Fetakgomo Local Municipality · integrated development plan: 2008/9 - page 7 - fetakgomo local municipality Fetakgomo Local Municipality is a Category B municipality that is located

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integrated development plan: 2008/9

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fetakgomo local municipality

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TABLE OF CONTENTS .................................................................................................................................................................................................................... 2

ABBREVIATIONS .............................................................................................................................................................................................................................. 6

1. BACKGROUND AND INTRODUCTION .................................................................................................................................................................................... 6

THE IDP REVIEW PROCESS ............................................................................................................................................................................................................. 8

1.2 ROLES AND RESPONSIBILITIES................................................................................................................................................................................................ 11

1.3 THE FORMULATION OF THIS IDP . . . ....................................................................................................................................................................................... 12

2. FETAKGOMO IN THE NATIONAL AND PROVINCIAL CONTEXT .................................................................................................................................... 15

2.1 THE NATIONAL SPATIAL DEVELOPMENT PERSPECTIVE ........................................................................................................................................................ 15

2.2 THE LIMPOPO GROWTH AND DEVELOPMENT STRATEGY ...................................................................................................................................................... 15

3. A SITUATIONAL ANALYSIS OF THE FETAKGOMO MUNICIPAL AREA......................................................................................................................... 17

3.1 DESCRIPTION OF MUNICIPAL AREA ......................................................................................................................................................................................... 17

3.2 DEMOGRAPHIC PROFILE.......................................................................................................................................................................................................... 20

3.2.1 Population figures ...................................................................................................................................................................................................... 20

3.2.2 Age and gender distribution .................................................................................................................................................................................... 22

3.2.3 Dependency ratios ...................................................................................................................................................................................................... 23

3.2.4 Employment profile .................................................................................................................................................................................................... 24

3.2.5 Individual and household income distribution.................................................................................................................................................... 25

3.2.6 Asset Index and Living Standards Measures ...................................................................................................................................................... 27

3.3 HUMAN DEVELOPMENT: A SOCIAL PROFILE OF FETAKGOMO................................................................................................................................................ 29

3.3.1 Education ...................................................................................................................................................................................................................... 29

3.3.2 Health ............................................................................................................................................................................................................................. 38

3.3.3 Social welfare ............................................................................................................................................................................................................... 41

3.3.4 Food insecurity and vulnerability ........................................................................................................................................................................... 44

3.3.5 Safety and security ..................................................................................................................................................................................................... 45

3.3.6 Other social facilities ................................................................................................................................................................................................. 47

3.4 SPATIAL PROFILE OF FETAKGOMO ......................................................................................................................................................................................... 48

3.4.1 Settlement patterns .................................................................................................................................................................................................... 48

3.4.2 Land use ........................................................................................................................................................................................................................ 49

3.4.3 Land use management .............................................................................................................................................................................................. 50


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3.4.4 Current land claims in Fetakgomo ......................................................................................................................................................................... 50

3.4.5 Current patterns threaten development in Fetakgomo ..................................................................................................................................... 52

3.5 HOUSING AND MUNICIPAL INFRASTRUCTURE ......................................................................................................................................................................... 53

3.5.1 Housing ......................................................................................................................................................................................................................... 53

3.5.2 Water .............................................................................................................................................................................................................................. 55

3.5.3 Sanitation ...................................................................................................................................................................................................................... 56

3.5.4 Electricity ...................................................................................................................................................................................................................... 58

3.5.5 Refuse removal............................................................................................................................................................................................................ 62

3.5.6 Roads and transport................................................................................................................................................................................................... 63

3.5.7 Cemeteries .................................................................................................................................................................................................................... 64

3.5.8 Telecommunications .................................................................................................................................................................................................. 65

3.6 THE FETAKGOMO ECONOMY ................................................................................................................................................................................................... 69

3.6.1 Key features of the Fetakgomo economy............................................................................................................................................................. 69

3.6.2 Key economic sectors ............................................................................................................................................................................................... 72

3.6.3 Human capital and labour market........................................................................................................................................................................... 75

3.6.4 Competitive and comparative advantage ............................................................................................................................................................. 75

3.7 STATE OF THE ENVIRONMENT ................................................................................................................................................................................................. 80

3.7.1 Biophysical environment .......................................................................................................................................................................................... 80

3.7.2 Topography .................................................................................................................................................................................................................. 80

3.7.3 Geology and soil ......................................................................................................................................................................................................... 80

3.7.4 Environmental problems and associated development constraints ............................................................................................................. 81

3.7.5 Environmental management .................................................................................................................................................................................... 83

3.8 INSTITUTIONAL ANALYSIS OF FETAKGOMO MUNICIPALITY .................................................................................................................................................... 84

3.8.1 Establishment of municipality ................................................................................................................................................................................. 84

3.8.2 Organisational structure ........................................................................................................................................................................................... 84

3.8.3 Human resource development ................................................................................................................................................................................ 90

3.8.4 Management systems ................................................................................................................................................................................................ 91

3.9 FINANCIAL MANAGEMENT........................................................................................................................................................................................................ 92

3.9.1 Revenue generation ................................................................................................................................................................................................... 92

3.9.2 Expenditure management ......................................................................................................................................................................................... 92

3.9.3 Asset management ..................................................................................................................................................................................................... 93

3.9.4 Liability management................................................................................................................................................................................................. 93

3.9.5 Budget and treasury management ......................................................................................................................................................................... 93

3.9.6 The MFMA implementation plan.............................................................................................................................................................................. 93

3.9.7 Risk, fraud and corruption management .............................................................................................................................................................. 93

4. THE DEVELOPMENT CHALLENGE IN FETAKGOMO ........................................................................................................................................................ 94

4.1 DEMOGRAPHIC CHALLENGES.................................................................................................................................................................................................. 94

4.2 SOCIAL CHALLENGES .............................................................................................................................................................................................................. 94

4.3 SPATIAL CHALLENGES ............................................................................................................................................................................................................ 95


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4.4 HOUSING CHALLENGES ........................................................................................................................................................................................................... 95

4.5 INFRASTRUCTURAL CHALLENGES........................................................................................................................................................................................... 96

4.6 ECONOMIC CHALLENGES ........................................................................................................................................................................................................ 97

4.7 ENVIRONMENTAL CHALLENGES .............................................................................................................................................................................................. 98

4.8 INSTITUTIONAL CHALLENGES .................................................................................................................................................................................................. 98

4.9 FINANCIAL CHALLENGES ......................................................................................................................................................................................................... 99

5. VISION, MISSION AND HIGH-LEVEL OBJECTIVES ......................................................................................................................................................... 100

5.1 VISION .................................................................................................................................................................................................................................... 100

5.2 MISSION ................................................................................................................................................................................................................................. 100

5.3 HIGH-LEVEL OBJECTIVES ...................................................................................................................................................................................................... 100

6. MEETING THE CHALLENGE: AN OVERVIEW OF FETAKGOMO’S KEY DEVELOPMENT STRATEGIES ............................................................ 101

6.1 ENHANCED INFRASTRUCTURE INVESTMENT AND SERVICE DELIVERY.................................................................................................................................. 102

6.2 INCREASED LED EFFORTS.................................................................................................................................................................................................... 108

6.3 IMPROVED MUNICIPAL FINANCIAL VIABILITY ......................................................................................................................................................................... 110

6.4 DEEPER COMMUNITY PARTICIPATION AND GOOD GOVERNANCE ........................................................................................................................................ 112

6.5 MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENT ............................................................................................................................... 114

7.1 PROJECTS IMPLEMENTED BY THE MUNICIPALITY ................................................................................................................................................................. 116

7.2. PROJECTS: ENHANCED INFRASTRUCTURE INVESTMENT AND SERVICE DELIVERY ............................................................................................................. 122

7.2 PROJECTS: INCREASED LED EFFORTS ................................................................................................................................................................................ 128

7.3 PROJECTS: IMPROVED MUNICIPAL FINANCIAL VIABILITY ..................................................................................................................................................... 129

7.4 PROJECTS: MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENT ........................................................................................................... 129

INTEGRATION PHASE ................................................................................................................................................................................................................ 133

8. INTEGRATION: A SUMMARY OF FETAKGOMO’S OVERARCHING PLANS AND STRATEGIES ........................................................................... 133

8.1 WATER SECTOR PLAN .......................................................................................................................................................................................................... 133

8.2 LOCAL ECONOMIC DEVELOPMENT PLAN ............................................................................................................................................................................. 133

8.2.1 Identified existing main constraints to LED ....................................................................................................................................................... 134

8.2.2 Economic growth strategies .................................................................................................................................................................................. 134

8.3 INTEGRATED ENVIRONMENTAL MANAGEMENT PLAN........................................................................................................................................................... 135

8.3.1 Principles, norms and strategic guidelines ....................................................................................................................................................... 135

8.3.2 Objectives and strategies ....................................................................................................................................................................................... 136

8.4 SPATIAL DEVELOPMENT FRAMEWORK................................................................................................................................................................................. 137

8.4.1 Key findings ............................................................................................................................................................................................................... 138

8.4.2 Key recommendations............................................................................................................................................................................................. 139

8.5 INSTITUTIONAL PLAN............................................................................................................................................................................................................. 140

8.5.1 Institutional context of Fetakgomo IDP process .............................................................................................................................................. 141

8.5.2 Fetakgomo Municipality’s functional responsibilities..................................................................................................................................... 142


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8.5.3 Organisational SWOT analysis.............................................................................................................................................................................. 144

8.5.4 Delegation of powers and responsibility ............................................................................................................................................................ 145

8.5.5 Revised municipal institutional structure (2007/2008) .................................................................................................................................... 146

8.5.6 Capacity and Gender Equity review ..................................................................................................................................................................... 147

8.6 FINANCIAL MANAGEMENT PLAN ........................................................................................................................................................................................... 147

8.6.1 Capital and operating budget estimates ............................................................................................................................................................. 148

8.6.2 Budget policy ............................................................................................................................................................................................................. 148

8.6.3 The 2007/2008 budget .............................................................................................................................................................................................. 149

8.6.4 Financial management policies............................................................................................................................................................................. 150

8.6.5 Potential revenue sources ...................................................................................................................................................................................... 152

8.6.6 Credit control policies and procedures............................................................................................................................................................... 153

8.6.7 Risk management policy......................................................................................................................................................................................... 154

8.7 PERFORMANCE MANAGEMENT SYSTEM............................................................................................................................................................................... 155

8.8 DISASTER MANAGEMENT PLAN ............................................................................................................................................................................................ 157

REFERENCES ............................................................................................................................................................................................................................... 158


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AAbbbbrreevviiaattiioonnss DBSA Development Bank of Southern Africa DLGH (Limpopo) Department of Local Government and Housing DoA Department of Agriculture DPLG Department of Provincial and Local Government DWAF Department of Water Affairs and Forestry FBW Free Basic Water FIVIMS Food insecurity and vulnerability information management system GGP Gross Geographical Product GSDM Greater Sekhukhune District Municipality ICT Information and Communication Technology IDP Integrated development plan KPA Key Performance Area LED Local economic development LGDS Limpopo Growth and Development Strategy Limdev Limpopo Development Agency LSM Living Standards Measure LUM Land use management MDG Millennium Development Goal MFMA Municipal Finance Management Act MSA Municipal System Act NSDP National Spatial Development Perspective PHC Primary health care RAL Roads Agency Limpopo RDP Reconstruction and development programme SAPS South African Police Services SMME Small, medium and micro enterprise VIP Ventilated improved pit

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Fetakgomo Local Municipality is a Category B municipality that is located within the Greater Sekhukhune District Municipality (GSDM). The municipal area is largely rural, and is dominated by traditional land ownership. Like most rural municipalities in the country, Fetakgomo is characterised by poor infrastructure, major service backlogs, dispersed human settlements and high poverty levels. The municipality itself is also an embryonic one that is currently grappling with revenue generation and performing its full array of functions effectively. Despite its spatial legacy and the relative new-ness of the organisation, Fetakgomo Local Municipality has a bold development vision, as well as committed leadership to pursue it. This Integrated Development Plan (IDP) reflects that vision. It is based on a very careful assessment of our current reality, from which we have distilled the key developmental challenges facing our municipal area. After careful thought and considered strategic planning, we have designed effective developmental strategies, linked to our Key Performance Areas (KPAs), that aim to address those challenges. The annual projects that the municipality chooses every year is aimed at incrementally meeting these development challenges. The municipality has also designed overarching plans that address Local Economic Development (LED), environmental issues, internal performance management and so forth. These are captured in the last chapter. Our development journey is set out in this IDP. This journey begins with an overview of the Fetakgomo IDP process – the subject of this chapter. During the review of the 2007/2008 IDP, the municipality had followed the legislative prescripts set out in the Municipal Systems Act (MSA), the Municipal Finance Management Act (MFMA) and other legislation that governs municipalities.

Understanding our developmental mandate The work of Fetakgomo councillors and officials is principally guided by the notion of developmental local government. We take our starting point from the South African Constitution (1996), which urges government to ensure that all South Africans have access to adequate housing, health, care, education, food, water and social security. The Constitution also sets out a bold vision for local government in this country, arguing that it has a pivotal role to play in intergovernmental relations. The White Paper on Local Government (1998) took these early Constitutional concepts and expanded them into the notion of ‘developmental local government’. The concept refers to municipalities that are proactive and influential local actors who assertively shape their local spaces and economies – a mandate that the Fetakgomo Municipality takes very seriously. Developmental local government can only be realised through integrated development planning. The IDP is therefore a key instrument to assist our municipality attain its developmental mandate. Integrated Development Planning is an approach which is aimed at involving the municipality and the community to find the best solutions towards sustainable development. It provides strategic planning instruments which manage and guide all planning, development and decision making in the Municipality.


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The IDP review process The IDP planning process is derived from Chapter 5 of the Municipal Systems Act (2000), which states “each municipal council, within a prescribed period after the start of its elected term, must adopt a process set out in writing to guide the planning, drafting, adoption and review of its Integrated Development Plan”. In response to these legislative requirements, Fetakgomo Local Municipality developed a process plan for the IDP review. This process plan is aligned to the Sekhukhune District Framework and has been formally adopted by the Fetakgomo Council. It is set out in the table below.

Month Activity Date August 2006 � Consultation with established committees

and consultation forums � Determine revenue projections as

proposed tariffs and draft initial allocations per function and department for the next financial year

Week ending 11 August Week ending 18 August

� Review ward development plans in line with changing circumstances and needs

� Council through IDP review process to

determine strategic objectives for service delivery and development for the next three year budgets including review of Provincial and National sector strategic plans

� Consult with Provincial and National sector

departments on sector specific programmes for alignment

Week ending 15 Sept Week ending 29 Sept Week ending 06 Oct 2006


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� Quarterly review of 06/07 budget and IDP related policies, amendments (if necessary), any related consultative process

� Take cognisance of national policies and

budget plans and possible price increases in bulk services

� Consult with established committees � Begin preliminary preparations of

proposed budget for the next financial year with consideration being given to past performance

Week ending 27 Oct Week ending 27 Oct Week ending 27 Oct Week ending 27 Oct

November 06 � Review and draft initial changes to IDP � Finalise tariffs � Finalise proposed budget and plans for the

next financial year with consideration being given to past performance

Week ending Nov 06 Week ending 10 Nov Week ending 30 Nov

December 2006 � Budget Lekgotla at the Municipality 13 December 2006 January 2007 � Institutional challenges and SWOT analysis

� Mid year performance review, review IDP related policies, amendments to any related consultative process

� Submission of proposed budget IDP and

plans to Portfolio Committee � Strategic Planning session, prioritisation of

issues & development of KPAs and KPIs � Submission of proposed budget IDP and

plans to Executive Committee

Week ending 19 Jan 07 15-17 January 2007 30 January 2007


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January 2007 � Issue notice to Council meeting to consider proposed budget

� Council proposed budget and IDP for next

three years � Publish approved draft budget and IDP for

public comments

01 February 2007 09 February 2007 19 February 2007

March 2007 � Mayor to consider all submission emanating from consultative process taking into account third quarterly review of current year

01-02 March 2007

April 2007 � Management meeting � Quarterly review of 06/07 budget, IDP,

related policies, amendments (if necessary), any related consultative process

� Submission of budget, IDP, SDBIP and

Budget processes for 08/09 to portfolio committee

� Submission of budget, IDP, SDBIP and

Budget process for 08/09 to executive committee

02 April 2007 02 April 2007 10-13 April 2007 25 April 2007

May 2007 � Submission of budget, IDP, SDBIP process for 08/09 to Council

� Draft performance agreement of MM and

senior managers to Executive committee � Council adopts the IDP and budget � Publish SDBIP, revenue and expenditure

projections for each month service delivery targets and performance indicators for each quarter

11 May 2007 25 May 2007 29 May 2007 29 May 2007


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1.2 Roles and responsibilities During the IDP review process, various stakeholders have distinctive roles and responsibilities. These are as follows:

Stakeholders Roles and responsibilities District Municipality � Provide support to the municipality

� Facilitate the compilation of a framework and alignment between local municipalities, as well as between the municipality and the District

Communities � Represented the interest and contribute knowledge and ideas � Identify and prioritise needs � Discuss and comment on the draft IDP review � Monitor performance in the implementation of the IDP Review � Participate in the IDP Representative Forum � Representatives be part of meetings or workshops to prepare for

and follow-up on planning activities Provincial Departments, DPLG & Sector Departments

� Coordinate training � Provide financial support � Provide general IDP guidance � Facilitate coordination and alignment between district and the

municipality and adjacent municipalities � Provide relevant information on sector departments policies,

programmes, business plans and budgets � Contribute sector expertise and technical knowledge to the

formulation of municipal policies and strategies Private Sector

� Participate in the formulation of the plan � Submit of their projects in the IDP of the municipality � Provide information on the opportunities that the communities

may have in their industry Council EXCO

� Political decision making body � Consider, adopt and approve the IDP Review � Ensure alignment of the reviewed IDP report with the District

framework. � Ensure that all relevant stakeholders are involved � Responsible for the overall management, coordination and

monitoring of the IDP Review process � Recommend the approval of the IDP Review to council

The Mayor � Table the IDP Review and Budget to Council Steering committee � Represent the needs and interest of their constituencies


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� Organise communities to participate in the process � Link the municipality to ward level planning � Report and made recommendation to executive committee for

the approval of the IDP Municipal Manager

� Manage and coordinated the development review process � Ensure that all departments fit in the organisational vision

� Manage and coordinates IDP Review process � Ensure that all relevant stakeholders are appropriately involved � Ensure that the planning process is participatory, strategic and

implementation oriented � Respond to comments from vertical and horizontal alignment

Heads of Departments � Provide relevant technical Support and financial information for analysis for determination priority issues

� Contribute technical expertise in the consideration and finalisation of strategies and identification of projects

� Provide departmental operational and capital budgetary information

Ward Communities � Articulate the community needs � Participate in the community consultation meetings

1.3 The formulation of this IDP . . . This IDP is the product of intense consultation amongst all the stakeholders mentioned above.As a requirement to involve communities in the affairs of the municipality; communities were engaged in the processes. 1.3.1 COMMUNITY PARTICIPATION Fetakgomo Municipality is committed to ensuring community participation in the interest of participative democracy at the local government level. The commitment to participate is underpinned by the adherence to the Constitution of the country and Municipal System Act which requires municipalities to consult local communities through appropriate mechanism, processes and procedures. 1.3.1.1 CONSULTATION PROCESSES Consultation processes that were undertaken were three folded this included ward, nodal and sector based participation (mining). WARD BASE CONSULTATION


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During the development of the 2006/2011 IDP robust consultation with the communities were undertaken at ward levels. Communities highlighted their most pressing needs that government need to consider when implementing service delivery projects. Due to the new ward delimitation it was necessary for the municipality to review the IDP according to the thirteen wards. Councillors, officials ward committees undertook a process of gathering information according to the thirteen wards at ward level for the review of the plan. The thirteen wards established after the election were trained and given guidelines according the requirements of the Municipal Structure Act. NODE BASED PARTICIPATION The Spatial Development Framework of the Municipality identifies Mphanama, Apel and Atok as municipal nodal points. It therefore became critical for the municipality to partake in community participation according to t he nodes so that communities have an understanding on how the municipality is functioning. The purpose of these meetings was to report back to the communities on the achievements and challenges that the municipality was experiencing in providing services. In all of these meetings the budget and the revenue generation challenge were presented to the communities. Their involvement in service delivery through payment of services was emphasised. MPHANAMA NODAL POINT The node is consisted respectively by ward 1, 2 and 4. During the consultation that was held on the 17 April 2007.Critical of the interaction with the communities, the outcry by community members were mainly on the issues of water in Mphanama Village and roads that link the Municipality with the adjacent municipalities that is Makhuduthamaga and Tubatse Municipality. APEL NODAL POINT Major development in the Municipality is taking place within this nodal point hence the appreciation by community members from ward 3,5,6,7 and 8 at the meeting held on the 18 April 2007.Critical items discussed during the meeting included the issue of the role of traditional leaders in development, persistent leaking bulk line and incomplete housing projects. The issue on the role of traditional was critical for the node because of the long standing township establishment in the municipality. The meeting suggested that strengthening partnership between the traditional authorities and the Municipality. ATOK NODAL POINT


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This is a nodal point that is within the Dilokong Corridor were mining is booming. The node consists of ward 9,10,11,12 and 13.The communities within these wards raised varying issues that ranged from lack of electricity in most villages, inadequate water supply and effectiveness of ward committees. The backlog of electrification of villages especially in ward ten, eleven and thirteen became a thorny issue during the meeting. Communities raised the issue of none electrification of villages since 2001 to date. The respond to the concerns of the communities were answered based on the Minister of Mineral and Energy imbizo that was held in the municipality on the 13 April 2007. The responds included: Acknowledgement of the electrification backlog to meet the mellenium development goal Consultation with the Treasury to look on the issue of increasing the budget allocation for electrification SECTOR BASED PARTICIPATION (MINING) As PGDS Fetakgomo Municipality falls in the Dilokong corridor. Currently within the municipal area exist one platinum mine namely Atok mine. According to the MPRDA,mines operating within South Africa are obliged to invest back to the communities in partnership with government .Communities around the mines had dissatisfaction about the social investment plan that the mine was implementing and its impact and also the wanted to be guided by government on the Act. Representatives from the Department of Mineral and Energy presented the Act, outlining the objectives of the MPRDA, challenges met by the department in assessing the plans due to none alignment to the IDP. The outcome of the meeting was more understanding on the Act and enhanced relations between government, communities and the Atok Mine. The final document is the result of a rigorous local process that has taken several months and involved numerous groupings. Because Fetakgomo Municipality understands its unique role in the South African intergovernmental system, however, this IDP also draws on overarching national and provincial development strategy. This is the subject of the next chapter.


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22.. FFeettaakkggoommoo iinn tthhee nnaattiioonnaall aanndd pprroovviinncciiaall ccoonntteexxtt The planning system in South Africa is hierarchical. The principal national development plan is the National Spatial Development Perspective (NSDP), driven by the Presidency. Within the province, the Limpopo Growth and Development Strategy (LGDS) sets out a development trajectory for the province as a whole. Municipal IDPs, if they are to be truly effective, should be located within these overarching paradigms. This chapter sets out a brief summary of the key principles that underpin the NSDP and LGDS, as well as their impact on the municipal planning process.

2.1 The National Spatial Development Perspective The main aim of the NSDP is to inform development priorities nationally and also to identify specific areas to be targeted for development by government. This is evident in National programmes such as the Urban Renewal Programme (URP) and the Integrated Sustainable Rural Development Programme (ISRDP). NSDP principles include:

• National development guidelines and principles should inform planning for development in all spheres

• Each sphere has its own district development tasks and related planning task corresponding to the scale of operations and the area of jurisdiction

• Integrated development planning by municipalities is a tool to integrate and coordinate implementation in terms of geographical space and time in that locality. Municipalities have to inform, and be informed by, the planning systems of other spheres of government

• The necessary mutual alignment between national principles/guidelines, sectoral planning requirements (standards, provincial strategies) and local needs, conditions and resources, must be conducted in the spirit of co-operative governance whereby the plans of one sphere should support those of others

2.2 The Limpopo Growth and Development Strategy The Limpopo Growth and Development Strategy (LGDS) focuses on development at the provincial sphere of government. The main thrust of the strategy is to unlock competitive sectors of development with the aim of achieving the objectives below:

• Improving the quality of life

• Promoting economic growth and job creation

• Enhance innovation and competitiveness

• Attain regional integration

• To improve the institutional efficiency and effectiveness of government


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In addition to the LGDS, the Limpopo Integrated Infrastructure Development Plan identifies leading industries that are to be developed in the province. These include mining, tourism and agro-processing. The LGDS sets out key development clusters. Those of importance to Fetakgomo include:

• Platinum and chrome mining cluster on the Dilokong Corridor between Polokwane and Burgersfort

• Red and white meat cluster on all corridors

• Tourism cluster Significantly, Fetakgomo - as part of Sekhukhune District - falls under the Dilokong Spatial Development Initiative, which has been marked primarily for mining development.

