KZN SMALL TOWN REHABILITATION PROGRAMME PRESENTATION BY MRS BARBARA MGUTSHINI ACTING GENERAL MANAGER : SPECIAL INITIATIVES

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1 KZN SMALL TOWN REHABILITATION PROGRAMME PRESENTATION BY MRS BARBARA MGUTSHINI ACTING GENERAL MANAGER : SPECIAL INITIATIVES

2 Background PRESENTATION OUTLINE Provincial Spatial Economic Development Strategy Provincial Corridor Development Programme Links to the Small Town Rehabilitation Programme Small Town Rehab Programme Programme Objectives Small Town Budget in MTEF Criteria for selection of towns Implementation Methodology Type and focus of support Conditions Precedent

3 BACKGROUND One of the Department s mandate is to support municipalities fulfill their developmental local government obligations. A range of National and Provincial policies provide clear and compelling mandates for the Provincial Government to support small and rural municipalities with the rehabilitation of small towns as local centres of economic activity and nodes of concentrated and focused delivery of services

4 KZN GOVT PRIORITIES Rural Development and Agrarian Reform Fighting Crime and Creating Safer Communities Education and Skills for ALL Health for all Creating Decent Work and Ensuring Economic Growth Nation Building and Good Governance Social and Economic Infrastructure Cohesive and Sustainable Communities International Co-operation Sustainable Resource Management

5 PROVINCIAL SPATIAL ECONOMIC DEVELOPMENT STRATEGY (PSEDS) KZN Govt through the Economic Cluster developed the PSEDS as a sector plan of the PGDS The PSEDS recognises that: Social & economic development is never uniformly distributed Apartheid created an unnatural distortion of development This distortion must be addressed through an interventionist approach Classification of Economic Potential The economic sector has identified four key sectors as drivers of economic growth in the KZN Province. These sectors are: The Agricultural sector (including agri-processing) The Industrial sector The Tourism sector The Service sector (including government services)

6 PSEDS CONT The PSEDS is based on 4 pillars 1. Increasing investment in the province 2. Skills and capacity building 3. Broadening participation in the economy 4. Increasing competitiveness The main programmes to support the strategies are 1. Foreign Direct Investment 2. Investment in Infrastructure 3. Sector Development 4. Corridor Development Small town rehabilitation programme LED Initiatives

7 DEFINITION OF CORRIDORS Primary Corridor (PC): A corridor with very high economic growth potential within all three sectors which serves areas of high poverty densities; Secondary Corridor (SC): A corridor serving areas of high poverty levels with good economic development potential within one or two sectors

8 DEFINITION OF CORRIDORS cont PSEDS identified the following corridors in the province 3 Primary Corridors Ethekwini- Umhlathuze (PC 1) Ethekwini Msunduzi umngeni ( PC 2) ethekwini Ugu (PC 3) 14 Secondary Corridors The nodes and activity corridors don t cover the whole province. They focus only on those nodes and corridors which could have the most impact in halving poverty and unemployment to meet the MDG targets. The rest of the province cannot be neglected but the major focus of fixed investment should be directed at these nodes and development corridors

9 PSEDS Nodes and Corridors The key investment nodes and activity corridors for the cluster over the next 5 years have been identified. Primary Purpose of Activity Corridor Multi-Sectoral Activity Corridor Tourism Activity Corridor Agriculture Activity Corridor Existing Corridor

10 PRIORITY SMALL TOWN NODES IN THE PSEDS 1 St Faiths 13 Mtubatuba 2 Harding 14 Hlabisa 3 Impendle 15 Mbazwana 4 Richmond 16 Jozini 5 Weenen 17 Manguzi 6 Winterton 18 Nkandla 7 Msinga (Tugela Ferry) 19 Melmoth 8 Nqutu 20 Maphumulo 9 Dannhauser 21 Ndwedwe 10 Utrecht 22 Mandini 11 Nongoma 23 Umzimkulu 12 Ulundi 24 Ixopo 25 Kokstad

11 SMALL TOWN REHABILITATION The 25 nodes represent the identified priority small towns in the province The parent municipalities in these nodes are the poorest with limited rates base 100% grant dependent The KZN government has made an MTEF allocation of R244m towards the small town rehabilitation progrogramme. The programme is aimed at making the small towns more attractive for investment as part of Rural Development in line with priorities of government.

