SOCIO ECONOMIC DEVELOPMENT OF TRADITIONAL …€¦ · SOCIO ECONOMIC DEVELOPMENT OF TRADITIONAL COMMUNITIES ... – Lord Macaulay’s address to the British Parliament in 2 February,

SOCIO ECONOMIC DEVELOPMENT OF TRADITIONAL COMMUNITIES

Presented by Michael Karabo Dube 011 675 3130 [email protected]

AGENDA

Introduction

Global Sustainable Goals

Structure of traditional communities

Roadmap to rural development

Funding: Impact investing

Solutions to socio-economic development

Commercial structure

Recommendations

"I have traveled across the length and breadth of India and I have not seen one person who is a beggar, who is a thief. Such wealth I have seen in this country, such high moral values, people of such calibre, that I do not think we would ever conquer this country, unless we break the very backbone of this nation, which is her spiritual and cultural heritage, and, therefore, I propose that we replace her old and ancient education system, her culture, for if the Africans think that all that is foreign and English is good and greater than their own, they will lose their self-esteem, their native self-culture and they will become what we want them, a truly dominated nation."– Lord Macaulay’s address to the British Parliament in 2 February, 1835.

SETTING UP THE SCENE

Our Government have long identified the the triple

challenge of poverty, hunger and inequality

This challenge is however more pronounced in rural

communities as they migrate to cities

INTRODUCTIONIntroduction







Recommendations

We therefore need to ask ourselves the following questions:

How come rural provinces account for significant pieces of land and yet

contribute far less to the country ‘s GDP?

INTRODUCTION (cont.)Introduction







Recommendations

INTRODUCTION (cont.)

Are their structures, systems and resources appropriately geared to leverage of their most important

assets-LAND?

Introduction







Recommendations

How are we doing? Do we have credible data?

What is the cost of meeting these goals in South Africa?

GLOBAL SUSTAINABLE GOALS

Introduction







Recommendations

In 2030, there will be integrated rural areas, where residents will be economically active, have food security, access to basic services, health care and quality education.

Achieving this vision will require leadership on land reform, communal tenure security, infrastructure and financial and technical support to farmers, and building the capacity of the state institutions and industries to implement these interventions

All this require a strong Traditional

Leadership participation as

catalysts and custodians of inclusive

integrated rural development

NATIONAL DEVELOPMENT PLAN - VISION 2030

Introduction







Recommendations

1Governance systems and structure. Capacitated traditional leadership.Government support. Enabling legislation.

•

•

• •

3Tenure policies that are/can attract investment into traditional communities.

• 2Targeted Beneficiaries

•

SOCIO-ECONOMIC DEVELOPMENT

LAND

CO

MM

UN

ITY

TRADITIONAL LEADER

STRUCTURE OF TRADITIONAL COMMUNITIES

Introduction







Recommendations

STRUCTURE OF TRADITIONAL COMMUNITIES - LAND

Interim Procedures In Terms Of Securing Communal Land For Developmental Purposes

Introduction







Recommendations

PHASE 1: APPLICATIONS

ACTION: Developer / investor

DESCRIPTION: Make an application to secure communal land to the relevant Provincial Land Reform Offices (PLRO) together to the affected Traditional Council.

DOCUMENTS REQUIRED: • Surveyor General [SG] Diagram, • Valuation Report • Business Plan• Company Profile• Company Registration Documents, Locality Map etc.


Introduction







Recommendations

PHASE 2: CONSULTATIONS

ACTION: Convene first and second meeting

DESCRIPTION: The first meeting will be held with the affected stakeholders and second meeting will be held with the entire affected communities and relevant stakeholders at community level, the land rights holders will be actively engaged to explain the purpose, background, procedures and desired outcomes i.e. (time frame, land rights holders resolutions, policy requirements, equitable involvement of women, benefits to the community). The PLRO official will facilitate the application and meeting.

DOCUMENTS REQUIRED: • Proof of engagements • Supporting documentation presented at engagement sessions



Introduction







Recommendations

PHASE 3: AGREEMENT

ACTION: Land rights holders’ resolution meeting

DESCRIPTION: PLRO must facilitate the meeting. The PLRO will briefly explain the policy and the agreements agreed upon in the previous meetings. PLRO official will read the Pro-Forma Resolutions and facilitate the election of signatories to sign the resolutions, draft agreement and agency agreement.

DOCUMENTS REQUIRED: • Land Rights Holders’ Resolution



Introduction







Recommendations

PHASE 4: APPROVAL

ACTION: Submission to the minister

DESCRIPTION: PLRO official prepares a submission to the Minister for ratification of the Land rights holders’ resolution taken by the community affected by development.

DOCUMENTS REQUIRED: • Map• Surveyor General plan • Draft Surface Lease Agreement• Valuation report • Joint Venture agreements • Title Deed of the affected land (DRDLR responsibility)• Locality Map


IMPLEMENTATION

Why Governance and Administration?

Description:

GOVERNANCE AND ADMINISTRATION

Why Revenue Enhancement?

Description:

REVENUE ENHANCEMENT

Why Capital Raising?

Description:

CAPITAL RAISING

Why Corporatisation?

Description:

Why Treasury?

Description

CORPORATISATION

OUTCOMES

MASTER PLAN/LED PLAN PROJECTS

Why Master Plan/LED Plan Projects?

Description: ECONOMIC DEVELOPMENT

SOCIAL DEVELOPMENT

INFRASTRUCTURE DEVELOPMENT

JOB CREATION

LONG-TERM SUSTAINABILITY

COMMUNITY TRANSFORMATION

ECONOMIC AND SOCIAL

DEVELOPMENT

POVERTY ALLEVIATION

COMMUNITY UPLIFTMENT

INDUSTRIALISATION

PEACE AND HARMONY

DEVELOPMENT ROADMAP

OVERVIEW

PLANNING

Description:

Outcome:

MASTER PLAN/ LOCAL ECONOMIC DEVELOPMENT PLAN

Why Enterprise Development?

Description:

ENTERPRISE DEVELOPMENT

ROADMAP TO RURAL DEVELOPMENT

IMPLEMENTATION


Description:



Description:

REVENUE ENHANCEMENT


Description:

CAPITAL RAISING


Description:

Why Treasury?

Description

CORPORATISATION

OUTCOMES




SOCIAL DEVELOPMENT


JOB CREATION



ECONOMIC AND SOCIAL

DEVELOPMENT

POVERTY ALLEVIATION


INDUSTRIALISATION

PEACE AND HARMONY

DEVELOPMENT ROADMAP

OVERVIEW

PLANNING

Description:

Outcome:



Description:


Introduction







Recommendations

IMPLEMENTATION


Description:



Description:

REVENUE ENHANCEMENT


Description:

CAPITAL RAISING


Description:

Why Treasury?

Description

CORPORATISATION

OUTCOMES




SOCIAL DEVELOPMENT


JOB CREATION



ECONOMIC AND SOCIAL

DEVELOPMENT

POVERTY ALLEVIATION


INDUSTRIALISATION

PEACE AND HARMONY

DEVELOPMENT ROADMAP

OVERVIEW

PLANNING

Description:

Outcome:



Description:


IMPLEMENTATION


Description:



Description:

REVENUE ENHANCEMENT


Description:

CAPITAL RAISING


Description:

Why Treasury?

Description

CORPORATISATION

OUTCOMES




SOCIAL DEVELOPMENT


JOB CREATION



ECONOMIC AND SOCIAL

DEVELOPMENT

POVERTY ALLEVIATION


INDUSTRIALISATION

PEACE AND HARMONY

DEVELOPMENT ROADMAP

OVERVIEW

PLANNING

Description:

Outcome:



Description:


ROADMAP TO RURAL DEVELOPMENT (cont.)

IMPLEMENTATION


Description:



Description:

REVENUE ENHANCEMENT


Description:

CAPITAL RAISING


Description:

Why Treasury?

Description

CORPORATISATION

OUTCOMES




SOCIAL DEVELOPMENT


JOB CREATION



ECONOMIC AND SOCIAL

DEVELOPMENT

POVERTY ALLEVIATION


INDUSTRIALISATION

PEACE AND HARMONY

DEVELOPMENT ROADMAP

OVERVIEW

PLANNING

Description:

Outcome:



Description:


Introduction







Recommendations

IMPLEMENTATION


Description:



Description:

REVENUE ENHANCEMENT


Description:

CAPITAL RAISING


Description:

Why Treasury?

