ASSESSING THE BUFFALO CITY MUNICIPALITYS PERFOMANCE UNDER ITS DEVELOPMENTAL POST 1994 URBAN PLANNING POLICIES FOR

ECONOMIC GROWTH: THE CASE OF THE EAST LONDON IDZ

by

TOBELA MICHAEL ZENZELE TWALA

Research report submitted in partial fulfilment of the requirements for the degree Bachelor of Town and Regional Planning in the Faculty of Engineering, Built environment and Information Technology, University of Pretoria

Supervisor: Dr J Coetzee

September 2012

SUMMARY

Since the dawn of democracy in South Africa, the Buffalo City Municipality has gone through a series of highs and lows which have been outplayed in various aspects including political, socio-economic, environmental and physical. It is now evident that major development in this region has been more for the private sector than for the public sector and this made for an interesting study to find out as to why this imbalance exists. The in-depth interviews and questionnaires done for the research give a not-so-obvious account to this unbalanced development and that being the instability of the municipal structure itself. The lack of permanent appointments to important municipal positions such as the Municipal Manager and also the Chief Financial Officer have created a major instability in the functioning of the municipality. As we know municipalities are at the fore-front of government as they implement the national policy to the citizens whereby a sound municipality will produce evenly-spread growth for all stakeholders of a municipal area.

This unstable municipal environment of the Buffalo City has restricted the development potential of major interventions like the East London Industrial Development Zone to effectively engage in the upliftment of the greater Buffalo City community at large. The East Londons IDZ boasts a stable success rate that has been highly independent to the citys development visions. With the present context of integrated developmental planning in the South African municipalities, the Buffalo City Municipality and East London IDZ relationship should be better than already is. The municipality has mostly adhered to the Department of Trade and Industrys imperative to offer land and bulk services to the East London IDZ project. The poor knowledge from the public about the East London IDZ shows the lack of a facilitative role from the Buffalo City Municipality to explore this association and to further strengthen the relationship between the IDZ and the people.

The recommendations given by the researcher firstly looked at planning related ways of improving the situation then further looked at the legislation process of acts related to local municipality. The Department of Cooperative Governances policy on local government looks at how a municipality should be managed by clear and encouraging guidelines to realise a developmental sphere to local government.

ACKNOWLEDGEMENTS

The research has been a great opportunity to embark on a journey to higher intellectual standards. It was a new venture that was full of uncertainty and the following made the lesson easier and more enjoyable. The Almighty Heavenly Father who gives us life and from whom all wisdom is derived. Dr Jonny Coetzee, for being a great supervisor and friend to a young man full of dreams. Dr Thembisa Norushe who stretched a hand and gave me encouragement and free advice free of charge. Professor Mark Oranje for the encouragement and mentoring. Mr and Mrs Twala, my dear parents, who have always been supportive and believed in me even when I didnt. Miss Sharon Machika for being my sunshine, always.

The following helped a great deal by investing their time, knowledge and patience to offer me with more than I thought I needed in terms of the research content itself. Mr Nangamso Mabindla Mr Ray Hartle Mr Kreason Naidoo Mr Raymond Foster

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TABLE OF CONTENTS

Page Declaration of originality Summary Acknowledgements List of tables List of figures List of abbreviations i ii iii vii viii ix

1. 1.1 1.2 1.3 1.4 1.5 1.6

General Introduction Introduction Area of Study (Frame of Reference) Problem Statement Research Question and Sub-Problems Objective and Significance of Study Concluding Remarks

1 1 2 2 3 4 4

2. 2.1 2.2 2.3 2.4 2.5

Methodology Role of the Researcher Nature of Study Limitations and Delimitations Data Collection Method and Analysis Strategies Time Frame

5 5 5 6 7 8

3. 3.1 3.2 3.2.1 3.2.2 3.2.3 3.3 3.3.1 3.3.2 3.3.3 3.3.4

Review of Related Literature Introduction Post 1994 South African policies A Rationale National Spatial Development Perspective (NSDP) Accelerated and Shared Growth Initiative South Africa (ASGISA) Buffalo City Municipality Post 1994 Policies A Rationale The Buffalo City Integrated Development Plan (BCDIP) Buffalo City Spatial Development Framework (BCSDF) Buffalo City Development Strategy (BCDS) iii

9 9 9 9 10 10 11 11 11 11 12

3.3.5 3.3.6 3.3.7 3.3.8

Buffalo City Local Economic Development Strategy (BCLEDS) Buffalo City Youth Development Strategy (BCYDS) Buffalo City Integrated Transport Plan (BCITP) Buffalo City Integrated Environment Management Plan (BCIEMP)

12 12 12 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 18

3.3.9 Buffalo City Integrated Waste Management Plan (BCIWMP ) 3.3.10 Buffalo City Management Plan (BCMP) 3.3.11 Buffalo City Turnaround Strategy 3.3.12 Eastern Cape Provincial Growth and Development Plan (ECPGDP) 3.4 3.4.1 3.4.2 3.4.3 3.5 3.5.1 3.5.2 3.5.3 3.6 3.6.1 3.6.2 3.7 Buffalo City Planning related legislation A Rationale The Development Facilitation Act of 1995 (DFA) Skills Development Act of 1998 (SDA) The Industrial Development Zone and related policies A Rationale Eastern Cape Provincial Industrial Development Strategy, ECPIDS The National Industrial Policy Action Plan 2011/12 2013/14, IPAP-II South African Governance In General A Rationale Governance of Local Municipalities Concluding Remarks

4.

The State of Local Government Development Policy in South Africa Post 1994 19

5.

The Performance of the Buffalo City Municipality

21

6.

The state of Industrial Development Zones in South Africa What Role Does the East London IDZ Play in Buffalo Citys Economy?

24

7.

27

8. 8.1 8.2 8.2.1 8.2.2 8.2.3 8.2.4

Analysis and Themes Introduction Analysis of Interviews In-Depth Interviews Public Questionnaire What the surveys show Themes formed from interviews iv

30 30 30 30 34 36 37

8.3

Conclusion Remarks

38

9. 9.1 9.2 9.2.1

Synthesis and Recommendations Introduction Synthesis General knowledge of the East London IDZ and its proper incorporation with the Buffalo City Municipality

39 39 39

39

9.2.2

Maximum use of the East London IDZ potential and Buffalo City Municipality association to accelerate regional economic growth 40

9.2.3

Incorporation of other sectors like education, business forums and Local Economic Development to add value to the holistic macro- economic programme of the East London IDZ 41

9.2.4

Proper functioning of the Buffalo City Municipality with a strong emphasis on integrated development 42 43

9.3

What Can Be Recommended?

10.

Synopsis of Chapters

46

11.

General Conclusion

48

REFERENCES

50

APPENDICES APPENDIX 1: IN-DEPTH INTERVIEW QUESTIONS APPENDIX 2: PUBLIC QUESTIONNAIRE APPENDIX 3: MAP OF AREA OF STUDY

58 58 60 61

LIST OF TABLES

Page Table 1.1: Showing administrative changes that have taken place in the Buffalo City. Table 4.1: African trends in governance: 1996-2002 Table 5.1: Buffalo City percentage distribution of households by type of main dwelling Table 5.2: Income Statements for Respective Years: 1 July 30 June 1 19 21 22

vi

LIST OF FIGURES

Page Figure 5.1: Municipal Scoreboard Figure 5.2: Populations 2001 and 1996 Figure 7.1: East London IDZ timeline with milestone 21 22 27

vii

ACRONYMS AND ABBREVIATIONS

AIDS: APS: ASGISA: BBBEE: BC: BCDS: BCEDF: BCITP: BCLEDS: BCHP: BCIDP: BCIWMP: BCM: BCMM: BCMP: BCP: BCSDF: BCTMP: BCYDS: BEE: BPO: BRICS: CBD: CEC: CDS: CGE: CIF: CIP: CSA: CSIR: CTPPC: DCCS: DSBA: DEAT:

Acquired Immune Deficiency Syndrome Anti-Poverty Strategy Accelerated and Shared Growth Initiative South Africa Broad Based Black Economic Empowerment Buffalo City Buffalo City Development Strategy Buffalo City Economic Development Framework Buffalo City Integrated Transport Plan Buffalo City Local Economic Development Strategy Buffalo City Housing Policy Buffalo City Integrated Development Plan Buffalo City Integrated Waste Management Plan Buffalo City Municipality Buffalo City Metropolitan Municipality Buffalo City Management Plan Buffalo City Planning Buffalo City Spatial Development Framework Buffalo City Tourism Master Plan Buffalo City Youth Development Strategy Black Economic Empowerment Business Process Outsourcing Brazil, Russia, India, China and South Africa Central Business District Committee for Environmental Co-ordination City Development Strategy Commission for Gender Equality Critical Infrastructure Fund Critical Infrastructure Programme Customs Secured Areas Council for Scientific and Industrial Research Consulting Town Planning Private Company Duty Credit Certificate Scheme Development Bank South Africa Department of Environmental Affairs and Tourism viii

DFA: DPSA: CSIR: DTI: DWAF: ECPGDP: ELCC: ELIDZ: ELTLC: EU: EPZ: FDI: FIG: FTZ: FZ: GDP: GEAR: GIS: HIV: HSRC: IDP: IDZ: IMF: IPAP: ISRDS: JIPSA: JSE: KWT: LED: LGSA: LGTAS: LUMP: MBSA: MEC: MSA: MURP:

Development Facilitation Act Department of Public Service and Administration Council for Scientific and Industrial Research Department of Trade and Industry Department of Water Affairs and Forestry Eastern Cape Provincial Growth and Development Plan East London City Councils East London Industrial Development Zone East London transitional local council European Union Export Processing Zones Foreign Direct Investment Foreign Investment Grant Free Trade Zone Free Zone Gross Domestic Product Growth Employment and Redistribution Strategy Geographic Information Systems Human Immune Virus Human Science Research Council Integrated Development Planning Industrial Development Zones International Monetary Fund Industrial Policy Action Plan Integrated Sustainable Rural Development Strategy Joint Initiative for the Prioritization of Scarce Skills Junior Stock Exchange King Williams Town Local Economic Development Local Government Strategic Agenda Local Government Turn Around Strategy Land Use Management Plan Mercedes Benz South Africa Minerals Energy Complex Municipal Systems Act Mdantsane Urban Renewal Programme ix

NEPAD: NGO: NGP: NIPF: NIPP: NSDP: NSS: PGDS: PIDS: PPP: PSP: PTA: RBIDZ: RDF: RDP: RIDS: SACU: SADC: SAHRC: SAIP: SDA: SDF: SDI: SDP: SEV: SMEDP: SMMDP: SMME: SPV: SSP: STATSSA: STP: STD: TAS: THS: TLC:

New Partnership for Africas Development Non-Government Organization New Growth Path National Industrial Policy Framework National Industrial Participation Programme National Spatial Development Perspective National Sector Strategies Provincial Growth Development Strategy Provincial Industrial Development Strategy Private-Private Partnerships Provincial Skills Plan Preferential Trade Agreement Richards Bay Industrial Development Zone Rural Development Framework Reconstruction and Development Programme Regional Industrial Development Strategy South African Customs Union Southern African Development Community South African Human Rights Commission South African Industrial Policy Skills Development Act Spatial Development Framework Spatial Development Initiatives Spatial Development Plan Special Economic Zone Small and Medium Enterprise Development Programme Small and Medium Manufacturing Development Programme Small, Medium and Micro Enterprise Special Purpose Vehicle Skills Support Programme Statistics South Africa Science and Technology Park Sexually Transmitted Disease Turn Around Strategy Tax Holiday Scheme Transitional Local Council x

TB: UDS: UDZ: WSDP: WTO:

Tuberculosis Urban Development Strategy Umzimvubu Development Zone Water Services Development Plan World Trade Organisation

xi

1. GENERAL INTRODUCTION

1.1 Introduction

This chapter of the research seeks to give a background by briefly looking at the history of the country and the local government we are studying, the Buffalo City Municipality. Moreover, we will also raise the main arguments of the dissertation, which will later make the sub-topics in chapter form. The Republic of South Africa has gone from a history of racial segregation which took effect in 1948 by legislation, to the democratic talks in the year 1990 which gave way to the dawn of democracy that took place in 1994. This transformation took the country from the economic and social unequal state to an equal state by a process of truth and reconciliation that healed the wounds of the past (Department of Welfare 2000). Chikulo adds that the initial democratic government found itself in a bigger mess than anticipated (Chikulo 2003). All spheres of government had to be re-directed to be more inclusive and solution driven and at the heart of this new change was the Constitution of the country which gave the country a foundation of a common ground regarding human rights. This change in governance trickled down to the local municipalities of South Africa including the Buffalo City Municipality wherefore the graph below gives an overview of how the municipality evolved over time.