12 SMALL TOWN REHABILITATION The budget allocation in the MTEF is broken down as follows: Year 2009/ / /12 Budget R55m R92.5m R97.3m

13 PROGRAMME OBJECTIVES The programme has ONE aim and that is; to ensure that the competitiveness of these small towns is enhanced in order to attract investment and to retain the current investors. Support to the municipalities will be provided through grant funding for initiatives that will enhance these rural towns and create a clean and safe environment. The outcome will be the retention and attraction of investment thereby retaining and creating new work opportunities.

14 TYPICAL SMALL TOWN

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16 Three legs: BALANCED LED STRATEGY 1) Retain and grow existing businesses 2) Create new enterprises 3) Attract investment from outside For the above to occur, govt is required to make a firm foundation by investing in: Hard (physical) and soft (economic)infrastructure

17 PROGRAMME S STRATEGIC PILLARS OF SUPPORT Small Town Rehabilitation Strategic thrusts Urban Management Infrastructure Upgrade Support to Economic Sectors Address dilapidated buildings Ripple Effect Investment Well managed and inclusive small town

18 STRATEGIC THRUSTS CONTINUED Urban Management includes: by law enforcement, management of informal trading and safety in the small town including surveillance cameras, waste management Infrastructure upgrade includes maintenance of roads and storm-water, street signs, robots, power networks and waste collection points. Support to economic sectors includes assessment of those sectors with a potential to grow the economy and contribute to the GGP. Clear strategies to promote growth of these sectors in line with PSEDS should be identified informed by the area strength and competitive advantage Addressing dilapidated buildings involves implementation of building controls and rehabilitation of disused buildings. This requires investment incentives and tax rebates. Promotion of ripple pond investments as catalysts for investor confidence. This involves anchor developments that will result in the attraction of other investment opportunities.

19 CRITERIA FOR SELECTION OF TOWNS Tertiary nodes in the priority corridors as outlined in the PSEDS Municipalities that have not received any substantial support from the Neighbourhood Development Partnership Grant (NDPG) of the National Treasury Towns that have a potential for growth and could present an opportunity to provide quick wins to increase confidence in the programme Focus on a few municipalities for maximum impact 7/8 per year Each beneficiary municipality to confirm acceptance of nomination through a council resolution

20 LIST OF NODES CURRENTLY BEING SUPPORTED 2009/10 priority nodes 2010/11 priority nodes Richmond Mtubatuba Ixopo Winterton Ladysmith Ezinqoleni Nkandla Maphumulo Jozini Manguzi Tugela Ferry Nquthu Harding Utrecht Hlabisa

21 IMPLEMENTATION METHOD Projects for implementation are packaged by the beneficiary municipalities with the support of the Department and sector depts The proposed projects should change the physical outlook of a targeted town, be part of broader urban regeneration plan of a municipality, and most importantly they should have economic potential. The projects should promote job creation, local economic development and skills transfer and should have measurable impact on the lives of people on the ground.

22 IMPLEMENTATION METHOD The municipalities Business Retention and Expansion Strategies must inform most of the initiatives Private sector and business will play an important role in informing municipalities on what is required to ensure their business is retained in these small towns Stakeholder consultation critical in the identification of projects for immediate implementation

23 INSTITUTIONAL ARRANGEMENTS Municipalities were encouraged to put together institutional arrangements to enhance the implementation of the programme. The proposed arrangement promotes participatory development and democratic local governance by ensuring the participation of the relevant business communities in matters that concern business.

