DI STRI CT SOCI O- ECONOMI C PROFI LE

GROWTH &
DEVELOPMENT
SUMMI T 2007
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CONTENTS
I NTRODUCTI ON . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Ai ms of the Summi t . . . . . . . . . . . . . . . . . . . . . 1
Ai ms of thi s document . . . . . . . . . . . . . . . . . . . 2
Methodol ogy . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
DI STRI CT SNAPSHOT . . . . . . . . . . . . . . . . . . . . . . 3
Di stri ct Economy . . . . . . . . . . . . . . . . . . . . . . . 6
Economi c Competi ti veness . . . . . . . . . . . . . . . 7
Agri cul ture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Forestr y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Touri sm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Constructi on . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Fi nanci al Ser vi ces . . . . . . . . . . . . . . . . . . . . . . 11
Basi c Ser vi ces . . . . . . . . . . . . . . . . . . . . . . . . . 12
Water and Sani tati on . . . . . . . . . . . . . . . . . . . 12
El ectri ci ty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Housi ng . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Waste . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Road Mai ntenance . . . . . . . . . . . . . . . . . . . . . 15
Transpor t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Tel ecommuni cati ons . . . . . . . . . . . . . . . . . . . 16
Conser vati on areas . . . . . . . . . . . . . . . . . . . . . 17
Educati on and Ski l l s . . . . . . . . . . . . . . . . . . . 18
Soci al Ser vi ces . . . . . . . . . . . . . . . . . . . . . . . . 18
Heal thcare . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
HI V and AI DS . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Pover ty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Women . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Youth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Di sabl ed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
El derl y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Moral Regenerati on
Movement Chal l enges . . . . . . . . . . . . . . . . . . 24
Governance & Admi ni strati on . . . . . . . . . . . . 25
Admi ni strati on of Muni ci pal i ti es . . . . . . . . . . 25
Fi nanci al Resource
Chal l enges of Muni ci pal i ti es . . . . . . . . . . . . . 26
PRI ORI TY I SSUES . . . . . . . . . . . . . . . . . . . . . . . . 27
STRATEGY FOR DEVELOPMENT . . . . . . . . . . . . . 28
Pri ori ty Programmes
or Anchor Proj ects . . . . . . . . . . . . . . . . . . . . 30
PROVI NCI AL DEPARTMENT
I NFRASTRUCTURE EXPENDI TURE PLANS . . . . . 31
CONCLUSI ON . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
ACRONYMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
GDS AGREEMENT . . . . . . . . . . . . . . . . . . . . . . . . 36
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I NTRODUCTI ON
A I MS O F T H E S U MMI T
The aim of the GDS is to reach broad agreement on:
A development path and programme for the district.
What each social partner (government, business, labour,
community sector) should contribute to the implementation
of the programme.
Strengthening the strategic thrust of the district IDP to
ensure planning and implementation alignment between
the spheres of government, as well as public entities.
In this regard the GDS should seek to address the
following specific questions and issues:
The districts economic potential and which sectors of the
economy should be promoted (this would need, where
applicable, to be informed by the IDP, LED and the RIDS).
Commitments by government, business, labour and
community sector to ensure investment in each of the
sectors.
Actions required by government and each partner to
deal with constraints to such investments, including
dealing with bureaucratic delays, EIA processes and land
use management.
Building on the results of the National Growth and
Development Summit in June 2003, government
proposed that all District and Metropolitan Municipalities
hold Growth and Development Summits (GDS) in their
area of jurisdiction.
The summits should provide opportunities for building
partnerships with social partners by bringing together
representatives from the broadest sections of society:
labour, business, community sector and government
(local, province and national).
Government has identified district and metropolitan areas
as the pivotal sites on which to build an understanding
of the nature and distribution of regional economic
potential across the country.
Collaborative action between government and
social partners across all the three spheres is vital in
forging a common vision for promoting rising levels of
growth, investment, job creation, and people-centred
development.
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A I MS O F T H I S D O C U ME N T
To ensure that discussion on the above issues takes place
on an informed basis.
To present a coherent picture of the social, demographic,
and economic profile and service levels of the Ukhahlamba
area.
To present a picture of the challenges facing local
government in Ukhahlamba especially in relation to
capacity.
To suggest the mechanisms & processes for monitoring
progress on the decisions reached and the governance
framework for ongoing dialogue and feedback among
social partners.
The Ukhahlamba GDS presents a unique opportunity for
constructing partnerships and harnessing the collective
energies and contributions of a range of actors and role
players with a view to enhancing accelerated and shared
growth.
The Ukhahlamba GDS has the potential to unlock the
potential of all localities, and ensure that all sectors of
society identify their role and contribute to the common
national objective to build a better life for all.
ME T H O D O L O G Y
This profile of the Ukhahlamba District is based on a
number of documents and information from a range of
sources. These broadly include the following:
ECSECC data, publications and reports
Monitor Group Economic Profiling of the Poverty Nodes
Ukhahlamba
District and local municipal IDPs
Data from the Rapid Assessment of services in the Eastern
Cape conducted in 2006 by Fort Hare Institute for Socio-
Economic Research for the Office of the Premier
Various research reports
Social and economic infrastructure programmes required
to improve investments and provide basic services to
communities.
Contribution by each partner to the construction of such
infrastructure, including possibility of PPP.
Second Economy interventions (EPWP including roads,
home-based care and early childhood development,
cooperatives, micro-credit, procurement, land reform,
etc) and the role of each sector in such interventions.
Promoting local procurement what interventions are
required.
Improving capacity of local government and
contribution of each social partner: including role of
public sector unions in ensuring efficiency, role of all in
fighting corruption, contribution by private sector and
professionals to skills required by the district.
Establishing a partnerships and/or regional growth
coalitions which will act as a mechanism for cooperative
action at all levels and a robust framework for monitoring
and evaluating progress.
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DI STRI CT SNAPSHOT
LOCATI ON: to the north, the district borders the
Free State Province and the country of Lesotho. The district
municipalities of Alfred Nzo, OR Tambo and Chris Hani to
the east and south and the Northern Cape Province to
the west. The boundary of the district is an administrative
boundary and not necessarily an economic boundary.
POPULATI ON: About 350 000 people and with a low
growth rate. The District is generally sparsely populated,
except for the former homeland areas of Mount Fletcher,
rural parts of Tsolo and Qumbu (in Elundini) and
Sterkspruit (in Senqu). These two areas account for about
three quarters of the District population. These are also
the areas where poverty is most entrenched and basic
services backlogs most acute.
AREA: 26518km
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CULTURE: over 90% Xhosa