Table 1.1 Showing administrative changes that have taken place in the Buffalo City.

Source: Buffalo City Municipality

1.2 Area of Study (Frame of Reference)

The reason I chose Buffalo City Municipality is because of the fact that little research has been done here, whereas it is a diverse area with a high development potential due to its high population density and availability of infrastructure. I believe that more can be done in the area to assist the governments ambition to raise the economic status of the country. According to the Buffalo City IDP document Buffalo City Municipality is found to the centre of the Eastern Cape Province, and is along the Indian Ocean, the area is approximately 2 515km2 with a coastline of 68 kilometres and a population of 701 895 people (Buffalo City Municipality 2010). Buffalo city is a major urban region that runs from East London through to Mdantsane and reaching Dimbaza on the west, with East London being the primary node and King Williams Town being the secondary node.

It is in this geographic setting that we find the location of the East London IDZ, in the East Londons West Bank of the Buffalo River. As seen in the East London IDZ website the East London IDZ is a 1500 hectares piece of land allocated for this intensive programme on the West Bank of the Buffalo River in the City of East London, its closeness to amenities such as the N2 national road, the river-port and the airport create good local, national and international access (East London IDZ 2011). This IDZ is unique to others in the country as it focuses on clean industry, thereby having minimal negative effects to the environment of the East London City. To gain more in-depth knowledge of the area it will be beneficial to go to the actual Buffalo City Municipal area and ELIDZ site to gain a more detailed picture of the situation at hand.

1.3 Problem Statement

The research subject as given by the University of Pretorias Town and Regional Planning department is strategic and developmental planning, which is core to the curriculum. Certainly, the lack of strategic planning, the poor governance and lack of implementation in local municipalities at present in South Africa is a major challenge and reduces the economic growth of the country. Also the indicative title given is an assessment of municipal urban performance against the background of the initial post 1994 planning policies, which I have put in the context of Buffalo City Municipality and with particular interest to the East London IDZ as a macro-economic strategy in the municipality. Following the transformation in 1994, various developmental policies and strategies were drafted by all levels of government in South Africa in-order to promote growth and development in addition to the restructuring of municipalities to maximise redistribution. Many of the planning advices specifically dealt with 2

aspects such as public transport, compaction and densification, spatial integration, poverty alleviation just to name a few. A majority of municipalities however are still struggling to properly implement policies and strategies, while urban regions in respected municipalities have not succeeded in achieving the inclusionary developmental goals that were set in municipal visions. The objectives of the research are to: Assess the current municipal urban performance of the Buffalo City region against the background of the initial post 1994 planning policies; and To explore existing opportunities of economic upliftment in the region specifically the association of the Buffalo City Municipality and East London IDZ.

1.4 Research question and sub-problems

Research question: Assessing the performance of the Buffalo City municipality in the context of its post 1994 urban planning policies with particular interest to the East London IDZ as a macro-economic strategy

Sub-Problems: 1. Sub-problem 1: Looks at the state of local government development policy in South Africa post 1994. The information will determine if the government is on track with development in-terms of meeting its goals or if there has been challenges especially with regard to the municipalities. 2. Sub-problem 2: Seeks to report on the performance of Industrial Development Zones in South Africa, it will give an economic account about the sector. This will certify the claims as stated by the DTI that the IDZs in South Africa are doing well. 3. Sub-problem 3: Takes us through the performance of the Buffalo Citys Municipality in general to give an account for the present state of affairs. It may help in making us understand economic performance by looking on the strengths and weaknesses of the municipality to provide a development environment. 4. Sub-problem 4: Leads us to the actual East London IDZ, in a pursuit to find out about the operation and also its impact on the greater Buffalo City Municipalitys economy. Basically answering the question Does this massive project have the potential to take local economic upliftment industriously or continue to undermine the Buffalo Citys slothful economic performance?

1.5 Objective and Significance of Study

In the present context of the South African government, there is a battle within the local municipalities and their communities to bring tangible sustainable economic upliftment for the good of all. Ironically, the national government has always identified the need for municipalities to be more integrated with the public and taking their views into consideration as the people will know best as to what challenges they are facing and in what type of way they prefer to be helped. The legislation of the country clearly shows the governments commitment to its local government development and to name one piece of legislation, Section 152 of the Constitution states that the objectives of local government are to provide democratic and accountable governance, to ensure the provision of services to communities in a sustainable manner and also the promotion of social and economic development (The Republic of South Africa 1996). Therefore the significance of the study is to raise awareness of the importance of the local government sphere and to further investigate how the public can be integrated to fully utilise the economic potentials in the municipalities. We will address this by looking at the macro-economic project that the Buffalo City Municipality hosts in pursuit of ways of using major development in uplifting the communities in a greater way than is presently witnessed.

1.6 Concluding Remarks According to Chikulo presently in South African governance legislative and institutional framework has been put in place and that gives an organised context regarding policy, however in spite of government efforts, a significant number of the masses still find themselves in greater poverty and an ever increasing percentage is unable to afford access to basic needs (Chikulo 2003, p.3). This shows that development in South Africa is still sidelining the poorest of the poor, and the overemphasised attempts of the government to use Local Economic Development, to counteract poverty, makes the meaning of LED to be limited to just utilising obvious skills and resources available to the communities rather than bringing in skills through global trading mechanisms such as the IDZ programme.

The research will explore South African local government development policy and look at possibly widening the scope in terms of Local Economic Development and other strategies of the South African government to involve the communities in economic empowerment.

2. METHODOLOGY

2.1 Role of the Researcher

My role as the researcher is to do all there is in my power, within the legal parameters, to give the necessary information needed to answer the research question. Like any study I will have to look at existing information related to the topic, which in this case is information about South African policy that has been drafted since 1994, governance of the country especially since the dawn of democracy, the state of the Buffalo City municipality, national industrial policy development and performance, the operation of the industrial development zones and lastly how macro-economics are important to a country and ways of keeping them worthy. It will take considerable time to carefully look through the sources on the topic and then use this information to bring context into the topic by citing and referencing in recognition of the sources used for the research. Further I am responsible in the analysis and synthesis of all the information gathered to then answer the question with good understanding. 2.2 Nature of Study

Mainly speaking, the nature of this research is a case study and this shapes its path from other studies of related subjects. According to Dul and Hak a case study research is strictly an exploratory research strategy that often leads to the alleged impossibility to generalize, and as a qualitative research it is different from other types of research as it has intensive analyses and descriptions of a system bounded by space and time (Dul & Hak 2008, p.3235). Regarding interviews it seems there are various structures of putting together questions and in this research we will look at structured questions with an approach to allow for more information to be received. Moreover as noted from Hancock & Algozzine the researcher is the primary instrument for data collection and (s)he must spend significant amounts of time in the environment being studied (Hancock & Algozzine 2006, p.7). With the nature of study for the research clear, we can now look into using the information we have gathered to then implementing the research with confidence.

This research topic needs to be conveyed in the manner of a qualitative research in-order to answer issues of governance and policy. However numerical information like statistics is useful in giving a stronger picture of scenarios and will be valuable for this research. It has been noted by Algozzine and Hancock that a particularly useful organizing framework for beginning researchers involves understanding the differences between qualitative and 5

quantitative research, and that the choice may be influenced by availability of time and resources (Algozzine & Hancock 2006). A qualitative approach requires more dialogue based way of gathering information and public questionnaires that are longer and more complex to get better information from people. Although the sources used in the literature review give enough information, considerable time and patience is required to adequately get through to the research answer. Although Dul and Hak have pointed out that when the research is quantitative in nature it tends to be finished quicker, hence we will use a qualitative approach on this study and thus use more time (Dul J & Hak T. 2008). Also it is clear that most researchers prefer to do individual interviews rather than using group sessions in pursuit of straight forward answers as groups will tend to be uncontrollable and can steer the session to another direction. Hancock & Algozzine have added that the relationship of the researcher to those being studied is a factor, and that in qualitative research the goal is to understand the situation under investigation primarily from the participants (Hancock & Algozzine 2006, p.8). This certainly is useful advice and it makes the researcher to be more aware of the people he is working with which should make for an effective session.

2.3 Limitations and Delimitations

There are quite a number of limitations and delimitations regarding the study and they are mainly based on the nature of the research being that of a mini-dissertation and therefore not covering a comprehensive study as a Masters or Phd. Limitations to the research include my personal capabilities in research as a fourth year student, financial constraints that made me to cut down on a lot of travelling to other municipalities and other IDZs in the country, time constraints as the research is done in a set time with a deadline and lastly the lack of indepth information about South African Industrial Development Zones. All these made me to have limited resources to embark on this study and I had to be strategic about the resources at my disposal so as to fully use them without waste.

Delimitations to the research included making the study to focus on one district municipality namely the Buffalo City Municipality whereas I could have looked at other municipalities with their economic development schemes. Also the fact that I chose to focus on one Industrial Development Zone, namely the East London made another delimitation. Further delimitations are that I only interviewed 4 professionals in the related sectors and lastly that I did 21 questionnaires with the public from within the Buffalo City Municipal area. As Leedy and Ormrod point out problems pertaining to research tend to emerge from larger contexts 6

and larger problem areas covered in the study resulting in a loss of sense about the research hence why I decided to basically stick within reachable bounds of the research (Leedy & Ormrod 2010, p57). 2.4 Data Collection Method and Analysis Strategies Following the literature review chapter is the chapters containing subtopics. Its in these subtopic chapters that I will go deeper into the particular matters discovered in the literature review. The subtopics will also use sources that are linked to the issues so as to thoroughly acquire knowledge about the matters holistically. The literature review and subtopic chapters will then set the foundation of the questions to be put together for the interviews and questionnaires of the study. Conveying the interviews is then going to be made easier as I will have more background information about the subject.

As already established earlier that this research is a case study, there was a programme that had to be drafted to guide the study where it made sure that I was on track to implement the processes in a logical sequence. Basically the process is the studying of the Buffalo City Municipality and East London IDZ within a South African policy context, studying industrial development in the global sense, then engaging with people from most related sectors even the general public of Buffalo City to acquire more information and lastly the analysis and synthesis of all the data. The data collection method is broken down into the following ways: a. In-depth interview sessions, where personnel were selected carefully from the

various sectors and departments that are closely related to the Buffalo City Municipality and the East London IDZ so as to acquire appropriate knowledge. The sectors consulted are the Buffalo City Planning department, Consulting Town Planning Private Company, the East London IDZ and the Daily Dispatch newspaper. b. Public questionnaire sessions that gave a general public perception about the areas

looked at by the study. The form of questionnaires in table format will be given to random people to answer. c. Hard copy documents containing previous research, books, reviews, records and

other material will be looked at in-order to get more in-depth information on the study. d. Electronic soft data in the form of online journals, books, articles and reviews will also

be consulted to add to the study.

The various stakeholders that are consulted in this process are the following: 1. Mr Raymond Foster, Buffalo City Municipality, Branch Planner-Forward Planning. 7

2. 3. 4. 5.

Mr Kreason Naidoo, Tshami Consulting cc. Mr Ray Hartle, Development Reporter-IDZ, Daily Dispatch Newspaper. Mr Mabindla, Stakeholder Relations Specialist, East London IDZ. The 21 Buffalo City residents, that were randomly selected (Aviwe Newuzayo,

Andisiwe Gobeni, Ndiphiwe Mdingi, Nani Nwabisa, Thandile Baliso, Siseko Tose, Gcina Mntonga, Thobuxolo Yeko, Tobile Faniswa, Mangaliso Madubela, Diana Nabasirye, Asanda Sululu, Lulama Sigonela, Soso Siyabonga, Zikhona Bhengu, Lelethu Delanto, Onika Nteyi, Phandulwazi Mqhayi, Lwandiso Ndzendewu, Siyanda Toyi).

Lastly, the use of statistical information is of utmost importance as it gives a more quantitative picture. By consulting sources such as STATSSA and the Buffalo City IDP to name a few, made it possible to give a more notable account to the study and all these will be further analysed and fitted into the study. Its important to clarify that as much as the study is qualitative in nature, it is however not limited to qualitative info, quantities will give a better perspective to things such as demographics and financial indicators. 2.5 Time Frame

The research study started in the first semester of the year 2011 according to the academic programme of the University of Pretoria and is set to be concluded by Ocober 2012. Which will give the research a time frame of roughly 19 months to be initiated, processed and concluded in the report document that we have today.

3. REVIEW OF RELATED LITERATURE

3.1 Introduction

In this chapter of the study we are going to look at existing work related to the topic and focus more on what the authors are saying whereby we also give them credit for their effort. As mentioned earlier the sources come with all different angles and this helps the study to have well argued content. The subjects that we will look at mainly include national and local government post-1994 policy, legislation and development strategies. As stated by Schneider & Ingram the importance of policy is such that it forms the backbone of organisations and structures in a steering way of what has to be achieved and how it can be achieved (Schneider & Ingram 1997). Because policy has such an important role to play it isnt hard to imagine that most of what we see and know has been derived from it (Easton 1965, p.12).

The driving force of South African policy is the legislation whereby most of it is contained in the Constitution of the country. The Constitution guides development in South Africa and by employing a democratic context it creates a just and fair situation in pursuit of a state whereby there is equality and poverty is eradicated. A challenge to the country is found in the policy process whereby there are good policies set in place but there is a gap between formulation and implementation. This chapter will look at all angles regarding the effectiveness of policy and legislation in the quest to point out all problems without partiality. This will be done by pointing out all policy and legislation pertaining to the development of the Buffalo City Municipality and the Industrial Development Zone. 3.2 Post 1994 South African Policies

3.2.1 A Rationale

South African policy since the dawn of democracy has gone through transitional phases in a modify-as-we-go path to get to where we are today. Initially, in the first decade policies were a direct response to racial degradation and focused more on uplifting the poor by massive infrastructure developments. The Reconstruction and Development Programme was the vehicle used for various socio-economic commitments to be targeted and set out. The next five years was then driven by GDP based development, the Growth Employment and Redistribution Strategy, which did not completely depart from earlier government policy but committed government to accelerating aspects of existing policy. GEAR was more 9

macro-economic oriented and identified the importance of global performance in the upliftment of the country. Then in this current phase we have sustainable integrated development which is slightly broader but inclusive in its development, also there is a merging of micro-economic and macro-economic strategies by introducing Local Economic Development to global markets for international trade. The above gives an account of the position we find ourselves today and also sheds light as to what major changes the country has gone through. Following are pieces of policy that relate to our topic. 3.2.2 The National Spatial Development Perspective (NSDP)

This NSDP policy gives a spatial perspective to development on a national level. It has been identified by the government that the development of spaces needs to be a national concern so as to group similar services together conveniently and to also ensure variety by balancing special services. The national plan is then adopted by provincial government which in turn allocates the goals to local government. Moreover, government shares that through the set of five normative principles the NSDP gives a more clear picture of what has to be done, how it has to be done, and what institutions have to be employed (Republic of South Africa 2006). The NSDP is a strategy that is well aware of all changes in the country including economical demographics and tries by all means to keep cultivate sustainable growth.

3.2.3 The Accelerated and Shared Growth Initiative South Africa (ASGISA)

This policy is more economical than spatial and then tends to be complex for a lay person, however its importance cannot be stressed enough. The government has seen the importance of grooming global approaches to development so that entrepreneurs can have greater doors open to them and go beyond a welfare state mentality. ASGISAs implementation programme aims to strengthen growth by looking at economic indicators of regions and most importantly the countrys GDP and with initiatives like BBBEE, JIPSA and IDZ the industrial sector has been made to be a reachable market for the South Africans (Republic of South Africa 2005). It is by ASGISA that IDZ was given birth and like any growing structure out there, successes and failures are inevitable. Hopefully this research can then make a positive contribution to improve the ELIDZs performance.

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3.3 Buffalo City Municipality Post 1994 Policies

3.3.1 A Rationale

Buffalo City Municipality as a local government body of South Africa is at the grass-root level of the governments development vision. It is then trusted with the role of facilitating service deliveries to the public on the region on behalf of national government. The existence of an Industrial Development Zone to the municipal area adds more duty to the municipality in a way that demands special attention. Ideally speaking any municipality that hosts a development like the IDZ should take advantage of the opportunity to uplift its regions economic status. This segment of the literature review explores the Buffalo City Municipal policies to assess their position with the East London IDZ. 3.3.2 The Buffalo City Integrated Development Plan (BCIDP)

The Buffalo City Municipality IDP document is the bible of the municipality and has been obligated by the Municipal Systems Act of 2000 to be a document that guides development and combines all previously separated strategies into a single document with the same vision, challenges and imperatives (Buffalo City Municipality 2010). The BCIDP is a well informative document and shows all the information regarding the Buffalo City area. Generally speaking there is a spotted mention of the ELIDZ throughout the BCIDP but it would have been to the advantage of the municipality to have an IDZ subheading to grow interest about the project and to further attract local business people who might be interested in investing.

3.3.3 The Buffalo City Spatial Development Framework (BCSDF)

The Buffalo City SDF is an offspring of the National Spatial Development Framework due to its spatial nature. Judging from the Buffalo City IDP document the municipality has a wellplanned spatial plan which looks at all land uses in a sustainable way. The East London IDZs land use can also be identified in the SDF and as can be seen it falls under the industrial area of the City of East London. This shows that the BCM has a concrete vision and that it is abiding by the countrys legislative requirements.

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3.3.4 The Buffalo City Development Strategy (BCDS)

The Buffalo City CDS Strategy is a 20-25 year long term development plan of the BCM. It is the main stimulus for development in the region of Buffalo City. As the Strategy is influenced by the Citys vision and the SA Cities Network it is not a surprise that the CDS has the four pillars it focuses on. They are Sustainable City, Inclusive City, Well-Governed City and Productive City. The Productive City pillar concerns itself with the economic matters of the BCM and the East London IDZ as an economic venture will certainly receive more direction from this pillar. Moreover the Buffalo City CDS strives on being dynamic and relevant to the municipality with current projects like the Mdantsane urban Renewal Programme executing this mandate. 3.3.5 The Buffalo City Local Economic Development Strategy (BCLEDS)

The Local Economic Development Strategy of the Buffalo City is a 5 year plan that is concerned with economic progress of communities in the Buffalo City region. In the past decade the South African government has invested in research concerning Local Economic Development in recreation of micro-economic opportunities for the general public to ease the pressure of job creation from the government. The BCLEDS is well aware that all stakeholders in the region are important in realising the goal intended by the BCLEDS, however it would have been great to see a collaboration with the East London IDZ. 3.3.6 The Buffalo City Youth Development Strategy (BCYDS)

Any future driven system will acknowledge the crucial role youth play in forward planning to ensure that the visions and long term strategies are applied and achieved. This is achieved in empowering the youth now so that in the future they will be clued up and in-line with the passion of the city. As stipulated in the IDP document, the municipality is committed to engaging with youth to work towards a strategy for their development (Buffalo City Municipality 2010, p.287). This shows that the youth is regarded as an understandable part of society in the municipality whereby their contribution is considered. Since this strategy is still in planning phase we did not find out if it integrates the East London IDZ or not.

3.3.7 The Buffalo City Integrated Transport Plan (BCITP)

With a municipality such as the Buffalo City, whereby transport networks are in high access it is pleasing to know that there is an Integrated Transport Plan to manage and maintain the 12

transport infrastructure. The Transport Plan will help to lessen traffic congestion at all road levels so that people and goods are transported efficiently and safely. The Transport Plan has been put together as mandated by The National Land Transport Transition Act 22 of 2000 (Buffalo City Municipality 2010, p.290). Buffalo City is well aware of the economic importance of the transport infrastructure within the region as seen with through vehicles, such as vehicles going to the West Bank industrial area and port, airport and also IDZ. According to the IDP, there are talks about a need for another bridge in the future to connect Mdantsane and the West Bank area, which might help in increasing access to the IDZ site (Buffalo City Municipality 2010, p.294).

3.3.8 Buffalo City Integrated Environment Management Plan (BCIEMP)

Following numerous global environmental conventions such as Local Agenda 21 in Brazil, Buffalo City Municipality has embarked on a strategy to take environmental sustainability seriously. The diversity of fauna and flora in the region has made this plan to be bigger and slightly complex compared to other municipalities. It is from this context that the municipality has then embarked on environmental awareness campaigns which strengthened environmental decorum particularly to developments like the East London IDZ (Buffalo City Municipality 2010, p.297). The ELIDZ boasts minimal negative effects to the environment as it is focused on clean industry which is mostly electronic based than mining and manufacturing of other IDZs in the country. 3.3.9 Buffalo City Integrated Waste Management Plan (BCIWMP)

As found in the Buffalo City IDP document, there is a Waste Management Plan that is in place for the management of waste formed in the city to further strengthen environmental sustainability. A region such as the Buffalo City is highly populated and a refusal system has to be proper. Guided by the Constitution of South Africa, Act 108 of 1996, Section 152, which sets out that development must not only focus on socio-economics aspects but also on sustainability to keep a good life standard for the people at large (Buffalo City Municipality 2010, p.297).

3.3.10 Buffalo City Management Plan (BCMP)

This plan is particularly concerned with the management of disasters within the Buffalo City region. According to the IDP document the City has all emergency systems in place to deal with all sorts of disaster from fires, to floods and accidents. At the backbone of the Plan lies 13

the Disaster Management Act 57 of 2002 which provides guidelines and principles to be followed to ensure readiness from natures unpredictable trials. This is remarkable as it shows that the municipality is also ready to deal with whatever setbacks that arise in the ELIDZ site.

3.3.11 Buffalo City Turnaround Strategy

This strategy found in the Buffalo City IDP document is influenced by the Cooperative Governance and Traditional Affairs Department of South Africa, and is based on issues regarding the structures of municipalities and also the changes that the South African government wants to see regarding the local municipalities. It is avoiding the generalised viewpoint upon local government by taking into consideration each municipalitys unique characteristics to the provision of services. With that said, the East London IDZ comes as a major unique development of the Buffalo City municipality and it should be given the necessary attention and support so as to reap its fruits for the greater Buffalo City Community at large. 3.3.12 Eastern Cape Provincial Growth and Development Plan (ECPGDP)

Provincial government as a connection between National and Local governments, has the advantage of getting the national perspective and also knowledge of the Local municipalities. This somehow becomes a mediatory role to ensure that municipalities are in touch with national vision. This particular plan, as seen in the Buffalo City IDP focuses on growth and development from a provincial perspective in a way that encourages developments like the ELIDZ to highly succeed.

3.4 Buffalo City Planning Related Legislation

3.4.1 A Rationale

Legislation is a crucial component to any system as it demonstrates propositions to be followed. Since it involves legal structures, its misuse calls for penalty. The importance of legislation to any level of government in South Africa is to put a sense of urgency to the municipality to produce growth. To the Buffalo City municipality legislation is key in putting the foundation of how the city should be run by making sure that all necessary legal necessities are followed and executed to then go into respected policies and plans. The 14

countrys legislation has a developmental imperative and is based on democratic principles which inspire municipalities to follow on. On this fragment of the literature review we are going to look at legislation that is used by the Buffalo City municipality that heartens major developments like the East London IDZ to be in place. This can help us to see the legislative role to be played in economic upliftment of the Buffalo City region.

3.4.2 The Development Facilitation Act of 1995 (DFA)

Following the commemoration of the democratic government in South Africa, it was crucial for government to bring a flexible way of conveying development under the developmental context of the new government. The Development Facilitation Act is to ensure that development is strongly facilitated and that it is well understood within all levels of government so that all structures should be obliged to be developmental. The Act accommodates relationships between the BCM and development agencies such as the IDZ, IDC and other related stakeholders to bring development to region. 3.4.3 The Skills Development Act of 1998 (SDA)

The government has through research over the years, after 1994, discovered that low economic status in many black societies is directly associated with education and the availability of skills. It was also learned that because of low skills output people were not employable as needed to gain economic power and hence why the Skills Development Act was put in place (The Republic of South Africa 1998). As the Act focuses on skills development it requires all corporations and organizations in the public or private sector to cultivate an environment of skills development for the greater development of the country. The IDZ project under the Buffalo City Municipality is surely a way of increasing skills shortage in the Buffalo City Region to empower people for economic opportunities.

3.5 The Industrial Development Zone and related policies

3.5.1 A Rationale

In South Africa, the Industrial Development Zones, IDZs, are part of an initiative by the Department of Trade and Industry to bring major economic upliftment and to boost the countrys GDP. This is done by taking a macro-economic approach to development and investment in looking into exporting and importing of goods with the international markets.

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Like any project the IDZ has policy that drives it and in this section we will look at what these policies imply and how should they be implemented. 3.5.2 The Eastern Cape Provincial Industrial Development Strategy (ECPIDS) The Eastern Cape Province is fortunate to house two of the countrys four IDZs, with one in Coega-PE and the other in East London. Even though these Eastern Cape IDZs differ in character one to the other they still fall under the industrial umbrella wherefore the Provincial Industrial Development Strategy gives a growth path that should be followed by these IDZs within the Eastern Cape Province. The Strategy is led by the National Industrial Policy Framework which puts the industrial sector in a developmental path of the national government vision (The Eastern Cape Provincial Government 2010). The policy is well aware of skills development and in the Buffalo City all the Industrial areas are guided by it. 3.5.3 The National Industrial Policy Action Plan 2011/12 2013/14 (IPAP-II)

This plan unites the NGP, NIPF and ASGISA to be more coherent in order to put better job output and more accelerated economic growth path. With quantitative goals the plan urges industrial processes to deliver on job opportunities and economic upliftment. It is within this urgent context that the IDZ has been constituted as can be seen in its timeline. Because of the IPAP-II the East London IDZ is designed with a more rapid and accelerated growth character so as to achieve economic success at a short space of time than other projects of its calibre in the country and greater African continent.

3.6 South African Governance in General

3.6.1 A Rationale

Regarding the South African government, Sokhela has classified relations between governmental bodies into three basic categories namely intergovernmental,

intragovernmental and extragovernmental relations (Sokhela 2006, p.6), wherefore intragovernmental relations refer to the relations within governmental bodies,

extragovernmental relations occurring between governmental bodies and external institutions, and then lastly intergovernmental relations among the various governmental bodies at the various horizontal and vertical levels (Sokhela 2006). It goes without saying that the manner in which these governmental bodies conduct their relations will have an impact on the delivery of services to the communities and it is therefore critical that they 16

conduct themselves within the spirit of the Constitution. South African governments response to the governance problem has led to the Local Government Turn Around Strategy which was presented to the parliament at the end of 2009, bringing some changes and different approaches to local governance (The Republic of South Africa 2010). The strategy has been looking at proportioning national government support towards local government according to unique needs and structure of each particular local government, which has been previously played out by the so called one size fits all approach to municipalities. 3.6.2 Governance of Local Municipalities

As commonly known, local government can be stated as the lowest level of government which serves as a regionalized institution with specific tasks delegated to it by a higher tier of government, like national government, within a geographical area. In South Africa, local government has powers derived from The Constitution of the country implying that municipalities have set mandates that are demanded by law (The Republic of South Africa 1996). Nyamukachi has also further clarified that the term local government refers to a sphere of government and not to an individual municipality, whereby the sum of all individual municipalities make up the collective sphere known as local government created for the whole of South Africa to render services in specific geographical area/locality/jurisdiction (Nyamukachi 2004, p.17). The context of institutional capacity both inside and outside of government is also important in order to advise and support rights-holders in a sound manner. Moreover, Roodt has outlined that there are various NGOs available to assist rightholders and disadvantaged people, in realising their rights whereby municipalities are no exception (Roodt 2008, p.1). This shows the governments dedication to a developmental context of government is unbiased to sphere of governance. Internationally speaking Leftwhich pronounces that the West may be said to have a genuine preference for liberal democracy and due to the advancement of civil and human rights, until recently western governments, the World Bank and the IMF have displayed no serious or consistent interest in promoting either good governance or democracy (Leftwhich 1993, p.605-612). It goes without saying that systems of governance and surely planning as a profession in South Africa have been inherited from the Western and European Countries whereby the changes in the western communities have also been experienced here at a later stage. Taylor in his articles raises 3 paradigm shifts that have taken place in AngloAmerican planning since 1945 with the first one showing how planning went from a creative design to a scientific analyst and rational decision making, the second one looks at how planning went from a technical expertise to the planner as a manager and communicator in 17

the 1960s by applying values and social norms, the third looks at the shift from modernist planning theory to post-modern planning theory, which is mostly a bold and new approach (Taylor 1999, p.328-339). Our current context of planning and running of municipalities in South Africa today is taken from this foundation which takes into consideration that to every region are unique shaping characteristics that give a different situational aspect.

3.7 Concluding Remarks

The global society is experiencing economic difficulties and this in a way is opening markets for emerging countries like South Africa which also is a member of the G-20 countries, whereby the capital infrastructure programme employed by the country offers significant potential for job creation, as do services and construction. This shows a good environment for governments in the Southern hemisphere to spread their parameters beyond their borders in a way that will shape stable economic growth. In conclusion of the whole literature review chapter, we can safely say that policy in South Africa is by no means a new or a foreign concept. The countrys democracy is standing on the foundations of all types of policy from Colonial, Apartheid and recently Democratic eras and that creates the unique element of the country. The countrys national policy which we have covered is sound with broad goals ensuring unilateral growth to give clear objectives of what should be done. On the Provincial front, the Eastern Capes industrial policy is also in line with national government and aspires to stay in line with national goals and aims. The Buffalo Citys policies also continue on the developmental vision in response to the National Governments policy, whereby the proper application of the policy process will ensure that the right policies are implemented at the right time and for the right reasons to also render accountability where necessary. Also from the various plans and strategies of the Buffalo City as mentioned in the IDP document, we can see how integrated the municipality is and how the united vision is being used in realising its development imperatives. Lastly from this chapter it seems that development is successful when conveyed in a multi-government layered and integrated manner whereby various stakeholders are to be consulted, to fully achieve a holistic growth pattern of the municipality. According to legislation, each and every municipality in South Africa is responsible for the identification of its unique issues so as to avoid taking for granted issues that may slow down growth, in a way that may raise doubts of incompetence or corruption for municipalities by national government.

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4. THE STATE OF LOCAL GOVERNMENT DEVELOPMENT POLICY IN SOUTH AFRICA POST 1994

With the dawn of democracy in 1994, the South African government had to go through major changes, from previous Bantustans and four provinces, municipalities as the forefronts for development were the places where the pressure was put. This pressure came from both sides whereby on the one side the national government expected the municipalities to do well by fulfilling all the goals that were put in place in the time frame provided and also pressure from inhabitants of the municipal areas to receive the promised services and infrastructure they were now entitled to by right. Slowly with time this made the state of the municipalities to change with time as the areas evolved and economic situations of people converted. This then led to certain geographical changes within municipalities either to expand or to contract based on the need at the time. This principle led to the present state of the country whereby the countrys administrative divisions is found in nine provinces, then below that are eight metropolitan municipalities, forty-four district municipalities and 226 local municipalities all carrying out governments plan of action (The Republic of South Africa 2010).

The new local government policy in South Africa has transformed the municipalities whereby the public participation process of governance is steering the municipalities to greater heights. The only snag that most political analysts raise to our government problems are the issues of party politics, the joint control of municipalities by political and professional appointments and lastly corruption. These are common problems that are experienced in democratic states whereby relating to Africa the UN report on Africa (2003) shows general democratic progress for the continent. Moreover, in the graph below we can see that the issue of government effectiveness is a battle and this can be understood in the light of the post-colonialism and other impediments to development in African countries.

Table 4.1: African trends in governance: 1996-2002

Indicator Voice and Accountability Political Stability Government effectiveness Regulatory quality Rule of Law Control of Corruption 1996 0.41 0.55 0.41 0.51 0.50 0.37 1998 0.42 0.53 0.47 0.58 0.53 0.37 2000 0.42 0.58 0.46 0.59 0.51 0.36 2002 0.46 0.55 0.41 0.58 0.54 0.38

Source: United Nations 2003 19

An interesting matter with this graph is the show of increase in the anti-corruption spirit of African countries to the awakening of detrimental effects of corruption to drive of development. South Africa is unyielding about this issue and is improving its actions against corruption by the day wherefore a tip-off telephonic hotline has been initiated to report corruption in government. This then makes South Africa to be a country that leads the rest of Africa in terms of innovation and development to governance, as the countries reports suggest. With the new approach to municipal management, the South African government has then identified the importance of the planning profession to the transition and realisation of the developmental local sphere as anticipated, particularly strategic planning. Kelly and Riverbark explain that theoretically speaking, strategic planning is a strict way to achieve goals and actions in a given space of time to ensure equitable service delivery (Kelly & Riverbark 2011:57). Planning as a profession is equipped to deal with challenges experienced in municipalities and with this Healey and Robinson have raised that in relation to governance, the ideology of development is posing a threat to political democracy (Healey & Robinson 1992:96). This can also explain the difficulties that are experienced in South African municipalities between qualified appointments and political appointments, as there seems to be a break in communication about development between the professionals that have been serving for years in the municipalities and political appointments that change every government term.

In response to above, the South African Department of Cooperative Governance aims to give more support to municipalities in a holistic way, from the financial management of accounts and budgets to all operations conveyed (The Republic of South Africa 2009). Moreover, the South African government has recognised the development potential of LED in the local economies and aims to look at development in this subject with more attention. Indeed South Africa since 1994 has come a long way and this chapter has shown how developments have taken place in the municipalities, putting this level of governance in the developmental context we find it today. The banner has to be taken further to the actual realisation of the developed local governments we aspire for as stated in the visions of the various documents in the country, while with a lack of stable governance in most municipalities this should take longer than necessary. With this said, the state of local government development in South Africa is satisfactory and getting better to catch up to global standards for effective local governance.

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5. THE PERFOMANCE OF THE BUFFALO CITY MUNICIPALITY

The subject of municipal performance is slightly intricate as it looks at many variables to asses good performance, also from what the South African government has comprehended is that each and every municipality has strong and weak areas that are unique to other municipalities. Looking at the case of Buffalo City Municipality, Haydam, Nuntsu and Tassiopoulos add that the municipality forms a pivotal point in the Eastern Cape Province, with its strategic and geographic positioning to the rest of the province and the country at large (Haydam, Nuntsu & Tassiopoulos 2003). As further highlighted by the Buffalo City IDP, the coastal area, the game reserves in close proximity and the Amatola mountain range found in the Buffalo City region enhance its character in a way that makes it a good spot for tourism and naturalistic development (Buffalo City Municipality 2010). The Buffalo City Municipality is the sixth largest economic centre in the country and this simulates a certain expectation to its performance to other municipalities nearby to it.

In pursuit of maintaining good performance the Buffalo City Municipality has adopted the Municipal Scorecard, MS system to help manage the municipality. The way the system works is such that indicators are grouped together into five perspectives such as costs, inputs, outputs, outcomes and process as shown in figure 5.1. below. The MS system is gearing the municipality to the stable direction it visualizes as it considers all the elements needed to ensure a good functioning municipality (Buffalo City Municipality 2010:242). Figure 5.1 Municipal Scoreboard

Costs

Inputs

Outputs

Outcomes

Financial Institutional Service Management Development Delivery Perspective Perspective Perspective

Municipal Development Perspective

A
Governance Process Perspective The Municipal Organisation The Municipal Area
Process

Source : Palmer Development Group (2006)

Source: Buffalo City IDP 2010/2011 21

Additionally, the graph below gives us a demographic account of the Municipality in-terms of which area has grown or declined by the number of persons with the two censuses of 1996 and 2001. Generally speaking the municipality has increased in population numbers and major growth has been noticed in the East London area. Therefore, regarding the population the city is progressing gently and this might be an alarm to the municipality to upgrade infrastructure to meet these ever increasing demographic demands.

Figure 5.2 Populations 2001 & 1996

Population 2001 & 1996 (Census)

Number of people

250 000 200 000 150 000 100 000 50 000 0 2001 1996

ou th

ou nd s

da nt sa ne

Lo nd o

ur al S

&

W T

as t

Area

Source: Buffalo City IDP 2010/2011

Regarding the economic performance of the municipality, the Buffalo Citys IDP document gives us an overview of the municipal area by looking at the three dominant land use patterns available, with the first being the dominant industrial and services area which provides jobs to people from East London to the Dimbaza area, although this land use is doing well it can do better by more integration with private companies for more Local Economic Development. The second land use is the peri-urban and rural areas which are dominant in intensive farming that have been doing extensively well in boosting emerging farms as identified in the Stutterheim area. The Third land use is the commercial farming areas which look at irrigation based farming.

Concerning the provision of services and infrastructure performance in the Buffalo City Local Municipality, good results can be appreciated. There has been an increase in privately owned single-stand brick-laid houses and this has seen to the decrease of the shacks in most areas. The increase in electricity usage in the BCM has also seen to the decrease of paraffin usage whereby improving the safety of the households. Piped water has increased 22

ur al N

ur r

or th

re

re

and that has decreased public water access points, in addition to this more water-based ablution facilities have been increasingly installed for the people of Buffalo City. Lastly, the disposal of solid waste has increased and that puts pressure on the available landfill on the area (Buffalo City Municipality 2010:30).

Looking at the standard of life and health in the Buffalo City Municipality we see a general improvement although an issue that is a major threat is the HIV/AIDS pandemic. The municipality has strategies that look at HIV/AIDS so as not to undermine its consequences on the overall performance of the municipality (Buffalo City Municipality 2010:32). In the area of women development changes have been seen in the municipality as there is a policy that prompts women to be represented in all ward committees to strengthen gender equality. Also youth development is a key issue in the area and it has been played out by various sport partnerships and ways to involve the youth in productive activities (Buffalo City Municipality 2010:36). The Buffalo City IDP further looks at the issue of child headed homes and vulnerable children, which unfortunately is on the increase in the area due to the HIV/AIDS pandemic. Relating to disability, the BCM Disability Strategy and Policy was launched in 2007 to quicken the process of integrating disabled people within the municipality, this shows a municipality which is committed to engaging the public holistically. According to the State of the Cities Report, 2006, only 1.2 percent of the BCM population possesses a university degree whilst 16.2 percent have no schooling at all (The Republic of South Africa 2006). This is a challenge to the region and requires the municipality to look at ways of improving the education situation in the Buffalo City region. Moreover, the 2001 BCM Quality Of Life survey shows that 58.7 percent of youth state that unemployment is a main reason for dissatisfaction with life in general (Buffalo City Municipality 2010:37). This is a call for the municipality to integrate the youth into the economic sector and major projects like the IDZ should provide a worthy platform to acquire development.

In conclusion of the matter we can see that the municipality is surely pulling all the stops to acquire its development vision to the Buffalo City region at large. The municipality is performing well generally speaking but there will have to be more pressure put on stake holders to be involved so that more rapid development is realised in the times anticipated. With the upgrade to the Buffalo City Metropolitan Municipality, the local government has a solid foundation of the context of the municipality and minimal changes have to be done inorder to maintain a positive growth record.

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6. THE STATE OF INDUSTRIAL DEVELOPMENT ZONES IN SOUTH AFRICA

Currently in South Africa and the rest of Africa, industrial development is a stagnant endeavour where very little is known about how to invest in this field and also making the natural resources available to uplift economies. As in most sectors in the African continent, South Africa is taking the lead in industrial development and continues to innovate according to global standards. Furthermore the South African Yearbook states that South Africas participation in BRICS (Brazil, Russia, India, China and South Africa) will give local firms expanded access to fast-growing markets and investment opportunities, and strengthen beneficial trade links for the African continent at large (The Republic of South Africa 2010). This shows the important role that South Africa is playing to the rest of the African continent. With the dawn of democracy and the end to sanctions which were enforced to the countrys former Apartheid regime, South Africa looked at macro-economic ways of building a nation with a steep economic imbalance and poor global trade. Following this imbalance was the stabilizing of economic conditions after strict fiscal policies and irregular inflations to take the country out of debt. As pointed by Tang, strategies like the Trade Liberalisation with the World Trade Organisation in 1993 and the free major trade agreements with the European Union and Southern African Development Community boosted our global trade as it gave the country a platform and exposure (Tang 2008). All these were advances the country needed after economic isolation to drastically boost growth. Still today, the commodity exporters in the country continue to profit from high prices to help benefit the economy of South Africa, whereby taking advantage of such opportunities is essential in progressing to the ambitious job-creation targets set out in the South African Governments New Growth Path.

In South Africa, the establishment of IDZs is a recent phenomenon that seeks to uplift investment opportunities, increase global trade and put South African products on the global map. There are currently four IDZs in the country located in Port Elizabeth, East London, Richards Bay and lastly OR Tambo International Airport (The Republic of South Africa 2010). All these IDZs have unique characteristics and are fully operational although they are all evolving in their operations. The IDZ policy that South Africa has should be useful for our country to partake in this global field. As Identified in the National Industrial Policy Framework there are various challenges to the development of the industrial economy such as the issues relating to space, the dominant middle income population that is based on the small domestic market, vulnerability of the recourse intensive economy to commodities, high global competitiveness, global trading systems and in-spite of these problems the industrial 24

sector is still growing (Republic of South Africa 2010, p.16). Also in the midst of obstructions relating to trade in South Africa, Neuland and Venter show that manufacturing is well developed and with the rising importance of tertiary industry, which presently accounts for 64 percent of total value-added in 2003 compared with 50 percent in 1990, a new direction in industrial development is definitely setting in the country (Neuland & Venter 2005, p.96). Also the National Industrial Policy Framework of South Africa has helped ASGISA in achieving its goals of accelerating GDP growth to over six percent by 2010 and to halving unemployment and poverty by 2014 and the further intensification of industrialisation towards a knowledge economy beyond 2014 whereby IDZ is key (The Republic of South Africa 2010). Looking closely at the IDZs, the Coega IDZ is known to be the largest zone-project where the government has spent about R8 billion in developing it, with R3.1 billion for a new deepwater port, R2 billion for infrastructure, R2.1 billion by the State electricity Eskom to upgrade the power supply and the State rail, whereby Transnets contribution is estimated at R500million for the upgrade of the rail facilities (Coega 2008, p.19). Then following is the East London IDZ covering 430 hectares and is the countrys first operational zone with fully developed infrastructure and operating firms estimated at a worth of over R200 million. The Richards Bay and Gauteng IDZs are still under realization and poor information is available to compare with the other IDZs in the country. According to Tang, since 2008 the East London IDZ has managed to perform better than the Coega IDZ in attracting investors, however on investment value the Coega IDZ outperforms the East London IDZ where the Coega IDZ is estimated at around R30billion compared to R920million for the East London IDZ (Tang 2008, p.7). Globally speaking Aggarwal suggests that if EPZs are located in backward areas with poor social and economic infrastructure in addition to lack of industrial culture their performance is likely to be below expectation (Aggarwal 2005, p.59). This is a problem experienced in South Africa where the IDZs are not properly incorporated with the areas they are found in, to uplift their economies and close the unemployment gap, therefore this then exposes the lack of economic upliftment of the IDZ initiative particularly to the poor communities. Moreover, government has highlighted that in 2007 both Coega and East London IDZs combined have had a positive impact of absorbing an estimated 3935 employment opportunities (The Republic of South Africa 2010). This surely is a good sign for employment although the short term nature of the contracts raises concern, the government is on a mission to provide more sustainable jobs to grow economic security for the people.

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In spite of the background situation at hand this shows that South African IDZs have managed, within the last couple of years, to successfully attract investments. Moreover the zones distrustful performance in permanent employment calls for a need to target and provide support for labour-intensive industries. Tang adds that one of the most important policy issues facing Southern African governments is how to successfully diversify their economies into the manufacturing of exports.

In conclusion, we can safely say that based on the above information the state of the Industrial Development Zones in South Africa is generally good and improving. The countrys industrial sector needs to diversify and innovate to global standards as this will accelerate the growth and put the countrys GDP on a better level so the country can look at other sectors to integrate and develop, also there needs to be a more localised context to these industrial projects so that local stakeholders can have a piece of the pie. Once again it seems to be more of a case of spot and change as we go as with many of South African policies, but for the future the government has to ensure the longevity of all the policies that support the IDZ initiative irregardless of the political party in power and to look at the whole policy process with scrutiny for the betterment of all.

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7. WHAT ROLE DOES THE EAST LONDON IDZ PLAY IN THE BUFFALO CITYS ECONOMY?

With no doubt the Department of Trade and Industry has done an exceptional job in identifying the Buffalo City region to house one of the countrys four IDZ zones. With that said, it would help with the study to look at the actual growth path that the East London IDZ has taken to get to where it is presently, below is chronological graph showing the path that has taken place since 1998 of the initiation, its implemented then to its current status, where it is an operational project.

Figure 7.1: East London IDZ timeline with milestones

Source: East London IDZ 2011

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The East London IDZ is a massive project that has made macro-economic development a more realistic concept to the region of the Buffalo City than usually perceived. With its diversification plan it has surely drawn interest from miners, farmers, logistic business personnel, construction workers, engineers, scientists and also investors. This has been particularly stimulated by its huge land size, centralised location to major transport facilities, convenient advertising and marketing platforms and lastly its developmental imperative, with all these drawn from its vision as stipulated in the ELIDZ website. Geographically speaking, East London is linked by road, rail, sea-port and air networks and is equidistant to major South African market centres such as Cape Town, Johannesburg and Durban as well as major export markets which makes this IDZ to have more geographic advantage compared to the Coega IDZ (East London IDZ 2011, p.7). This transport access supported by the Buffalo City Municipalitys Integrated Transport Plan 2010 highlights the integration and efficient use of the various modes of transport facilities already in existence within the municipality, which also urges the Buffalo City Municipality to upgrade its decaying infrastructure. As seen in the ELIDZ website the ELIDZ project as a catalyst for growth had to go an extra mile in implementing strategies using means such as BBBEE and SMME development in the region to assist in maximising its development impact in future years (East London IDZ 2009, p.7). This is a more direct way to bring upliftment to the Buffalo City region not to mention the creation of a developmental environment for the Municipality in a way that outshines the vision of the Buffalo City. This can perhaps be accounted for by the fact that IDZ is an initiative driven directly by National Government and the Department of Trade and Industry also is given greater authority in its policy and implementation so that the development can be realised quicker.

Also the construction activity of the ELIDZ helped to elevate the economy of the region as more than 11300 construction employment opportunities have been created since its inception, with a total of 72 learners receiving certification in fitting and machining, autocomponent manufacturing and welding applications (East London IDZ 2009, p.13). This is a clear indication that the East London IDZ has created job opportunities to the needy and also trained people with the skills that they need to get permanent employment or open their own practices if they had the resources. Certainly, this lessens the load for the Buffalo City Municipality in the pursuit to give skills to its residents. In turn as stipulated in the IDP, the Buffalo City Municipality is mindful of the fact that it can only encourage economic investment into the city, by providing a platform for economic dialogue for all stakeholders, including the public, to participate (East London IDZ 2009, p.15). 28

Recently, the Eastern Cape Provincial government has pledged its full support to the ELIDZ in its foresight to establish a Science and Technology Park (STP) that will replica the Innovation hub of the Gauteng Province in a quest to integrate academic institutions, research companies and the general public. This STP will draw intellectual resources from all four universities in the region, namely Rhodes University, Walter Sisulu University, Fort Hare University and Nelson Mandela Metropolitan University. This is in response to the Eastern Cape governments drive to support innovation and knowledge generation (East London IDZ 2009, p.18). This further shows the commitment of the ELIDZ to the economic upliftment of the Buffalo City region, as the introduction of the Science and Technology Park will steer development in a more innovative and inventive direction that will spark further developments within the Buffalo City region. Tribe in his article says that there is a great resource diversity in the Sub-Saharan Africa and countries have characteristics which place them close to the category of newly industrialised countries while others have very small and rudimentary manufacturing subsectors (Tribe 2000, p.12). This makes us aware of the developmental context that the African continent is under and further allows for the grooming of a sense of urgency that is needed to achieve development in this resource-rich continent. As seen in the countrys various reports, South Africa is doing well in the industrial sector because of its participation with the global village and also by readying its markets for global involvement. Regrettably the global market is highly competitive as well as brutal where weak participants are concerned, but in turn stronger markets can then have a greater influence, hence African countries need to be well established and united for a daring force.