24 Council LED Portfolio Committee (Section 80 Committee) Town Rehabilitation Advisory Committee (Section 79 Committee) Town Rehabilitation Task Forces headed by line function managers

25 INSTITUTIONAL ARRANGEMENTS CONT The Town Rehabilitation Advisory Committee is made up of the Business Chamber, Rate Payers Association in the CBD, Taxi and transport association, informal traders association, SMME etc. The Advisory committee is informed by task forces headed by line function senior managers as follows: Infrastructure Component to look into roads, storm water, street lighting etc Law Enforcement Component Informal trading control, building control and traffic control Land use Component Land use Management, Squatters, informal Traders location, zoning of land Clean up & Greening Component - Illegal dumping, Waste management, public ablutions, town beautification

26 PARTNERSHIPS DURING IMPLEMENTATION Trade and investment arm of govt- TIKZN Tourism KZN Department of Economic Development Department of Transport Department of Agriculture and Environmental Affairs- waste management and Greening component Private sector CSI Organised business including Taxi Association Informal Business Associations

27 Grant funding for TYPE OF SUPPORT Project conceptualisation, packaging and detailed business planning Capital funding for implementation Construction Refurbishment, upgrading, or extension Projects to be implemented using EPWP principles Municipalities need to commit to funding the O and M aspects of the project

28 FOCUS OF SUPPORT The nature of support is focussed on, but not limited to interventions in CBD such as: the upgrading of road infrastructure storm water management; street lighting Parking facilities and public transport facilities ensuring that there is adequate and appropriately zoned and serviced land available for investment; developing appropriate and sustainable incentive packages to attract business interest in the PSEDS economic sectors

29 FOCUS OF SUPPORT Developing a real estate, or land development framework for these small towns, aligned to the SDF and LUMS Town beautification and greening Clean towns waste management and recycling initiatives Provision of social and economic infrastructure. Improving the physical environment in towns. Support to the informal sector Upgrade and improve quality of open space. Enhance place competitiveness Improvement in quality of transport infrastructure Creation of a safe environment

30 EXPECTED OUTCOMES Productive towns Looking into matters of economic growth and employment, information and communication technologies as well as good transportation systems. Inclusive towns Through effective and efficient service delivery by the municipalities as well as the physical rehabilitation of the small towns. Sustainable towns Through the creation of a climate conducive for investment opportunities

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32 EXAMPLE OF SOFT PROJECTS Urban Design Framework including implementation plan and list of priority projects as quick wins Supported Nquthu, Jozini, Nkandla and Msinga Town regeneration plans Sets the tone for the future vision of the town

33 EXAMPLE OF UDF

34 Tugela Ferry Urban Design Framework Node identified as the primary node in the most poverty stricken municipality of Msinga Land under Amakhosi No township establishment

35 CHALLENGES TO BE ADDRESSED Land Tenure Unplanned Urban Environment General Congestion in town Absence of by laws Absence of effective law enforcement Absence of effective urban management Lack of appropriate facilities

36 UDF OBJECTIVES Address the physical structure of the town to promote its functionality within the broader municipal economy; Promote an urban structure that will respond to the needs of the town including clarity of infrastructure requirements and the promotion of Local economic Development for the area whilst respecting the ecological integrity and environmental sensitivity; and Attracting public and private investment.

37 PROJECT PRIORITISATION Project priotisation

38 OBSERVATIONS Start small for visible impact Adopt a programme approach Cover all pillars as a focus on one aspect will not yield the desired results Results will not be visible immediately but over time Critical to have intensive consultation with stakeholders to understand expectations Everyone has a role to play- private sector, communities, the business sector

39 Provincial Level CONDITIONS PRECEDENT Clear programme objectives and implementation methodology Adoption of programme approach instead of ad hoc isolated projects Provision of seed capital to kick start implementation of catalytic projects Clear communication plan Strong partnerships with stakeholders ( pvt and public) Intersectoral coordination Clear political guidance and championing

40 Municipal Level CONDITIONS PRECEDENT Capacity to identify and package business retention and expansion initiatives Council /leadership buy in and drive Clear vision for the future growth of town ( urban design framework) Stakeholder consultation in packaging and prioritisation of projects Counterfunding to show commitment Funding for O and M Willingness to enforce by-laws

41 THANK YOU/ SIYABONGA Contact details: