the most disadvantaged. Four pilot projects were undertaken and a brief summary is given below. The women were trained in non-technical subjects that included · Life skills · Entrepreneurship trait development · Establishment of cooperatives A Nationally recognized certificate was issued at the end of the course. The following table gives a breakdown of the Danida Initiative. 6.3.2 South Africa ­ Australian Government Partnership The Australian Government has formed a partnership with the South African Government to develop strategies to assist rural women in improving standards

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of living through income generating projects. The partnership intends to establish a pilot office in uMkhanyakude District to offer services to women in business. The objectives of the Partnership are · To support through advice and micro finance the setting up of viable women run micro enterprises in the District · Engage the community of uMkhanyakude including the traditional leaders, public and private sector in supporting the pilot projects · Identify women with ideas to start up businesses · Establish an on going support network for long-term advice for future women entrepreneurs. The study by a representative of the Australian Government has identified numerous projects that are funded on an ad hoc basis mainly in market gardening, sewing, egg and poultry production. According to the findings, the projects are unviable and not sustainable in the long term mainly because of their remote location away from major commercial centres and the lack of entrepreneurial skills among the cooperative members. The major institutional problem was identified as the lack of information sharing among possible funding agencies. The study has identified the need for a SMMEs Coordinator in the District and the need to offer women at the grassroots some form of basic training on how to run a business. It also recommended the establishment of an on-going support network for women entrepreneurs. 6.4 Constraints to the Growth of Entrepreneurs Small business faces a wide range of problems and constraints, and is generally less able to address them, even in well-developed market economies. The constraints include and relate, inter alia, the regulatory environment, access to markets, finance and business premises (affordable rentals), lack of appropriate business skills, poor access to technology, etc. In Umkhanyakude, the impact of these factors is more acute among the rural small business and those operated by women. 6.4.1 Lack of Business Support Service Over the past decades, a number of institutions have developed a limited range of small business support policies and programmes. These occurred in the form of fragmented initiatives with limited coordination, and often operated in competition with each other. In KwaZulu-Natal these took the form of Small Business Development Corporation and KwaZulu Finance Corporation now known as Ithala Bank. Current attempts to support small business in the form of Khula Start and Ntsika Enterprise have thus far not benefited the district enormously and their effectiveness is being challenged at a national level. 6.4.2 Poor Land Use Management As already indicated, development within the small towns has not really followed town planning regulations, but it is expected that the formalisation of these towns and the introduction of the land use management systems will address this issue and create a business friendly environment.

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6.4.3

Poor Access to Capital The drastic curtailment of property ownership rights of black people rendered it impossible for them to acquire assets, which could serve as collateral for loan financing. This excluded the black people from long-run process of accrual and growth through rising property values and share prices.

6.4.4

Lack of Appropriate Infrastructure Umkhanyakude is one of the poorest districts in the country not only in terms of living standards, but also poor access to business infrastructure. The increasing number of people conducting business along the main roads within small towns and along major transport routes is an indication of the need for the creation of an appropriate business environment and infrastructure.

6.4.5

Poor Skills Base and Culture of Entrepreneurship The past system of education restricted opportunities for the black people to acquire technical and professional skills. As a result, a high level of functional illiteracy is one of the major problems facing Umkhanyakude District and many other areas. Also important is the fact that the curriculum did not make provision for entrepreneurial education or sensitising of the youth about economic development opportunities in a manner that would encourage them to enter into business and develop business acumen. In addition, the apartheid system made it difficult for the black entrepreneurs to participate in business apprenticeships and partnerships with more established non-black owned enterprises. It is only recently, that a number of partnership or equity sharing ventures have been proposed in Umkhanyakude.

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7. SECTORAL ANALYSIS: KEY INFRASTRUCTURE PROGRAMMES 7.1 Lubombo Spatial Development Initiative The Lubombo SDI has identified and initiated a number of major infrastructure projects or key interventions in and around the Greater St Lucia Wetlands Park (GSLWP). These include (LSDI, 2000:17): · · · · · · 7.2 A R211m upgrade of the national N2 road from Richards Bay to Swaziland border. Construction of a new R234m spine road through the Lubombo tourist area, from Hluhluwe to Maputo. Substantial investment in tourist infrastructure such as game stocking, game fencing, key access roads and service (water, electricity, etc). Creating and marketing a Heritage Route in collaboration with local stakeholders. Establishing a new Mozambique border post near Kosi Bay and upgrading the Swaziland border post at Golela. The introduction of a crime prevention and crime awareness campaign. Pongolapoort Dam The Pongolapoort dam was develop in the early 1960s and forms part of the Pongolapoort ­ Makhathini Flats Government Water Scheme which was developed in an effort to utilize the water resources of the Phongola River for the irrigation of the sugar-cane in Zululand in an area east of the Lubombo Mountains. It consists of a major storage dam on the Pongola River area through the Lebombo Mountains, and a system of concrete-lined canal to distribute the stored water. Part of the original plan was the development of irrigation farms on the Makhathini Flats, lined with associated industries and settlements similar to Pongola Settlement (DWAF, January 2003:3). Although, it was the intention of the government to proclaim the area around the dam as a nature reserve, this was not carried through despite the location of the dam in an area with a high conservation value. The area around the dam is mostly protected as a private game farm, communally protected area or public nature reserve. The dam is currently used for flood control and irrigation. Other uses include commercial fishing, boating, sport angling, domestic purposes, etc. The Pongolapoort has a tremendous potential to stimulate district economic and social development. In recognition of this potential, the Department of Water Affairs and Forestry (DWAF) has developed a management, development and institutional plan for the sustainable utilization of the Phongolapoort Dam. Its objectives include the creation of opportunities for equitable access to the water resources, the provision of socio-economic benefits to the region and its people, and the redressing of the past imbalances. It makes provision for the following key performance areas: · · · Resource management (natural and cultural). Private sector involvement. Community participation and beneficiation.

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·

Monitoring and auditing.

The Pongolapoort Dam should have a positive impact on the neighbouring and surrounding communities, and it is thus the intention of the government to ensure that benefits emanating from the use of the dam and the surrounding land, are distributed to the host and surrounding communities. This will be achieved through: · · · · · 7.3 The establishment of a Pongolapoort dam Development Trust. Participation in the appropriate for regarding community beneficiation. Compilation and facilitation of awareness campaigns and related initiatives. Guidelines for the selection and utilization of local entrepreneurs and service providers. The compilation of a database of local service providers. Community Based Public Works Programme Umkhanyakude District serves as an implementing agent for the Community Based Public Works Programme (CBPWP). This programme has a strong bias towards local economic development projects and is intended to create job opportunities and increase access to economic development infrastructure. During 2003/2004 financial year, the district has budgeted about R7m. 7.4 Water Services Development Plan Water Services Development Plan for Umkhanyakude District was completed and adopted by council in 2002. It outlines a programme for the delivery of water and sanitation for the next seven years, and serves as a strategic framework for decision-making. An amount of R26,7m has been budgeted for 2003/2004 financial year. There is a need to prioritize projects that are linked to local economic development, particularly the irrigation and beneficiation projects. 7.5 Consolidated Municipal Infrastructure Programme Consolidated Municipal Infrastructure Programme provides funding for bulk infrastructure. Total budget for CMIP project in this financial year is estimated at R51.2m. 7.6 Road Construction and Maintenance

TABLE 7: ROAD CONSTRUCTION AND MAITENANCE BUDGETS 2003/2004

LOCAL MUNICIPALITIES KZDMA KZ271 KZ272 KZ273 KZ274 KZ275 TOTAL

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AMOUNT 1 327 096 6 552 050 9 856 994 4 744 814 2 871 991 7 546 803

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Table 7 above indicates budget allocation for road construction and maintenance according to local municipalities. Roads that provide access to local economic development opportunities and roads that unlock economic development potential should be prioritized.

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8. SWOT Analysis Strengths

· · · · · · · · · · · ·

Weaknesses

· · · · · · · · ·

Availability of labour. Availability of high potential agricultural land. Availability of nature conservation areas and a World Heritage Site. Unspoiled natural environment. Range of agricultural products produced in UMkhanyakude. Ample water resources including the Jozini Dam Large local market for various products. Cultural and historic diversity of the region. Game Farming and nature reserve development Many tourism concessions in the district. Has well documented research on various business opportunities Well-established malaria and aids programs.

60% of the population is illiterate and 35% of the labour force is unskilled Low expenditure power due to low levels of employment with 60% of population earning less than R500 per month Poor access to infrastructure and bulk services. Economic and social disparities common in former homeland areas of South Africa Poor East ­West linkages in the district and poor internal access roads. The Lebombo Mountains provide a barrier to quick access and hence increases transport costs. Poorly developed agricultural economy. Lack of organized tourism industry. Lack of organized information resource for all studies undertaken within UMkhanyakude.

Opportunities

· · · · · · · ·

Threats

· · · · · ·

Established agricultural scheme in Makhathini Flats Pongolapoort/Jozini Dam. Trade with Mozambique and Swaziland due to the Lebombo Spatial Development Initiative. Unspoiled pristine natural environment. Proposed Transfrontier Park. Implementation of the Integrated Sustainable Rural Development Program Location along the Lubombo Spatial Development Initiative area. Land restitution claims.

Malaria and HIV/Aids related illnesses which are reducing productivity Poor marketing strategies Uncoordinated development programmes among role-players. Land claims by the Ingonyama Trust Hot climatic conditions that limit the type of farming Poor soils and rugged terrain in some parts

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9. STRATEGIC FRAMEWORK Although it is generally held that planning for coherent local economic development at a municipality level is still at an infantry stage, there have been a number of significant municipal or local level government initiatives towards economic development and poverty alleviation. The importance of these initiatives should be understood in terms of their objectives and contribution towards addressing the pertinent economic issues. Also important are the lessons that could be replicated and improved on in other areas. Local economic development initiatives implemented at a local level function at a level between national government macro economic development policies and the community based approaches promoted by Non-Governmental Organizations and other social groups. Local economic development focuses at a municipality level are meant to strengthen rather than replace these initiatives. Their potential for success are based, inter alia, upon other municipal responsibilities for the provision of physical infrastructure and the associated services, facilitation of community development, land use management, etc, hence a need for integrated development. 9.1 Integrated Development

FIGURE 13: ECONOMIC DEVELOPMENT STRATEGY

ECONOMIC GROWTH · Tourism · Agriculture · Value Addition · SMMEs

INSTITUTIONAL DEVELOPMENT · LED Agency · LED Unit · LED Forum

OUTCOMES · High market share · Employment · Economic growth · Poverty alleviation

MARKETING · Marketing strategy

SKILLS DEVELOPMENT · SMMEs · Small scale farmers

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9.2 9.2.1

Development Vision Municipal Development Vision

OVERALL VISION The District Municipality of UMkhanyakude through effective management and good governance will meet the basic needs and improve the quality of life of all the residents by promoting and protecting the region `s international status for its unique natural assets and cultural heritage

9.2.2

The Role of the Municipality in Local Economic Development As indicated on Figure 14, Umkhanyakude District Municipality has various functions to fulfil in promoting local economic development within its area. These include the following: · · · · Promoting entrepreneurial development. Facilitation. Coordination. Stimulation.

FIGURE 14: THE ROLE OF UMKHANYAKUDE DISTRICT MUNICIPALITY IN LED

Entrepreneurial Developer

The Municipality will implement development programs for SMMEs The municipality will create a climate conducive for economic development The municipality will stimulate business expansion and development The municipality will coordinate the activities of various role-players in LED

Facilitator

Stimulator

Coordinator

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9.3

Economic Development Objectives and Strategies

OVERVIEW Building a sustainable economic base is of paramount importance in the context of Umkhanyakude given the present high levels of unemployment, lack of diversity in the economy and general poverty experienced in the area. A viable economic base has a significant impact on the livelihoods of residents of the District and has a bearing on the financial viability of the District as an institution. The economic base considered by the District is understood to mean more than purely the existing revenue base, to fundamentally include the natural, built, human and cultural platform from which economic activity can emerge. The district has potential for development in areas such as agriculture, tourism and limited manufacturing. It is characterised by soils with relatively high potential through they tend to concentrate in certain sections of the district, World Heritage Site in the form of Greater St Lucia Wetlands Park, game farms and reserves, etc. OBJECTIVES To facilitate economic · growth and development of economic infrastructure. · · INDICATORS Contribution of the District to the provincial and National Economy. Percentage of annual economic growth. Percentage increase in the number of tourist visiting the area. ·

APPROACH The basic approach adopted by the District is to work with the existing opportunities, including latent and untapped, to ensure vibrancy within the existing sectors and to widen access and diversity within these sectors. A key aspect underpinning the approach is the notion of diversification of existing sectors. The approach does not seek to widen the range of economic sectors at scale, but rather to work within the existing sectors, which underpin the economy, and to maximise the benefits derived from these sector, particularly, agriculture and tourism. Scope for SMME development is also huge in these two sectors.

INTENDED OUTCOME · Economic growth · Employment opportunities · Skills development · Poverty alleviation.

STRATEGIES Promote development of the tourism industry and Umkhanyakude as a preferred tourist destination.

· · · · · · ·

PROJECTS Umkhanyakude Tourism Brochure. Product Standards Programme Tourism Awareness Campaign Tourism Training and Mentoring Umkhanyakude Tourism Destination Management Office. Market Research and Database. Hluhluwe Visitor Orientation Centre.

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OBJECTIVES ·

INDICATORS Number of previously disadvantaged farmers involved. ·

STRATEGIES Facilitate agricultural development. · · · · · · · · · · · · · · · · · · · ·

PROJECTS Agricultural Development Plan for Umkhanyakude Honey Production Programme Nondabuya Cotton Estates and Out grower Schemes. Expansion of the Cashew Nuts Project. Expansion of the Mboza Ground nuts Project. KwaNgwanase Organic Farming Techniques and Seed Banking. Ndumo Grapefruit Estate. Marula Project. Vegetable Production and Marketing Sugar Mill Cassava Starch Factory in Manguzi Orchid green house in Mjindi Grapefruit export warehouse in Ndumu Vunani Shrimp farming in Manguzi Marula Project for jam and oil production Game farming and tannery business venture Vegetable Packhouse and Processing Plant Small Business Support Centre. Beehive Industries (Jozini, Mkuze, Hlabisa). Zamimpilo Service Centre.

·

Facilitate development of capacity for the processing of local agricultural products.

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OBJECTIVES ·

INDICATORS Support mechanisms available to the SMMEs. ·

STRATEGIES Facilitate development and provision of support to the SMMEs · · · ·

PROJECTS Commercial Products from the wild Project (Craft making and marketing). Beehive Industries (Jozini, Hlabisa, Mkhuze). Market Stalls (Jozini, Mtubatuba, Mkhuze, Hlabisa, Hluhluwe) Clothing and Linen Cluster. Local Business Support Centre Crafter Training Programme Small Farmer Training Programme Informal Traders Training Programme Marketing and Promotion Strategy. Joint Marketing Initiative with KZN Ezemvelo and GSLWP. Umkhanyakude Economic Development Agency Umkhanyakude LED Unit Umkhanyakude LED Forum

To promote skills training and capacity development.

· ·

Number of SMMEs trained per annum. Support mechanisms available to the SMMEs.

· · ·

To develop a marketing and promotion strategy by 2004. To develop institutional capacity to promote and manage economic development programme by 2005.

·

Approval of the strategy by council

·

Establish a Local Business Support Centre. Facilitate skills training targeting SMMEs. Facilitate provision of technical support and partnerships. Develop a framework for marketing and promoting Umkhanyakude. Establish a range of institutions for Local Economic Development.

· · · · · · · · · ·

·

Establishment of the agency.

·

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9.4

NO 6.2/1 6.2/2 6.2/3 6.2/4 6.2/5 6.2/6 6.2/7 6.2/8 6.2/9 6.2/10 6.2/11 6.2/12 6.2/13

Local Economic Development Projects

PROJECT TYPE PROJECT DETAILS Implementation of District Wide LED Projects Capital Preparation of an Integrated LED Capital and Poverty Alleviation Plan Umkhanyakude Economic Development Agency Umkhanyakude LED Unit Empini/Ezinqeni Poultry House Emthonjaneni Market Stalls Ubombo Market Stalls Inkanyiso Market Stalls Nibela Community Gardens Capital RESPONSIBILITY Umkhanyakude District Umkhanyakude District Umkhanyakude District FUNDING FINANCIAL FUNDING AMOUNT YEARS STATUS 3,000,000.00 300,000.00 500,000.00 2003/2004 2002/2004 2003/2004 2003/2004 370,500,00 247,000,00 247,000,00 247,000,00 494,000,00 400,000,00 494,000,00 203,035,00 18,000,000,00 2003/2004 2003/2004 2003/2004 2003/2004 2003/2004 2003/2004 2003/2004 2003/2004 2003/2004 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes FUNDING SOURCE Umkhanyakude District Umkhanyakude District Industrial Development Corporation Umkhanyakude District Umkhanyakude District Umkhanyakude District Umkhanyakude District Umkhanyakude District Umkhanyakude District Umkhanyakude District Umkhanyakude District Umkhanyakude District Ithala

Umkhanyakude Operational District Capital Capital Capital Capital Capital Umkhanyakude District Umkhanyakude District Umkhanyakude District Umkhanyakude District Umkhanyakude District Umkhanyakude District Umkhanyakude District Umkhanyakude District Ithala

Nibela ­ Mqobokazi Revitalisation Capital KwaMsane Community Gardens Revitalisation Projects Coastal Cashew Nuts Capital Capital Capital

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NO

PROJECT DETAILS Zimanani Groundnut Farmers Association Lebombo Essential Oils Block making programme Clothing and Linen Cluster Natural Advantage Project Marula Project Organic Farming techniques

6.2/14 6.2/15 6.2/16 6.2/17

PROJECT TYPE RESPONSIBILITY Department of Economic Development and Tourism Capital Capital Capita Capital Capital Capital Capital Umkhanyakude District Umkhanyakude District Umkhanyakude District Umkhanyakude District Umkhanyakude District Umkhanyakude District Industrial Development Corporation Umkhanyakude District Department of Agriculture Department of Agriculture Department of Agriculture Umkhanyakude District Umkhanyakude District Umkhanyakude District

FUNDING FINANCIAL FUNDING AMOUNT YEARS STATUS

FUNDING SOURCE Department of Economic Development and Tourism Department of Economic Development and Tourism Department of Labour Umkhanyakude District DEDT/DPLG To be determined To be determined To be determined Department of Trade and Industry and private Sector Umkhanyakude District Department of Agriculture Department of Agriculture Department of Agriculture To be determined To be determined Umkhanyakude District

500,000,00

2003/2004

Yes No.

To be determined To be determined To be determined To be determined To be determined Under investigation To be determined To be determined To be determined To be determined To be determined To be determined To be determined

2003/2004 2003/2004 2003/2004 2003/2004 2003/2004 2003/2004 2003/2005 2003/2005 2003/2005 2003/2005 2003/2005 2003/2005 2003/2005

No No. No. No. No. No. No. No. No. No. No. No. No.

Mjindi Sugar Mill Capita District marketing and Promotion Strategy Casarva Starch Factory Orchid Greenhouse Grapefruit Export Pack house Hluhluwe Visitor Orientation Centre Poultry Abattoir Venison Processing Plant Capital Capital Capital Capital Capital

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NO

PROJECT DETAILS Mkhuze Bee-hive Factories Jozini Bee-hive Factories Jozini Informal Sector Trading Posts

PROJECT FUNDING FINANCIAL FUNDING TYPE RESPONSIBILITY AMOUNT YEARS STATUS Umkhanyakude District Capital To be determined 2003/2005 No. Umkhanyakude District Capital To be determined 2003/2005 No. Umkhanyakude Capital District To be determined 2003/2005 No.

FUNDING SOURCE Umkhanyakude District Umkhanyakude District Umkhanyakude District

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10. LOCAL ECONOMIC DEVELOPMENT PROGRAMMES 10.1 Growing the Local Economy The growth strategy seeks to generate economic activity through inward investment. The primary objective in this regard is " To achieve growth and expansion of the lead economic sectors". Target sectors are agriculture, tourism and limited manufacturing (value addition). The following are strategic interventions that should be promoted as a means to ensure effective implementation of this strategy: · · · · The establishment of municipal service partnerships for the supply and maintenance of physical infrastructure to the economic development sites. A programme of trade missions which could be planned and implemented in with the assistance of Trade Investment South Africa, Trade Investment KwaZuluNatal, etc. Marketing of strategically located investment opportunities and attractions in the case of tourism. The development of an incentive system for attracting industry and encouraging the existing industry to expand their operations.

10.1.1 Tourism Development To understand the needs and opportunities of Local Economic Development within the context of the Tourism Industry is to understand the complexity of the industry from a holistic perspective. Like most industries, tourism is driven by demand and supply factors, however, the major difference that sets tourism apart from other industries, is that the tourism destination and/or product (supply) must attract the tourist market (demand) to come to it, as opposed to taking the product to the market. The tourist (defined as a person who is not usually resident in the area and who is visiting for a period greater than 24-hours) is the primary source of revenue within the tourism industry and therefore the ability to attract a sustainable flow of tourists is fundamental to the sustainable success of tourism destinations and/or product. 10.1.1.1Tourism Development Principles The following principles should thus be adopted as overarching concerns for guiding tourism development within the district: · Tourists are the Primary Source of Tourism Revenue, there is therefore a need to both maintain and increase the number of tourists from existing `high-spend' tourist-source markets, at the same time as developing new tourist-source markets through existing product maintenance, new product development and effective marketing strategies for the tourism destination and/or product. · The higher the Tourism Revenue Yield, the greater the impact on Local Economic Development. `Tourism Revenue' is defined as the money spent by tourists within an area whilst pursuing their tourism related activities. The key to managing `Tourism Revenue Yield' is in maintaining the optimum balance between low-spending and high-spending tourists. Low-spending tourists reduce the Tourism Revenue Yield with the resultant possible detrimental

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·

·

·

·

·

affects on the ability to attract higher-spending tourists, as a result of deterioration of tourism product caused by the inaffordability of maintenance by the tourism product owner/operators. Tourism, as an Export Economy, is essential to support and sustain Local Economic Development. Tourists are attracted into a destination either by the product(s) and/or product mix providing the `primary destination', or attracting tourists from the `flow-through' effect of tourists on route to another destination. Such tourists are categorized either as Domestic (from within South Africa), or Foreign (from outside the borders of South Africa) and the tourism revenue they introduce into an area can be described as an `Export Economy'. The revenue generated by tourist spend, into the area they are visiting, can therefore be classified as an `export economy' by the nature of selling local goods and services to persons who do not usually reside within the area., and is essential to support and sustain local economic development. Responsible and sustainable tourism development, operations and marketing will need to work in unison. For tourism destinations and/or product(s) to continue to be successful, they must meet the current, as well as future, needs of tourists in terms of operations and development. This includes the need to upgrade and regenerate tired and/or stagnant product where visitor decline is prevalent. More importantly is for the product to recognize its abilities, and limitations, in terms of its `sphere of influence' of the strength of its attraction, or drawing power, into the geographical areas from which visitors will be drawn. Tourism product is rarely commercially successful in isolation; rather it needs to fit within its `Destination Mix' (clustering of the variety of tourism attractions, resources, facilities and services) and to enhance the overall market reputation (attractiveness) of the Destination. Umkhanyakude as a `Tourist Destination' fits and has the potential to fit into the hierarchical structure of tourism attractions and destinations. Furthermore, the variety of tourism product within a Destination needs to work in unison, in terms of marketing its collective tourism product, with the objective of increasing the holistic attractiveness and number of tourists for the destination. The internal destination mix of product should compete less with each other and find common ground and synergy to establish its differential and competitive advantage over other destinations. Therefore Tourism Product needs to `FIT' within the internal existing and potential Destination Mix of uMkhanyakude, as well as the external Tourism Enabling Environment. The Destination Mix must work holistically to increase the number of tourists into the Destination for the collective benefit of all. Tourism Local Economic Development will need to function as an integral component of Local Government and within the pre-determined structures of its Policies and Frameworks (including the Integrated Development Plans), but at the same time be sufficiently freed up of unnecessary bureaucratic processes, so that it will encourage tourism growth and investment within, what is essentially, a private sector and profit motivated industry.

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10.1.1.2Tourism Development Strategies The primary goal for tourism development is to create a sustainable tourism industry which enhances the district's current tourism assets as well as developing heritage and cultural benefits for all the people of the district, helps meet social and environmental requirements, and provide the infrastructure to enhance new community lifestyles with the South African vision for human well-being. This will be achieved by means of the following strategies: · Formation of an `uMkhanyakude Tourism Destination Management Office' a Section 21 Company or similar structure (DMO), which enables uMkhanyakude District Municipality to lead and provide the necessary local government legislative guidelines and policy frameworks for tourism local economic development, as well as enabling private sector and community participation within a non-bureaucratic environment. · To implement and manage appropriate market research in order to identify and grow existing and expand new primary tourist-source markets through meeting the needs of the tourists that will choose uMkhanyakude as a preferred tourism destination. · To facilitate and manage an enabling environment for new tourism product development and upgrading of existing product, where this will broaden ownership in the tourism industry; act as catalysts in complementing and improving the existing product mix; support the marketing strategy and reputation of the uMkhanyakude District; and attract new investment and development of associated infrastructure. · To facilitate and manage a process of ensuring that an effective tourism marketing strategy develops the `brand image', `reputation' and `sense of place' to differentiate uMkhanyakude as a preferred tourism destination, and that it provides a `fit' for the needs of all the Local Municipalities and other tourism product stakeholders in terms of the `destination mix' and within the context of benefiting from, and fitting within, the broader provincial and regional marketing strategies. · To implement and manage a process of tourism data collection, capturing and analysis (visitor numbers, profiles and revenue), as well as a tourism asset data base, within the uMkhanyakude District in order to establish and inform a monitoring and evaluation system against which the Destination Management Office can measure its performance of tourism local economic development. · To implement and manage a process of an `uMkhanyakude Tourism Product Standards Programme' within the context of existing National Grading Council and KwaZulu-Natal Tourism Authority programmes on product quality and levels of customer service. · To implement and manage a process of uMkhanyakude local tourism knowledge and awareness media campaign aimed at the general populace of the UMkhanyakude District. · To implement and manage a process of tourism training and mentoring aimed at the local government structures and previously disadvantaged individuals and organizations in order to empower and build capacity within the tourism product operations and development.

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10.1.2 Diversifying the Agriculture Sector The Umkhanyakude District Municipality is an area of unique natural beauty steeped in the cultural traditions of Africa. From St Lucia Wetlands to the fevertree-lined pans in the Pongola System, unique in South Africa, this is an area of extensive agricultural and economic development potential. Currently, this potential remains unrealised and its people are among the poorest in South Africa. Employment opportunities are few, which has compelled much of the male population to seek employment in towns such as Richards Bay and Mpangeni. As a result, the area is largely populated with women and youth. The area has varied agricultural potential, but more specifically for subsistence agriculture as irrigation schemes are limited. Though the area's tropical climate is suitable for a wide range of sub-tropical fruits (representing currently under-utilized potential), and vegetables rainfall is highly varied with both drought and flood risks and poor soils are generally found in dryland areas. 10.1.2.1Agricultural Development Principles Future agricultural development within the area should be guided by the following principles: · Focus should be on Local Economic Development (LED) as opposed to household food production (HFP) as the latter is a likely consequence of successful efforts focused on LED. · Crop selection should be based on a confirmed market demand. According to the Institute of Natural resources, a market has been established for crops such as cashews, groundnuts, sub-tropical fruits, etc. · Also important in terms of crop selection is the development potential of the area determined in terms of soils, climate, topography, etc. · Particular focus should be paid on the development of out grower schemes with a particular focus on the members that demonstrates commitment and have basic agricultural skills. The new members can be trained on the field as and when the pilot projects have been completed. · Development projects should focus on development of skills to add value to local products, as transportation infrastructural considerations lower the value of raw materials from this area, and significantly reduce beneficiation of the local population. · There is significant opportunity for the development of sub-tropical fruit production and ancillary products (canning, juice-making, etc) and this is an area that has not received any significant attention, given the positive effects of the local climate on ripening time, and its benefits for marketing of products. · There are successful projects in the area in crafts cashews and groundnuts, and these should be closely scrutinized for their extension possibilities to other suitable areas in the district. · Agriculture must synergise with the other sectoral development programmes of the district. It must form the basis for the development of the manufacturing sector with a particular focus being paid on the processing of local products. This means that crop selection should focus on crops to which value can be added.

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· In areas where there is little development or few projects, the possibility of processing local hides into value added products, a well as private game farmscommunity partnerships to make market game products should be explored. · Projects should be co-coordinated by the municipality and assessed for local beneficiation and their ability to be extended into other areas of the district. The primary goal for promoting diversification in agriculture is to commercial facilitate agricultural development in traditional authority areas, and focus on the production of goods that can be processed locally. In other words, agriculture will be used as the basis for the development of manufacturing sector. 10.1.2.2Agricultural Development Strategies The following strategies are proposed in this regard: · Provide training to emerging farmers and facilitate access to finance and start up capital. · Promote the extensive use of small grower schemes for sugar cane, cotton, cashew nuts and timber cultivation and other high value agricultural products. · Promote honey production in areas located adjacent to cotton plantations, indigenous forests, and gum plantations. With regard to the latter, gum plantations in Mbazwana and Manzengwenya offer a significant and good opportunity for development bee keeping. Only one honey crop would be produced per annum as development project do not include migratory bee keeping. · Promote community/private sector partnerships. 10.1.3 Infrastructure Development 10.1.3.1Bee hive industries: There is a general shortage of sheltered accommodation for small enterprise development especially in the major growth nodes as evidenced by the prevalence of business activities on road verges and major activity nodes. Some operate on informal structures, which may not appeal to the prospective clients. Development of appropriate workshops and other forms of sheltered accommodation for small business is recommended. 10.1.3.2Water and Roads It is recommended that water and roads projects should be prioritised in areas where there is potential for local economic development. A number of LED projects have been identified and are listed in the IDPs for different local municipalities. The majority of these are unlikely to happen mainly because of poor access to water and road infrastructure. Some requires electricity supply. 10.1.3.3Craft Centres

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Craft centres should be developed along major tourist routes. The centres will serve as areas displaying and selling of craft produced within the district. They will also serve as training facilities for crafters and collection points for craft collectors. They will limit the number of craft sold along the road verges, and give the craft sector a business identity. Development of these centres could form part of a broader district strategy for the development of the craft industry. 10.2 Skills Training and Capacity Building Programme Although the statistical base of the SMME sector in South Africa generally and Umkhanyakude District in particular is still poor, there can be no doubt about the relative significance of the small entrepreneurs. SMMEs absorb a significant amount of the labour force, and are the main survival strategy for the majority of the poor. The national policy on SMMEs emphasizes the need to create enabling framework small enterprises to operate and grow. The primary aim of LED initiative is to create an enabling framework for local economic development through skills training and capacity building, coordinating the provision of technical support to the SMMEs and delivery of appropriate physical infrastructure. 10.2.1 Skills Training and Capacity Building General lack of skill in Umkhanyakude introduces a need for skills training and capacity building in all major economic sectors, particularly agriculture, SMMEs and tourism. This program should target mainly the crafters, informal traders, and smallscale farmers. Training should cover both general issues and those that are specific to each sector. The following are some of the key aspects of this sub-programme: · Dissemination of information about training opportunities. · Need to promote entrepreneurial attitude. · Breaking of stereotypes about gender roles . 10.2.1.1Crafters The opportunity presented by the craft industry is not currently being translated into significant volumes of high quality craft products. This could be attributed to a number of factors, which include lack of training and skills in product development, poor access to raw material and equipment, and lack of funding. Excluding the few exceptions that have received sufficient training and support, and have reached a level of development necessary for self-sustainability, indigenous craft production occurs in a context of absolute poverty. Producers have low levels of education, live in remote rural areas and have poor access to communication infrastructure. A critical success factor for the producers is finding the right product for the right market. However, both the producers and consumers do not always interpret the notion of righteousness the same way. The later usually emphasises the ability of the product to meet his / her taste, satisfy his / her need and sufficiently good to justify expenditure. The producer on the other hand should always be creative innovative

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and seeking to set new trends. In view of the changes in the general market environment, indigenous craft serves purposes broader than social use. It is also used for decoration souvenirs and other uses. To this end production should also include application of traditional methods, ethnic ideas, indigenous raw materials and knowledge in the production of items that seek to satisfy diverse consumer needs. Therefore crafter-training programme should focus on product development and pricing. 10.2.1.2Informal Traders Training needs for the informal traders are diverse and include the following: · Business management skills · Marketing. · By-laws and regulations. 10.2.1.3Small scale Farmers The major problem facing small-scale farmers generally is the lack of technical support, and attitude towards farming. While training on issues such as stock and veld management, crop rotation, use of fertilisers and other chemicals ca partially address this issue, the is a major need to ensure that the small scale farmers receive constant support in the form of extension service. 10.2.2 Technical Support 10.2.2.1Mentoring Programme An incubator programme is recommended whereby complexes are provided to offer entrepreneurs with working space and skills development services for the growth of the business ventures. Incubators can help with the initial setting up of businesses and can be run by the municipality, NGOs and community organizations. These can provide such management advice as estimating product demand, creating business plans and establishing bookkeeping procedures. The policy should however be to encourage businesses to graduate and move to more formal business premises once they are established. This leaves room for new upcoming entrepreneurs. 10.2.2.2Extension Service The local municipalities with the assistance of the district municipality should engage the Department of Agriculture as a means to ensure that extension service is provided to the small-scale farmers. This could take the form of the establishment of an Agricultural Forum with representatives from all role-players.