Platinum and chrome mining cluster on the Dilokong Corridor The LGDS calls for a number of public sector interventions to maximise the potential opportunities of this cluster. These include upgrading the road between Burgersfort and Polokwane, water source development, skills development (especially re mining) and improved service delivery for residential development around the mines. This is a significant element of the LGDS for Fetakgomo and, as subsequent chapters of this IDP will show, the Municipality plans to exploit these opportunities effectively.


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33.. AA ssiittuuaattiioonnaall aannaallyyssiiss ooff tthhee FFeettaakkggoommoo mmuunniicciippaall aarreeaa This chapter provides an overview of the current reality within the Fetakgomo municipal area. It describes the Fetakgomo space as well as its people, economy, infrastructure and level of social development. Understanding the local reality is important because it enables the Municipality to distil the key developmental challenges that prevail in the area and to design appropriate development strategies in response to those challenges. The next chapters of this IDP do precisely that: they set out the key development challenges that the Municipality has identified, as well as the strategies that we believe will effectively address these challenges. Those choices and priorities, however, have been determined by the current reality within the municipal area. That is the subject of this chapter.

3.1 Description of municipal area The Fetakgomo Local Municipality is located within the Greater Sekhukhune District Municipality (GSDM) in Limpopo province. The municipality is completely rural in nature with a population of approximately 105,196 people that reside in 87 settlements. The majority of these settlements are small with less than 1000 inhabitants in each. The municipal area covers 1123,18 km², which represents 8,4% of the Sekhukhune District's total land area. The municipality is divided into 13 wards. The revised (new) location and delimitation of the wards are indicated in Figure 1.


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Figure 1: Current (2006) ward delimitation in the Fetakgomo municipal area


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As a point of comparison, Figure 2 sets out the pre-2006 delimitation.


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Figure 2: Pre-2006 ward delimitation in the Fetakgomo municipal area

As the next sections will indicate, the

wards within Fetakgomo have varied profiles.

3.2 Demographic profile 3.2.1 Population figures The Limpopo Spatial Rationale (2002) indicated that the Fetakgomo municipal area hosted a total population figure of 99,712 in 2001. This is not vastly different from Statistics South Africa’s population estimate of 92,083 (2001).

Table 1: Population and related information for Fetakgomo (2001)

Municipality Population No. of Average % of district Population


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(2001) households household

Size

population density

(people/ha) Fetakgomo 99,712 18,885 5,28 10,23 0,89 Sekhukhune/Total 974,829 187,611 5,196 100 0,73 Source: Limpopo Spatial Rationale, 2002

The Limpopo Spatial Rationale also calculated population projections for Fetakgomo up to the year 2008. These population projections (growth rates) were prepared by UNISA’s Bureau for Market Research, and are set out in Table 2.

Table 2: Population projections for Fetakgomo municipal area

Year Annual growth rate Conversion rate Projected population 2001 1,491 1,0149 99,712 2002 1,426 1,0143 101,138 2003 1,389 1,0139 102,544 2004 1,316 1,0132 103,897 2005 1,251 1,0125 105,196 2006 1,169 1,0117 106,427 2007 1,086 1,0109 107,587 2008 1,003 1,0100 108,663 Source: Limpopo Spatial Rationale, 2002

The population profile per municipal ward is reflected in Table 3. These statistics are based on the Census 2001.

Table 3: Population profile per ward (2001)

Ward Population No. of

households

% of municipal

total

Main villages

1 9,798 1,856 10,64 Mphanama 2 3,589 680 3,90 Phahla-Manoge, Masehleng 3 6,956 1,317 7,55 Matlou, Mmakopa, Seroka, Mashilabela 4 10,326 1,956 11,21 Radingwana, Mmela, Phageng 5 7,417 1,405 8,05 Masha, Stryd Kraal, parts of Ga-Nkwana,

Mooiplaas 6 7,375 1,397 8,01 Lerajane, portion of Ga-Nchabeleng 7 10,818 2,049 11,75 Parts of Nchabeleng 8 7,429 1,407 8,07 Parts of Ga-Nkwana 9 6,851 1,298 7,44 Ga-Selepe


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10 9,815 1,859 10,66 Atok, Monametse, Ga-Selepe, 11 11,709 2,218 12,72 Tswereng (Sentlhane, Ramallane,

Ledingwe) Total 92,083 17,442 100 Source: Census, 2001

The population was relatively evenly spread between the 11 wards before the 2006 municipal elections. Ward 11 had the highest population (12,72%) of the total municipal population, while Ward 2 is the least populated and accounted for only 3,9% of the total population. The table below indicates the population density of the respective wards of the Fetakgomo Local Municipality.

Figure 3: Population density

Source: Census 2001

3.2.2 Age and gender distribution The majority of the Fetakgomo population fall into the 15-34 age group (32,45%.), as Table 4 indicates. Moreover, a large percentage of the population is in the 0-14 age group (40,81%), which indicates a relatively high future population growth in the Fetakgomo area.


- page 23 -


Chart 1 indicates that the male/female ratio in the 0-14 age category is normal, but that the ratio is skew for the age category ‘15 years +’, which is the economically active age segments. This is largely the result of male absenteeism. A significant number of Fetakgomo males currently work in other Limpopo districts or in provinces like Gauteng. These workers need to travel outside the municipal area to earn an income and only return home to their families over weekends or month-ends.

Table 4: Gender distribution within Fetakgomo municipal area

Category Male % Female % Total Percentage (%) 0 – 4 5,150 49,77 5,197 50,23 10,347 11,24 5 – 14 13,517 49,64 13,711 50,36 27,228 29,57 15 – 34 13,351 44,68 16,534 55,32 29,885 32,45 35 – 64 6,719 36,62 11,628 63,38 18,347 19,92 Over 65 1,952 31,10 4,325 68,90 6,277 6,82 Total 40,689 51,395 92,084 -

Percentage (%) 44,17% 55,83% 100% 100 Source: Census 2001

Chart 1: Age distribution by gender in Fetakgomo

10.5%

12.3%

25.8%

30.6%

33.7%

34.1%

22.5%

18.6%

4.3%

7.5%

0 2000 4000 6000 8000 10000 12000 14000 16000 18000

Male

Female 65+

35-64

15-34

5-14

0-4

Source: Census 2001

3.2.3 Dependency ratios Table 5 reflects the dependency ratio (per age group) for Fetakgomo.


- page 24 -


Table 5: Dependency ratios in Fetakgomo

Age Fetakgomo % Children (0-19) 41,798 52,09 Youth (20-34) 14,804 18,45 Middle age (35-64) 17,584 21,91 Elderly (65+) 6,060 7,55 Total 80,246 100 Source: Statistics South Africa, 2001

It is evident that a significant proportion (52,09%) of Fetakgomo’s population is under 20 years old and that 7,55% are elderly residents. These figures imply that many people in the municipal area are dependent on the income of others. Fetakgomo exhibits, in other words, a high dependency ratio.

3.2.4 Employment profile Table 6 illustrates the employment profile of the Fetakgomo population.

Table 6: Employment profile for Fetakgomo

Persons 2001 1996 Employed 4,856 3,739 Unemployed 10,455 10,192 Non-economically active 33,382 - Total labour force 15,311 13,931 Source: Statistics South Africa, 2001

The number of unemployed people has increased by approximately 30% (1,117) in five years. The unemployment rate within the Fetakgomo municipal area in 2001 was 73% which is slightly more than the situation in 1996 (68,28%). The chart below provides a graphic illustration of the employment profile within Fetakgomo.

Chart 2: Employment statistics for Fetakgomo


- page 25 -


4856

10455

33382

15311

13931

3739

10192

0 5000 10000 15000 20000 25000 30000 35000 40000

Employed

Unemployed

Not economically active

Total Labour Force

1996

2001

Source: Statistics South Africa, July 2003

3.2.5 Individual and household income distribution The 2001 Census results reveal a fairly low average annual individual income within Fetakgomo. This is an important issue because it is the most obvious reflection of poverty levels within the municipal area. Indeed, Chart 3 below clearly reflects the extent of poverty in the Fetakgomo area in terms of an overall annual individual income profile. 73,4% of the population do not earn any income, whilst only 0,41% of the population has an average income of more than R12,801 per year.

Chart 3: Average annual individual income


- page 26 -


73.4%

7.6%

10.8%

2.6% 2.4% 2.0% 0.9% 0.3% 0.1% 0.01%0

10000

20000

30000

40000

50000

60000

70000

80000

No. of people 75334 3045 9499 1037 1579 1297 209 51 27 5

No

incomeR1-R400

R401-

R800

R801-

R1600

R1601-

R3200

R3201-

R6400

R6401-

R12800

12801-

51200

R51201-

R204800

Over

R204801

Source: Statistics South Africa, 2001

The minimum subsistence income (breadline) for households to survive in Limpopo is considered to be R15,600 per year or R1,300 per month. Chart 4 below indicates that approximately 86% of households in Fetakgomo live below the breadline.

Chart 4: Average annual household income


- page 27 -


25.0%

11.8%

25.6%

29.6%

3.8% 2.4%

0.3% 0.1% 1.4%

0

1000

2000

3000

4000

5000

6000

7000

No. of People 6958 1525 5131 2413 1503 1355 89 18 6

No income R1-R4800R4801-

R9600

R9601-

R19200

R19201-

R38400

R38401-

R153600

R153601-

614400

R614401-

R2457600

Over

R2457601

Data Source: Statistics South Africa, 2001

3.2.6 Asset Index and Living Standards Measures The Asset Index and Living Standards Measures (LSM) are important indicators of poverty in an area. Within Sekhukhune, the municipalities with the lowest asset indices are Tubatse, Marble Hall and Fetakgomo, respectively (DoA, 2006). The District’s Asset Index provides a telling indicator of the capital possessed by Sekhukhune households, and is replicated below.

Table 7: Asset index for Sekhukhune households

Household asset Total (%) House 89,8 Axe 73,3 Wheelbarrow 70,2 Hoe 66,9 Water container 65,5 One or more cell phones in household 63,8 Only 1 cell phone in household 50,8 Panga 49,8 TV set(s) 45,0 Fridge/freezer combination 32,7 Hi-fi or music centre 31,7 Plough 20,0


- page 28 -


Electric stove 17,8 Bicycle 17,2 Grid electricity 13,2 Tap water in house/on plot 11,8 Deep freezer 10,0 More than 1 radio in household 9,9 DVD player 8,1 At least 1 car usually working 7,9 Motor vehicle in household 5,9 VCR in household 5,6 Microwave oven 4,5 Sewing machine 4,4 Dishwasher 4,2 Vacuum cleaner/floor polisher 3,3 Home telephone (excl cell) 2,5 Washing machine 2,1 Domestic(s) working in household 1,8 Computer 1,6 M-Net and/or DSTV subscription 1,6 Flush toilet in/outside house 1,5 Home security service 1,2 Built-in kitchen sink 1,2 Hot running water 0,9 Tumble dryer 0,9 Asset index: 0,2211 Source: DoA and FIVIMS (2007a). Poor quality dwellings can help to identify pockets of food insecurity.

Living Standard Measures are generated from the list of household assets, and may be classified as high, medium or low. Within the Sekhukhune District, only Makhuduthamaga and Elias Motsoaledi local municipalities were found to have contained high LSM households. In Fetakgomo, just over 80% of households had low LSMs, whilst the remainder had a medium LSM (DoA, 2007a).

Key demographic challenges • High levels of male absenteeism because of migrant work outside Fetakgomo

• High dependency ratios because most Fetakgomo residents are children or elderly

• High unemployment rate at 73% (2001)

• Roughly 86% of Fetakgomo households live below the breadline


- page 29 -


• Over 80% of Fetakgomo households exhibit low Living Standards Measures (LSM)

3.3 Human development: A social profile of Fetakgomo Like many rural municipalities, Fetakgomo faces a number of social challenges. This section describes the social profile of the area. It provides an overview of education, health, social welfare, safety and food insecurity issues within Fetakgomo.

3.3.1 Education Education is important for both economic and social development. It is the bedrock on which a nation’s economic destiny is built, particularly in today’s global knowledge economy. It is also often the primary means through which individuals set out on their personal journeys of growth and attain their distinctive dreams and aspirations. International evidence suggests that countries that invest significantly in education reap major economic benefits in the medium to long term, and help build a more cohesive social fabric within the nation.

Education profile of Fetakgomo Education levels within the Fetakgomo municipal area are relatively low. As the table below illustrates, the area is characterised by low levels of senior education qualifications and by high levels of illiteracy. Table 8 sets out the education level for the municipal area expressed as a percentage of the total municipal population.

Table 8: Education levels in Fetakgomo

Level of Education Fetakgomo Percentage (%) No schooling 21,606 24,05 Primary 32,709 36,40 Secondary 18,288 20,36 Matric/Grade 12 4,604 5,12 Tertiary 2,141 2,38 Higher degree 401 0,46 Unspecified 10,071 11,20 Total 89,820 100 Source: Statistics South Africa, 2001

The greatest proportion of the Fetakgomo population (36,4%) has only primary school education, whilst the second largest segment (24,05%) has had no schooling at all.


- page 30 -


Education infrastructure in Fetakgomo South African national education policy recognises the importance of providing adequate educational infrastructure in order to facilitate learning. National education policy aims to provide adequate school infrastructure throughout the country by 2008. The provision of this infrastructure is prescribed by the following criteria:

• Eradication of schools under trees

• Eradication of schools in a state of collapse

• Construction of new schools where there is over-subscribing (i.e. 900 learners in a primary school and 1200 in a secondary school) Within Fetakgomo itself, the state of schools varies amongst wards. In general, however, the municipal area is characterised by the following:

• There are no schools under trees within Fetakgomo

• However, most schools are collapsing due to the area’s soil conditions (because geo-technical studies weren’t conducted before construction)

• None of the schools in the area can be said to be overcrowded (i.e. all meet the national ceiling of 900 and 1200 learners within primary and secondary schools, respectively). The exception is Moloke Combined School.

The table below indicates the number of primary and secondary schools per ward.

Table 9: Current education facilities in Fetakgomo

School No of

class-

rooms

Ad-

min

blck

Water

source

Energy

source

Sanitation

facilities

Total no of

teachers

Total no

of

learners

Ward 1 Mokhine Secondary

14 0 Borehole Diesel 6 below RDP 23 684


- page 31 -


Masehleng Primary

6

0

Borehole

Electricity

2 VIP 4 below RDP

8 227

Moletse Primary

6 0 None None 6 below 16 311

Mankopodi 3 0 None None 1 VIP 7 147 Mashilabele Primary

6 0 Borehole Electricity

8 290

Maebe Primary

18

0

Standpipe from bulk line

Electricity

3 simple 17 627

Mohlaletse Secondary

9 0

None Electricity

10 below RDP 17 486

Fetakgomo Secondary (upgrading)

20 yes Borehole Bulk 3 stand pipes

Electricity

4 enviroloo 7 VIP

29 637

Ward 2 Mphanama Primary

18

Yes

None

Electricity

8 below RDP 23 719

Makelepeng Secondary

12

0

Borehole & 2 tanks

Electricity

8 below RDP 15

425

Dithotwaneng Secondary

32 0

Borehole & 2 tanks

Electricity

8 VIP 5 below RDP

18 656

Maboe Primary

18 0

None None 4 VIP

19 567

Modipadi Primary

18

Admin

Borehole & 2 tanks

Electricity

16 below RDP 4 VIP

22 692

Ward 3 Leganabatho Primary

16 0

Borehole Electric Poor 8 199

Mampuru Thulare

10 0

Hand-pump

None 4 below RDP 6 173

Thete Secondary

Admin

Yes Yes Needed 10 255


- page 32 -


Block

Moshiane Primary

15 0

Standpipe from mainline

Diesel None 11 344

Matleu Primary

14 0

Borehole Electric Good 14 319

Peu Secondary

12 0


Seroka Primary

18 1 Borehole Electric Good 20 478

Dinakanyane Secondary

16 0


Ward 4 Tlou Nare Secondary

23 1 Borehole & standpipe from mainline

Electric 6 VIP 2 below RDP

18 605

Mmotong Primary

7 0


Electric 4 below RDP 6 136

Mohwaduba Secondary

12 0



Radimmela Primary

16 0



Telelo 7 0



Pakeng Primary

4 0

Standpipe from mainline 1 borehole

Electric 4 VIP 6 below RDP

5 173

Phepane Primary

8 0


Electric 8 VIP 15 385

Maphuthe 11 0 Borehole Petrol & 4 below RDP 13 408


- page 33 -


Primary & tank elec

Ward 5 Lerajane Primary

11 0

Handpump

None 11 simple 1 VIP

10 415

Phuthakwe Secondary

12 0

Borehole & tank

Petrol & electricity

10 simple 6 VIP

17 639

Tseke Primary

12 Admin

Borehole Electricity

Below RDP 11 397

Morwamoche Primary

9 0

Borehole & tank

Petrol & electr

3 below RDP 7 199

Mokhulwane Secondary

16 Admin

Borehole Bulk

Electricity

2 VIP 1 simple

18 443

Hans Komane Secondary

12 0

Bulk Electricity

6 Below RDP 15 307

Ward 6 Tlakale Primary

12 0

Borehole Handpump Bulk

Electricity Diesel

12 Below RDP 9 228

Mankopane Primary

10 0

Borehole (not functional) Bulk

Electricity

2 enviroloo 12 Below RDP

13 351

Jacob Marwale Primary

18 0

borehole Electricity

10 VIP 25 758

Ngwanamala Secondary

15 0

None Electricity

4 below RDP 2 VIP

21 588

Moretlwe Secondary

6 0

None None 10 109

Phukubjane Primary

6 0

None None 4 VIP 2 below RDP

8 80

Thobehlale Primary


8 VIP 7 80

Ward 7 Madithame 21 0 Borehole Electricit 6 simple pit 23 669


- page 34 -


Secondary Bulk y 4 enviroloo Hlabirwa Private

4

0

None

Electricity

4 simple toilets 9

118

Moloke Combined

24

0 Borehole Electricity

12 below RDP 30 1230

Nkotsane Primary

1 0


8 below RDP 20 428

Makopole Secondary

17 0

borehole Electric 4 simple 11 254

Moenyane Primary

16 0

None Electric 4 VIP 12 316

Strydkraal Primary

12

0

Borehole

Electric

8 VIP 12 below RDP

10

305

Modipa Secondary


16 VIP 16 below RDP

8 270

Ward 8 Moroka Lebole Secondary

16

5

Borehole & bulk 1x jojo 1 stand pipe 1x jojo 1 standpipe

Electric Electric

04 below RDP 17

335

Nkwana Primary

12

0

Bulk

Electricity

8 VIP 2 below RDP

7 201

Frank Mashile

8

Admin

2x jojo borehole Standpipe Bulk line

Electricity

8 VIP

11 282

Kgwedi Primary

8 0

1x jojo Borehole

Electricity

2 below 6 184

Maphotle 8 0 1x jojo Electricit 5 below RDP 16 318


- page 35 -


Primary stand pipe Borehole Bulk line

y

Tshweele Primary

12 0

None Electricity

2 below 15 379

Maisela Primary

4 0

Borehole

Electricity

12 simple toilets 6

218

Mafoufale Secondary

4

0

None Electricity

11 261

Naka mmakgomo

8 0

Bulk line


Ward 9 Mafene Primary

7 0

Bulk Electricity

12 below RDP 6 195

Monare Secondary

4 0

None None 2 below RDP 4 VIP

8 178

Mahudu Primary

6

0

Borehole Diesel 4 Simple 7 244

Phoko Primary

5 0

Borehole Diesel 4 Simple 5 202

PhutiTlou Secondary

8 1 (poorstat

e)

Bulk Electricity

10 below RDP pit 9 189

Modimolle Primary

7 0

Bulk Electricity

2 below RDP toilets 6 116

Mphaaneng Primary

9 0

Bulk borehole

Electricity


Selebalo Secondary

9 0

Bulk Electricity


Pelangwe Primary

6 0

Bulk Electricity

Below RDP toilets 10 218

India Primary 8 0

Bulk Electricity


Mohlotlwane Secondary

8 0

None None 10 below RDP toilets

10 159

Ward 10


- page 36 -


Sejadipudi Primary

10 0

Borehole None None 10 316

TlouPhuthi Secondary

7 0

Borehole None 4 VIP 11 332

Manotwane Primary

8 Admin

Borehole None 2 VIP 7 287

Mamokgalake Primary

8 (+ 1

hall)

0

Borehole None 2 VIP 1 below RDP toilets

16 472

Selepe Primary

15 0

Borehole 3 standpipe 3 tanks

Petrol 2 VIP 2 below RDP toilets

16 400

Lefakgomo Secondary

22 0

Standpipe from main line

petrol 3 below RDP Toilets

24 834

Ward 11

Poo Secondary

12 0

Standpipe form main line

electricity

2 VIP Toilets

13 421

Manku Primary

8 0


Electricity

2 VIP Toilets

9 245

Kgagudi Primary

12 0

Standpipe form main line

Diesel 8 VIP Toilets

9 279

Seroletshidi Secondary

8 0

Borehole Diesel 12 VIP Toilets

6 92

Malegase Primary

11 0

None Electricity

2 VIP Toilets

8 239

Modiedie Secondary

8 Admin

Yes None 7 198

Tswereng Primary

8 0


Diesel 1 below RDP toilet 9 290

Makgalanoto Primary

14 0


Diesel 4 VIP Toilets

19 641

Selatole 19 Admi Borehole Petrol 2 VIP 14 404


- page 37 -


Secondary n Toilets Motsatsana Primary

11 0

Community project

Diesel None 6 153

Ward 12

Motsepe Primary

15 Admin


Electric Enviro-loo Toilets

18 636

Potlake Secondary

14 Admin

borehole None None 12 340

Bogalatladi Primary

14 1 Borehole Electric 4 VIP toilets 14 525

Serokolo Secondary

11 Admin

Borehole Electric 12 VIP toilets 15 564

Mafise Primary

11 0


Electricity

6 VIP toilets 6 200

Ward 13

Mogale Primary

16 0


Electricity


Lebelo Primary

3 0

None None 1 below RDP toilet 4 93

Nyaku Secondary

12 Admin

Handpump

Electricity

8 VIP toilets 11 290

Matianyane Primary

17 0


8 VIP toilets 19 657

Moraswi Secondary

16 0


None 8 VIP toilets 13 366

Kwano Primary

6 0

Stand pipe from community line

Diesel 8 VIP toilets 7 143

Ramoko Primary

8 1 Standpipe from mainline

Diesel 4 below RDP toilets 10 226

Monametse 8 Admin


4 VIP toilets 9 322


- page 38 -


Malengine 8 0 Borehole Electricity

4 VIP toilets 5 181

Source: Fetakgomo 2007

3.3.2 Health Like education, health services are critical in nurturing human development and tend to have important economic spin-offs as well. Countries that have invested significantly in primary health care (PHC), in particular, generally produce a healthier, and therefore more productive, workforce. There is also significant international evidence to illustrate that early investments in PHC result in less strain on the health budget (and, consequently, on social spending) in later years. This is an important debate for municipalities which are now largely responsible for PHC in South Africa. Within Limpopo Province, the provision of health facilities is generally inadequate in comparison with other provinces. More specifically, access to health facilities within Sekhukhune District Municipality itself is fairly poor. On average, there is 1 clinic for every 17,000 people within the district and approximately 97,500 people per hospital. Fetakgomo has an average of 1 clinic for every 10,000 people, an average that is well within reasonable provision standards. However, it still has a problem of distribution of these facilities across the municipal area. Almost all communities within Fetakgomo have access to health services. The exception is wards 11 and 13, which access their services from adjacent wards in Tubatse Local Municipality and, occasionally, from mobile services that frequent the areas. Fetakgomo has a Health Centre at Ga-Nchabeleng, as well as eleven clinics. In addition, there is a mobile clinic service team that visits villages monthly. All clinics, with the exception of Phahlamanoge, Mphanama and Mohlaletse, have access to water from boreholes and standpipes from the mainline. These clinics also have sanitation facilities of RDP standard. The provision of electricity to the facilities is adequate, except to Manotoane Clinic which is a state of disrepair. It is critical to note that there is no hospital within the Fetakgomo municipal area. The nearest hospitals are at Lebowakgomo (68 km from Ga-Nchabeleng Health Centre), Mecklenburg (59 km) and Jane Furse (73 km). There are a number of issues that affect the delivery of health services within Fetakgomo:

• Selective health care provision for Fetakgomo residents in the two nearest hospitals (Lebowakgomo and Mecklenburg ) poses a threat of accessibility

• Skewed spatial location of clinics in most areas: Some of the clinics are not located at the most accessible points within settlements

• Mobile clinic services are generally poor and lack adequate infrastructure

• Inadequate staffing especially within Phahlamanoge and Mphanama clinics

• Poor road infrastructure and lack of public transport affects residents’ access to most of the health facilities in the area

• There is no integrated HIV/AIDS Programme for Fetakgomo


- page 39 -


HIV/AIDS prevalence Table 10 indicates the prevalence of HIV/AIDS by age group in the Sekhukhune District.