To sum up, the chapter has done a great deal of showcasing the economic effect of the ELIDZ to the greater Buffalo City area, which apart from supplying jobs but also injecting a spirit of development within the slow paced region of the Buffalo City. Also the fact that in the BCIDP document there is dominance of the ELIDZ, as seen with a lot of strategies and frameworks, shows that the ELIDZ is recognised as a major economic player in the region. There is a clear relationship between the ELIDZ and the Buffalo City Municipality and it would be of utmost advantage if both players would support the other in ensuring rapid economic growth which at present is poorly anticipated in the region. It would be more interesting to see how the upgrade to the metropolitan municipality is going to affect the ELIDZ, on the other hand ideally speaking there should be faster growth as the municipality is now more empowered to deliver its promise.

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8. ANALYSIS AND THEMES

8.1 Introduction According to Leedy and Ormrod the term qualitative research encompasses several approaches to research that are in some respects quite different from one another (Leedy and Ormrod 2010, p.137). Having established in chapter two of this report, that the research is a case study, further gave way for a research method that yielded a collection of extensive data on the topic. This data collection has been mostly played out with the Literature Review chapter which is the most part of this report that has utilised many sources to seek findings and analyse the available data. Furthermore Mavhivha points out that by means of synthesis, the relationships between variables that are relevant to the phenomenon are reconstructed to provide insight into underlying factors associated (Mavhivha 2007, p.163).

The research indeed had a good response rate following the planned methodology, by the contact sessions of the various interviews and questionnaires conveyed. Moreover with the interview sessions, it was quite helpful to use the knowledge collected in the literature review chapter to pave the way as there was more interactive dialogue in the interviews and this encouraged the interviewees to easily bring up information that further strengthened the study. What I discovered when comparing the literature review and the interview sessions is that mostly the information I had received from sources was more politically correct as compared to the information that I received from the interview sessions, where with the interviews people painted an actual picture of what is really going on as opposed to an apparent statement. Indeed this has highlighted the importance of a research process, that it should be well planned and executed so as to receive a fortune of information. With that said, this chapter will analyse the interview and questionnaire sessions conveyed by grouping the questions with answers received, then produce themes based on grouped similar areas, which will then be synthesised to show main arguments that arose. 8.2 Analysis of surveys

8.2.1 In-Depth Interviews

Herewith is the analysis of the in-depth interviews that were done with 4 professionals from the various sectors in the Buffalo City region namely the East London IDZ, the East London local newspaper Daily Dispatch, the Buffalo City Municipal Planning Department and lastly a Consultation Planning Company. Due to the nature of the interviews being in-depth, the 30

answers received were long and broad which could have been challenging a task to put them as received but rather arranging them in a grouped and simplified format where I firstly stated the question then followed with the summarised answer. The questions are sequentially arranged as seen in the Appendix of the report and they are as follows:

The first Question insisted each interviewee to give a brief description of their background knowledge particularly their relation to planning policies in general within the Buffalo City, whereby the answers received varied from mostly direct and indirect policy work with the policies of the Buffalo City Municipality through to their interpretation and implementation.

The second question requested an account for the performance of the Buffalo City Municipality in general, bringing to light short comings and successes which are evident in the municipality. The answers were two sided, with the one side acknowledging the good success of the Municipality even making mention of the Vuna Award won in 2003, but on the other side there was a dissatisfaction given with the struggling economic performance, poor infrastructure, poor governance and an aged generation of planners still employed within the city.

The third question was interested in finding out about the relations between the municipality and the residents of the Buffalo City region. Most of the interviewees were well aware that local governance is at the forefront of the institution of government and good relations with people need to be maintained to ensure success and by this most answers were showing discontent with evidence of councillors being chased out of communities when doing public participation activities, lack of service delivery and also the problem with the rates that is troubling the municipality.

Question four wanted to know if the interviewees would say that post 1994 planning policies employed by the municipality deliver on the promises or not? The question was inspired by the fact that in South Africa there are always good policies adopted by the municipalities but following on their promises becomes a battle. Whereby the answers were mostly complimenting the municipality on satisfactory delivery on its promises although there is room for better implementation.

Question five wanted to know if the Buffalo City Municipality does review its post 1994 policies as prompted by various legislation and policy. The answers were all

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yes, with the further knowledge that every 5 years there is a review process that takes place within the Buffalo City Municipality. The relevance of the question is to find out if the municipal processes laid out in the Municipal Systems Act were being followed by the Buffalo City, as most local municipal problems start with a negligence to continually assess policies.

Question six seeks the knowledge of the interviewees regarding the East London Industrial Development Zone in general. The interviewees had a lot of information about the IDZ such as the fact that it utilised new technologies, it is an improvement in the skills of the automotive sector, it clusters like industries together and it has diversification at its core, it is unearthing new industries like aqua-culture and renewable sector industries and incubation, it is related to the Coega IDZ but focuses more on clean industries largely in support of MBSA, it is a national government initiative to combine industry into the urban development, and lastly that the East London IDZ is the best performing IDZ in the country as it is aligning itself with market demands by the use of world class facilities.

Question seven seeked to ask the very important question of the economic role that the East London IDZ plays as an economic-boosting intervention to uplifting Buffalo Citys economy? The answers ranged from a lack of knowledge about the economic role that the ELIDZ plays to the fact that yes the IDZ did bring more jobs to the region which should mean that there is an economic boost. One answer that stood out is the cause for concern about the rand spent versus the rand earned issue as it seemed that more money was being invested by the DTI compared to the money being returned in incomes of employees, but then again it would be unfair not to state that the East London IDZ is still growing.

Question eight seeks to know that with the general knowledge of the Buffalo City region and the extent of poverty in the area, do interviewees believe that a macroeconomic initiative like the Industrial Development Zone is as effective in eradicating poverty, if not what should the municipality rather look at? The answers once again differed immensely with one saying yes the macroeconomic initiative is as effective but there needs to be more use of the IDZ opportunity than already exists. Another answer said that sustainable facilitation of jobs is what is needed more than just irregular job provision, then one answer looked at the municipality itself and its functioning role to provide an environment where bureaucracies can partake.

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Question nine is about the knowledge of the interviewees concerning the policies that encourage economic development within the Buffalo City Municipality and municipalities in general. The answers that were given included knowledge about the National Growth Plan, City Development Strategy with Integrated Development Planning, Local Economic Development focus on SMMEs, Tourism Development Strategy, Rural and Agricultural Strategy, Bed and Breakfast Strategy and Economic Development Strategy. The interviewees indeed had good knowledge about the policies, but knowledge alone will not guarantee success unless the policies are put to good use.

Question ten is interested to find out if the Industrial Development Zone is regarded as a success or failure? If yes why and if not why? The interviewees all agreed that it is a success, and the reasons are the spending of over a billion rands in infrastructure, creation of jobs, the building of new sectors, 24 investors in the site, the fact that the IDZ is bringing development to the Buffalo City area, it has been able to attract industries that suit the area and by the incorporation of medium type of industries. One interviewee also said no because of the poor attraction of business.

Question eleven enlightened a curiosity I had on the interviewees as to what would they suggest to the Buffalo City Municipality, to maximize the potential of the Industrial Development Zone? The answers received suggested an incentive system that the Municipality will use to attract investors, also the delivering on services particularly with land offers should be done quicker, a call for a properly functioning municipal structure, to promote growth, infrastructure development and investment, marketing and the initiation of a science and technology park which will link local Eastern Cape universities and the East London IDZ.

Question twelve seeks to know that within the present context of low living standards and low incomes regarding the poor of Buffalo City Municipality, do the interviewees regard top-down strategies such as the industrial Development Zone effective or do we need more bottom-up strategies, like Local Economic Development? The answers were torn between two worlds but mostly bottom-up strategies were seen as more necessary as there is a need to move away from enforcing set jobs and skills but to create an environment that stimulates entrepreneurship and diversity that will be driven by a culture of entitlement. Also the fact that the municipality has a 25% claim in the East London IDZ suggests a call for other projects to be set in place for

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the region, focus on skills, funds, and facilitation in-terms of implementing LED, SMME, entrepreneurship, and education and skills. One side said we need top-down strategies so as to keep the city on the global map.

Question thirteen is interested with the outreach role that the IDZ plays with the cross cutting issues stated in the Buffalo City IDP document 2010/2011, including HIV/Aids, Local Agenda 21, poverty, gender and disability issues, negligence of older persons and lastly the youth and children, does the Industrial Development Zone take the above into consideration? Half of the interviewees did not know if the East London IDZ was involved in a campaign of any kind and two interviewees acknowledged that the IDZ did cater for disabled persons with its procurement programme it employed and that there is learnership programmes between IDZ and office of the premier, and lastly corporate social investment.

Question fourteen opened the platform to any comments about the Municipality, the post 1994 planning policies and also Industrial Development Zone. Of which the answers were: diversification of IDZ is the future of SA, where new markets and sectors are established; more unity is needed with other departments and agencies; the municipality is upgrading into a metro and that will mean more benefits and power which should be used productively; there is great potential and we arent doing much to facilitate job creation; the IDZ is all we have; As a local authority we can still do more facilitation and creation of jobs; and the ELIDZ has geared itself for economic growth with the assistance of the city of which the economy dictates development and that would be the challenge for the IDZ.

8.2.2 Public Questionnaires

Consecutively we are now going to look at the analysis of public questionnaires that were conveyed with twenty-one people in the Buffalo City Region. The participants of this activity are people that were randomly selected then requested to fill in the questionnaire with honesty and without fear of judgement for the answers they give. Each question below has a dominant answer directly afterwards.

Question one checked if the participants all stayed within the Buffalo City region? Of which they all confirmed and indeed they all were Buffalo City residents.

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While question two seeked to find out the period that each of them stayed in the Buffalo City region? A majority of the people that were interviewed have stayed in the Buffalo City area for a term of 5 to 15 years, so they do have good background knowledge of the municipality.

Question three wanted to find out if the state of poverty with time has improved in the Buffalo City area? And a majority of the people that were interviewed think that the state of poverty of the municipality has not improved, while 40% of the people do see a recognisable improvement.

Question four wanted to know about the state of municipal management in Buffalo City Municipality? Whereby most of the people were not satisfied about the state of management and an equal number of people were neutral about the state of municipal management.

Question five seeked to get the sense of the condition of democracy in the Buffalo City region? Then a majority of the people that participated agree that a strong sense of democracy is evident in the Buffalo City Municipality and residential communities, whereby this is demonstrated by regular public participation processes.

Question six asked about the general satisfaction of the people with the Buffalo City municipality? And just over a half of the people who were interviewed said they were not satisfied with the municipality.

Question seven asks if the municipality works with communities to economically uplift the people? And the answer is that just over a half of the participants do not believe the municipality works with communities to economically uplift people.

Then Question eight assessed peoples knowledge about the East London Industrial Development Zone? Whereby a majority of the people in the municipal area do know about the East London IDZ.

Question nine wanted to know about any of the participants being employed at the East London Industrial Development Zone? Where all of the people interviewed said they are not employed at the IDZ.

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In question ten the interviewees were to state if they knew anyone that works at the East London Industrial Development Zone? Then no one knew of a person working at the East London Industrial Development Zone.

Question eleven seeked to find out about knowledge of employment opportunities offered by the East London Industrial Development Zone to the Buffalo City region. Whereby disappointingly, only 25% of the people interviewed know about the employment opportunities of the IDZ. The above questions show that there is poor marketing done by both the Buffalo City Municipality and the East London Industrial Development Zone about employment opportunities.

Question twelve wanted to find out if poverty eradication was a concern to the East London Industrial Development Zone? Just below 50% of the people interviewed knew about the poverty eradication impact of the East London Industrial Development Zone. Which shows the poor impact that the project has on the Buffalo City region.

Question thirteen wanted to know about other interventions that would be suggested to be done by the Buffalo City municipality that would be seen as more effective in raising local economies? And most people said that the municipality should look more at stimulating job creation opportunities.

Finally question fourteen wanted to know if the residents of the region were satisfied with the Buffalo City in relation to job creation and economic upliftment? A majority of the people who participated say that they are not satisfied with job creation and economic upliftment of Buffalo City

8.2.3 What the surveys show

From the surveys a broader context to the issues of the Buffalo City municipality and the ELIDZ have been brought forward. Certainly the information gathered does not seem to be far off to the reality of the performance of the Buffalo City region. It is clear that the interviews brought a hard-hitting honest view from otherwise good looking government reviews and documentation about the Buffalo City. For example the issue of irregular municipal appointments to important positions such as the municipal manager and CFO, which were not mentioned in the literature but got exposed in the interviews. That then gives

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an important reason to the poor performing municipal structure and lack of cohesiveness regarding the municipality in general. Havenga has identified the importance of the local government as that of playing a crucial role in the democratization and intensification of mass participation in the decision making process (Havenga 2002, p.50). With this we can say that a well functioning local government will then strengthen the democratic aspect of region and engage its people on all aspects such as economic upliftment. Wherefore the poor functioning of the internal structure of the municipality will lead to poor policy abidance and accountability as acting positions do not carry enough knowledge and responsibility. From the surveys the researcher has then identified dominant issues that have been identified by the participants regarding the performance of the municipality and they are:

1. Poor integration of the Buffalo City Municipality and the East London IDZ to make a successful story of the association. 2. Low social responsibility of the industrial sector that is found in the Buffalo City region. 3. Ongoing political battles within the BCM that threaten growth and paralyse the peoples interest and pride with their municipality. 4. The Buffalo Citys polarized vision between political and professional groups within the municipality, where views and influences are different. 5. Lack of the youth factor as an important stakeholder in the development vision of the Buffalo Citys IDP imperative. 6. South Africas national challenge of bridging the gap between corporate South Africa and regular citizens to realise the concept of equality.

8.2.4 Themes formed from Interviews

With the foundation established and clear the next thing to do is to analyse all this information and answers received from both the questionnaires, in-depth interview sessions and issues identified to then bring out the major findings. These findings have been carefully placed into themes that have been listed below to give us direction as to where and what needs to be recommended: Publics general knowledge of the East London IDZ and its proper incorporation with the Buffalo City Municipality. Maximum use of the potential found in the association of the East London IDZ and Buffalo City Municipality to accelerate regional economic growth.

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Incorporation of other sectors like education, business forums, and Local Economic Development in the Buffalo City region to add value to the holistic East London IDZ initiative.

Stabilizing the Buffalo City Municipalitys functioning with a strong emphasis on integrated development

8.3 Concluding Remarks In conclusion it is at this stage that we appreciate the research as we have now spotted the rat that makes the research topic to be in existence, as that being the poor relationship between the two sectors whereby various knock-on issues are slowing down the economical motivation and dampening the situation. Certainly the interviews conveyed in the research completed the research study as it gave a more public perspective to the performance of the Buffalo City Municipality and the East London IDZ. Moreover, the interviews strengthened the themes we have produced, which would have otherwise been in the danger of being too theoretical had the interviews not been conveyed. Leedy and Ormrod also add that going beyond the facts found in the literature and interpreting all the information with a closer look at patterns makes the research to be more complete (Leedy and Ormrod 2010, p138). At this point of the research we have established what the main arguments are for the research before we start suggesting solutions to counteract any irregularities existing presently in Buffalo City Municipality and the East London IDZ.

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9. SYNTHESIS AND RECOMMENDATIONS 9.1 Introduction In this segment of the report we are going to sum up all the points and arguments in a way that integrates the information so that all loopholes are covered. In the second segment follows the recommendations for the research as a way of answering the research question whereby providing the suggestions that can help our respective municipality and hopefully strengthen the relationship with the East London IDZ. 9.2 Synthesis At this stage, the next thing to do is to make sense of all this collected information so as to raise well informed arguments and set the record straight in-order to compile the recommendations. Following the identification of themes from the analysis we are now going to expand on each theme to show relevance to the study. Moreover to give a final touch to the themes we will discuss and compare the actual situation against the ideal situation. The researcher has also added his viewpoints in the themes and also proposed a few things by looking at already existing situations and research. 9.2.1 General knowledge of the East London IDZ and its proper incorporation with the Buffalo City Municipality:

One of the objectives of a local municipality is to effectively engage its residents in a public participatory way of sharing the citys vision, strategies and plans. This has not been the ideal case in this municipal area as the surveys revealed that few people know about the East London IDZ project. Obviously this is due to the poor marketing which the BCM is responsible for and also the proper incorporation of the Development Zone within the municipal region. However, as revealed in the IDP document, there are structures put in place for better exposure between the Buffalo City Municipality and the East London IDZ whereby their active utilisation is questionable.

Although the marketing of the IDZ seems to have taken a back seat and therefore adding to its low profile, the IDZ alone is operating well and expanding its territory. Moreover on the issue of incorporation the Department of Trade and Industry has explained that the IDZ concept is driven by export boosting and job creation strategies, whereby we are assessing the effectiveness of such visions within the Buffalo City context. The Buffalo Citys Economic Development Framework (2010) seemed to have focused more on LED whereas there are also macro-economic interventions like the Industrial Development Corporation and the East 39

London Industrial Development Zone that should be exploited. The municipalities as institutions that provide services and ensure proper running of the local spheres are mostly faced with the facilitative and mediative role between the public and the various sectors, where ideally speaking great conviction needs to be applied by the municipality to ensure noticeable economic growth that exploits the opportunities available.

9.2.2

Maximum use of the East London IDZ potential and Buffalo City Municipality association to accelerate regional economic growth:

Regional economic growth is an economically powerful concept and needs careful understanding especially when dealing with the stakeholders, because ideally speaking the stakeholders need to be in a cohesive spirit. The stakeholders in this case will be the Buffalo City Municipality, the East London IDZ, the political parties represented in the region, private companies that have invested in the area, the provincial industrial associations and lastly the public with their respective representatives. Pillay (2010, p.13) has proposed that stakeholders are any group and individuals who can affect or is affected by the achievement of an organizations objective, whereby within the Buffalo Citys organizational existence all stake holders have to be properly identified and incorporated into the objectives and visions of the Buffalo City IDP. From the surveys it was obvious that people knew that the East London IDZ is a major employer in the Buffalo City and also believed that there can be more that the association can harvest for both sectors involved.

However the problems to economic empowerment as Fryer (2000, p.7) has pointed out are a universal issue whereby local municipalities are no exception. These problems include scarcity, limited resources and unlimited needs. Scarcity tells us that the available resources are not enough to give to everyone, limited resources can be from anything such as labour, capital and entrepreneurship just to name a few, then unlimited needs is the fact that you can never really satisfy everyone.

The ASGISA programme looks at the incorporation of infrastructure programmes, sector investment and also skills and education issues, which the IDZ is supposed to consider and pursue as part of its community outreach programme. Also, the priorities of the NSDP document are to increase economic growth and promote social inclusion which the municipality can use to assess its Spatial Development Framework plans with. According to the Buffalo City IDP document, the Buffalo Citys SDF looks at the spatial reference of 40

development and has incorporated the new Land Use Management Systems that provide clear and logical framework for spatial development by providing an indication of where the public sector should act and also based on this, to provide a clear spatial logic that would facilitate private sector decisions on investment. This shows that the Buffalo City Municipality has done a good job in the drafting of its spatial documents, however the space should be utilised in an integrated way with the East London IDZ so as to benefit the residents of the municipality at large. 9.2.3 Incorporation of other sectors like education, business forums and Local Economic Development to add value to the holistic macro-economic programme of the East London IDZ:

The role of different sectors in any system is getting more important in this sustainable age we live in. Autonomous and separated sectors find it hard to survive and on the other hand multi-sectoral developments have proved to stand the test of time. It can be commonly thought that the strength of globalisation lies in the fact that through multiple sectors corporations can succeed so long as there are different operations it is involved in and the application of innovation as a principle. This has certainly set the stage for the importance of multiple sectors in any organisation, whereby a local government should be no exception. In his research, Gibbens (2008, p.30) has shown that South Africas IDPs reflect a multisectoral, integrated, bottom-up approach to local and regional development and are expected to give effect to notions of developmental local government. This is where the strength of the IDPs lie, to recognise all the sectors that are linked to a respective municipality then in a public participatory approach integrate all the sectors so that combined growth is realised for the good of the municipal region.

Undoubtedly the association of an industrial initiative on the level such as the East London IDZ with a local municipality brings two unique and independent sectors together in a way that is still novel in our country. Currently, all the SDFs of the cities in South Africa have an industrial zoning on them and that is as far as the association will go, without fully incorporating the municipal and industrial association, thus the East London IDZ is not taken with the recognition it should have.

From the surveys there has been a concern that local academic institutions are not benefiting from the East London IDZ as they should be or rather the IDZ is not utilising the research aspects of the academic institutions. For example, there is suggestion that the East 41

London IDZ could allow scientific research to be done in the premises especially to related subjects like engineering, chemical and biological sciences and also use some of the research projects conveyed by the academic institutions to be run on the IDZ facilities as proper business projects.

At the same time, the East London IDZ has informed us of a Science and Technology Park project that is in the pipeline to collaborate this macro-economic intervention with major academic institutions like Fort Hare University, Walter Sisulu University, Rhodes University and lastly Nelson Mandela Metropolitan University. Education particularly in the innovative side is a very important sector which can further enrich the association and cultivate a growing economic environment. 9.2.4 Proper functioning of the Buffalo City Municipality with a strong emphasis on integrated development:

The Local Government Turnaround Strategy, 2009, recognized that there is a major problem with local governments regarding internal factors within their direct control and as well as external factors that the municipality has no control over. Internal factors of local governance have a tendency to undermine the strength of any municipality and can mislead the external observers into thinking that the whole structure is out of control whereas its management issues.

This issue has been raised in the interviews and is shown from the fact that most high level posts in the Buffalo City Municipality do not have permanent appointments, and this seems to have compromised accountability and functionality of the municipality as a whole. Government has identified that with the three spheres of government, local government is at the front line of implementation and delivery, and this means that the success and failure of government is exposed by the performance of the local municipalities, of which improper municipal management jeopardizes the whole plan of good governance.

Unfortunately in the South African context local governments experience a lot of corruption and this misuse of government funding together with improper structures makes for unstable municipal management which then makes development to become a slow process. Mkhonta has also pointed out the important role that a public body plays in shaping the municipalities regarding all their needs (Mkhonta 2007, p.231), this then highlights the importance of public participation in any decision making process of municipalities.

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Gibbens has also added that the structure of a municipality should reflect the goals and purpose of the IDP (Gibbens 2008, p.116). This does make good sense as we know the IDP document of a municipality is a backbone document of a municipality, whereby if we need to get a good understanding of the municipality we must look at its IDP document. When looking at the Buffalo Citys IDP document itself we see that the East London IDZ is not given significant coverage, however there is an economic cluster subtopic visible whereby the IDZ falls under is vaguely mentioned. It would have been more effective to have an East London IDZ subtopic to show good elaboration on the actual relationship and also proper integration.