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10.2.3 Beneficiation/Value Addition There is need to pursue the development and establishment of value adding industries in the district. The identified opportunities for further investigation and facilitation are as follows: · · · · · · · 10.3 Sugar Estate and Mill Cassava Starch factory in Manguzi Orchid green house in Mjindi Grapefruit export warehouse in Ndumu Vunani Shrimp farming in Manguzi Marula Project for jam and oil production Game farming and tannery business venture

Marketing and Promotion Strategy Umkhanyakude District has a vast potential for local economic development. This exists in sectors such as agriculture, tourism, trade and commerce, and manufacturing. However, this potential cannot be realized unless the area is properly marketed and promoted to the investors and developers. This emphasizes the importance and need for a marketing strategy. The following should be covered in the strategy: · · · · Type of message to be conveyed The target market for the message The communication mechanism The feedback mechanism

10.3.1 The Message The marketing message to be conveyed must be specific and relevant to the target audience. It must be sharp and arouse interest to the target audience. It must promote the area and give a sense that Umkhanyakude District is a desirable place to visit, live in and work in. The net effect of the message should be the encouragement of investment and should cause business retention. 10.3.2 The Target Audience The target audience for a marketing strategy should be clearly defined. Where the target audience is the tourists, the message should promote the area and highlight the wonders of Umkhanyakude. The industrialists on the other hand may be interested in issues such as the availability of water, service/support industries, land, etc. 10.3.3 Communication Mechanism Different audiences will requires the use of different communication mechanisms. The following are some of the options available to Umkhanyakude District Municipality:

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· Brochures, which could be used mainly for the tourism industry. · Investment Portfolio, which can provide brief information about each flagship project and can be distributed to the potential investors. · Internet. 10.3.4 The Feedback Mechanism A feedback mechanism that is able to channel and receive responses from the market must be implemented. 10.4 Institutionalizing Local Economic Development Different types of institutional arrangements should be established for an effective implementation of the LED programme. These structures will operate at different levels with the coordination happening within the Municipality. The following structures are suggested: · · · · LED Unit, which should be established within the District Municipality. Local Economic Development Forum/Business Chamber Local Economic Development Agency Project Level Institutions.

10.4.1 Umkhanyakude District LED Unit It is suggested that an LED Unit should be established within the Planning and Environment Department. The size and structure of this unit will depend on the budgetary constraints, but it should initially comprise of an LED Coordinator, a Senior LED Officer and an administration assistant. The municipality should enhance the skills level of the unit so as to allow it to perform its tasks efficiently. This unit is important, as LED is not simple about managing community development projects, but includes formulation of strategies and development programme within the context of the IDP. The following are some of the responsibilities that could be assigned to the proposed LED Unit. · Responsible for overseeing LED Planning so that it optimises and balances the economic, environmental and social issues in a sustainable and equitable manner, in terms of `Limits of Acceptable Change'. · Establish and manage district level LED database. · Assist local municipalities with limited capacity in terms of LED. · Manage the implementation of small LED projects. · Monitor the performance of LED projects generally. · Manage the municipal LED budget. · Liaise with relevant government departments and coordinate the municipality's LED programme with the other stakeholders.

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10.4.2 Umkhanyakude District Local Economic Development Agency Umkhanyakude District Municipality has started discussions with the Industrial Development Corporation (IDC) for the establishment of an independent agency that will be responsible for the implementation and management of the flagship projects. The following are the broad goals that should drive such development agencies: · To promote and develop economic potential on a local and/or regional basis by building on opportunities which recognize the unique competitive strengths of Umkhanyakude. · To leverage public and private resources for development around opportunities which offer economic development potential. · To foster/develop the innovation and entrepreneurial potential and activity which supports and drive economic growth. · To strengthen the respective areas real and perceived environments so that it can compete effectively for capital investment necessary to develop its full economic potential. Its functions would be as follows: · Attract enough investment to the region to create sustainable employment · Manage local economic development by leveraging resources for development around opportunities with the greatest potential · Build strong partnerships with the relevant stakeholders and government organizations · Create and encourage an entrepreneurial culture by promoting small to medium sized business · Management of the implementation of Economic Development Sector Projects contained within the District IDP and LED Plan. · Liaison, support, communication and coordination of Community LED and Tourism Organizations with the objective of building capacity within these structures. This should occur through the appropriate Local Municipal structures with the parallel objectives of opening up wildlife and coastal tourism opportunities to the historically disadvantaged and attracting wildlife and coastal tourists into rural areas. · Identification and implementation of training needs, capacity building and empowerment programmes that will facilitate the introduction of historically disadvantaged individuals and organizations into the main stream of the District's economy. · Liaison, communication and coordination with the relevant Tourism and LED Industry, Private Sector bodies and organizations, as well as managing partnerships for the benefit of Local Economic Development. · Facilitation of, and support to, tourism local economic development initiatives, with a particular focus on pro-poor and where it may assist poverty alleviation. · Maintaining up to date tourism market intelligence data relevant to both historic statistics and future trends for the destination, for monitoring and evaluation purposes. · Maintaining an uMkhanyakude District Tourism Asset Database.

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· Implement and maintain the uMkhanyakude Marketing Strategy, Publicity Association and a system of monitoring and evaluation of Standards, Image and Reputation. The agency should consist of the following components in order to be able to perform its tasks efficiently and effectively: · Marketing section responsible for general marketing functions and development of appropriate marketing strategies. · Tourism management section responsible for the coordination of the tourism sector including promotion of community based tourism. · Local Business Support Centre responsible for providing support to SMMEs. · Business Development responsible for facilitating development and management of anchor or major economic development projects. This includes identification of strategic partners and facilitation of agreements. There are a number of critical success factors for such a development agency. These include: · The need for co-coordinated action must be constantly explained and accepted by all key stakeholders, private and public. This implies on the part of the Agency, from its inception, an extensive and permanent communications strategy. · The management group must be committed to its public service mission, and remain independent, as technicians, from the political issues that may surround its progress. This is particularly difficult at the inception of the project. · The work of the Agency must proceed by steps clearly identified, which must always remain in the context of the overall target (e.g. the refusal of occupants that do not correspond to the initial target is often necessary, but very difficult, for a business or industrial development agency) · The legal framework of its operations must be clear, particularly as concerns its capacity to borrow, to receive income, and every aspect of real estate management and regulations. · The operating cost of the Agency must be transparent, its staffing minimal, using stakeholders staff secondment whenever possible, and its controls impeccable, in order to avoid any misinterpretation or accusation of bureaucracy. · The size of its financial resources is not critical (some rural area agencies manage mostly through their communication and conviction-carrying processes), but they must remain credit worthy at all times, at the risk of losing their credibility. · Successful establishment of an "anchor" project to support the attractiveness of the development area. 10.4.3 LED Forum The main mandate of the Forum is to facilitate the participation of all role players involved in local economic development and for such a forum to be representative it is proposed that it be composed of the following:

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· · · · · · · · · · · ·

Councilors Formal business representatives-chamber of business Informal business associations Rate payers Association Organized labour All economic development related agents and organizations such as KZN Tourism and TIK Educational institutions Religious organizations Youth leaders Traditional leaders NGOs at play in the region Agricultural organizations and associations

The forum should act as a channel for the dissemination of information and the identification of development opportunities and constraints. The idea is to provide a form of networking by all stakeholders and a conflict resolution platform 10.4.4 Project Committees The project committees are efforts to include all local economic development stakeholders especially at grassroots level in economic development issues .The project committees will mainly be responsible for poverty alleviation projects and community gardens at ward level to ensure that the projects are included in the district wide programme for economic growth. The committee will ensure participation of all stakeholders in the issues that shape the district economy.

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1. Advocacy for Participation in Governance: Centre for Public Participation. KwaZulu Natal Legislature 2. Australia South Africa Local Governance Partnership Empowering Women to Start and Successfully Manage Self-Employment Ventures in Umkhanyakude. 2002, Adelaide, South Africa Gosia Hill 3. Ilembe District Municipality Regional LED Strategy. DFID 4. Land Redistribution for Agricultural Development. Department of Agriculture and Land Affairs 5. Local Economic Development; Strategies and Instruments. 2000, Department of Provincial and Local Government 6. Local Economic Development Study for Umvoti Local Municipality: 2002, Maseko Hlongwa and Associates 7. Mkuze Local Development Plan. 2000, Thembelihle Project 8. Mtubatuba Integrated Development Plan Comprehensive Report Phases 1 to 4. 2002, Isabel Hooyberg ­ Smuts and John P Lang 9. Provincial Skills Development Pilot Project II (PSDPP). Department of Labour and Danida 10. Republic of South Africa Greater St Lucia Wetland Park Authority ­ Request for Expressions of Interest and Preliminary Information Memorandum. 2000, Lubombo Spatial Development Initiative 11. Strengthening Sustainability in the Integrated Development Planning Process. 2002, Department of Environmental Affairs and Tourism 12. Sustainable Utilisation Plan: Pongola Dam. 2003, Department of Water Affairs and Forestry 13. The Development Agency. 2002, Presentation Paper to District 27 by IDC Marketing Manager 14. The Greater St. Lucia Wetland Park. http://www.stlucia.org.za/five_eco.htm 15. Towards an Agricultural Development Plan for the Makhathini Flats. 2002, KwaZulu- Natal Department of Agriculture and Environmental Affairs 16. Towards an HIV and AIDS Strategy for uMkhanyakude District Municipality. 2002, Interact, W. Forse & Associates and Dr. J. Boughey, Unizulu 17. uMkhanyakude District Municipality ­ Electricity Service Development Plan. 2002, NET Group 18. uMkhanyakude District Municipality ­ Local Economic Development Tourism Sector Assessment. 2003, Haley Sharpe Southern Africa 19. uMkhanyakude District Municipality ­ Water Services Development Plan Status Quo. 2002, UWP Engineers 20. uMkhanyakude District Municipality Agri-Industry Study ­ A `Rapid Scan' of the Agricultural Status Quo & Agri-Processing Potential. 2002, Institute of Natural Resources 21. UMkhanyakude District Municipality Kwa-Zulu Natal Tourism Development Plan. 2002, UMkhanyakude District Municipality, Dennis Moss Partnership & Urban-Econ 22. uMzinyathi Economic Regeneration. Mzinyathi LED 23. uThungulu Regional Development Plan. 24. White Paper on National Strategy for the Development and Promotion of Small Business in South Africa. 1995. Department of Trade and Industry

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