Table 10: HIV prevalence by age group in Sekhukhune District

Age group 1999 (%) 2000 (%) 15 – 19 6,65 7,70 20 – 24 14,20 17,60 25 – 29 15,60 18,40 30 – 34 13,40 10,50 35 – 39 2,80 7,20 40 – 44 6,80 5,50 45 – 49 10,00 10,00 Average 11,4% 13,2% Source: GSDM, IDP

It is obvious that there has been an increase in the prevalence of HIV/AIDS between 1999 and 2000. This is particularly true for the potentially economically active age groups under the age of 40. The situation was better for those above the age of 40. However, with the HIV/AIDS Awareness and Prevention campaigns that have gained ground in the last few years, the scenario could have changed since this study was conducted.

Chart 5: HIV prevalence by age group in Sekhukhune District


- page 40 -


0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

HIV

Pre

vale

nce

1999 2000

Age Group

15-19

20-24

25-29

30-34

35-39

40-44

45-49

Provincial

Source, GSDM IDP, 2002

People with disabilities Fetakgomo Local Municipality is also committed to addressing the needs of people with disabilities in line with overarching national government policy. Table 11 indicates the number of people with disabilities in the Fetakgomo municipal area.


- page 41 -


Table 11: People with disabilities in Fetakgomo

Disability 1996 2001

Sight 1,957 1,201 Hearing 1,088 832

Communication - 205

Physical 1,386 857

Intellectual 382 489

Emotional - 729

Multiple 275 455

Source: Census 2001

The majority of disabilities relates to sight, hearing and physical disabilities.

3.3.3 Social welfare Social welfare systems form the backbone of assistance to the vulnerable in most advanced societies. Most countries acknowledge that whilst they strive towards full economic and social development, the more vulnerable members of society – especially children and the elderly – would require some form of state assistance. In many social democratic countries, a basic income grant is also made available to the poorest members of society to assist them in meeting their basic daily needs. The amount of money that a government usually spends on social welfare (and on social expenditure, more generally) tends to be determined by the economic health of the country at that point in its history. In South Africa, social expenditure has increased considerably over the years because of a favourable balance of payments situation as well as increased revenue from the South African Revenue Services (SARS). Social welfare systems are particularly important in municipalities like Fetakgomo which has a demographic profile that is characteristic of many South African rural areas. As illustrated earlier in this chapter, the majority of Fetakgomo’s population is under 20 years old (52,09%) or elderly (7,55%). This, coupled within an unemployment rate of 73% (2001) creates an extremely high dependency ratio. At present, social welfare services are provided by national government. There is only one proper social development facility (at Apel Nodal Point) and one satellite office (at Atok Growth Point) within the Fetakgomo municipal area. Instead, many pay points are found in traditional authority offices, shops or open spaces. These pay points, detailed below, are where residents collect their social service and pension grants. Most pay points, however, are characterised by a lack of proper facilities. Table 12 indicates the location of these pay points, as well as the types of infrastructure that currently exists there. This description provides a strong indication of what types of facilities are still required at each pay point.


- page 42 -


Table 12: Pay points within Fetakgomo

Place Pay Point Existing infrastructure

Ward 1 Mashilabele Community office � Electricity and two simple toilets Phahlamanonge Tau Phahlamohlaka

Traditional office � Borehole 2 jojo tanks, electricity , and

2 simple toilets Mohlaletse, GaMatji House � Fence

Ward 2

Mphanama Mphanama traditional office

� VIP toilets , water at RDP, shelter and fence

Magagamatala Shop � Fence Dithotoaneng Shop � Fence

Ward 3

GaSeroka Seroka Traditional Office � Fence and below RDP sanitation facilities

Malekaskraal Traditional Authority � Fence and below RDP sanitation facilities

Ramosedi Open space � No infrastructure exist Mohlaletse/Maroteng Traditional Office � Fence and below RDP sanitation

facilities

Ward 4

GaRadingwana GaRadingwana Traditional Office

� Fence

Mohlala Open Space Ikageng

� Fence and below RDP sanitation facilities

GaMmela Open space � Fence Phageng Shop � Fence and below RDP sanitation

facilities

Ward 5

Mokhulwane Shop � Fence and below RDP sanitation facilities

Makotanyane Shop � Fence and below RDP sanitation facilities

Ward 6

Ga-Maisela Traditional office � Fence Ga-Nchabeleng Shop � Fence and 2 below RDP sanitation

facilities

Ward 7


- page 43 -


Debelia Traditional office � Fence, 1 tank, 2 below RDP sanitation facilities and electricity

Apel Traditional office � Fence, standpipe and 2 below RDP sanitation facilities

Strydkraal A Crèche � Fence, standpipe, 3 below RDP sanitation facilities and electricity

Strydkraal B Shop � Fence and 1 below RDP sanitation facility

Community hall � Fence and 1 below RDP sanitation facilities

Matlalalegopane Shop � Fence

Ward 8 Traditional office � Fence, standpipe and 2 below RDP

sanitation facilities Ga Nkwana Traditional office � Fence and 2 below RDP sanitation

facilities Ga-Maesela Mahlabaphoko

Hall � Fence and standpipe

Ward 9 Maisela Maime Traditional office � Fence Maruping Village Open space � One roomed building

� Needs: toilets, water Modimolle House � Fence India Pelangwe community hall � Fence, 1 standpipe and 2 sanitation

facilities Pelangwe Shop � Fence Malomanye Village Open space � Fence

Ward 10 GaSelepe Ga Selepe Traditional

office � Fence, standpipe and 2 below RDP � No sanitation facilities

Manotoane Ga Montoane Traditional office

� Fence, standpipe and 2 below RDP sanitation facilities

Ward 11 Mampa Traditional office � No infrastructure Phasha Seletole Phasha Selatole Traditional

office � Fence and standpipe form mainline,

sanitation and shelter Seokodibeng Community Hall � All infrastructure available with

exception of water Ledingwe/Senthlane Shop � Fence and standpipe


- page 44 -


Phashaskraal Traditional offices � Fence

Ward 13 Mosotse Shop � Fence Monametse Café � No infrastructure Tjibeng Café � Fence Rostock Café � Fence Source: Fetakgomo Municipality, 2006

3.3.4 Food insecurity and vulnerability Food insecurity occurs when people are under-nourished, a state that usually arises when their food intake falls below their minimum calorie (energy) requirements. Under-nourishment can be the result of several factors, including the physical unavailability of food (e.g. during a drought) or an inability to purchase food because of financial constraints. Individuals or households are said to be vulnerable to food insecurity when they are exposed to several risk factors (such as living in a drought-prone area) which they may not have adequate coping mechanisms for. Food insecurity is therefore a telling indicator of poverty levels in a municipality. The issue is, however, a complex one, involving multiple factors like land availability, access to natural resources and the socio-economic circumstances of communities. The national Department of Agriculture (DoA) undertook a comprehensive livelihoods survey in the Sekhukhune District area, both in 2004 and 2006 (DoA, 2006). The 2006 survey highlighted the fact that some of the worst food insecurity areas were within the following villages in Fetakgomo:

Table 13: Most food-insecure areas in Fetakgomo

Village Municipality Score Ga-Mampa Fetakgomo Local Municipality 42,86 Bogalatladi Fetakgomo Local Municipality 42,59 Monametsi Fetakgomo Local Municipality 42,52 Mphanama Fetakgomo Local Municipality 42,34 Ga-Mampuru Tubatse Local Municipality 42,86 Ga-Masha Tubatse Local Municipality 42,85 Small Phooko Elias Motsoaledi Local Municipality 37,50 Magneetshoogte Makhuduthamaga Local Municipality 37,46 Source: DoA (2006). Livelihood survey conducted in the Greater Sekhukhune District Municipality of Limpopo

The lower part of Table 13 provides a comparative illustration of other places within the Sekhukhune District. Food insecurity within Fetakgomo is the result of several factors. Within the past 12 months, the key shocks that communities within the District generally experienced were food price increases, petrol hikes, the growing costs of producing food, an increase in the number of individuals within households, violence, theft and illness (DoA and FIVIMS, 2007b). There’s also some evidence that ongoing


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water scarcity and limited economic opportunities within Sekhukhune limit the ability of its residents to adapt and cope to external stresses and shocks (SEI, 2007). All these factors increase the vulnerability of communities within the District, and make it less easy for them to cope with food shortages when they occurred. The DoA study revealed that 63% of households within the District were food insecure and that levels of hunger were on the increase (DoA and FIVIMS, 2007c). It also shows that Tubatse and Fetakgomo Local Municipalities are the most income-deprived areas in the District, and both also have the highest levels of food shortage in the area.

3.3.5 Safety and security At present, safety and security within the Fetakgomo municipal area is hampered by the fact that there is insufficient public infrastructure. Fetakgomo municipality has only police station, for instance, which is located at Hoeraroep/Apel. This is currently not able to serve most areas within the municipality. Indeed, some parts of the municipality - notably Wards 10, 11 and 13 - are served by Moroke Police Station, situated within the Greater Tubatse Local Municipality. This is a bigger police station and covers a much wider area than the Apel police station. Fetakgomo also has no magistrate court, which further impedes crime prevention in the area. Crime in Fetakgomo comes in varied forms, as the following table will attest. The 2001/02 statistics are presented in order to provide a point of reference. Statistics for the Tubatse station are also provided, although these cover crime reported for the entire Tubatse area and not just the Fetakgomo wards.

Table 14: Crime statistics for Fetakgomo municipal area

Crime category Apel station Tubatse station Apel station

2001/0

2

2005/0

6

2001/0

2

2005/0

6

2006/7

Murder 8 6 7 9 9 Rape 28 27 46 57 33 Attempted murder 12 6 25 13 0 Assault with intent to inflict grievous bodily harm

185 98 347 198 0

Common assault 73 38 259 112 5 Robbery with aggravating circumstances 23 22 50 20 0 Common robbery 21 28 53 42 23 Indecent assault 1 0 0 2 1 Kidnapping 2 0 5 1 0 Abduction 1 0 6 1 0 Neglect and ill-treatment of children 1 1 3 3 0 Culpable homicide 6 13 13 18 0 Public violence 0 1 1 0 0 Carjacking (subcategory of aggravated robbery)

1 0 0 4 0


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Truck hijacking (subcategory: aggravated robbery)

0 0 0 0 0

Bank robbery (subcategory: aggravated robbery)

0 0 0 0 1

Robbery of cash in transit (subcategory: aggravated robbery)

0 1 0 0 0

Robbery at residential premises (subcategory: aggravated robbery)

- 1 - 0 59

Robbery at business premises (subcategory: aggravated robbery)

- 0 - 0 0

Arson 5 4 6 10 5 Malicious damage to property 39 41 73 78 0 Crimen injuria 17 14 63 38 0 Burglary at residential premises 57 61 194 158 40 Burglary at business premises 63 14 2 10 0 Theft of motor vehicle and motorcycle 6 4 15 11 7 Theft out of or from motor vehicle 22 7 35 20 13 Stock-theft 47 17 17 27 33 Illegal possession of firearms and ammunition

5 3 6 4 0

Drug-related crime 6 1 9 18 0 Driving under the influence of alcohol or drugs

0 3 16 5 0

All theft not mentioned elsewhere 157 87 234 92 0 Commercial crime 4 5 12 11 0 Shoplifting 0 0 0 0 5 Source: SAPS (2006). Crime in the RSA for April to March 2001/02 to 2005/06: Apel and Tubatse stations

These crime statistics come with some limitations. Primary among these is the fact that SAPS boundaries are not the same as municipal boundaries. In addition, the many changes to municipal boundaries over the years have further complicated the matter. Consequently, the statistics reported for a particular municipal area over a period of time may not necessarily be precisely synchronised with that geographical space. Secondly, a significant proportion of crime, especially that of a domestic nature, is not reported and therefore not reflected here. In addition, the Tubatse station’s statistics presented above could not be disaggregated to the 3 Fetakgomo wards covered by this station. Finally, the most recent SAPS statistics released are for 2005/06 only. Despite these limitations, certain inferences may be drawn from the data. It would appear, for example, that serious crimes like murder, rape and attempted murder have decreased since 2001/02 for the Apel station. Crimes that are on the increase within this station’s jurisdiction include common robbery, culpable homicide, public violence, cash-in-transit robbery, malicious damage to property, residential burglary, driving under the influence of alcohol and commercial crime.


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3.3.6 Other social facilities The delivery of many social services, and their associated infrastructure, is largely the domain of national and provincial government, as well as state-owned enterprises (SOEs). These include the departments of Education, Public Works, Water Affairs and Forestry, as well as Eskom and Telkom. Social facilities include post offices, multi-purpose centres, sport and recreational facilities, show grounds and libraries. Fetakgomo has the following social facilities at present:

Table 15: Social facilities in Fetakgomo

Facility Status Challenge Atok Multi Purpose Centre � Still under construction, Phase

1 completed in partnership with Anglo Platinum and Eskom Development Foundation

� Due to the vastness and rural nature of the municipality, communities do not have access to these facilities

Atok, Apel, Mohlaletse, Ga-Nchabeleng Post Office

� Both Mohlaletse and Apel facilities are dilapidated and need upgrading

� Due to the vastness and rural nature of the municipality, communities do not have access to these facilities

Social Development facilities (Apel Nodal Point)

� Functional � Only one facility exists within the municipal area

Apel and GaRadingwana Sports centre

� Functional � The facilities are dilapidated

Nchabeleng Sports facility � Only Phase 1 of the project is completed and remains unused

� Communities use school and community halls for sports and recreation purposes

Mohlaletse, Seokodibeng and Pelangwe community hall

� Upgraded by the Municipality � Communities use school and community halls for sports and recreation purposes

Source: Fetakgomo Municipality, 2007


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Key social challenges • Low education and high illiteracy levels

• Most Fetakgomo schools are collapsing because of poor soil conditions

• No hospital, inaccessibly-located clinics and poor mobile clinic services

• Poor roads and inadequate public transport hinder access to health services

• No integrated HIV AIDS programme

• Most social welfare pay points lack proper facilities

• High levels of food shortages and levels of hunger are on increase in Fetakgomo

• Fetakgomo has only 1 police station

• Most other social facilities (post offices, MPCCs, etc) aren’t accessible

3.4 Spatial profile of Fetakgomo The land issue within Fetakgomo is of critical importance because of the extent of tribal ownership. This affects current land uses in the area, and is an enormously influential determinant of future development in Fetakgomo. This section maps out some of the area’s key spatial characteristics, as well as their implications.

3.4.1 Settlement patterns The Fetakgomo municipal area exhibits similar settlement patterns to those found in the rest of the Limpopo Province. The area is characterised by dispersed and fairly small settlements. The size and dispersed dynamics of these settlements make it extremely expensive and difficult to provide bulk infrastructure. It should be noted that residential development is currently taking place in an uncoordinated and chaotic manner in the area. This is largely because the functions for site demarcation and allocation remains vested with the provincial Department of Local Government and Housing (DLGH). In reality, however, traditional authorities within Fetakgomo continue to perform these same functions, often with resultant catastrophic effects. It is hoped, however, that the township establishment processes undertaken by the Municipality and DLGH will improve land use management, particularly at the Apel Nodal Point.


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3.4.2 Land use There is unfortunately no detailed land use data for Fetakgomo because there has never been any formal physical planning or land use management (LUM) mechanisms at the local level. However, the Land Cover Map below indicates the major land uses in the municipal area. The municipality consists mainly of tribal land that is predominantly utilised for residential and subsistence farming purposes.

Figure 4: Land cover map (1996)

Source: Census, 1996

Fetakgomo has one protected environmental conservation area, the Potlake Nature Reserve, which takes up most of the western section of Ward 13. Chart 10 below also indicates the various land-uses found in the Fetakgomo municipal area and the area (hectares) that such land-uses cover.


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Chart 6: Land use analysis for Fetakgomo

Land Type Area (ha.) Chart

Agriculture 204,13154

Commercial 0

Industrial 0

Mines and Quarries

0

Residential 17,1261

Smallholdings 0

Waterbodies 0,55476

Other 901,36965

Source: CSIR (Forestek)

3.4.3 Land use management Fetakgomo Municipality is in the process of drafting a land use management (LUM) scheme. The LUM scheme will enable the municipality to exercise land-use control in existing proclaimed and informal rural settlements in the jurisdiction of Atok Mine. The promulgation of this Scheme will also ensure that future development takes place in a coordinated manner.

3.4.4 Current land claims in Fetakgomo Table 16 indicates the land claims lodged in the Fetakgomo municipal area.

Table 16: Land claims in the Fetakgomo municipal area

Farm name Claimant Extent of

hectors

Title deed

Bonds/

endorsements

Mineral rights

holder Brakfontein 464ks

Roka Selepe

2391.0433 T3571/2000 K143/2000S K5368/2002L

Lebowa Platinum Mine Ltd

Groothoek Roka Lebea

1035.5872 T13674/1989 K1212/2000RM Lebowa

Lebowa Mineral Trust


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Waterkop Kgoshi Mampa

2071.3085 T7711/1928 K1002/1993M K2528/1985RM K3343/2003RM K397/1928S K4451/2001RM K4527/1990RM K630/2000RM

Samancor LTD Anglo Operations Gritten Micheal Turmeau Impala Platinum LTD

Klipfontein Maesela Manotoane

28418803 T44863/1989 I-9024/2000C K143 /2000C

Not Available Not Available

Paradys Baphoto Batau

2790.5813 T2884/1893 KS 773 Lebowa Mineral Trust

Rem/Moskow Baphoto Batau

2116.9195 T31525/1895 K1325/2000RM Lebowa Mineral Trust

Rem/Hoeraroep Baphoto Batau

2651.3595 T2524/1893 K6788/1998RM K6789/1998RM VA361/1998

Lebowa Mineral Trust Highveld Steel & Vanadium Corp Ltd T2524/1893

Rem/Driekop 540 KS

Baphoto Batau

2811.5246

T2126/1892 K6789/1998RM K6795/1998RM

Highveld Steel Vanadium Corp Ltd Lebowa Mineral Trust

Goedverwaght 511KS

Babina Tlou Ba Maesela

2651.3595 T2524/1893 VA361/1998 T2524/1893

Vlakplaats 770KS

- 2.9979 T211/1893 1-26760/2000C Not Available

Rem/Middlepunt KS

Baroka Ba-Nkwana

1544.8853 T24685/1969 KI-9038/200C KI671/2000 RM


Rem/Hoeraroep Baroka Ba-Nkwana

2719.6515 T2523/1893 K6789/1998 RM K6796/1998 RM

Highveld Steel & Vanadium Corp Ltd Lebowa Mineral Trust

Ptn 1/Hoeraroep 515KS

Baroka Ba-Nkwana

2.9033 T101286/2000

VA21132/2000 Ratsoma Mamojagane Edwin


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Rem/Goedgedacht 878 KS

-:ditto 2211.2561 T5575/1961 K2308/200RM 0.1RM


Ptn 1/ Goedgedacht

-:ditto 424.6773 T22460/1943 K5945/2000 RM Lebowa Mineral Trust

Ptn2/ Goedgedacht

-:ditto 422.6096 T22461/1943 KS878.2

Source: Regional Land Claims Commissioner, 2006

Most land claims within Fetakgomo are not likely to be solved soon as they are on tribal land, which requires tenure reform rather than restitution. The Act that would cover tenure reform in South Africa is still a Bill and will be tabled to cabinet during the course of 2007. At present, the Municipality’s role in expediting development is limited to the preparation of community resolutions that must be signed and approved by the Department of Land Affairs’ Director-General. It is critical, however, that other spheres of government pay more attention to this issue as it is currently thwarting potential development initiatives in Fetakgomo.

3.4.5 Current patterns threaten development in Fetakgomo Fetakgomo’s spatial profile has an immediate and devastating bearing on the economic potential of the area. It is unquestionable that land ownership is the single biggest constraint to economic growth in Fetakgomo. The land issue affects everything in this very small economy. It undermines growth in all areas and could almost be deemed one of the root causes of poverty. Land claims, as well as the availability and ownership of property in tribal areas and state owned land, permeates as a constraint through all sectors - from constraining commercial level investment to undermining the scale and viability of emerging farmers. It also undermines capital appreciation of property values for everyone living in the area. The current situation creates investment uncertainty. Potential investors will not come to Fetakgomo if they are unable to own land. Unfortunately, there is very little that a local municipality can do, as most of the influential regulatory powers within the land sector are located at national government level.

Key spatial challenges • The area’s dispersed rural settlements make infrastructure provision expensive

• All land in Fetakgomo is owned by traditional authorities

• Land ownership patterns deter potential investors

• Residential development is chaotic, largely because there is inadequate coordination between municipality,

department of local government and housing and traditional authorities

• Unresolved land claims impede socio-economic development in the area


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3.5 Housing and municipal infrastructure A key element of municipalities’ developmental agenda is to ensure the provision of municipal services and related infrastructure. Much has been written about the distorted spatial logic of apartheid, which created divisions both within cities and towns, as well as between the country’s urban and rural areas. Consequently, many rural areas like Fetakgomo today face huge backlogs in both housing and infrastructure. This hinders the quality of life of Fetakgomo residents, and leads to a complex interplay of social and economic challenges. In community consultations hosted by Sekhukhune District, for example, residents highlighted the fact that poor street lighting and electricity backlogs facilitated crime in their areas (GSDM, 2007). Similarly, other sections of this chapter illustrate how poor roads, for instance, made it harder for patients to access health services in Fetakgomo. It is also widely acknowledged that the state of a locality’s infrastructure is directly related to the amount and types of private investment it manages to attract. In today’s digital economy, telecommunications and other Information and Communication Technology (ICT) infrastructure is also critical. In summary, any municipality that wishes to promote economic and social development in its area must ensure that there is sufficient investment in housing and infrastructure.

3.5.1 Housing Like many rural areas in South Africa, Fetakgomo communities have traditionally provided their own shelter from the available natural material in their local areas. As a result, no informal settlements, such as those found in urban areas, are located within Fetakgomo. However, this trend is beginning to develop in and around new mining areas such as Atok. Housing delivery is a provincial competency and Fetakgomo Local Municipality’s primary role is limited to compiling housing waiting lists. However, the municipality is able to make a careful assessment of housing delivery in the area thus far, and how this impacts on socio-economic development generally. It must be noted that some of the RDP housing projects, for instance, have been plagued by poor construction and incomplete houses. Table 17 indicates the number of housing units built in the Fetakgomo area since 2001.

Table 17: Housing units constructed in Fetakgomo since 2001

Ward Project Year % completed No of housing units 1 Housing 2001/2002 100 250 2 Housing 2002/2003 100 100 3 Housing 2003 100 50 4 Housing 2003/2004 100 150


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5 Housing 2002 80 250 6 Housing 2003 83 287 7 Housing 2004 80 300 8 Housing 2004 80 300 9 Housing 2002 80 150 10 Housing 2003 60 150 11 Housing 2003 60 150 1, 3, 5, 9 Disaster housing 2004 60 30 10, 11 People’s Housing 2004 50 200 1, 3, 9, 11 Housing 2005 20 400 Total 2,776 Source: Fetakgomo Municipality, 2005

In line with criteria set out by the Limpopo Department of Local Government and Housing (DLGH), all wards within Fetakgomo have benefited from the new housing construction.

Table 18: Site demarcation in Fetakgomo since 2001

Village Year Number of sites allocated Ga-Nkoana 2002/03 550 Fetakgomo 2003/04 1000 Mohlaletse 2003/04 500 Eersterecht 2004/05 81 Apel/Sesehu 2005/06 300 Mashilabele/Phaahla Manonge 2005/06 300 Fetakgomo Township Establishment 2005/06 1,000 (not completed) Seroka/Phahlamanoge 2006/2007 500 Limpopo Department of Local Government and Housing, 2007

Housing delivery in Fetakgomo has been plagued by some challenges, however. In many cases, developers do not complete their projects. In addition, the infrastructure is not of an acceptable quality. Most critically, as has already been highlighted in this chapter, it should be noted that residential development is currently taking place in an uncoordinated and slightly chaotic manner. The responsibility for site demarcation and allocation is still vested with the provincial DLGH. In all Fetakgomo settlements, however, local traditional authorities continue to demarcate and allocate sites, often with disastrous consequences.


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Key housing challenges • Beginnings of informal settlements, especially around new mining area like Atok

• RDP housing delivery plagued by poor construction and incomplete houses

3.5.2 Water Fetakgomo Municipality is neither a Water Services Authority nor a Water Service Provider. These functions were assigned to the Greater Sekhukhune District Municipality. In 2003, the District officially commenced with the implementation of Free Basic Water (FBW) policy as part of its Indigent Policy. According to FBW policy, all people with a total household income of less than R1,100 a month qualify for 6 kilolitres of water free of charge every month. The table below indicates the water supply status of major villages per ward, as well as the needs and challenges associated with respect to supply.

Table 19: Water supply in wards

Ward Number of households Existing infrastructure 1 1,947 � 3 x borehole and two pump houses

� Drought relief structure (two tanks and 1 x stand pipe, 2 taps)

� 5 x standpipes and 1 reservoir 2 2,466

� 20 Boreholes, 61 standpipes and pump house � No source

3 2,676 � 34 standpipes from the bulkline 4 1,358 � 19 stand pipes, 2 x Pump house, 3 x reservoir, 2

borehole, 2 x pump house and 4 tanks 5 1,665 � Bulk Line

� 62 x stand pipes, 8 x hand pumps � 1 x pump house and 6 x reservoirs, 4 x Borehole

and pump station 6 1,007 � Bulk Line, 7 x standpipe

� 2 x Boreholes, Pump house � 3 x standpipes and 3 x tanks

7 2,250 � Bulk Line, yard connection � 62 stand pipes � 7 stand pipes and 4 bore holes

8 928 � Bulk Line, yard connection 9 1,783 � Bulk line, 1 x reservoir, 61 stand pipes, 2 x


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boreholes 10 1,450 � 22 stand pipes ,3 x Borehole, 2 x storage

� Reticulation, Main Scheme 11 1,666 � 1 Borehole and reticulation, 1 x tank, 1 x pump

house, 18 boreholes � 28 standpipes, 5 Boreholes � Drought relief and 1 tank

12 1,455 � Drought relief, 7 x Boreholes � 1 x Reservoir, pump house � 42 Stand pipes

13 1,204 � 15 boreholes, 13 x tanks � 146 x stand pipes, 2 storage � 1 reservoir


The majority of Fetakgomo boreholes, which are meant to provide water to sections of villages, are frequently interrupted by breakages. As a result, continuous water supply becomes compromised. However, the existence of bulk water, found particularly in wards 6, 8 and 9, has greatly improved the quality of lives of those communities. There are different water provision arrangements within Fetakgomo. This include villages that have infrastructure but no water source (such as Mphanama village), those that have RDP standard provision but with frequent breakages, villages that contain drought relief projects that are not sustainable, as well as villages that enjoy yard connections without paying for the service. Other challenges associated with water provision include:

• There are no monitoring and evaluation mechanisms

• There isn’t always cost recovery from consumers, even in places where there is sufficient water supply and where yard connections exists

• The cost of providing emergency water is high

• Areas with non-functional infrastructure are prone to vandalism It should be noted, however, that Fetakgomo has the lowest access to domestic (home) piped tap water within the District. Compared to averages of 39,8% (Marble Hall) and 32,8% (Elias Motsoaledi), Fetakgomo’s average of 5,4% is an alarming reminder of the extent of the problem in this municipality (DoA and FIVIMS, 2007a).

3.5.3 Sanitation According to the Sekhukhune District’s Water Sector Development Plan (2004), Fetakgomo has a huge backlog in sanitation provision. This is indicated in the table below. This is largely attributable to the fact that settlements within the Municipality are rural in nature.


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This situation is a health hazard, however, and can lead to the outbreak of communicable diseases such as cholera. This is exacerbated by the fact that a large percentage of the community relies on borehole water.

Table 20: Sanitation backlogs in Fetakgomo

WARD NUMBER OF HOUSEHOL

DS

% NUMBER OF VIP TOILETS

% NUMBER OF BELOW RDP TOILETS

% HOUSEHOLDS

WITHOUT FACILITY

%

1 1947 7.58 213 11 1399 72 355 17

2 2466 9.60 194 8 2272 92 0 0

3 2676 10.42 112 6.52 13 0.48 2551 93

4 1358 5.28 0 0 959 70.6 399 29.4

5 1665 6.49 0 0 996 60 669 40

6 3448 13.43 0 0 2549 74 899 26

7 2250 8.76 544 24.2 1375 61.1 331 14.7

8 2189 8.53 729 34 402 18 1058 48

9 1783 6.94 291 16.35 1085 60.85 407 22.8

10 1450 5.65 171 11.9 849 58.5 430 29.6

11 1783 6.94 216 12.1 1567 87.9 0 0

12 1455 5.67 52 3.57 425 29.2 978 67.23

13 1204 4.68 198 16.5 331 27.5 675 56

TOTAL 26371 100 2201 8.3 15418 58.5 8752 33.2

Fetakgomo Municipality: 2007

Table 20 depicts sanitation backlog per ward within Fetakgomo municipality. Ward 8 has the highest percentage of VIP toilet facilities and the

highest percentage of households without toilet facilities. Each of the two, i.e., VIP and without facilities accounts for 34% and 48% respectively. On

the other hand wards 4 and 5 are without VIP facilities. This could be attributed to the practice that provision of sanitation in Fetakgomo being biased

to same villages over time and this led to the slanting statistical revelation of predominance to the few villages.


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With transfer of functions by DWAF to the district we hope due consideration will be given to priorities as set by IDP. A clear acknowledgement is

made of the backlog between housing provided and sanitation in the last five years which may have a negative impact on the possibility of beating

the millennium target for sanitation.

It is unlikely for the municipality to meet the national target unless both the DWAF and the District change strategies.

Chart 7 indicates Fetakgomo households’ access to sanitation facilities.

Chart 7: Access to sewerage by Fetakgomo communities

0

2000

4000

6000

8000

10000

12000

Ho

us

eh

old

s

Toilet Facilities

Flush toilet (connected tosewerage)

Flush toilet (with septic tank)

Chemical Toilet

Pit latrine with ventilation (VIP)

Pit latrine without ventilation

Bucket latrine

None

Source: Census 2000

3.5.4 Electricity Currently, Eskom is largely responsible for the provision of electricity services in the Fetakgomo area. The Municipality is responsible for the provision of free basic electricity. Table 21 below indicates the electricity supply status of major villages per ward.

Table 21: Electricity supply and backlogs per Fetakgomo ward


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WARD

NUMBER OF

HOUSEHOLD

S

Percentage NUMBER OF

HOUSEHOLD

S

CONNECTED

Percentage NUMBER OF

HOUSEHOLD

S NOT

ELECTRIFIE

D

Percentage

1 1947 7,38 1866 95.84 81 4.16

2 2466 9,35 2307 93.55 159 6.45

3 2676 10,14 2619 97.87 57 2.13

4 1358 5,14 1254 92.3 104

7.7

5 1665 6,31 1539 92 126 8

6 3448 13,07 3313 96 135 14

7 2947 11,17 1014 34 1933 66

8 2189 8,30 1534 70 655

30

9 1783 6,76 1694 95 89 5

10 1450 5,49 0

0 1450 100

11 1783 6,76 0

0 1783 100

12 1455 5,51 1264 87 191 13

13 1204 4,56 0

0 1204 100

Total 26371 100 18461 70 7910 30


In terms of villages that require post-connection within the municipality, the public participation process provided important information tabulated above. The tables below (Priority list submitted to Eskom, 2001) indicate the electricity backlog within the Municipality. The table above indicates the electrification backlog in the Fetakgomo municipal area. The villages listed in the table below depict the 2001/2002 electrification programme approved by Eskom as electrification programme of the municipality.


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It must be noted that some of the villages have not been electrified as yet, although some should have been electrified as far back as 2005. Table 22:: 2001 electrification programme

2001 ESKOM ELECTRIFICATION PROGRAMME

VILLAGES ALLOCATED CONNECTIONS YEAR

Thobehlale,Nashilabela and Thabanaseshu

420 2003

Phahlamanoge and Masehleng 500 2004

Malomanye and Marup[ing 425 2004

Mashikwe 80 2004

Mmakopa 200 2004

Strydkraal A and B 780 2004

Mashung 701 2004

Mashung 701 2004

Manoge/Matlou 100 2004

Tjibeng and Mooilek 350 2005

Rostock and Jobskop 570 2005

Manotoane 250 2005

Selepe 650 2006

Phashaskraal and Mosotse 405 2006

Apel 200 2006

Mablulela 200 2007

Makgalanoto 300 2007

Seokodibeng 250 2007

Mampa 150 2007

Ledingwe 200 2007

Habeng 110 2007

Table 23: List of villages not electrified

Villages Year

(updated)

Allocated

Connections Selepe 2007 770


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Phashaskraal and Mosotse 2007 410 Apel 2007 380 Makgalanoto 2007 540 Seokodibeng 2007 150 Mampa 2007 220 Ledingwe/Senthlane/Ramallane 2007 230 Shushubung 2007 45 Source: Fetakgomo Municipality, 2007

Table 23 indicates the number of housing units that are not electrified as at 2007. Given the rate of delayed electrification by Eskom, as well as the concurrent growth of previously connected villages, some challenges exist in terms of meeting the millennium target. Selepe Village has the highest percentage of backlog at 31.51% while Shushubung village having the lowest backlog of 1.14 %.

Table 24: Electricity provision in Fetakgomo

Year No of housing units 2000/2001 250 2001/2002 120 2002/2003 0 2003/2004 19 2004/2005 2,374 2005/2006 350 2006/2007 1,144 (Premier’s Emergency Infrastructure

Grant) 879 (energised)

2006/2007 246 Source: Fetakgomo: 2007

Table 24 depicts number of units electrified since 2001/2002 financial year.

Free basic electricity Since the declaration of free basic electricity policy, Fetakgomo Municipality has been able to register 3,200 indigent households for the service. Out of this figure, only 2,400 households benefited since 2003 (this figure was last updated on 31 January 2007). The process of registering households for the service was faced with the following challenges:

• Integrated indigent policies must be finalised and indigent registers updated

• There needs to be better communication about the free basic electricity service to households

• Eskom needs to update its information management systems to allow for easy identification and management of poor households


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• Eskom also needs to facilitate easier access of the service through extensions of vending machines (which will also reduce the transaction costs)

• More funds are needed for electrification as there are still ten villages without electricity and post-connection

3.5.5 Refuse removal There is no formal refuse removal service in the Fetakgomo municipal area, except the privately owned landfill site at Atok Mine. The majority of the population utilises their own dumps for this purpose. These dumps are usually located within the individual property and burnt on an ad hoc basis. The lack of a formal refuse removal service in the municipal area poses a health hazard to the rural communities and is particularly a problem for businesses. The municipality undertook a feasibility study for a possible landfill site, focusing on the Apel Nodal point given the advent of township establishment in the area. The Department of Economic Development, Environment and Tourism is in the process of assessing the findings of the study. Chart 8 indicates the situation with respect to refuse disposal in the Fetakgomo municipal area.

Chart 8: Refuse disposal within Fetakgomo

0

2000

4000

6000

8000

10000

12000

14000

16000

Ho

useh

old

s

Refuse Disposal

Municipal other

Communal dump

Own dump

No disposal

Source: Census 2001


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3.5.6 Roads and transport Road network The provincial and district road network is currently the responsibility of the Road Agency Limpopo (RAL). The Fetakgomo Local Municipality has not taken over the responsibility of maintaining any of the district roads. The municipality is, however, grading certain access roads to villages with the assistance of a service provider. Roads in the Fetakgomo area are mainly gravel roads, and it is only the main roads running through the area that are tarred. Most of the gravel roads are poorly maintained and lack proper storm water management. The tarred Provincial Road P33 (R37) extends through the northern part of the municipal area and links Fetakgomo with Polokwane/Lebowakgomo to the west and Burgersfort/Lydenburg to the east. The R37 was transferred to the South African National Roads Agency recently and is therefore classified as a national road. The R37 forms part of the Dilokong Spatial Development Initiative (SDI) and the development corridor covers an area on either side of the R37 route from Polokwane through Atok, Mecklenburg, and Driekop to Burgersfort. Apel, which is classified as a ‘Municipal Growth Point’ and serves as the ‘capital’ of the Fetakgomo Local Municipal Area, is linked to the R555 (Burgersfort/Stoffberg road) via the tarred District Road D4190. The D4250 that links Apel with Lebowakgomo was recently tarred as far as Apel Cross. The gravel section (20 km) of the D4190 that links Apel with the R37 is poorly maintained and needs to be tarred to provide effective access to the Dilokong Corridor which would, in turn, unlock the economic potential of the area. In addition, road signage as it relates to the name Fetakgomo still needs to be established. It should be emphasised that ‘Fetakgomo’ is difficult to find as it does not appear on maps. This is important because the absence of sufficient directional road signage is a significant constraint to economic development in the area.

Transport operations Taxis operating within the Municipality mainly use the tarred R37 (Burgersfort-Polokwane), D4250 (Apel-Apel Cross-Lebowakgomo) and D4190 (Apel-Sekhukhune-Steelpoort) roads. The poor condition of the gravel section of the D4190 that links Apel with the R37 poses a challenge to commuters as most taxi operators are unwilling to use the road. Communities use private transport in villages where the taxi industry does not operate. This means of transport is not recognised by law and is risky to the lives of commuters. Table 24 indicates the number of taxi ranks in the Fetakgomo municipal area.


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Table 25: Transport facilities in Fetakgomo

Village No of transport facilities No of formal transport facilities Mohlaletse 1 0 Apel 1 1 Atok 1 0 Phasha Selatole 1 0 Source: Fetakgomo 2005

Bus operations The ‘Great North Transport’ is the only bus operator within the Municipality with conventional fixed routes and a fixed schedule system that provides passengers with public transport to work in the morning and back to home in the evening. Table 25 indicates the bus routes in the Fetakgomo municipal area.

Table 26: Bus routes in Fetakgomo

Bus Route Time Schedule Mohlaletse to Polokwane 06h00 Ga Machacha via Ga-Oria via Nkwana to Burgersfort (Tubatse) 14h00 Phahlamanoge to Jane Furse via Seroka, Mohlaletse, Nchabeleng and Mphanama

06h00

Rostock to Jane Furse 06h00 Mabulela via Selepe to Burgersfort 06h00 Johannesburg to Fetakgomo Fridays Source: Fetakgomo 2007

3.5.7 Cemeteries The provision of community cemeteries has always been the responsibility of individual communities in each settlement. The location of these facilities takes place in an ad-hoc manner, as there are no formal technical investigations preceding the location of cemeteries. Inappropriate location of cemeteries poses risks in terms of contamination of underground water sources. If cemeteries were to be formalised in Fetakgomo, cultural dynamics would need to be noted. This would require a fair amount of commitment from the Municipality as it would need to undertake intensive consultations with communities. Recently, the Sekhukhune District obtained a site for the piloting of the improvement and management of cemeteries at Nkoana village.


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3.5.8 Telecommunications Approximately 68% of households in the municipality are without access to telephones. One of the implications of this situation is that the majority of households in the municipality still cannot take advantage of the ever-expanding internet and e-mail telecommunication facilities, especially for educational and business purposes. This situation undermines the economic viability of the area. Chart 9 indicates the access to telephones of households in the Fetakgomo municipal area.

Chart 9: Households' access to telecommunications in Fetakgomo

0

1000

2000

3000

4000

5000

6000

7000

8000

Ho

useh

old

s

Telephone Facility

Telephone in dwelling andCellphone

Telephone in dwelling only

Cellphone only

At a neighbour nearby

At a public telephone nearby

At another location nearby

At another location, not nearby

No access to a telephone

Source: Census 2001 Table 26 indicates the telecommunication supply status of major villages per ward, as well as the needs and challenges associated with respect to supply.

Table 27: Telecommunications facilities in Fetakgomo

Ward Village Description of communication infrastructure


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1 Phahlamanoge � Cellular phone and TV reception poor � No landline

Mashilabele � MTN poor � No landlines

Maebe � MTN and Vodacom reception good, but no landline 2 Mphanama � No means of communication 3 Mohlaletse � Vodacom good, MTN needs reception

� Need for Telkom land lines Seroka � Poor network reception

� Need for Telkom land lines � TV reception poor

Malekaskraal � Poor network reception (MTN and Vodacom). Need for Telkom land lines. TV reception poor

4 Mmela, Mohlala, Radingwana, Phageng

� Vodacom (good reception), MTN (poor) and no landline

� Phageng experiences poor reception with all cell phone reception and TV

5 Mohlaletse (Lerajane) � Public landlines and cell phone reception poor GaNchabeleng � Needs extension of landlines. Reception of Vodacom

and MTN up to standard 6 GaNchabeleng � MTN - no reception and no landlines. TV reception

good Matlala � MTN - no reception and no landlines. TV reception

good Thobehlale � MTN - no reception and no landlines. TV reception

good Mashabela � No Land line.

� Cell phones: Vodacom, Cell C, MTN Thabanaseshu 7 Apel � Telecommunication good Mashung � Telecommunication good Strydkraal A � Telecommunication good Mooiklip � Telecommunication good Strydkraal B � Telecommunication good 8 Gankwana � Telecommunication good Makushwaneng � Poor telecommunication reception Mapodi � Poor telecommunication reception Mashung � Telecommunication good Maisela-Mahlabaphoko � Telecommunication good


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Matsimela � Telecommunication good Maisela Mmaime � Telecommunication good 9 Maruping � telecommunication good Malomanye � Telecommunication good Mashilabele � Telecommunication good Mogabane � Mobile phones good, radio and TV reception poor Malogeng � Telecommunication good Modimolle � Telecommunication good Mphaaneng � Telecommunication good Pelangwe � Telecommunication poor Modimolle � Telecommunication good Mashilabele � TV and radio good. Cell phones poor Petja � TV and radio good. Cell phones poor India � Telecommunication poor 10 Manotwane � Vodacom and MTN reception good. TV reception poor GaSelepe � Vodacom and MTN reception good. TV reception poor 11 Seokodibeng � Telecommunication good Ga-Mampa � Telecommunication poor Ledingwe/Senthlane � Telecommunication poor Phasha Selatole � Cellular and TV reception poor Mosotse Cellular and TV reception poor Phashaskraal � Cellular and TV reception poor 12 Sefateng � Telecommunication good Bogalatladi � Telecommunication poor Mabulela � Telecommunication poor Mashikwe � Telecommunication good (cellular phones) but no

Telkom 13 Mahlabeng � Communication network poor Mooilek � Communication network poor Rostock � Communication network poor Tjibeng � Communication network poor Mahlabeng � Communication network poor Mokgotho � Communication network poor Monametse � Communication network poor Source: Fetakgomo Municipality, 2006


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Key infrastructural challenges

Water • Sekhukhune is a water-scarce district

• Water supply in Fetakgomo is constantly interrupted by broken boreholes

• The cost of providing emergency water high

• Water provision is highly varied within different areas in Fetakgomo

• At 5.4%, Fetakgomo has the lowest access to domestic (home) piped tap water within the District

• Many consumers, even those with yard connections, don’t pay for water

Sanitation • Sanitation MDG may not be achieved in Fetakgomo unless DWAF and GSDM amend their current trajectories

Electricity • The electricity MDG is also in danger of not being met because of Eskom delays and the recent growth of some

villages in Fetakgomo

• The provision of Free Basic Electricity is facing some challenges, mainly because of poor information systems

Refuse removal • The lack of a formal refuse removal service in Fetakgomo poses health hazards for communities and businesses

Roads • Roads in Fetakgomo are mainly gravel, and are poorly maintained. This includes potential access roads to the

Dilokong Corridor

• ‘Fetakgomo’ road signage must be established to place the area on the map

Cemeteries • The inappropriate location of cemeteries poses health hazards


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Telecommunications • Approximately 68% of households in Fetakgomo have no access to telephones

Summary • In general, the poor state of infrastructure in Fetakgomo affects economic development and communities’ quality

of life

3.6 The Fetakgomo economy The attainment of the vision set out in this IDP will ultimately be determined by the state of the Fetakgomo economy. Earlier sections of this chapter have already painted a picture of the spatial, demographic and infrastructural challenges to economic development in the municipal area. This section turns its lens on the principal characteristics of the Fetakgomo economy more specifically. It identifies the local economy’s main features, describes its dominant sectors and concludes with an assessment of its competitive advantage. It is therefore an important profile that plays a substantial role in defining the development strategies, projects and overarching socio-economic plans of the Fetakgomo Municipality.

3.6.1 Key features of the Fetakgomo economy The diagram below provides a visual illustration of the main characteristics of the Fetakgomo economy. The mix of business activities in the Fetakgomo local economy as identified is listed in the orange block in the figure below. The arrows indicate the main sources of external income (revenue and investment) flowing into (green arrows) and leaking out of (red arrows) the economy.

Figure 5: Key features of the Fetakgomo economy


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The The FetakgomoFetakgomo Local EconomyLocal Economy

• 1 Garment manufacturer (micro)

•1 Platinum Mine

• Many Schools

• Many subsistence Farmers:

mostly vegetable crops and goats

• Transport: A few Taxis, 1 Trucking (mine)

• Retail: Spaza shops (micro), Street vendors,

a new small shopping centre is being built

• 1 or 2 Steel manufacturers (micro)

• A few Catering services (micro)

• 1 Crushed stone distributor

• A few Construction services (micro)

•Municipality,

& and few representatives

From other govt. depts

Money flows in from external sales

Public sector fundsMoney flowsout with external purchases

Value added

Locational factors: Land constraint, Low crime, infrastructure backlog, low education levels, good leadership Source: Lesufi, J, Khumalo, M, Lawson, J and Martin, F (2007). Fetakgomo Local Economic Development (LED) strategy.


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There are a number of features that are immediately striking about this economy. First, it is apparent that the Fetakgomo economy depends mainly on mining and public sector funding. In addition, land ownership, infrastructure availability and education levels are the main constraints to growth. It is also striking that significant (local) money flows out of the Fetakgomo economy because local residents make their purchases outside municipal boundaries. Conversely, certain local sectors earn revenue from external markets. These and other important features of the Fetakgomo economy are discussed below.

External purchases by locals Local Fetakgomo residents purchase many items, particularly furniture, food and consumables, community services, clothing, vehicles, construction, construction materials and medical services, from external towns and cities. However, a recently-opened retail shopping complex may change this situation and create several opportunities for the Fetakgomo economy by supplying these goods locally.

Sectors earning revenue from external markets There are very few sectors that earn revenue from external markets. These include platinum mining, transport (taxis), the informal trade of agricultural produce and the supply of goats to Gauteng for traditional rituals. The transport sector relies mainly on proximity to local customers for competitive advantage. Lead firms in these sectors have proven their competitiveness by trading profitably in external markets. Beyond these industries, however, mining far outstrips every other sector in this regard. Mining’s competitive advantage is more robust due to the rich platinum deposits close to surface, the fact that there is a smelter close by as well as linkages to international value chains.

Demand conditions As may be expected in a small rural town, markets and sophisticated demand are limited. However, Fetakgomo is fortunate to have a mine which is linked to the international platinum market and which plans to grow aggressively. The Angloplats Atok Mine has planned and budgeted to increase:

• Output by 67% in 2 years, and by 233% in 5 years

• Jobs to increase from current 4,000, by 2,000 in 2 years and 6000 in 5 years. Total labour force estimated for 2013 is 12,000

• R4 billion CAPEX investment in mine expansion The only other significant markets are retail and the public sector which plans to increase investment in basic infrastructure and presents construction opportunities.

Quality of life Quality of life factors are important to higher level income persons deciding to live in a particular location. Fetakgomo has an attractive landscape, crime levels are low, living conditions are pleasant and with quality education and recreational facilities available within 1 hour’s drive away in Polokwane. The town of Fetakgomo is much closer to Atok mine than Polokwane or Burgersfort. Mine employees living here would save 45 minutes travelling to work twice a day.


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Locals currently travel to Polokwane and Lebowakgomo regularly to shop and for entertainment. A retail shopping mall has opened recently and by year end, this will include a supermarket, clothing stores, and a hardware store. Four quality of life factors offer possible advantage and should be promoted:

• Proximity to work at Atok mine

• An attractive setting for homes

• Low house prices (assuming property rights resolved)

• Low levels of crime The remaining quality of life factors do not offer a comparative advantage and should be improved over time.

3.6.2 Key economic sectors There is some dispute as to the precise contribution of various sectors to Fetakgomo’s Gross Geographical Product (GGP). This IDP uses the figures provided by the Municipal Demarcation Board in 2000. This is set out in the table below.