9.3 What Can Be Recommended? With the synthesis done and all the problems identified and presented, the researcher is now left with taking the baton forward and giving recommendations. It would be beneficial to the Buffalo City Municipality to consider the following recommendations and take the study solely as a research piece that has followed the research process by identifying a gap and proposing a well guided solution. The following recommendations are deducted from the research information and they are: Preservation of permanent appointments to all positions in the Buffalo City Municipality. Encouragement of political and professional cohesion to the internal employees of the Buffalo City Municipality. Proper implementation of the policy process especially with regard to the IDP. Cultivation of good public participation culture. The Buffalo City Municipality needs to facilitate the economic atmosphere that integrates all stakeholders under the Buffalo Citys region particularly the youth who are the creative segment of the region. The Buffalo City Municipality needs to exploit the existence of the Industrial Development Zone within its bounds to effectively uplift its economy and possibly enter into the global economy. Furthermore let us look at the existing legislation of our country which has been well researched and put in place for the benefit of our countrys performance. The department of Cooperative Governance in South Africa under its strategic priorities including halving poverty and unemployment, and empowering and capacitating organs of peoples power is charged with the guiding role of: ensuring hands-on support through the established system 43

and capacity-building programme; focusing on critical areas such as IDP, LED, financial management, service delivery and public participation; evaluating the impact of government programmes in municipal areas; enhancing performance and accountability by improving the quality of reporting and improving the monitoring, reporting and evaluation of capacity in local government. This is in the South African governments constitutional mandate to cover all loopholes relating to local governance and the LGSA is put in place to guide municipalities. The following Acts are implemented by the Department of Cooperative Governance to strengthen municipal performances: Intergovernmental Relations Framework Act, 2005, looks at the relationship and dependency of the three spheres of government as it has been realised that stronger ties that are collaborated in spirit are needed and more collective action is needed to ensure that there isnt a level that is left suffering. Regarding the Buffalo City Municipality we can see that there is ample support from the provincial and national governments to make its success realised. The Buffalo City Municipality will need to make more use of this relationship to its advantage.

Municipal Finance Management Act, 2003, deals with the financial management of the municipalities because mismanagement of funds is still a major concern to a lot of municipalities and financial health in a developing country faces many challenges that will need special focus. Although the Buffalo City is not doing badly in this regard, there is a gap for a more income generative system that needs to be in place in the Municipality so that the municipality will be independent and fully functional as in the initial days of democracy.

Municipal Systems Act, 2000, is an Act that looks at the overall functioning of the municipality within a collection of many subsystems by establishing a framework that monitors plans and systems in the context of changes transformations that may be evident. I would propose that the Buffalo City municipality must re-visit the Act and identify all resources it has at its disposal and see as to in what way can the economy of Buffalo City be lifted.

Municipal Structures Act, 1998, looks at the internal structures of the local municipality and ward committees whose tasks is the preparation, implementation and review of IDPs and also monitoring and reviewing of municipalities performances and how they can be managed properly to ensure that residents and municipal operations of the area are not affected by internal problems and challenges. This is crucial to any municipality as it will 44

help strengthen the IDP process to ensure a clear vision. Buffalo City should take this Act seriously and produce a local municipality that is people centred and inspired.

White Paper on Local Government, 1998, is legislation that gave birth to some of the Acts above. It looks at the new way of democracy that government has embarked on after the realisation of democracy in a country faced with the apartheid legacy. The Act takes the focus back to service delivery and the happiness of the residents. The municipality will need to revisit this piece of legislation for assistance with its performance.

With the above recommendations, it is once again clear to see that the government of the Republic of South Africa is rich in strategic policy and legislation that needs proper review and monitoring by the institutions that they are intended to guide. This may be an annual or biannual review to strengthen the performance of the respected municipalities. Future research should look at how the Buffalo City Metropolitan Municipality will work with development corporations particularly the East London IDZ to reach an economic return for the Buffalo City region that is better than the present state. Also it would be beneficial to have future research that looks at how the Buffalo City Metropolitan Municipality should strengthen its marketing and use its media resources in a way that is beneficial for the greater municipality. 9.4 Concluding Remarks As in the words of Ronald Reagan, The one irrefutable lesson of the entire post war period is contradicting the notion that rigid government control is essential to economic development. This quote tells us that governance is a system that needs to constantly update itself in the knowledge of the current trends and issues that arise in the country and in so doing will change constantly. That then informs us of the reason the South African government has experienced a lot of policy, institutional and structural changes since the democratic dawn of 1994. With the evolution of issues and global influences a nation-state is bound to change or suffer stagnation. This optimistic view point of economic development in the Buffalo City region through the ELIDZ is just one of many ways that the region can create jobs and uplift society. More dialogue is needed on this subject and future leaders that have faith in change for the greater society need to be encouraged and groomed for the region or we will continue to see slow general economic growth and stronger private growth.

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10. SYNOPSIS OF CHAPTERS Chapter one of the report was the foundation of the whole research as it gave to the reader brief background information about the geographical area being studied. The introduction looked at a brief history of South Africa, and then we zoomed in on the study area being the Buffalo City and the East London IDZ in its context presently. The problem statement gave an explanation of the problem on top of the background knowledge gained, followed by the research question and the sub-problems that were later turned into chapters of the research itself. Then chapter two of the document shares with the reader about the methodology employed in the research according to its nature, to acquire information in a process and technique that the study has followed in-order to answer the questions stated in the first chapter. The methodology will also express as to why the route of research was chosen. Next is the most important chapter of this whole document in terms of weight of content. Due to the nature of the report being an assessment of policy, this meant that an extensive analysis of policies related to the topic had to be done, of which most often than not the information found needed to be summarised as can be seen in the third chapter of this document. The literature included South African policy, Buffalo City post 1994 policy, planning legislation, IDZ policy and lastly Information about South African governance in general. Following is the fourth chapter which is the first sub-problem of our report being an assessment of the state of local government development in South Africa. Here we looked at developmental plans and policy used by local government to understand if this greater context influenced the ELIDZ to be well accommodated in the Buffalo City Municipal area. Chapter five then zoomed in on the performance of the Buffalo City Municipality whereby its facilitation role was under the spotlight, as we must remember that the research is dealing with this municipality and therefore we must get a sense of how things are to later be understood regarding the IDZ from the municipalitys standpoint. Chapter six explores the state of Industrial Development Zones in South Africa so as to better understand the East London Industrial Development Zone. The state of the IDZs in the rest of the country should influence the performance of East London IDZ as the DTIs policy will be evaluated based on all the zones. Further, we compared the performance of the ELIDZ with other IDZs in the country to get a more quantitative picture. 46

The next chapter looks at the role that the East London IDZ plays in Buffalo Citys economy. This takes us to the answer of the research question but gives us the answer while just taking the theoretical viewpoint based on content of information already available.

The eighth chapter then looks at the interviews and questionnaires that were conveyed in the study by discussing the nature of the questions and their intention then looking at the answers received that are put in a way that interprets their meaning. From the sessions then follows the formulation of themes according to key areas,

Chapter nine then synthesised the themes by giving a more content rich statement, then to give the researchers viewpoints and lastly to propose where possible. In the second segment of the chapter we look at the recommendations for the research that can be used by the Buffalo City Municipality whereby we also look at the existing legislation.

Chapter ten is the synopsis chapter of the research whereby I give a rough framework of the research study so that the objectives of each chapter are clearly outlined.

Chapter eleven is the final chapter of the research and it is only with sense that as the first chapter of the report is an introduction then the last chapter should be a conclusion so that we have a closed argument.

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11. GENERAL CONCLUSION At the present moment the City of East London has a booming private property sector, as we have noticed with the recent construction of the massive Hotel development on the Eastern Beach front right on the periphery of the Quigney suburb. There are also the booming private retail developments which can be noticed throughout the major suburbs of the East London area like the shopping plazas in the Beacon Bay area, the huge extension of the Hemmingways Casino that added a mall and parking, the major renovations that have been done on the Vincent Park Mall and parking, and lastly the recent construction of the Mdantsane Mall. From the above developments, in an apparent way of looking at development in the region people can conclude that the economy of East London is booming and the residents of the city are privileged to be closely located to this growing cake. Well, yes the developments will make East London to be one of the hyped up urban places in South Africa where there is everything that an urban area needs, but sadly, the developments will not add to the overall economic sustainability of Buffalo City region as anticipated. Putting the spotlight on the East London Industrial Development Zone, an enormous project that is a partnership between the Department of Trade and Industry and Buffalo City Municipality which has also been funded by a couple of billions of government funding and constructed with infrastructure that is world class. The East London IDZ is an excellent macro-economic project that involves governments vision to open South Africa particularly the Buffalo City region into the world of global trade. The potential for this opportunity I believe is much greater than is presently being realised and this ELIDZ development to the greater Buffalo City region, as a government development, should be geared more to the economic upliftment of the residents particularly the poor. According to Mtshweni, the Buffalo City Municipality as a state entity has a primary function to create wealth within a country and of which the degree of state intervention on the economic front is still debateable (Mtshweni 2009, p.49). Ultimately, the Buffalo City will have to look at effective policy processes that will produce a municipality that is involved and really responsive to the issue of economic upliftment. The Municipality of the Buffalo City in its new context of a metropolitan municipality will have to take this issue with a closer eye and use the new powers it has gained to its advantage. Lastly, the research has identified all the resources at the disposal of the Buffalo City region to exercise rapid economic growth such as never seen before in the region. East London is well located as it is central to major economic regions of South Africa and with added forms of transport, such as the airport and the seaport, has even greater excess to the world than 48

other regions of similar economic class. This is a stand point that needs to be marketed and fully explored by the municipality to stimulate an economic spirit in the region that touches even the scholers. The Science and Technology Park project, if driven in the same anticipation as the Innovation Hub, will also boom research and innovation to the Buffalo City region. The research has looked at the changes that have occurred in relation to local municipality and development that has been experienced. Edigheji (2007) has outlined that globalisation has two dynamic processes which are the new information technology paradigm and the massive mobility of capital. This shows what the macro-economy is driven by and certainly a city that has a macro-economic aspect should take these processes seriously. With that said we can safely close the study and hope that this document adds to the field of planning and also economics. For the researcher the study was a wonderful and informative opportunity that has enforced an attitude of academia and also patriotism for this diverse country of South Africa.

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APPENDICES APPENDIX 1: IN-DEPTH INTERVIEW QUESTIONS

Your name: The company you work for and your position:

1. Can you please give us a brief description of your background knowledge and experience in relation to planning policies:

2. Give an account for the performance of the Buffalo City Municipality in general, bringing to light short comings and successes which are evident in the municipality:

3. How are the relations between the municipality and the residents?

4. Would you say the post 1994 planning policies employed by the municipality deliver on the promises?

5. Does the Municipality review the post 1994 policies?

6. What is your knowledge of the East London Industrial Development Zone?

7. Does the Industrial Development Zone as an economic-boosting intervention help with uplifting Buffalo Citys economy, and how exactly?

8. With the General knowledge of Buffalo City region and the extent of poverty in the area, do you believe that a macro-economic initiative like the Industrial Development Zone is as effective in eradicating poverty, if not what should the municipality rather look at?

9. What policies relating to economic development and related subjects do you know of that are employed by the Buffalo City Municipality or by other municipalities that you know of?

10. Would you regard the Industrial Development Zone as a success or failure? If yes why, if not why?

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11. What would you suggest to the Buffalo City Municipality to maximize the potential of the Industrial Development Zone?

12. In the present context of low living standards and low incomes within the poor of Buffalo City Municipality, would you regard top-down strategies such as the industrial Development Zone effective or do we need more bottom-up strategies Economic Development)? (like Local

13. As outlined in the Buffalo City IDP document - 2010/2011, cross cutting issues to the municipality include HIV/Aids, Local Agenda 21, poverty, gender, disability, older persons and lastly the youth and children, does the Industrial Development Zone take the above into consideration?

14. General comments about the Municipality and the post 1994 planning policies and industrial Development Zone and/or suggestions.

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APPENDIX 2: PUBLIC QUESTIONNAIRE

QUESTION 1. Do you stay in the Buffalo City Municipal area? 2. For how long have you stayed in Buffalo City? 3. Has the state of poverty improved in the Buffalo city area? 4. How would you declare the state of the municipal management? 5. Is democracy evident in the region? 6. Are you satisfied with the COMMENTS YES NO GOOD BAD NEUTRAL

municipality? 7. Does the municipality work with communities to economically uplift people? 8. Do you know about the Industrial Development Zone? 9. Are you employed by it? 10. Do you know of a person that works by it? 11. Do you know about employment opportunities brought by the

Industrial Development Zone? 12. Does the Industrial Development Zone help to eradicate poverty? 13. What other interventions would you suggest done by the municipality that you would see as more

effective? 14. Are you satisfied about the state of the Buffalo City in relation to job creation and economic upliftment?

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APPENDIX 3: MAP OF STUDY AREA

Source: Buffalo City IDP 2010/2011

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