Description

CORPORATISATION

OUTCOMES




SOCIAL DEVELOPMENT


JOB CREATION



ECONOMIC AND SOCIAL

DEVELOPMENT

POVERTY ALLEVIATION


INDUSTRIALISATION

PEACE AND HARMONY

DEVELOPMENT ROADMAP

OVERVIEW

PLANNING

Description:

Outcome:



Description:


IMPLEMENTATION


Description:



Description:

REVENUE ENHANCEMENT


Description:

CAPITAL RAISING


Description:

Why Treasury?

Description

CORPORATISATION

OUTCOMES




SOCIAL DEVELOPMENT


JOB CREATION



ECONOMIC AND SOCIAL

DEVELOPMENT

POVERTY ALLEVIATION


INDUSTRIALISATION

PEACE AND HARMONY

DEVELOPMENT ROADMAP

OVERVIEW

PLANNING

Description:

Outcome:



Description:


ROADMAP TO RURAL DEVELOPMENT (cont.)

Introduction







Recommendations

FUNDING: IMPACT INVESTING

Grants

Debt

Debt Equity

Equity Grants

Technical Assistance

COMMERCIALIZATION

INVESTMENT STAGE

CA

PIT

AL

MIX

SCALE UP STAGE

EARLY STAGE

Introduction







Recommendations

SOLUTIONS TO SOCIO-ECONOMIC DEVELOPMENT

Corporatisation is the act of reorganising the community’s assets and operating activities

into a legal structure that is best understood by relevant and key stakeholders in both the private and public sector

It involves establishing clear corporate governance and

business management techniques to the operation and administration of these

entities.

The communities are beneficiaries of the

established entities.

Introduction







Recommendations

SOLUTIONS TO SOCIO-ECONOMIC DEVELOPMENT (cont.)

Sustainable job creation

Health and safety of society

Developing a skills base to cope with economic demands

Promote participation of SMME’s in Community’s related investments

Governance systems and development of infrastructure for improved coordination and communication between the different villages.

Benefits of Corporatisation to Community Members:

Benefits of Corporatisation to Traditional Councils:

Build trust and improve relations between community members and the leadership.

Capacitate community leaders with the required skills and knowledge to fulfil their functions.

Transparency to the community.

Create a mutually beneficial cooperation between the municipality and community administration.

Introduction







Recommendations

COMMERCIAL STRUCTURE

Traditional Community A universitas personarum under the laws

of the Republic of South Africa

Traditional CouncilTraditional Leadership and Governance Act No. 41 of 2003

Legislation and Regulations are obligatory

Commercial Private CompaniesCompanies Act, No 71 of 2008 Obligatory,

King IV serves as a guide

Non-Profit CompaniesCompanies Act, No 71 of 2008

Obligatory, King IV Serves as a guide

Community Development Trust Trust Deed and the Trust Property

Control Act obligatory

Community

Governance

Entities(Commercial & non-commercial)

Entities (Subsidiary level)

2

3

1

4

Introduction







Recommendations

COMMERCIAL STRUCTURE (cont.)

• Principles of good governance

• Formulation of governance structures

Corporate Governance

• Land management strategy

• Master Plan formulation

• Strategic planning

Key Development

Strategies

• Designing organisational structures

• Implementation of structures

• Policies and procedure formulation

Organisational Structure

• Financial record keeping and performance monitoring

• Role and establishment of treasury

• Affordability and funding structures

Financial and Treasury

• Formulation of legal structures

• Legal Entities incorporation

• Legal and tax considerations

Legal Structures

TAC²T Overview

Introduction







Recommendations

1. Economic structure• To attract investments and Private Sector participation, traditional communities should consider commercialisation of their own structures.• Create community/Private Sector/Public Sector partnership

2. Funding structure and models• Explore innovative ways to fund rural development projects such as Social Impact Bonds, Rural Infrastructure Fund, Rural Endowment Fund etc. • DFI’s must review their current Rural Development Strategies and align them to practical needs of the rural communities

RECOMMENDATIONSIntroduction







Recommendations

3. Enterprise Development• Government should designate a significant portion of its procurement to blacks in rural communities and not only blacks in broad terms

4. Ownership of commercial assets

5. All traditional communities must have government offices and this can be achieved through an office rental arrangement with traditional councils.

RECOMMENDATIONSIntroduction







Recommendations

Poverty is not an accident. Like slavery and apartheid it is man-made and can be removed by the actions of human beings. – Nelson Mandela

Introduction







Recommendations

SOCIO ECONOMIC DEVELOPMENT OF TRADITIONAL COMMUNITIES

Presented by Michael Karabo Dube 011 675 3130 [email protected]