Table 28: Sectoral contributions to employment

Sector % contribution to employment by sector Social services 34,01 Mining 28,36 Private household 8,66 Trade 7,22 Construction 6,44 Transport 3,84 Manufacturing 3,53 Business services 3,33 Farming 2,44 Utilities 1,99 Ex-territorial 0,11 Diplomatic 0,08 Total 100 Source: Municipal Demarcation Board, 2000

It is perhaps unsurprising that the social services sector provides 34% of all jobs in the area, as this is often a characteristic of rural economies in South Africa. Mining contributes just over 28%, again perhaps unsurprisingly given the mineral deposits found in the area. What is somewhat startling, however, is that the private/domestic household sector contributes almost 9% to local job positions. The trade sector contributes about 7% of all available jobs. It is worth noting that in recent years, the efficiency of social grant delivery has increased significantly. However, the ability of the Fetakgomo economy to retain this fiscal inflow, through the provision of local goods and services, has not developed commensurately.


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In addition, a significant part of the economy is dominated by large mining companies with their headquarters and procurement bases outside the Sekhukhune District. This has implications for economic development in the area, and is described elsewhere in this IDP. The following sub-sections describe some of the key sectors within the Fetakgomo economy.

Mining Fetakgomo and Tubatse are the largest mining areas within the Sekhukhune District. Fetakgomo’s share of mining activities is situated largely in the Atok nodal area, and mineral deposits include platinum and chrome. Fetakgomo is rich in high-grade platinum ore close to the surface. It is also located closer to the smelter than other mines. This comparative advantage is competitively utilised at Atok platinum mine, which belongs to Angloplats, a large multinational organisation serving international markets. The mine currently employs 4,000 persons and plans to undertake aggressive growth and expansion in the near future. Two chrome mines are also being planned and potential investors are currently exploring the possibility of locating a chrome smelter in the area. The possibility of opening additional platinum and granite mines is also being explored at present. Mining is very capital intensive and a relatively low absorber of labour (in relation to capital investment). The potential growth opportunities for Fetakgomo downstream in the value chain are limited as the capital intensive smelter is in the neighbouring municipality. The supply chain, however, offers a wealth of opportunities to a variety of other sectors.

Agriculture Whilst the employment contribution by agriculture was relatively low in 2000, this does not paint an adequate picture of the potential for employment. There are two factors that contribute to taking this sector more seriously. First, there is an enormous pool of local knowledge within Fetakgomo of times when these farming areas were utilised productively. Second, the Department of Agriculture has established irrigation infrastructure in the area. In terms of pro-poor growth in the context of low levels of education, agriculture offers an option of employment for persons with farming skills. Despite the availability of irrigated land and fertile soil, the agricultural potential is largely unutilised. Funds are also available, but their appropriate utilisation remains a challenge.

Tourism Fetakgomo has a picturesque landscape, with several potential tourist attractions. It is also scheduled to become part of a planned tourism route with the planned road from Gauteng via Marble Hall and Fetakgomo link through a new shortcut over the Drakensberg to Tzaneen, Phalaborwa and the Kruger National Park. At present, however, there is no visitor accommodation in the immediate area. Visitors to mines or public sector organisations have nowhere to stay and, instead, have to commute for more than an hour from either Polokwane or Burgersfort. The potential for tourism exists in Fetakgomo, but it requires substantial infrastructural investment. In lieu of the high dependency on the mining sector for short and medium term growth, other sectors need to be developed for the longer term to diversify the economy to become less vulnerable when the mining boom subsides. Tourism is one sector where competitive advantage can be developed and


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maintained over time. The short term demand especially whilst the mining expansion takes place, may present an opportunity to create appropriate facilities that meet the market demand and will be sustainable. A number of potential and some existing tourism sites can be identified within the Fetakgomo municipal area. They range from sites of potential heritage significance, mines and even nature areas. The most noticeable of the sites include:

• Atok mine for mine visits and water-related sport at Monametse

• Indie village for ancient footprint discovery

• Potlake Nature Reserve

• Bapedi history

• Mphanama caves (historic significance as a sanctuary during the conquest battles of the past 150 years)

• Stellenbosch cultural village

Manufacturing Current local manufacturing activities are limited mainly to serving local needs in the absence of other competitors. The distance of competitors, customised demands and small orders sustain current activities. An example is a clothing manufacturer focusing on individual garments, such as traditional wear and wedding dresses. Other activities include welding services of burglar bars, security gates and so forth. The growth of the mining sector and local proximity may create conditions that lead to development of the manufacturing sector, by a combination of external investors and development of local manufacturers. Growth in this sector is therefore mainly dependant on growth in mining. It could therefore be included under the heading of leveraging opportunities linked to growth in mining.

Construction The statistics for 2000 suggest construction contributes 6,44% to Fetakgomo employment. This may be inflated by the fact that this period was characterised by unusually high public sector investment linked to the decision to establish the local municipality. This local industry is limited but has growth potential. Two key drivers are expected to create conditions for growth in construction – aggressive growth and investment by the mines, which requires infrastructure and housing for staff, as well as the growth of public sector infrastructure development to reduce social infrastructure backlogs. The construction opportunities linked to mining are mainly during establishment of capacity for mines and will therefore have a much shorter window of opportunity (approximately 4 - 8 years) than the opportunities linked to the operations of the mine (approximately 20 - 30 years). Thereafter, construction will need to compete in other markets with a proximity disadvantage.


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Retail, trade and services The previously uncompetitive retail sector, consisting of spaza shops, is currently being superseded by the establishment of a modern shopping centre with well known retail chain stores and franchises. This shopping centre will create quality new jobs, reduce costs to local consumers and provide new supplies e.g. a hardware and building supplies store beneficial to other industries such as construction. It will also reduce the local expenditure on retail goods, previously purchased outside the area. The market has responded to the local demand and is expected to continue to grow as local consumer and business spending power increases. This spending power is likely to originate from growth in the number of higher income consumers that choose to live in the area, as a result of growth in other sectors such as mining and related suppliers. Growth in the other sectors will therefore lead to growth of retail.

Transport and logistics The transport and logistics sector consists of a few taxi operators (consumer transport) and a few individuals with trucks that transport agricultural goods, crushed stone and other building material. The growth of this sector is currently limited but is linked to growth in other sectors, in particular mining. Many people and vast amounts of material need to be moved on a regular basis. This sector could also be linked to the leverage of mining growth as this is where most of the growth potential lies.

Supporting industries There are virtually no supporting industries other than a hardware store and retail outlets that have recently opened. Most support industries are available from Polokwane situated an hour’s drive away. Development finance is available from Limpopo Development Agency (LIMDEV) and the DBSA. LIBSA provides non-financial SMME support services. Supporting industries are a comparative disadvantage and a constraint to growth.

3.6.3 Human capital and labour market Human capital and the labour market in Fetakgomo are major constraints to economic growth. The level of education in the area – which serves as a reasonable proxy for skills and entrepreneurship – is low. One third of the population has no education and the district illiteracy rate in people over 15 years old is estimated at 23%. Only 1% of the population has a tertiary qualification. Local stakeholders highlight issues such as a lack of business orientation, business acumen and business experience. There is a shortage of skills in all sectors, hinting at the difficulty a small place like Fetakgomo experiences in attracting and retaining skilled people. Mines do their own skills development and where high level skills are required, they are imported into the area.

3.6.4 Competitive and comparative advantage For the Fetakgomo economy to grow sustainably, revenues (more specifically GGP) and investment flows must increase, preferably from external markets. Economic growth follows when businesses in local sectors become more competitive in external and/or local markets. The market responds to better goods, at lower prices by increasing sales revenue to suppliers. Increased revenues and lower costs increase profits which often lead to increased investment. Investment into productive capacity typically also creates new jobs.


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It is therefore necessary to determine which external markets Fetakgomo-based firms can compete in profitably and sustainably. These markets and sectors offer the most opportunity for self-sustained economic growth and, therefore, become strategic priorities for the municipality. Furthermore, it is important to understand the nature of competitive advantages and disadvantages in these markets - and to recognise which factors are critical to success and which still constrain the relevant sector’s performance. If some locals already compete in these markets self-sustainably, it provides evidence of the viability of local sector competitiveness (e.g. the mines supply international value chains or Fetakgomo taxis transport residents). Therefore, the demand and supply pattern already exists, albeit on a small scale. Whereas it is theoretically possible for locals to also compete in totally new markets, such initiatives are less likely to succeed without external support, in the form of new investors. Planning entry into new markets is an extremely risky option and is prone to high levels of failure. It is safer to work supply demand patterns that are already proven viable and to grow these organically by making markets work better, improving sector competitiveness or removing locational (or systemic) constraints to performance. Understanding the market supply and demand patterns is crucial in determining options for high catalytic impact with least but smart effort and costing. If these are not understood, Fetakgomo’s economic development initiatives are likely to have little impact and have a high probability of causing undesirable or unplanned consequences that could be costly and have a negative impact. These demand and supply patterns may be viewed from different perspectives. A value chain perspective, often used in the rapid appraisal process to understand the dynamics of specific sectors, focuses on the sequential value adding steps completed by different firms to produce various products purchased by an end user. A location or LED perspective focuses on activities in a particular place and the flows into and out of the economy within that place or location. In October 2006, Fetakgomo Local Municipality underwent a participatory rapid appraisal process for local economic development. The appraisal process was useful in that it collated qualitative and up-to-date information about the local economy. The focus was placed on inflows of money from external markets and outflows through external purchases. This approach emphasised the importance of competitiveness and futility of zero sum initiatives (such as job displacement where one helps 1 retailer grow 3 jobs at the cost of 3 jobs at another). The results of the appraisal process are captured in the tables below.

Strengths and weaknesses of key sectors The tables below set out the main strengths and weaknesses as they relate to the key sectors in the Fetakgomo economy.

Table 29: Strengths and weaknesses of all sectors

Strong

points

� Close to the large platinum mine � Land available � Situated at an axis point to Burgersfort,

Marble Hall and Polokwane � Some good tarred provincial roads � Close to the Olifants River (water supply) � Situated in picturesque countryside

� Intellectual capital at the Local Municipality

� Work ethic of the Local Municipality � Commitment of municipal

leadership to change � Committed community leaders to

improving the economy � Process to address land ownership

issue has already started

Weak � Opportunities related to mine not utilised � Shortages of skills


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points � Poor road connection to mine - D4190 � Land ownership constraint – delayed and

lost economic development because current regulations rewards gate keeping behaviour

� Backlog in basic infrastructure � Fetakgomo is not located on maps � Confusion about the town’s name � Limited access to telecommunication

infrastructure

� Low levels of education � Local priorities not linked

effectively to District and Provincial priorities

� Local priorities not linked effectively to public sector support agencies

Table 30: Strengths and weaknesses of the mining sector

Comparing locational factors

(place)

Competitiveness of sectors

Strong

points

� Vast and rich deposits of platinum ore

� Situated on the Dilokong Corridor, close to the smelter

� High value mineral � Extracted at competitive cost � Linked to international value chain � Financially very strong

Weak

points

� Uncertainty about land availability for expansion and housing

� Distance from Polokwane

� Ability to anticipate and manage community development expectations

� Relationship challenges with neighboring communities

� Difficulty in obtaining surface rights license � Limited accommodation for staff and visitors,

alternative Polokwane

Table 31: Strengths and weaknesses of the agricultural sector

Comparing locational factors (place) Competitiveness of sectors

Strong

points

� Availability of water (near rivers) � Fertile soil � Land availability � Favourable climate conditions � Close to the mine as a market � Auction link to the market

� Existing under utilised irrigation schemes

� Long seasons for production � Existing skills � Markets for livestock � Potential for commercialisation

Weak

points

� Ownership of land, little investment due to uncertainty, scale of production

� Risks associated with periods of drought � Transport to markets is expensive � No scientific information on type of crop

potential for the area � No veterinary services

� Subsistence level farming persists � Limited access to constant demand

markets � Limited access to suppliers � Limited access to market information � Uneconomical scale of production � Lack of expertise, experience / skills


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� Poor prices from small auctions � Erosion, overgrazing � Ineffective technical support to farmers

training � Poor networking and partnerships

Table 32: Strengths and weaknesses of the Transport and Logistics sector


Strong

points

� Close to mine market � Existing routes � Provincial roads in fairly good

condition

� Existing service providers � Existing taxi rank �

Weak

points

� Distance to Polokwane � Poor road condition to the mine � Fluctuating transport fares

� Poor condition of vehicles � Lack of Batho Pele principles in the

industry (Poor service levels and ethics)

Table 33: Strengths and weaknesses of the Retail and Trade sector


Strong

points

� Close to the mine market � Available human capacity to grow this

sector

� New shopping centre being built

Weak

points

� D4190 road in poor condition � Lack of business support services � Lack of local support

� Few successful partnerships � Shortage of business skills

Table 34: Strengths and weaknesses of the tourism sector



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Strong

points

� Unmet need for accommodation from Mine- and Municipal- visitors

� Picturesque area with potential for many activities related to the landscape

� Rich cultural historical area, Many heritage sites

� Good sites for accommodation - Olifants river, Potlake nature reserve

� Friendliness of the people

Weak

points

� Land/site availability/ownership (investment risk)

� No road signage to the area � Poor road condition of the D4190 � Confusion around the name of the town � Fetakgomo is not located on maps � Undeveloped attraction/heritage sites

� No visitor accommodation in the immediate area

Key economic challenges • The spatial, demographic and infrastructural challenges alluded to earlier thwart economic potential

• Significant money flows out of the local economy because residents make their purchases outside Fetakgomo

• Very few economic sectors within Fetakgomo earn revenue from external markets

• The social services sector is the largest employer in Fetakgomo, which isn’t a desirable situation

• Future mining expansion may be hindered by land ownership patterns in the area

• Tourism potential in the area is currently limited by a lack of facilities and poor infrastructure

• Agricultural development is thwarted by limited access to markets, suppliers and market information

• The drought-prone nature of the District also frustrates the emergence of successful commercial farming in the area

• There are almost no supporting industries in the area, causing people to source these from Polokwane (an hour’s

drive away)


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3.7 State of the environment The Fetakgomo environment influences economic opportunities in the area, as well as the living conditions of its inhabitants. There have been a few recent studies that have highlighted the important role that climate, for instance, plays in Sekhukhune livelihoods and stresses (Ziervogel et al, 2006; DoA, 2006). More specifically, rainfall patterns in the District are highly variable – a situation that tends to disrupt a wide range of socio-economic activities in the area such as rain-fed crop production, often with very little warning. The Sekhukhune area has in fact been significantly affected by both El Niño and La Niña events in recent years, which has affected the amounts of rainfall received in the area (Ziervogel et al, 2006). El Niño tends to be associated with below average rainfall, whilst La Niña often incurs above average rainfall. The recent drought in the District is partially a result of these phenomena.

3.7.1 Biophysical environment In general, the Sekhukhune climate is highly variable in terms of rainfall intensity, duration and frequency. This exacerbates the water shortage problem, which is a key developmental constraint in the District. The Fetakgomo municipal area is characterised by a hot climate in the Olifants River Valley. The average temperature shows moderate fluctuation with average summer temperatures of 23°C, as well as a maximum of 28°C and a minimum of 18°C. In winter, the average is 13,5°C with a maximum of 20°C and a minimum of 7°C (as measured at the Sekhukhune Weather Station). Fetakgomo is located in the Summer Rainfall Zone of the country, and receives more than 80% of its rainfall between November and March. The mean annual precipitation (MAP) as measured at the Zebediela Weather Station from 1949 - 2001 was 51 mm. Most of the precipitation occurs between October to March, with the highest average monthly rainfall during January (100,84 mm) and the lowest during July (2,89 mm). Thunderstorms, with the associated low soil penetration and high level of erosion, are common in the area.

3.7.2 Topography The Olifants River is located on an open floodplain area. A valley surrounded by the non-perennial rivers is found to the north of the River. Strips of erosion can be found in the valley alongside most of the perennial and non-perennial rivers. Wood is still one of the main sources of energy for households, which leads to deforestation and subsequent erosion because of the denuding vegetation. One of the major environmental problems in the area is inappropriate agricultural methods, which leads to overgrazing and desertification (Thabanaseshu). Overgrazing is also the result of too many livestock units per area of land.

3.7.3 Geology and soil The regional geology consists of the Eastern Bushveld and Springbok flats regions. The overall geology of the area is classified as follows:

• Gabbro (South of the R37)

• Anorite band (adjacent to the R37)

• Clinopyroxenite (to the North of R37)


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• Arenite (adjacent to the Olifants river)

3.7.4 Environmental problems and associated development constraints Table 34 sets out the environmental problems, threats and development constraints in the area.

Table 35: Environmental problems and associated development constraints

Environmental issue Status quo and environmental impact

Environment

Urban greening � Due to lack of funds and institutional structures biased towards infrastructure provision, the concept of Urban Greening has not received priority in the Municipality

Pollution Air pollution � Air quality management should be required

by the municipality from agents responsible for pollution. Main sources of pollution include mines’ tailing dams within the area. Secondary impact include the effects of fugitive dust on plants

� Air pollution resulting from use of fire wood for energy purpose and dust from gravel roads are environmental problems

Water Pollution � Water pollution is the result of the calmative impact of the insufficient solid waste removal, lack of sanitation infrastructure, sewerage effluent etc.

Fires � Uncontrolled fires are an element of concern as far as the environment is concerned. The extent of these conditions is high, with flat areas having medium magnitude rate. Moreover, this influences major risks such as drought and flooding

Conservation


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Biodiversity � A DWAF biophysical impact assessment study for the proposed Rooipoort Dam study indicates some biodiversity hotspots in the study area. However, the biodiversity potential of areas such as Rooipoort Dam has excellent opportunities for tourism development.

� Loss of plant diversity due to mining activities and or/lack of environmental management

� Plants are used by locals for firewood, traditional medicines, food, building material, shade/shelter and grazing

Erosion � Informal and subsistence agriculture activities present particular problems. A typical example is lack of arable land that forces communities to cultivate on steep slopes and other environmentally unsuitable area, which increases the occurrence of erosion with the resultant of fertile soil.

� Wood is still one of the main sources of energy for households (leading to deforestation and subsequent erosion due to the denuding vegetation)

� Land degradation is a major environmental problem

Over utilisation � One of the major environment problems in the area is incorrect agriculture methods, which leads to overgrazing, denuding of trees, erosion thus resulting in desertification (Thabanaseshu), due to carrying capacity of land being exceeded

� Overgrazing resulting from too many livestock units per area of land is a problem


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Town Lands � On all vacant areas allocated directly adjacent to the major nodes viz. Apel, Atok are of high importance. The optimal future utilisation of these portions of land is critical for the development of the area. Strategies need to be developed to identify the optimal utilisation options for such land and to facilitate and economic development for job creation

Cultural Heritage � The tourism potential of the Fetakgomo Municipality relates directly to the cultural heritage assets. The conservation and optimal utilisation of these assets need to be ensured

Waste � No formal or organised refuse removal and disposal system exist in the area. Refuse is normally thrown onto a heap or into a toilets and left to rot or be burnt by the local population. This result in unsafe and unhygienic conditions

Medical Waste � One health centre and four clinics are found within the Apel node. Currently, the Local and District Municipality conduct no waste collection. No facility for the management and disposal of medical waste exist.

Bylaws � Lack of capacity in respect of bylaws enforcement, staff and equipments may hamper proper management of solid waste disposal sites

3.7.5 Environmental management Serious environmental degradation is visible in most parts of Fetakgomo, a situation that draws stark attention to the need to implement the municipality’s current Environment Management Plan more assertively. More especially, livestock management and control is a key problem within Fetakgomo. There is a lack of fences in some crop farming areas and along main roads, which results in wandering livestock. These livestock damage crops and cause vehicle accidents along Fetakgomo’s main roads.

Key environmental challenges


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• Rainfall patterns in the District are highly variable, disrupting agricultural production and causing related socio-

economic stresses

• Because of its climatic profile, the District is currently susceptible to both the El Niño and La Niña phenomena

• Variations in climate exacerbates the water shortage problem, which is already a key developmental constraint in

the area

• Informal and subsistence agriculture have resulted in significant erosion

• The state of Fetakgomo’s infrastructure and services has led to some pollution problems

3.8 Institutional analysis of Fetakgomo Municipality No situational analysis will be complete without an overview of the institutional profile of the main development actor in the area – the Fetakgomo Local Municipality. This section provides such a synopsis. It tells an important story because organisational capacity is a critical determinant of development success in a developing rural economy such as Fetakgomo’s.

3.8.1 Establishment of municipality The municipal area of Fetakgomo was proclaimed in terms of the Local Government Municipal Demarcation Act (1998) through a Provincial Government Notice No. 286 of 2000. The Fetakgomo Municipality was established in terms of the Municipal Structures Act (1998). In terms of Section 4 of this Act, Fetakgomo Municipality is a Category B Municipality.

3.8.2 Organisational structure The Municipal Manager is the head of the municipal administration, and serves as the accounting officer of the municipality. The administrative structure is divided into 3 departments headed by Section 57 Managers who report directly to the Municipal Manager. The 3 departments are Corporate Services, Finance and Development Planning.


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Figure 6: High-level organogram of Fetakgomo Local Municipality

Municipal Manager

PAVacant

ITofficer

InternalAuditorVacant

LegalAdvisorVacant


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Figure 7: Organogram of Corporate Services

Department

Strategic ManagerCorporate Services

Community ServicesManager

ManagerMayor’s & Speaker’s

offices

Centre

Manager

Chief

Trafficofficer

ChiefLicensing

officer

AssistantLibrarian

Traffic

OfficersX 2

Licensing

OfficersX 2

Receptionist

FTSC

EnvironmentalHealth &

Safetyofficer

CommunicationOfficer

Programmesofficer

Public participation

Clerk

PA to theMayor

SecretarySpeaker’s

OfficeVacant

Public

participationOfficer

Vacant


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Chief Financial Officer’s Department Staffing in the CFO’s Department is captured below.

Figure 8: Organogram of CFO's department

Chief Financial Officer

ManagerSupply chain Management

Manager:Revenue $

Expenditure

ManagerBudget

Assets, Contact andStores officer

vacant

Demand andAcquisition clerk

Logistics andRisk clerk

Vacant

ExpenditureOfficer Vacant

RevenueOfficerVacant

Payroll clerkRevenue clerk

VacantExpenditure clerk

Budget monitoring & reporting officer


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Development Planning Department Fetakgomo’s third major administrative department – the Development Planning section – has the following organogram.

Figure 9: Organogram for Development Planning

Manager:

Development

Planning

Manager:Technical

Manager:

IDP

Vacant

Manager:LED

Town PlannerVacant

PMUVacant

WATER&

SANITATION

ELECTRICITY

IDP OFFICER

Admin Clerk

LED Officer

Land use

OfficerVacant

Building

Inspector

ROADS

&

STORMWATERVacant


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3.8.3 Human resource development The focus of human resource development (HRD) in municipalities is to develop the necessary capacity internally so that the organisation can execute its developmental mandate. At present, Fetakgomo Local Municipality has a number of human resources policies, which are captured below. The effective functioning of the municipality, however, is hindered by the fact that it is a Project Consolidate municipality.

Project Consolidate Fetakgomo Municipality was declared as a Project Consolidate Municipality. This means that it is unable to perform above 30% of its municipal functions. The current leadership within the municipality therefore takes the issue of capacity very seriously. The initial assessment revealed that various factors constrained the Municipality from fulfilling its constitutional mandate of delivering services and spearheading development. More specifically, these factors included:

• Human resource deficiencies

• Inadequate infrastructure and equipment

• Inadequate funding and weak revenue base

• Weak intergovernmental linkages, resulting in poor support by both the District Municipality and DLGH

Employment equity The Municipality is grappling with the challenge of ensuring that its structures show equitable representation of all groups, particularly the previously disadvantaged groups. The municipality’s Employment Equity Plan (EEP) was recently reviewed to address previous shortcomings. The main challenge at present revolves around implementation of the Plan. As later chapters will show, Fetakgomo Municipality’s ability to attract and retain skilled staff is limited – a situation that is reflected in the number of vacancies in the organogram. The table below depicts the current equity status in respect of designated categories of employees at level 0-1 for the year 2005. The table below indicates the equity presentation across the organisation.

Table 36: Employment equity status

Occupational category Male Female Total Senior officials and managers at level 0-1

7 4 11

Table 37: Equity representation across the organisation


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Designated groups National target Organisational

achievement Africans 85% Women 54% 31% PWDS 4% 3.2%

3.8.4 Management systems Information management The Municipality does not have an information management system at present. As a result, there is often inconsistent information, as well as the duplication of ICT projects. The Greater Sekhukhune District Municipality is in the process of installing a shared and integrated information system, which may assist the Fetakgomo situation somewhat. Currently the level of information available is inconsistent and incomplete. Consequently, municipal decision-makers, communities and other stakeholders refrain from using it extensively.

Communication and community participation The Constitution of South Africa (1996) and the Municipal Systems Act (2000) requires municipalities to involve communities in municipal governance. Fetakgomo Municipality has a communication strategy which addresses issues of community participation. Mechanisms used by the municipality to involve communities are:

• Council Speaks to People

• The IDP/Budget processes

• Ward planning

• By-laws development processes The communication strategy identifies information centres in all wards. During the 2005/2006 financial year, two containers were placed in two extreme wards to serve as information centres and ward committees offices.

Key institutional challenges • Fetakgomo is a Project Consolidate municipality

• The municipality’s ability to attract and retain skilled staff is limited – a situation that is reflected in the number

of vacancies in the organogram

• Poor information management systems

• Communication with communities hindered by the geographic vastness of the area, and the lack of telephonic

network in some areas


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• Information distribution is regularly delayed

• Limited financial resources to sustain transportation of ward committees and communities

3.9 Financial management There are currently budgetary and financial management reforms sweeping local government throughout the country. These reforms come in the wake of under-collection of revenue, uneconomic use of resources including spending, insufficient management of municipal assets and poor financial management generally. For any institution to successfully implement its strategic plan - in our case the IDP - sound financial management is necessary. The role of the Finance Department in any institution is to carry out REAL (Revenue, Expenditure, Assets and Liability) management. The challenge that Fetakgomo Municipality is currently facing is to manage REAL efficiently, effectively and economically. Probably the key financial challenge facing Fetakgomo Municipality at present is the implementation of the Municipal Financial Management Act (MFMA) (2003). The MFMA is intended to modernise budgetary and financial management practices by placing municipal finances on a sustainable footing in order to maximise capacity to effect delivery. Some of the more specific challenges in this regard are captured below.

3.9.1 Revenue generation For Fetakgomo, the key challenge is the generation of sufficient revenue. Currently, the Municipality does not have a revenue base or a billing system. Potential revenue from service charges for things like water and electricity is also not possible because the Municipality does not perform those functions. Effective revenue generation is only possible when there is development of implementable revenue collection policies, procedures and strategies that are aligned to the MFMA and other related legislation. These include recent interventions aimed at the finalisation of township establishment for proclamation, as well as the valuation for the identified actualisation revenue enhancement strategy.

3.9.2 Expenditure management The MFMA requires municipalities to formulate and implement a Supply Chain Management Policy, which must be fair, equitable, transparent, competitive and cost effective. In the procurement of goods and services the Municipality has to embrace the spirit and principles of Broad Based Black Economic Empowerment (BBBEE), Preferential Procurement and its Local Economic Strategy which speaks to the development and continued support of Small, Medium, Micro Enterprises (SMMEs) of new emerging business.


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In this financial year, Fetakgomo Municipality accomplished a number of important milestones. As part of MFMA compliance, it established a Supply Chain Management Unit within the CFO’s Department. Its responsibilities include the adoption of the Supply Chain Management Policy and establishment of its committees and training of staff. Currently the Municipality has a functional financial management system which enables us to submit financial reports to the Treasury as stipulated in the MFMA. The Auditor-General qualified report for 2003/2004 was submitted to Council for consideration. Financial statements for 2004/2005 and 2005/2006 are still with the Auditor-General and Fetakgomo Municipality is awaiting their response.

3.9.3 Asset management The GAMAP compliant asset register has been completed.

3.9.4 Liability management Currently the Municipality does not have liabilities. If they do arise in the future, they must be valued in accordance with standards of the Generally Recognised Accounting Practice (GRAP) and Fetakgomo Municipality must update the liability register in line with legislative prescripts.

3.9.5 Budget and treasury management Currently the budget preparation process is linked to the IDP process, although this linkage still needs improvement. Another challenge faced by Fetakgomo Municipality is the alignment and linkages of the local and District municipal processes. Improved coordination is also required with other spheres of government, as well as public entities and parastatals.

3.9.6 The MFMA implementation plan The Fetakgomo Municipality has compiled an MFMA implementation plan which is reviewed on quarterly basis in 2006/2007.

3.9.7 Risk, fraud and corruption management Risk management is the identification and evaluation of actual, as well as potential risk areas, as they pertain to the organisation in question. In terms of the MFMA, a Municipality has to develop and implement its risk management as a way of best practice of corporate governance. Therefore, Fetakgomo Municipality undertook the process of developing the risk management and anti-fraud and corruption policy. Risk assessment and implementation of the risk management plan was last done in the 2003/2004 financial year.

Key financial challenges • The municipality cannot generate sufficient revenue – and the income from service charges, property rates, etc is

limited because of the Fetakgomo situation


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• The asset register needs updating

• The risk management plan needs to be reviewed again

44.. TThhee ddeevveellooppmmeenntt cchhaalllleennggee iinn FFeettaakkggoommoo The previous chapter painted a picture of a municipal area that had inherited serious backlogs, yet holds significant potential as well. If one is to realise that potential, it is important to thoroughly understand the complexity of the developmental challenges facing Fetakgomo. These challenges have been alluded to in Chapter 3. This chapter, however, distils the key development challenges. The purpose is to provide a backdrop for the eventual developmental strategies that will be presented later in this IDP.

4.1 Demographic challenges Like many rural areas, Fetakgomo is faced with the challenge of high levels of dependency because most of its economically active residents have been forced to look for work elsewhere. Within Fetakgomo itself, poverty is visible and approximately 86% of the people live below the breadline. More specifically, the key demographic challenges are:

• High levels of male absenteeism because of migrant work outside Fetakgomo

• High dependency ratios because most Fetakgomo residents are children or elderly

• High unemployment rate at 73% (2001)

• Roughly 86% of Fetakgomo households live below the breadline

• Over 80% of Fetakgomo households exhibit low Living Standards Measures (LSM)

4.2 Social challenges Decades of under-development has resulted in minimal social infrastructure in Fetakgomo, accompanied by poor service delivery. Over time, this has manifested itself in the profile of residents themselves, seen most starkly perhaps in today’s high illiteracy levels and chronic hunger food shortages in the area. Fetakgomo’s key social challenges are:

• Low education and high illiteracy levels

• Most Fetakgomo schools are collapsing because of poor soil conditions

• No hospital, inaccessibly-located clinics and poor mobile clinic services

• Poor roads and inadequate public transport hinder access to health services


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• No integrated HIV AIDS programme

• Most social welfare pay points lack proper facilities

• High levels of food shortages and levels of hunger are on increase in Fetakgomo

• Fetakgomo has only 1 police station

• Most other social facilities (post offices, MPCCs, etc) aren’t accessible

4.3 Spatial challenges Arguably the most compelling constraint to development in Fetakgomo is the fact that almost all land is owned by traditional authorities in the area. This deters potential investors, who would clearly need some form of property guarantee. Unresolved land claims, dual land use management systems and other factors all contribute to the immense spatial challenges facing this area. These spatial challenges include:

• The area’s dispersed rural settlements make infrastructure provision expensive

• All land in Fetakgomo is owned by traditional authorities

• Land ownership patterns deter potential investors

• Residential development is chaotic, largely because there is inadequate coordination between the municipality,

department of local government and housing and traditional authorities

• Unresolved land claims impede socio-economic development in the area

4.4 Housing challenges The chaotic land situation spills over into the housing arena, as traditional authorities’ site allocation often hinders housing delivery. The main housing challenges facing Fetakgomo at present are:


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• Beginnings of informal settlements, especially around new mining area like Atok

• RDP housing delivery plagued by poor construction and incomplete houses

• Delay in p[proclamation of the township delays socio-economic benefits for the communities

4.5 Infrastructural challenges In the past, Fetakgomo received minimal infrastructure investment. As a result, the area today faces major backlogs which threaten economic potential as well. This is exacerbated by the fact that Sekhukhune is a water-scarce District, prone to serious climatic variations. Many of the MDG targets may not be met in this area unless all spheres of government undertake a concerted and coordinated effort. Fetakgomo’s principal infrastructural challenges are:

Water • Sekhukhune is a water-scarce district

• Water supply in Fetakgomo is constantly interrupted by broken boreholes

• The cost of providing emergency water high

• Water provision is highly varied within different areas in Fetakgomo

• At 5.4%, Fetakgomo has the lowest access to domestic (home) piped tap water within the District

• Many consumers, even those with yard connections, don’t pay for water

Sanitation • Sanitation MDG may not be achieved in Fetakgomo unless DWAF and GSDM amend their current trajectories

Electricity • The electricity MDG is also in danger of not being met because of Eskom delays and the recent growth of some

villages in Fetakgomo


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• The provision of Free Basic Electricity is facing some challenges, mainly because of poor information systems

Refuse removal • The lack of a formal refuse removal service in Fetakgomo poses health hazards for communities and businesses

Roads • Roads in Fetakgomo are mainly gravel, and are poorly maintained. This includes potential access roads to the

Dilokong Corridor

• ‘Fetakgomo’ road signage must be established to place the area on the map

Cemeteries • The inappropriate location of cemeteries poses health hazards

Telecommunications • Approximately 68% of households in Fetakgomo have no access to telephones

Summary • In general, the poor state of infrastructure in Fetakgomo affects economic development and communities’ quality

of life

4.6 Economic challenges The Fetakgomo economy is overwhelmingly dominated by mining – a sector that may grow if recent indications are anything to go by. Economic development, however, is hindered by poor infrastructure and distorted land ownership patterns. Unless these are resolved, the area is unlikely to attract the levels of investment required to grow the local economy. The economic challenges facing Fetakgomo are:

• The spatial, demographic and infrastructural challenges alluded to earlier thwart economic potential

• Significant money flows out of the local economy because residents make their purchases outside Fetakgomo

• Very few economic sectors within Fetakgomo earn revenue from external markets

• The social services sector is the largest employer in Fetakgomo, which isn’t a desirable situation


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• Future mining expansion may be hindered by land ownership patterns in the area

• Tourism potential in the area is currently limited by a lack of facilities and poor infrastructure

• Agricultural development is thwarted by limited access to markets, suppliers and market information

• The drought-prone nature of the District also frustrates the emergence of successful commercial farming in the area

• There are almost no supporting industries in the area, causing people to source these from Polokwane (an hour’s

drive away)

4.7 Environmental challenges As is evidenced by the recent drought, the Sekhukhune area is vulnerable to certain climatic changes – a pattern that manifests itself in variable rainfall in the area. This tends to disrupt livelihoods and places a strain on the existing infrastructure. The main environmental challenges in Fetakgomo are:

• Rainfall patterns in the District are highly variable, disrupting agricultural production and causing related socio-

economic stresses

• Because of its climatic profile, the District is currently susceptible to both the El Niño and La Niña phenomena

• Variations in climate exacerbates the water shortage problem, which is already a key developmental constraint in

the area

• Informal and subsistence agriculture have resulted in significant erosion

• The state of Fetakgomo’s infrastructure and services has led to some pollution problems

4.8 Institutional challenges Fetakgomo Municipality’s institutional challenges are perhaps most starkly displayed by its status as a Project Consolidate municipality. This is the result of it facing the following institutional challenges:


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• The municipality’s ability to attract and retain skilled staff is limited – a situation that is reflected in the number

of vacancies in the organogram

• Poor information management systems

• Communication with communities hindered by the geographic vastness of the area, and the lack of telephonic

network in some areas

• Information distribution is regularly delayed

• Limited financial resources to sustain transportation of ward committees and communities

4.9 Financial challenges Fetakgomo Municipality does not perform key functions (like water or electricity provision) that it may charge service fees for. The Municipality is also unable to levy property rates in its area. As a result, most of the key sources of municipal income are not available to this municipality. This has manifested itself in a number of financial challenges:

• The municipality cannot generate sufficient revenue – and the income from service charges, property rates, etc is

limited because of the Fetakgomo situation

• The asset register needs updating

• The risk management plan needs to be reviewed again


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STRATEGIES PHASE

55.. VViissiioonn,, mmiissssiioonn aanndd hhiigghh--lleevveell oobbjjeeccttiivveess Previous chapters have told the story of Fetakgomo’s current reality. It presents us with a sober picture of where the municipal area is today in terms of its development trajectory. This picture also hints at possibilities and opportunities, however. The developmental mandate of the Fetakgomo Municipality, expressed in the first chapter of this IDP, compels this municipality to explore these opportunities and potential. In order to do so, it is important to have an unequivocal sense of where we would like our area to be in the medium-long term future. This chapter sets out such a vision. It tells the story of a developmental journey that we have already embarked upon, one which would lead us to a better quality of life for all our residents.

5.1 Vision The vision of the Fetakgomo Local Municipality is: “A leading and viable rural municipality”

5.2 Mission The municipality’s mission statement is as follows: “To provide sustainable integrated services, and enabled environment for growth and development”.

5.3 High-level objectives The municipality’s high-level objectives have been designed to meet the main development challenges presented earlier in this IDP. In summary, these objectives are:

• To ensure greater investments in infrastructure and provide better services to Fetakgomo residents and businesses

• To promote local economic development (LED) in the area more assertively

• To improve the municipality’s financial viability

• To deepen community participation and enhance good governance

• To build the capacity of the Fetakgomo Local Municipality The development strategies presented in the next chapter collectively work towards meeting each of these high-level objectives.


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66.. MMeeeettiinngg tthhee cchhaalllleennggee:: AAnn oovveerrvviieeww ooff FFeettaakkggoommoo’’ss kkeeyy ddeevveellooppmmeenntt

ssttrraatteeggiieess This chapter provides an overview of the municipality’s key development strategies. They are arranged according to Key Performance Areas (KPAs), which have been defined according to the high-level objectives summarised in the previous chapter.

South Africa and the Millennium Development Goals (MDGs) Fetakgomo’s development strategies have been significantly influenced by the desire to meet South Africa’s commitment to the MDGs. The national commitment is that all South Africans must have:

• Access to basic water by 2008

• Access to basic sanitation at RDP level by 2010

• All schools and clinics have access by 2007

• Access to electricity by 2012

• Economic growth of 6%

• Access to health care and education to all

• Halve employment by 2014 Fetakgomo’s KPAs are:

• Enhanced infrastructure investment and service delivery

• Increased LED efforts

• Improved municipal financial viability

• Deeper community participation and Good Governance

• Municipal transformation and organisational development MUNICIPAL PRIORITIES


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Electricity Water Land and Environment Roads

6.1 Enhanced infrastructure investment and service delivery This set of development strategies addresses the provision of basic services with improved infrastructure. The aim is to improve residents’ quality of life through eliminating poverty and unemployment, improved literacy levels and reduced dependency ratios. The provision of the following services is seen as especially important: integrated human settlements, water, sanitation, electricity, roads, education, health and social development and safety and security.

KPA

Developmt

challenge

Strategic

objective

Code Development

strategies

Outcome

Enhanced infrastructure investment and Service Delivery

Shortage of 3400 Housing units

To facilitate the provision of 1600 adequate affordable housing on a progressive base to communities by 2008

H.1.1 Negotiate with DLGH for provision of 600 housing units per annum

Broad housing coverage

H.1.2 Linking housing provision to available SDF, engineering infrastructure and alternative

Promotion of compact settlements for efficient service delivery

H.1.3 Execute Feasibility studies to ensure execution of quality infrastructure

Reliable ad safe Housing/s

H.1.4 Facilitate Quality Assurance

Satisfied beneficiaries


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H.1.5 Explore opportunities for construction of social housing

Alternative housing schemes

H.1.6 Identify strategic areas for large scale housing sites with potential for good supportive infrastructure

Integrated human settlement

H.1.7 Ensure that low cost housing is integrated into existing villages

Preservation of cultural settlement patterns

H.1.8 Facilitate monitoring on blocked and incomplete projects by DLGH by the end of 2008/09 financial year

Satisfied beneficiaries

KPA

Developmt

challenge

Strategic

objective

Code Development

strategies

Outcome

Enhanced infrastructure investment and Service delivery

Shortage of potable and reliable water sources

To facilitate provision of potable water to villages by 2008 through GSDM engagements

W.1 Identify and prioritise villages with no water infrastructure

Reliable data

W.2 Execution of Feasibility Study before commencement of any physical work

Quality assurance

W.3 Facilitate Reticulation of water to villages

Improved accessibility


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W.4 Facilitate extension of bulk water to new areas @ 5km per annum

Accessibility for reliable water

W.5 Facilitate yard connection

Ownership of water infrastructure & better usage

Poor Operation and maintenance

To facilitate Operation and Maintenance

O.1 Ensure effective operations & maintenance of existing schemes

Durable & sustainable water infrastructure

O.2 Ensure acceptable turn around time

Timeous response

O.3 Facilitate and mobilising for Alignment of WSP to WSDP

Alignment

Poor Free basic Water (FBW) supply

Facilitate Provision of FBW through District

FW.1 Ensuring Finalisation of Indigent Register

Detail Indigent database

FW.2 Facilitate installation of meters to all existing infrastructure

Water supply management

Unavailability of water to livestock

Provision of water to livestock

LW.4.1 To facilitate provision of water to livestock where there are no alternative natural water sources

Sustainable livestock


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Insufficient basic level Sanitation services

To facilitate for Provision of basic level sanitation infrastructure to at least 2000 households in the municipality by 2010

S .1 Negotiate with Local Government & Housing and GSDM for provision of 1000 units per annum to meet national target

Healthy sanitation

S.2 Execution of Feasibility study prior construction

Quality assurance

S.3 Engage all targeted communities in sanitation awareness & education

Informed communities

Shortage of Grid and Non Grid Energy

To Facilitate provision of grid energy to 3584 households connections inclusive of government institutions by 2012

G.1 Engage ESKOM in prioritisation of villages with highest backlog in provision of grid energy

Broad coverage electrification

G.2 Ensure availability of Business Plans for non electrified Villages

Implementation readiness

Declining statistics from FBE benefit

To improve FBE benefit to all qualifying beneficiaries

FE.1 Create awareness to communities on registration and collection

Informed Communities

FE.2 Constant updating of beneficiary list/database

Reliable beneficiary data base


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Priority issue Dev

challenge

Strategic

objective

Code Development

strategies

Outcome

Enhanced infrastructure investment and Service Delivery

Poor Road and storm water drainage infrastructure

To facilitate upgrading, surfacing, provision of storm water drainage system and maintenance of existing road infrastructure to acceptable minimum standard in the municipality by 2014

R.9.1.

Mobilise funding for upgrading , surfacing and storm water drainage system for heavily used roads

- Implementation readiness - Safe road use

R.9.2

Explore possibilities for lease of grader for maintenance of roads.

Improved road use for accessibility

R3

Re- exploring the involvement of communities in maintenance of access road through local labour intensive programmes

Improved road infrastructure and sense of ownership

R.4 Formalise service level agreements with Department of Roads & Transport for maintenance of Municipal roads

Sector alignment (IGR)

Lack of data on access municipal roads

Creating a Municipal database on access roads

Identify and locate all municipal roads in the provincial database

Reliable database


- page 107 -


Facilitate for informative direction boards

Informed Municipal road users

Gundu Lashu

Insufficient Education facilities

Facilitate the provision of adequate education facilities and eradication of schools under trees

E.1 E.2 E.3 E.4 E.5

Facilitate provision of adequate classrooms Facilitate provision of water & sanitation Facilitate provision of electricity Facilitate provision of safer schools Forge partnerships with private sector for provision of facilities

Improved education environment

Inadequate safety and security operations

To facilitate for the upgrading of existing Apel police station

S.1 Lobby for partnerships in favour of SAPS for construction of police station.

Effective IGR


- page 108 -


6.2 Increased LED efforts The long-term goal of the municipality is to promote LED through coordination and facilitation of local, provincial and national economic initiatives. The following development sectors will be prioritised - agriculture, tourism with particular emphasis on funding coordination, SMME development and BBBEE (Broad Based Black Economic Empowerment) as well as facilitation of the mining industry in Fetakgomo.

KPA

Dev

challenge

Strategic

objective

Code Development

strategies

Outcome

Increased LED efforts

Weak environment for local economic development

To create an environment that would stimulate economic growth and development by 2014

A.9.1 To facilitate the creation of 250 permanent jobs annually

Poverty alleviation

A.9.2 Implement the LED Plan

Economic Empowerment

A.9.3 Facilitate for establishment of small scale agro processing plants to add value to local farming products

Value chain creation

A.9.4 Facilitate Revitalisation of existing irrigation schemes

Sustainable farming

A.9.5 Mobilise technical support for local farmers

Increased capacity

A.9.6

Promote and support community based sustainable income generation projects

Sustained community project


- page 109 -


KPA Dev

Challange

Strategic

objective

Code Development

strategies

Outcome

Increased LED efforts

Inadequate Tourism development

To create a conducive environment for promoting community tourism in the municipality by 2010

T.1 Enter into negotiations with relevant departments and potential private investors for funding

Public Private Partnership

T.2 Improve infrastructure linking to tourism sites

Compact Development

T.3 Reserve cultural heritage sites

Cultural preservations

Lack of small scale industries linked to mining

To encourage the establishment of small scale industries that will supply inputs into mining industries

M.1 Mobilise resources to establish small scale industries linked to mining

Value chain creation

M.2 Establish partnership with existing mines to support local economic development

Business opportunities for SMME’s

Lack of appropriate environment and land use policies

To ensure the creation of sustainable environment and land use management in the municipality

L .1 Finalise land use management strategy for efficient ,effective and economic use of land

Functional land use management strategy

L .2 Engage traditional authorities on land

Improved relations


- page 110 -


use issues to create a conducive environment for sustainable development

Env challenge

L .3 Develop a landfill site

Safe environment

L .4 Undertake environmental awareness campaign


6.3 Improved municipal financial viability If Fetakgomo Municipality is to perform its functions effectively and achieve its developmental outcomes, it needs to improve its financial variability. The development strategies below work towards the realisation of that goal.


- page 111 -


KPA Dev

challenge

Strategic

objective

Code Development

strategies

Outcome

Improved municipal financial viability

No revenue base

To maximally harness opportunities for revenue generation

F.1 F.2

To support the interdepartmental working committee on revenue enhancement Implementation of revenue enhancement strategy

Financially viable municipality.

To meet the requirements of MFMA

F.4 Strengthen financial policy implementation.

Compliance

Improve on financial reporting.

Sound/Compliance with MFMA.

F.6 Adapt, monitor and manage the provincial model for asset management plan.

Compliance

F.7 Develop early warning systems to monitor the financial trends.

Efficient, effective and economic use of resources.

F.8 Maximum utilisation of scare resources. Improve on human resource capacity building. Improve on the implementation of SCM for an improved spending on budget.

Operationally efficient and effective Municipality.


- page 112 -


6.4 Deeper community participation and Good Governance The “Development is about people” public participation process will enhance the skills and capacity of the community by using their indigenous knowledge systems to participate in their own development process. The approach of the Municipality strives to integrate special programmes (HIV/AIDS and care of vulnerable groups) in a more meaningful manner to ensure sustainable service delivery.

KPA Dev

challenge

Strategic

objective

Code Development

strategies

Outcome

Deepen community participation and Good Governance

inadequate institutional governance system

Improve functionality of governance system

GM.01 Strengthening the support model for ward committees

?

GM.02 Bench mark the existing monitoring tool for improvement

Accountable team of ward committees

GM.03 Employ customized capacity building for ward communities

Capacitated stakeholders

GM.04 Mobilise for empowerment of disaster management forums

Functional forums

GM.05 Support existing forums

Structured participation

Improve involvement of communities in Municipal programmes

GM.06 Cascade and customize the district plans to the Local Municipality

Alignment


- page 113 -


Ensure customer care

GM.07 Customize Batho Pele principles in the municipality for implementation and monitor

Satisfied communities

Inadequate Health and Social Development facilities

To facilitate broad accessibility

GM.8 To facilitate for the provision and improvement of health and social development facilities

Improved health and Social Development programmes

Inadequate alignment of public participation programmes.

GM.09 Ensure alignment of community outreach programmes from all spheres of government

Effective IGR

GM.10 To ensure support for cross cutting issues

Social accountability

GM.11 To improve municipal wide communication



- page 114 -


6.5 Municipal transformation and organisational development The long-term goal of the municipality is to have an organisation that is transformed, promote skills development of officials and councillors and development of policies and by-laws that promote service delivery and sound organisational management.

KPA

Developm

ent

challenge

Strategic

objective

Code Development

strategies

Outcome

1.1.

Municipal transformation and organisational development

Inadequate institutional governance systems

Strengthen institutional efficiency and governance to ensure effective service delivery in the municipality

I.2 Development of municipal planning framework , e.g. IDP/Budget, Community Participation and Communication strategy

Synchronised Planning Processes

I.3 By-laws: Implementation of the approved, finalisation of outstanding and identification new by – laws

Improved regulatory environment

1.4 Enhance legislative compliance for effective governance

Improved Compliance

I.5 Ensure provision of adequate and reliable IT systems

Effective and efficient information management

I.6 Ensure realistic human resources Development and effective Human Resource Management

Improved institutional performance

I.7 Ensure implementation of Performance Management System

Institutional accountability


- page 115 -


I.9 Implementation of anti-corruption strategy

Institutional accountability

I.10 Ensure provision of efficient fleet management

Sustainable transport service

I.11 Maximise monitoring, evaluation and reviewing of accountability systems

Improved transparency and fairness

I.12 Provide effective legal services

Maximum compliance

I.13 Ensure maintenance of municipal facilities

Safe environment

I.14 Ensure compliance to Employment equity Act

Maximum compliance


- page 116 -


PROJECTS PHASE 7. Fetakgomo Municipality’s annual projects for 2007/08 This chapter sets out the Municipality’s projects for the forthcoming financial year. Indications are also given for medium term expenditure. Fetakgomo’s projects form a package of strategic interventions designed to meet the development strategies outlined earlier. The projects are set out in terms of the Key Performance Areas (KPAs) of the Municipality.

7.1 Projects implemented by the Municipality INSTITUTIONAL TRANSFORMATION AND ORGANISATIONAL DEVELOMENT Departmental Business Plans Development Planning Department Development planning Department comprises Planning, Local Economic Development, and Technical Services divisions. Departmental Vision As the department is comprises three/3 sub divisions, there are two visions as planning division caters for LED, Land Use and overall municipal planning components. The visions for Planning and Technical Services are as follows: The vision statement for the Planning division is:” A proactive and leading planning department” while Technical Services vision is: “ An anchor division in provision of quality services” The mission of the Planning division is “To ……. Technical Services division mission: “We commit to be a proactive facilitator of efficient, effective, economic and sustainable services” Core functions for Development Planning Department Integrated Development Planning Spatial Planning Local Economic Development Land Use Management


- page 117 -


Organizational Performance Management System Facilitation of Capital Projects (Technical Services) Project Management (Technical Services Provision of Free Basic Services (Technical Services) Facilitation for and provision of some basic services DEVELOPMENT PLANNING PROJECTS FOR 2008/2009 Projects Start

Date End Date

Strategic Interventions

Target period Responsible Person

Budget

Q1 Q2 Q3 Q4

MUNICIPAL TRANSFORMATION AND ORGANISATION DEVELOPMENT PROJECTS

FTM/IT IDP/BUDEGT Review

1 July 2008 31 May 2009 Compliance

with planning legislation and policies

Х Х Х Х IDP Manager

Annual Report 1 July 2008 31 March 2009 Enhance accountability

Х Х Х Strategic Manager Planning

PMS Implementation

1 July 2008 30 June 2009 Enhance accountability and responsibility

Х Х Х Х Municipal Manager

Implementation of LUMS

1st

July 2008 30 June 2009 Ensure effective and efficient land use

Х Х Х Х Town Planner

Implementation of SDF

1 July 2008 30 June 2009 Ensure

coordinated development

Х Х Х Х Town Planner

Facilitate Township establishment

1 July 2008 30June 2009 Х Х Х Х Town Planner


- page 118 -


BASIC SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT PROJECTS

FTM/BSD-

Free Basic Electricity

1 July 2008 30 June 2009 Ensure provision of FBE to legitimate customers

Х Х Х Х Technical Manager

Street Lighting 1 July 2008 31 March 2009 Х Х Х Technical Manager

Equipping of Civic Hall

1 July 2008 30 June 2009 Ensure operationalization of the civic hall


Fencing of Civic Hall Parking Area

1 July 2008 31December 2008

Ensure appropriate parking for the civic centre

Х Х Technical Manager

Civic hall paving 1 July 2008 31 December 2008

X X Technical Manager

Landfill site construction

1 October 2008

30 June 2009 Facilitate construction of the landfill site

Х Х Х Technical Manager

Pit Toilets 1 July 2008 31 December

2008 Provide back facilities given the water challenges


TSC infrastructure

1 July 2008 30

September

2008 Strengthen security measures at TSC


Grading of Sports fields

1 July 2008 30 June 2009 Enhance usability of social facilities



- page 119 -


Information boards

1 July 2008 30 June 2009 X X X X Technical Manager

Upgrading of Community Halls

1 July 2008 30 June 2009 Enhance the

usability of the hall


Construction of Entry posts

1 July 2008 30 June 2009 X X X X Technical Manager

LOCAL ECOMOMIC DEVELOPMENT PROJECTS

FTM/LED-

Implementation of the LED Strategy

1 July 2008 30 June 2009

Enhancement of local economy and job creation

Х Х Х Х LED Manager

Construction of Hawkers stalls

1 July 2008 30 June 2009

Ensure appropriate accommodation for hawkers

Х Х Х Х LED Manager

Farmers support (Agro-processing)

1st

October 2008

30 June 2009

Facilitate construction of small scale industry for agro-processing

Х Х Х LED Manager

LBSC 1 July 2008 30 June

2009 Provide support to Local Business support centre

X X X X LED Manager

CORPORATE SERVICES DEPARTMENTAL PLAN


- page 120 -


Projects Start Date

End Date

Strategic Interventions

Target period Responsible Person

Budget

Q1 Q2 Q3 Q4

MUNICIPAL TRANSFORMATION AND ORGANISATION DEVELOPMENT PROJECTS

FTM/IT Review of policies and Council delegations

1 July 2008 31 May 2009 Ensure

compliance to national legislative framework

Х Х Х Х HR Manager

Development of By-laws

1 July 2008 31 March 2009 Ensure compliance by municipal residents

Х Х Х Strategic Manager Corporate Services

PMS Implementation (individual

1 July 2008 30 June 2009 Enhance accountability and responsibility

Х Х Х Х Human Resources (OD)

Vehicle testing station

1st

July 2008 30 June 2009 Х Х Х Х Strategic Manager Corporate Services

Devolution of drivers’ license function

1 July 2008 30 June 2009 Х Х Х Х Corporate Services

Strategic Manager

Implementation of Integrated waste management plan ( solid waste removal)

1 July 2008 30June 2009 Promotion of clean environment

Х Х Х Х Community Services Manager

Post grading 1 July 2008 31 December 2008

Appropriate grading of posts

Х Х HR Manager

Succession Plan and Retention Strategy

1 October 2008

30 March 2009 Х Х HR Manager


- page 121 -


Cleaning Services 1 July 2008 30 June 2009 Х Х Х Х Admin Manager

GOOD GOVERNANCE AND PUBLIC PARTICIPATION

Grading of sports field

1 July 2008 30 June 2009 Х Х Х Х Community Services Manager

MUNICIPAL FINANCIAL VIABILITY

Implementation of Property Rates Act

1 July 2008 30 June 2009 Establishment of municipal revenue base

Х Х Х Х CFO

Asset Verification/Development of Asset Management Plan

1 July 2008 31 March 2009 Ensure effective management of assets

Х Х Х SCM Manager

Implementation of Revenue enhancement project

1 July 2008 30 June 2009 Х Х Х Х Manager Income and Expenditure

System Interface 1 July 2008 31 March 2009 Х Х Х CFO

Review of policies and Council delegations

1 July 2008 30 June 2009 Х Х Х Х CFO

Billing system 1 July 2008 30 June 2009 X X X X CFO

MFMA/SCM implementation

1 July 2008 30 June 2009 Ensure compliance

Х Х Х Х CFO


- page 122 -


PROJECTS IMPLEMENTED BY OTHER SECTORS

7.2. Projects: Enhanced infrastructure investment and service delivery

Project No. PROJECTS

2008/2009 2009/2010 2010/2011 2011/20112 Total budget Responsible Implementing Agents

ROADS

FTMR-01 Apel to Mabulela/Atok Road, 21 KM ?? 33 000 000 25 433 000 58 433 000 RAL

FTMR-02 Marulaneng/Zoetvelden (Gundo

Lashu ?? ?? 20 000 00 35 000 000 55 000 000 RAL

FTMR-03 Penge to Malokela to GaKgwete to

Ntswaneng to Manoge to Phageng to

Radingwana to Mphanama to

Maololo

20 000 000 35 000 000 85 000 000 RAL

FTMR-04 Sefateng/Atok/Driekop/Maandagsho

ek 33 000 000 20 000 000 35 000 000 108 000 000 RAL

FTMR-05 Ga-Nchabeleng/Ga Matlala , 3.17

KM Constru

ction

5 807 440 GSDM

FTMR-06 Ga-Nkoana/Mashung Constru

ction

11 500 000 GSDM

FTMR-07 Forong/Pelangwe to Ga-Maesela,

7.36 KM Constru

ction

13 483 520 GSDM


- page 123 -


FTMR-08 Lerajane/Makopa/Tswereng and Ga-

Seroka, 6.12 Km Constru

ction

11 211 840 GSDM

FTMR-09 Atok

mine/Monametse/Modimolle/Selepe/,

11.95 KM

Constru

ction

11 877 600 GSDM

FTMR-10 Mapulaneng/Mohlaletse design Constru

ction

3 135 000 GSDM

FTMR-11 Mohlaletsi Extention

(design)

(Constr

uction)

2 380 000 GSDM

FTMR-12 Sesesehu/Ga-Nkoana/Maesela-

Mahlabaphoko (design)

(constru

ction

7 632 000 GSDM

FTMR-13 Ramallane/Ledingwe/Ga-

Phasha/Ga-Mampa

(

design)

(constru

ction)

20 430

000

GSDM

FTMR-14 Seokodibeng/Dithabaneng

Ext/Tsidintsi

(design)

Constru

ction

3 744

000

GSDM

FTMR-15 Construction of Rapholo bridge and

upgrading of road 14 900

000,00 14 900

000,00

Lebowa Platinum mine

ROADS= R106,101,400


- page 124 -



2007/2008 2008/2009 2009/2010 2010/2011

Responsible implementing agent

WATER

FTMW-01 Oliphantspoort South BWS 28 444.000 28 444 000

GSDM

FTMW-02 Community bulk water supply 10 000,00 Lebowa platinum mine

Project No. SERVICE DELIVERY

2008/2009 2009/2010 2010/2011 2011/2012

Total budget Responsible implementing agent

EDUCATION

FTMED-1 Provision of Water & Sanitation

Facilities at Schools 1 000 000

1 000 000 Dept of Education

FTMED-2 Construction of a library 5 000 000

(combined with Vhembe)

5 000 000 Dept of Sports, Arts & Culture

FTMED-3 Construction of 8 classrooms & 8

toilets at Maphotle primary school 1 400 000

1 400 000 Dept of public works

FTMED-4 Construction of 1 admin block at

Selepe primary 700 000

700 000 Dept of public works

FTMED-5 Construction of 12 class rooms, 12

toilets atTlakale primary school, 1 950 000

1 950 000 Public works


- page 125 -



2008/2009 2009/2010 2010/2011 2011/2012

Total Budget Responsible implementing agent

HEALTH

FTMH-07 Upgrading of Nchabeleng Health

Centre 5000 000 15 000 000 Dept of Health

FTMH-08 • Constructi

on of a

clinic at

Mooilek

3000 000 3000 000 Dept of Health

FTMH-10 • Constructi

on of

Clinic at

Malogeng

3000 000 3000 000 Dept of Health

FTMH-11 • Strengthen

Mobile

Service

2500 000 2500 000 Dept of Health

FTMH-12 • Upgrading

of Ikageng

Clinic

?2 900 000 DWAF

•

CAPITAL INVESTMENT PER FINANCIAL YEAR (R) Project No. PROJECTS

2007/2008 2008/2009 2009/2010 2010/2011

Total

(R)

Responsible implementing

agent

ELECTRICITY

FTME-01 Manotoane Electrification 2100 000 DME/ESKOM

FTME-02 Selepe Electrification 2166 000 2 300 000 Anglo/ESKOM


- page 126 -


FTME-03 Phashaskraal Mosotse Electrification 6 6000 000 2340000 DME/ESKOM

FTME-04 Apel Mapodi /electrification 1 200000 DME/ESKOM

FTME-05 Makgalanoto Electrification 3186000 DME/ESKOM

FTME-06 Seokodibeng Electrification 2598000 DME/ESKOM

FTME-07 Mampa Electrification 1284000 DME/ESKOM

FTME-08 Ledingwe Electrification 1326000 DME/ESKOM

FTME-09 Shubushubung 240000 DME/ESKOM

FTME-10 Street Lighting (Nodal) 5000 000 5000 000 DME/FTM

FTME-11 Electrification of Schools 1500 000 1000 000

3500 000 Dept of Education

FTME-12 Community streetlights 1800 000

1 800 000 Lebowa Platinum

The provision of electricity at Selepe is through partnership with Anglo platinum .the calculation is done on the basis that the maximum electrification of R6000.00 per household. It is important to read the table in collaboration with page 43,44 and 45.


2007/2008 2008/2009 2009/2010

Total

(R)


agent

SOCIAL FACILITIES

FTMCP-

01

Nkoana Cemetery Upgrading 1000 000

1000 000 GSDM

FTMCP-

02

Construction of Phasha Selatole Social

facility 2500 000 Dept of

Social Dev

FTMCP-

03

Construction of Mphanama Social facility 2500 000 2500 000 Dept of Social Dev


- page 127 -


FTMCP-

04

Construction of Apel police station 25 000 000,00

Dept of safety & security /public works

FTMS-01 Upgrading of Nchabeleng Sports Facility 3000 000

2000 000

Dept of Sports/Nationa

l Lottery

FTMS-02 Upgrading of School sport facilities 2000 000 2000 000 National Lottery

FTMS-03 Mphanama Victim empowerment centre ?600 000. Public works

FTMS-04 Construction of drop in centre Monametse . ?700 000 Public works

FTMS-05 Construction of drop in centre Strydkraal . ?700 000 Public works

FTMS-06 Sefateng sports complex( construction of

ablution block, dressing rooms and soccer

stadium)

6 000 000,

Anglo Platinum mine

FTMC-01 Construction of community hall and canteen

facility 12 300,000

Anglo

platinum mine


2006/2007 2007/2008 2008/2009 2009/2010 2010/2011

Total

(R)


agent

PLANNING AND DEVELOPMENT

FTMP-01 Land Use Management Schemes 500 000 500 000 FTM/DLGH

FTMP-02 Housing Strategy 250 000 250 000 DLGH

FTMP-03 Rural Housing 9000 000 5 000 000 17012 000 DLGH

FTMP-04 Demarcation of sites 500 000 1 000 000 13 000 000 DLGH

FTMP- 05 Social Housing 5000 000 5000 000 10 000 000 ANGLO PLAT/DPLG

Project No. PROJECTS CAPITAL INVESTMENT PER FINANCIAL YEAR (R) Total Responsible


- page 128 -


2006/2007 2007/2008 2008/2009 2009/2010 (R) implementing agent

BUILDING

FTMB-01 Civic Centre Construction 5,385,000 7 262 800.00

FTM

7.2 Projects: Increased LED efforts


2006/2007 2007/2008 2008/2009 2009/2010 2010/2011

Total

(R)


agent

Department of Economic Development, Environment and

Tourism

FTMLED-

01

Market stalls for informal traders 700 000 750 000

0 1400 000 Dept of Economic Dev

FTMLED-

02

Lepellane Irrigation Scheme ?9,742,167

9,742,167 Dept of Agric

FTMLED-

03

Mooiplaas Irrigation Scheme ?5,628,167 0

0 5,628,167 Dept of Agric

FTMLED

-04

Strydkraal Irrigation Scheme ?18,385,167

18,385,167 Dept of Agric

FTMLED-

05

Hydroponics Extension 1,400 000

1,400 000 NDA

FTMLED-

06

Poverty Alleviation 2205 000 4205 000 DST/CSIR/FTM

FTMLED-

07

Sekhukhune Cultural Village 3,800 000

3,800 000 Dept of Environment

FTMLED-

08

Phageng Stone Crushing 2000 000

2000 000 Dept of Economic

Development

FTMLED-

09

Feasibility Study of small manufacturing

factories (mining)

100 000 100 000

50 000

250 000 Anglo plat/FTM/DEPT OF Economic

Dev


- page 129 -


7.3 Projects: Improved municipal financial viability


2006/2007 2007/2008

2008/2009 2009/2010 2010/2011

Total

(R)


FINANCIAL MANAGEMENT

FTMF-01 Implementation of MFMA FTM/Equitable Share

FTMF-02 Review of Financial policies and

awareness campaigns to council

and Administration

FTM

FTMF-03 Compilation of valuation Roll 2 000 000 250 000 250 000 2 500 000 FTM/DPLG/GSDM

FTMF-04 Billing system 150 000 150 000 FTM

FTMF-05 Assets verification and

management plan

100 000 100 000 FTM

7.4 Projects: Municipal transformation and organisational development


2006/2007 2007/2008 2008/2009 2009/2010 2010/2011

Total

(R)


INSTITUTIONAL

FTMI-14 F/A Thusong Centre 1,950 000 150,000

FTM, Anglo Plats, Eskom Foundation

FTMI-3 Performance Management

System 67 612 00

0 0 0 500 000 FTM

FTMI-04 Mphanama Traditional Council

offices ?1,800,00

0 0

0 1,800,000

Premier’s Office

FTM-05 IDP /Budget processes 150 000 150 000 150 000 150 000 600 000 FTM


- page 130 -



- page 132 -


IINNTTEEGGRRAATTIIOONN PPHHAASSEE

88.. IInntteeggrraattiioonn:: AA ssuummmmaarryy ooff FFeettaakkggoommoo’’ss

oovveerraarrcchhiinngg ppllaannss aanndd ssttrraatteeggiieess The purpose of the Integration phase is to integrate all sector plans and programmes for alignment purposes and to ensure that the results of project planning will be checked for their compliance with vision, objectives, strategies, resources and be harmonised. This chapter sets out some of the key strategies that the municipality has developed.

8.1 Water Sector Plan Fetakgomo is currently in the process of reviewing its Water Sector Plan. The ultimate goal is to develop, ensure and manage availability of potable water within all areas in a sustainable manner. The objectives include the following:

• Integration of the water sector plan with the overall water needs outlined in the IDP

• To balance various environmental requirements of water for economic development with the emphasis on the effects of water

• Quality resulting from mining, irrigation, on site sanitation and underground recharges The table below indicates the objectives and strategies with respect to water provision in the municipal area.

Table 38: Water provision: Objectives and strategies

Objectives Strategies To provide clean, potable water to villages by 2011

� Improve all service level up to RDP standard in terms of distance to the nearest supply point (i.e below 200m) and quantify the water available.

� Extent the existing infrastructure to cover any sections of the village where there no full coverage

� All higher service levels(i.e. above RDP standard) must be linked to cost recovery to ensure sustainability of water systems

� A database of all businesses within the Municipality that rely on municipal water services must be documented and a tariff structure for such businesses be determined

8.2 Local Economic Development Plan Local Economic Development is an outcome based on local initiative and driven by local stakeholders. It involves identifying and using primarily local resources, ideas and skills to stimulate economic growth and development. The aim of LED is to create employment opportunities for local residents, reduce constraints to business investment and growth, tackle market failures to make market work better and strengthen the competitiveness of local firms. For the 2007/2008 financial year, Fetakgomo municipality has a draft LED strategy that is anticipated to be adopted by council before the beginning of the financial year.


- page 134 -


The plan identifies the following issues and their strategies.

8.2.1 Identified existing main constraints to LED These are applicable to all sectors:

• Land ownership and availability

• Slow connection of road from Marble via Fetakgomo D4190 to R37 (Dilokong Corridor)

• Key stakeholders do not understand the extent of economic potential linked to mining growth

8.2.2 Economic growth strategies Most of the growth in the next few years will be derived from the planned growth in mining. The extent of Fetakgomo benefiting from this growth depends on the effectiveness in removing the key constraints and the extent to which mine opportunities can successfully be utilised by local or new investors. Local purchases by the mine will increase, leaving more revenue circulating in the local economy. The increase in local supply to the mine will be facilitated, but must be based on competitive market principles and not cause high risk or cost to the mine. A total of five strategic thrusts will contribute to economic growth:

• Leverage opportunities from mining growth

• Remove key constraints to economic growth

• Establish commercial farming

• Promote Fetakgomo

• Start tourism initiatives The selection of intervention options was based on:

• Catalytic impact – meaningful improvement for many beneficiaries

• Sustainability of change/impact

• Quick and visible results (for many citizens to see LED is worth supporting and to build social capital

• Implementable initiatives given the local context of: Availability of enthusiastic and committed leaders/champions, Accessibility of financial resources Political support and sound leadership


- page 135 -


The development of the local economy of the Municipality entirely relies on stakeholder participation and development of an implementable Local Economic Development Strategy that addresses the pressing needs of the community. Further than the latter there is a need to improve infrastructure that would support the Local economic activities that would be undertaken by the Municipality in Partnership with other spheres of government and partnership created with the Private Sector.

8.3 Integrated Environmental Management Plan The Chapter 1 principles of the National Environmental Management Act, 1998 (NEMA) apply throughout South Africa to the actions of all organs of state that many significantly affect the environment. The Integrated Environmental Management Plan (IEP) is a decision support tool to evaluate the environmental outcome or results of the IDP process and is also an IDP requirement that will serve as an instrument to achieve integration between environmental issues and developmental decision-making.

8.3.1 Principles, norms and strategic guidelines The table below indicates the principles and norms relating to environmental management and the localised strategic guidelines that were formulated for the Fetakgomo Local municipal area.

Table 39: Principles, norms and guidelines for environmental management

Principles and norms Localised strategic guidelines


- page 136 -


� Environmental management must place people and their needs at the forefront of its concern and serve their physical, psychological, developmental, cultural and social interests equitably.

� Development must be socially, environmentally and economically sustainable.

� Avoid or minimise pollution and degradation of the environment.

� During the planning process, environmental concerns of the people and their cultural orientation should be considered, talking into consideration the impact of their needs on the natural environment.

� Through the Integrated Environmental Management (IEM) promotes consideration of environment impact of socio – economic development at all stages of planning.

� Strategic environment assessment (SEA) must be compiled during the planning of new projects that indicate how the disturbance to landscapes and sites that constitutes the community’s heritage will be minimised or avoided.

8.3.2 Objectives and strategies The table below indicates the objectives and strategies with respect to environmental management in the Fetakgomo municipal area.

Table 40: Environmental Management objectives and strategies

Objectives Strategies � To influence evolving strategies, plans

(including projects) whilst having the environment as its main focus.

� Formulation of integrated water management strategy (IWMS) that includes the water service Development Plan

� To analyse the environmental costs of major alternative strategy and development options and recommend a course of action that will best achieve environmental sustainability.

� Integrated Conversation Strategy (including biological, physical and cultural resources)

� To assess current activities, plans and potential projects by how they may affect the ecology and human living conditions within the study area.

� Climate change protection in the Municipal Area

� To conduct a concise cumulative impact assessment of multiple projects and activities that are current, planned or expected

� Strategy for the handling of the hazardous substance


- page 137 -


� To evaluate environmental legal framework and to identify legal gaps

� Environmental Legal Compliance Strategy

� It can be used as a development-planning tool by the Municipality when taking decisions regarding development

� Formulation of Integrated Waste Management Plan;

� Environmental Policy for Fetakgomo � Environmental Governance and

cooperative governance � Urban Greening � Integrated Air quality management

strategy; � Formulation of Disaster and Emergency

Plans � Awareness and Capacity Building

8.4 Spatial Development Framework The Spatial Development Framework (SDF) provides a general direction to guide decision-making and action over a multi-year period aiming at the creation of integrated and habitable towns and residential areas. The content of the SDF is determined by the Municipal Planning and Performance Management Regulations (2001) and forms a legally binding component of the IDP. For the 2007/2008 financial year, the Municipality is reviewing the SDF on the following objectives:

• To give effect to the DFA Principles

• To set out objectives e.g. desired spatial form; contain strategies: -Desired pattern of land use

• To address spatial reconstruction

• To provide strategic guidance re. Location and nature of future development

• To set out Guidelines for a land use management system

• To set out a capital investment framework for the municipality’s development programmes

•

• To ensure strategic assessment of the environmental impact of the SDF To identify programmes and projects for the development of land within the municipality; A comprehensive process of investigation data analysis and compilation of the SDF in consultation and through the support of the municipality and the Department has been followed.


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Hence, this summary document presents the key findings below:

8.4.1 Key findings Key findings are categorized in terms of socio-economic, spatial/settlement patterns, environmental aspects and infrastructure aspects.

Socio-economic aspects The key findings of the socio-economic analysis reflect the following:

• The population of the municipality declined and is on the increase again. The reasons for the initial decline are undetermined

• High unemployment rate (77,3%) with a high number of households (about 900) without income

• About 70% of households earning income below poverty level

• Public sector, mining and trade are the key GGP contributors. Agriculture and tourism are minimal

• Serious measures are required to turn the situation around. These include accelerated investment by the sectors already performing and stimulation of agriculture and tourism.

Spatial/settlement patterns The analysis of the spatial pattern of the municipal area reveals the following:

• Fetakgomo municipality consists of about 87 settlements. Over 80% of the settlements consist of population below 1000 people. As a results these small settlements do not contain population thresholds to sustain high levels of water, sanitation, electricity and other essential services

• Settlement pattern is ‘ribbon’ – along the main District roads. Few settlements are scattered away from this pattern.

• Most of the scattered settlements are either stagnant or are declining

• The municipal area has three nodal settlements clusters with differing degree of growth rate

• Apel nodal cluster thrives on public sector related services. It is the fastest growing nodal cluster ( map 05.2) attached

• Mphanama nodal cluster is essentially a population concentration point. It has no distinct viable economic character. ( map 05.3) attached


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• Atok nodal cluster is essentially mining driven. Lebowa Platinum mine is the main economic anchor. However, possible mining at Zwartkoppies, Moijik, Phaschaskraal and Waterkop farms are likely to put pressure on this node. The Twickernum Platinum project is approved for full production and is likely to employ 27000. Existing settlement may not cope with the development in the next five or so years

• Soil, geomorphologic and topographic analysis of the area indicates that there areas not suitable for settlements. It also indicates that some settlements were founded on rare fertile agricultural soils. This represents a concern of fertile soil sterilization or extension.

Environment and heritage aspects Fetakgomo municipality has fewer environmental sensitive areas with serious spatial concerns. Potlake game reserve is the premier resource of note in the municipality that requires both protection and programmes to exploit its potential economic benefits. The municipality is endowed with significant mining occurrences. Lebowa Platinum, Zwartkoppies, Moiejilik, Waterkop and Paschaskraal are known economically viable reserves. A number of farms are known to have mineral occurrence but their economic viability has not been established. Most of the heritage sites of Fetakgomo historical significance are located outside the municipal area. The farms India and Twickernum seem to have some heritage value that might be packaged and exploited. The Oliphants river banks have fertile soils with opportunities for commercial intensive agriculture. This stretches from the north eastern boundary towards the south western edge of the municipal area.

Infrastructure aspects Bulk infrastructure distribution is mainly along the District roads.

8.4.2 Key recommendations • The farms Hoeraroep 515 KS and Eeste Regt 502 KS in the Apel nodal cluster need to be

considered primary development areas

• Settlements in the Ga-Nchabeleng cluster be restricted away from the farm Goedverwacht 511 KS due to its high potential agricultural land


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• Growth of Mphanama should deliberately be guided towards the north

• In the Atok nodal cluster development should be guided towards the area between Malomanye, Maropeng and Mashilabela planned mining development suggests that the area may not cope with future settlement needs. Investigation and planning of new formal settlement is urgently required.

• Application to the Department of Local government and Housing for the demarcation of sites is required to ensure structured development in these areas.

• The municipality engages the Department of minerals and energy and the Council for Geosciences to assist in establishing the economic feasibility and viability of the farms listed in the main document.

• A 1 km development edge is proposed to curb settlements from encroaching of fertile soils

• The review of the SDP would have spatial implication that would need the participation of relevant stakeholders that include the traditional authorities as 99% of land in the municipal area is in their custodianship.

8.5 Institutional Plan According to legislation and the IDP Guide packs Municipalities are expected to develop institutional plans. The primary objective of an institutional plan is to ensure that consistent and integrated set of measures are put in place for institutional development based on the development of a municipality. The secondary objectives include providing for gender equity and appropriate transformation in the light of the Constitution of South Africa, Act No 33 of 2000 and the Employment Equity Act, No 1998 of as well as reviewing the institutional arrangements and implications of the planning process in keeping with the IDP. Currently Fetakgomo Municipality does not have a concise institutional plan document that integrates pieces of existing policies and guidelines for a focused strategic approach. To this end a careful attention is accorded to the new approach to planning where the IDP is seen as an integrated management tool focused on sustainability. The institutional plan must be based on the following assumptions:

• The primary aim of the plan is fill the institutional gaps in the IDP document.

• To focus on procedures that would achieve the intent of institutional development in keeping with the priorities of the municipality


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• Integration is important and hence the link between the financial strategies, resource framework, project proposals, capital planning and in the early phase of the performance management system need to be kept in mind.

• Compliance to financial resources framework and institutional capabilities

• There must be a close link between planning, institutional budgeting and potential service relationships with private and public sectors in the area (CBOs and NGOs included).

The institutional plan is required to result in the following outputs:

• It must address the gender and equity imbalances facing the municipality

• A realistic institutional plan given the financial resources at the disposal of the municipality

• The consideration of service partnerships and the recognition that the NPO/CBO sector has an important role to play in service delivery oriented towards sustainability.

• A consolidated summary of the institutional activities that flow from the prioritised proposals developed in the IDP processes.

8.5.1 Institutional context of Fetakgomo IDP process The institutional context is depicted in the diagram below.

FETAKGOMO COUNCIL

Municipal Manager (IDP Manager, IDP steering committee)

Projects, Programmes and sectoral task teams

IDP REPRESENTATIVE FORUM

Stakeholders, interest groups and ward committees


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The arrows in the diagram indicated the flow of information on the IDP process.

8.5.2 Fetakgomo Municipality’s functional responsibilities In order to develop a functional capacity of a municipality it is necessary to be aware of the powers and functions as gazetted in the Constitution and in terms of section 85 of the Municipal Structure Act and further regard the assigned functions by the MEC for Local Government given the capacity of the respective municipality.

Delegated powers and functions of the Municipality

• Billboards and the display of advertisement in public places

• Cemeteries, funeral parlours and crematoria

• Cleansing

• Control of public nuisances


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• Control of undertakings that sell liquor to the public

• Facilities for the accommodation ,care and burial of animals

• Fencing and fences

• Licensing of dogs

• Licensing and control of undertakings that sell food to the public

• Local amenities

• Local sports facilities

• Markets

• Municipal abattoirs

• Municipal parks and recreation

• Municipal roads

• Noise pollution

• Pounds

• Public places

• Refuse removal, refuse dumps and solid waste disposal

• Street trading

• Street lighting

• Traffic and parking In the year under review the municipality only performed 26% of the delegated powers and functions. This is of great concern for the Municipality under Project Consolidate.


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8.5.3 Organisational SWOT analysis Strengths

• Teamwork spirit

• Land Availability

• Policy and by-laws development

• Basic resources for operations

• Networking

• Political and administrative commitment

• Community participation (Council Speak to people)

Weaknesses

• No revenue base

• Infrastructure backlog

• Poor performance Management

• Lack of assessment for functionality of ward committees

• Poor policy enforcement

• Underutilisation of scarce resources

• Poor project management

• Poor IT Systems

• Unfilled strategic managers posts

• Lack of expertise (town planning and technical)

• Understaffing

• Poor asset management

• Unclear departmental delegations

• Poor internal Controls

• Performance of unfunded Agency functions


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Opportunities

• Mining Investment Opportunities

• Implementable revenue opportunities

• job creation from infrastructure investment

• Alternative funding sources

Threats

• Land inaccessibility

• None alignment of sector plans to municipal IDP

• Irrational land use processes

• Unhealthy competition from poor IGR (devolution of powers) The above legislation and the organisation SWOT Analysis were taken into account by the municipality when developing the strategies.

8.5.4 Delegation of powers and responsibility For efficient service delivery, the municipality in accordance to the Constitution and the Municipal Structure Act has developed the delegated powers and responsibilities with the following objectives:

• To ensure maximum administrative and operational efficiency

• To provide adequate checks and balances

• To delegate decision making to effective level within the administration

• To involve employees in management decisions as far as practicable

• To promote a sense of collective responsibility for performance

• To assign clear duties for the management and coordination of administrative components, systems and mechanisms

• To define in precise terms the duties of each political structure and political office-bearers; and


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• To determine the relationship amongst the political structures, political office bearers and the administration, and the appropriate lines of accountability and reporting for each of them.

8.5.5 Revised municipal institutional structure (2007/2008) The delivery of the IDP projects is contingent on appropriate institutional structuring. The municipality recently reviewed its organogram. The new organogram is captured in previous chapters of this IDP. The organogram is very limiting in addressing the constitutional requirements of a municipality. Given this challenge predominantly based on budgetary constraints, significant turnover and inability to attract and retain required skills, it has become imperative to use the available resources optimally. So far the municipality compressed the organogram to only accommodate the warm bodies currently employed and provided for the recently vacated posts that we cannot do without and these are duly budgeted for. At the time of submitting the compressed organogram the municipality is in engagement with District Municipality and the Department of Local Government and Housing for assistance to undertake a thorough OD process that will reveal a clear diagnosis of our institutional arrangements and come with appropriate recommendations. The municipality has considered the internal structures and these are the statutory committees. These are the committees that are currently operating at the municipality:

• Executive committee

• Planning Committee

• Technical Committee

• Corporate Services Committee

• Community Services Committee

• Labour Forum

• Supply Chain Management Committee


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8.5.6 Capacity and Gender Equity review In terms of the capacity to deliver consolidated institutional activities and output, the newly appointed Development Planning strategic manager will reduce some of the pressures. However, the detailed and time consuming work required for delivery and the LED programme means that the municipality would be under pressure. Given the budgetary constraints certain services will need to be shared with the District in the spirit of IGR. For instance, the town planning service will be shared with the district as the local municipality is not in a position to fill the vacancy. The sharing of services could boost the municipal capacity in the following manner:

• Relieve the pressure of limited staff

• Provide adequate support and capacity building.

Provide adequate support and capacity building In terms of gender equity, the institutional structure is skewed towards males with a difference of 12. The table below depicts the gender breakdown of employees at Fetakgomo.

Table 41: Gender profile of Fetakgomo employees

Description Females Males Total Strategic managers 2 1 3 Managers 4 5 9 Officers 2 10 12 Clerks 3 7 10 Drivers 0 2 2 Cleaners 3 1 4 Total 14 26 40 Based on the above table, the municipality should consciously address gender imbalances in filling the current vacancies.

8.6 Financial Management Plan There are currently budgetary and financial management reforms sweeping local government throughout the country. These reforms come in the wake of under-collection of revenue, uneconomic use of resources including spending, insufficient management of municipal assets


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and overall financial management at Local government sphere that is incongruent with the generally acceptable financial management practices. For any institution to successfully implement its strategic plan, in our case the IDP, sound financial management is necessary. The role of the Finance department in any institution is to carry out REAL (Revenue, Expenditure, Assets and Liability) management. The challenge that we are facing is to manage these REAL efficiently, effectively and economical. The supreme challenge facing our organisation in terms of financial management is the implementation of Municipal Finance Management Act, 2003 (MFMA), whose aim is to modernize budgetary and financial management practices by placing local government finances on sustainable footing in order to maximise the capacity of municipalities to deliver services to all its communities and other stakeholders. The key challenge, primarily in comparison with implementation of the MFMA however, is the capacity within Fetakgomo Municipality, to embrace best practices, practices and requirements of the MFMA. The following are other challenges facing the organisation in respect of financial management.

8.6.1 Capital and operating budget estimates The financial priority of the municipality is viability and sustainability. The goal can be best achieved through effective and efficient financial management. The plans and strategies that were formulated were prepared with this in mind.

8.6.2 Budget policy The annual budget is the central financial planning document that embodies all operating revenue and expenditure decisions. It establishes the level of services to be provided by each department. The Fetakgomo Municipality budget policy aims to set budgeting principles which the municipality will follow in preparing each annual budget, as well as the responsibilities of the chief financial officer in compiling such a budget. The budget of the municipality is subjected to monthly controls and is reported to Council with recommendations.


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8.6.3 The 2007/2008 budget In compiling the budget of the municipality, National Budget Policy guidelines were considered which include macro economic indicators as in the guidelines of the National treasury, the expenditure trends and the revenue patterns. Assumptions relating to the 2007/2008 financial year are as follows:

• Government grants for the years 2005-2008 are as per Division of Revenue Act, for this financial year with a decrease of 13,16%

• The inflation rate has been estimated at 6 % per annum

• Growth in the salary and wage bill has been provided in the budget at 10 % per annum

• Provision has been made for tariffs

Operating budget (1 July 2007- June 2009)

Department Adjusted budget Budget

2007/2008

Budget

2008/2009

Budget

2009/2010 Corporate Services 13 328 700 12 787 000 13 883 000 15 119 000 Treasury 3 546 500.00 3 947 903 4 219 000 4 660 000 M Manager 1 508 400.00 2 055 000 2 122 000 2 417 000 Planning & Dev 3 828 000.00 4 532 000 4 506 000 4 829 000 Total 22 211 600 23 322 000 24730 000 27 025 000 The operating expenditure for 2007/2008 financial year is R22, 656 900.00 whilst in 2006/2007 the operating budget was R 20, 584 900.00 resulting in an increase of R 2 072 000.00 being 10.06%.

Budgeted statement of financial performance

Income 2006/2007 Adjusted

budget

2007/2008 2008/2009 2009/2010

Equitable Share 16 531 000.00 16 531 000 15 946 000.0 18 358 000.00 23 448 000.00


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Interests 1 161 000.00 1 161 000 885 000.00 686 000.00 716 000.00 MFMG 500 000.00 500 000 500 000.00 500 000.00 500 000.00 MSIG 1 234 000.00 1 234 000 734 000.00 735 000.00 735 000.00 Other 1 392 300.00 5 415 300 239 000.00 241 300.00 243 200.00 Total income 20 648 200 24 841 300 18 304 500 20 520 300 25642200.00 Less: Total Expenses

20 584 900 21 720 400 23 321 375.14 25 220 612.76 27 375 861.52

Personnel cost 9438 800.00 8 748 200 9815 705.14 10 727 285.75 11 817 992.10 General expenses

6 791 600 7 965 200 8 891 752 8 891 752.00 8 990 772.55

Repairs and maintanence

1 241 000 761 000 211 400 225 800.00 241 300.00

Councillors allowance

3 093 500 3 340 500 4 377 518 4 815 269.89 5 296 769.88

Contribution to cap[ital

20 000 905 500 25 000 27 000 29 000

Surplus/deficit 63 300.00 3 120 900 5 016 875.14 4 700 312.76 1 733 661.52

Capital investment

Capital budget 2007 -2008 2008- 2009 Capital projects 6 857 330 7 223 954 The Capital budget is financed by both internally and externally through grants. The total capital for 2006/2007 financial year is R 6 352 200.00, this is 23.32% of the total budget of Fetakgomo Local Municipality for 2007/2008 financial year. The capital projects referred are administered and implemented by Fetakgomo Municipality.

8.6.4 Financial management policies The financial management policies of Fetakgomo Municipal aim to provide a sound financial base and the resource necessary to sustain a satisfactory level of municipal services for the citizens of the Municipality. It is the goal of the municipality to achieve a strong financial position with the ability to:


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• Adjust efficiently to the community’s changing service requirement

• Effectively maintain, improve and expand the municipality infrastructure

• Manage the municipality’s budget and cash flow to the maximum benefit of the community

• Prudently plan, coordinate and implement responsible and sustainable community development and growth

Tariff policy The tariff policy of the municipality is determined by the services provided to the communities and based on the cost incurred/ to be incurred to provide the service. The tariffs are calculated in various ways, dependent upon the nature of the service being provided. The object of the tariff policy is to ensure that:

• The municipality adheres to acceptable norms and standards

• Tariff income enables the municipality to be self sustainable

• The council is able to determine tariffs in line with the applicable legislation

Tariff guidelines

• Consumers should play in proportion to the amount of service consumed

• All households with the exception of the indigent, should pay the full cost of the services consumed

• The municipality should develop a system of targeted subsidies to ensure that poor households have at least a minimum level of basic services

• The policy should be fair in that all people should be treated equitably

• The policy should be transparent to all consumers and any subsidies and concession must be visible and understood by consumers

• The revenue management policy should be applied in the event of none payment of services

• Municipal tariffs must not be unduly burden to local business through higher tariffs, as costs affect the sustainability and competitiveness of such business.

Classification of services Traditionally, municipal services have been classified into four groups:


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Trading services Water and electricity are trading services. Typically the consumption of a trading service would be measurable and be apportioned to an individual consumer. The tariffs for these would be determined in such a way that a net trading surplus is realised.

Economic services Sewerage and domestic household removal are economic services. The consumption of an economic service can be measured or determined with reasonable accuracy and apportioned to an individual consumer. Whilst they are managed like businesses, the tariff for these services would be normally determined in such a way that the user charges cover the cost of providing the service.

Subsidised services These include fire fighting, approving building plans, construction of building, leasing of municipal facilities, selling of burial sites and certain town planning functions. Subsidised services are those services the consumption of which can be determined reasonably and accurately, and apportioned to individual consumers.

Community services These are those services consumption of which cannot be determined nor apportioned to individual consumers. The services are typically financed through finance rates. A Typical example would be the establishment, operation and maintenance of parks and recreational facilities, provision and maintenance of roads and storm water drainage system, the establishment, management and maintenance of cemeteries and traffic regulations.

8.6.5 Potential revenue sources Office lease The municipality is intending to lease sections of the multi- purpose community centre (Thusong Service Centre) to different government institutions which would pay for the lease of space. Although the leasing of office space has some maintenance implications, the costs thereof will be recovered through the rental fees collectable on monthly basis.


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Property rates The Municipal Property Rates Act, 2004 was promulgated with effect from 2 July 2005. A critical look a at the time schedule for handling the first general valuation under the provisions of the Act revealed that the 1

st of July 2009 would be the realistic date that Fetakgomo would be able to start

implementing the legislation. Property rates would be one of the primary sources of revenue for the municipality. Factors that would determine the amount that a property owner must pay to the municipality include:

• The assessed value of the property

• The effective assessment rate

Land use management The management of the land use will also assist in the revenue generation by the provision of services pertaining to the land use such as the payment for building plans and other services.

Traffic functions The devolution of the traffic function will positively impact on revenue generation like vehicle licensing, driver’s licenses and traffic fines.

Advertisement and billboards The implementation of the policy on the advertisement and billboards will assist in the revenue enhancement strategy of the municipality, and the municipality will be able to collect a relatively huge amount of revenue on the current advertisements that are freely available.

8.6.6 Credit control policies and procedures The credit control policy of the municipality was adopted in recognition of the constitutional obligations to develop the local economy of the municipality and to provide acceptable service to the communities. The policy acknowledges that constitutional obligations of the municipality will never be realised unless there are payments of services levied in full to residents. As there are residents who can afford and those who cannot afford to pay for services, the policy emphasizes that payment of services must be in accordance to the indigent policy. The credit control of the municipality provide for the following:


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• Credit control procedures and mechanisms

• Provision of indigent debtors in manner consistent with its rates and tariff policies and any national policy on indigent

• Realistic target consistent with generally recognized accounting procedures and collection ratios ,and the estimates income set in the budget less acceptable provision of bad debt

• Interest on arrears(where appropriate)

• Extension of time for payment of accounts

• Termination of services or restriction of provision of service when payment are in arrears;

• Matters relating to unauthorized consumption of service, theft and damages

• Any other matter that may be prescribed by regulation in terms of the MFMA Collection of revenue is a vital to the long term financial viability of any municipality. For this purpose appropriate credit control and debtors mechanisms must be maintained. It is critical to note that municipality currently does not have creditors as services are still delegated to the District and some are not yet devolved.

8.6.7 Risk management policy The purpose of the policy is to:

• Support the department in their efforts to appraise the risk to which they are exposed

• Provide advise through specialist whether internal or hired externally

• Provide guidance on the best practice in cost control

• Motivate managers and head of departments to manage risks effectively

• Ensure that adequate risk financing is available by provision in both the IDP and multi year budget (MTEF)

Policy principles The Council’s Executive Committee is fundamental to the risk management processes Managers, Heads of Department and all functional staff must be fully supportive of the initiative It is the responsibility of every department and business unit within it to implement and maintain a sound risk management strategy.


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Senior management from the level of supervisor have the responsibility and accountability for managing the risk to which their areas are exposed The philosophy has the support of the Council that recognizes that any reduction in injury, illness, loss or damage benefits the whole community.

The aim of risk management Risk management projects add value to the Council’s obligations and stakeholders through supporting the Council’s strategic objective by:

• Providing framework for the Council that enables future activity to take place in a consistent and controlled manner

• Improving decision- making, planning and prioritization by comprehensive and structured understanding of business activity, volatility and project opportunity/ threat

• Contributing to more efficient use/allocation of capital and resources within an organisation

• Reducing volatility in the none essential areas of business

• Protecting and enhancing assets and the Council’s image

• Developing and supporting people and the Council knowledge base

• Optimizing operational efficiency

8.7 Performance Management System The implementation of Performance Management System (PMS) is emphasised in the Municipal Systems Act 32 of 2000. Most municipalities have relied heavily on the Act to determine their performance. It is necessary to quote from the Act itself as it sets the parameters for performance management process. In chapter 5 and 6 it requires local government structures to develop performance management systems, set targets, monitor, review performance based on Integrated Development Plan- linked indicators, report on the performance of municipalities against the set of indicators. In that context, then, performance management is an imperative for the municipality. It will enable the direction of resources, namely conceptual, human, financial and institutional- to be allocated to meet a stated set of development objectives envisaged by the act and its subsidiary regulations.

Parameters set by the White Paper on Local Government


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The White Paper on Local Government introduced (1998) introduced Performance Management System to Local Government, as a tool to ensure Development Local Government. In terms of the White Paper on Local Government (1998) Section 19 of the Municipal Structure Act, Sections 39, 40 and 41 of the Municipal System Act and Section 7 (2) of the Municipal Planning and Performance Management Regulations, a Local Government Structure shall develop a Performance Management System (PMS). This System is to contain the following core components:

• Performance Measurements

• Performance monitoring, reviewing and evaluation

• Performance Auditing

• Performance reporting Fetakgomo Municipality developed a Performance Management Policy and Implementation Plan that aims to provide the principles, prescripts and processes applicable to the performance assessment of employees, as well as the allocation of performance incentives to eligible employees. The plan/policy has never been fully implemented since its adoption in 2003/2004. The implementation of the PMS over the years was minimally linked to the regulation as stated in prescribed Legislation. Only Section 57 employees signed their performance management contracts and the agreements were never cascaded to employees. Currently the Municipality is still undertaking procurement processes to appoint a service provider to install an electronic PMS for better management of the IDP and SDBIP. The holistic objectives for the Fetakgomo Municipality in the next five years are to focus on:

• Improve efficiency and effectiveness of Fetakgomo in terms of service delivery.

• Ensure that the municipality meets its goals in terms of Growth and Development Strategy.

• Achieve service delivery standards agreed upon with citizens

• Signing of performance agreements

• Monitoring and review of the Plan


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8.8 Disaster Management Plan Fetakgomo Municipality does not have a Disaster Management Plan at present. It has become more crucial for the institution to develop a plan of this nature as it is mandatory.


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RReeffeerreenncceess Department of Agriculture (2006). Livelihood survey conducted in the Greater Sekhukhune District Municipality of Limpopo. Draft. Department of Agriculture and FIVIMS (2006). Food insecurity and vulnerability information management system: Frequently asked questions. October 2006. Department of Agriculture and FIVIMS (2007a). Poor quality dwellings can help to identify pockets of food insecurity. Information brief 6. March 2007. Department of Agriculture and FIVIMS (2007b). How households fight stresses that contribute to food insecurity. Information brief 7. April 2007. Department of Agriculture and FIVIMS (2007c). The 2006 livelihood survey in Greater Sekhukhune Municipality uncovers the changing face of food insecurity. Information brief 13. May 2007. Greater Sekhukhune District Municipality (2007). 2007/08 IDP and Budget consultation report, Draft. Lesufi, J, Khumalo, M, Lawson, J and Martin, F (2007). Fetakgomo Local Economic Development (LED) strategy. Limpopo Province (2005). Limpopo Growth and Development Strategy. South African Police Services (2006). Crime in the RSA for April to March 2001/02 to 2005/06: Apel and Tubatse stations. Stockholm Environment Institute (2007). Adapting to climate, water and health stressors: Insights from Greater Sekhukhune District, South Africa: Draft policy brief. Ziervogel, G, Taylor, A, Thomalla, F, Takama, T and Quinn, C (2006). Adapting to climate, water and health stressors: Insights from Greater Sekhukhune District, South Africa.

Documents

Fetakgomo Local Municipality · integrated development plan: 2008/9 - page 7 - fetakgomo local municipality Fetakgomo Local Municipality is a Category B municipality that is located