LANGUAGE: Xhosa, Sesotho, Afrikaans and English.

NODAL STATUS: The District has a high development
profile in terms of its Integrated Sustainable Rural
Development Programme (ISRDP) nodal status.
MUNI CI PALI TI ES: Ukhahlamba District and Gariep,
Maletswai, Senqu and Elundini local municipalities
TOPOGRAPHY: The west of the District (Gariep and
Maletswai) is dry Karoo flatland and areas of the dry
NamaKaroo Biome. The East (Senqu and Elundini) is
mountainous and wetter with elements of the Maloti
Biome. Most of the District falls within the Orange River
catchment basin, except for Elundini, which falls in the
Mzimvubu River Basin.
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S E T T L E ME NT S T R U C T U R E : There are 13 towns
in the area with the largest being Aliwal North with a
population of about 40,000, Sterkspruit, Maclear and
Mount Fletcher are secondary service and retail centres.
Ugie is an aspiring secondary town. Three rural nodes (in
the communal land area) have been defned in Elundini
and four in Senqu. The Spatial development framework for
the District defne special interventions for these diferent
categories of towns, as well as corridors and special
development areas. Diferent interventions are proposed
in each of these areas areas of severe backlogs (old
Transkei), areas of high economic potential (agriculture,
tourism), nodes with ability to support the economy
(especially primary and secondary towns).
SOCI AL STRUCTURI NG: The levels of out migration
from Ukhahlamba are higher than the provincial average.
The proportion of households reporting at least one
migrant household member amounts to 18% of district
households against 15.2% of provincial households.
While 7% of the district population overall is reported as
migrating from their household this is so for 5.6% of the
provincial population.
The combination of the limited local economy and
significant challenges in local services infrastructure and
delivery understandably result in the District recording
among the highest levels of out migration in the
province. The vast majority of migrants from Ukhahlamba
leave their households in order to take up employment
or to go in search of employment. The historically
underdeveloped areas of Senqu and Elundini also see
significant numbers of household members migrating
in order to access schools or tertiary education.
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DI STRI CT ECONOMY
There is also a perception among residents in the area
that hawking, hairdressing, clothes washing, etc are
not real jobs and they do not consider that this is a
contribution to the economy. Many people still aspire for
a government job as it is seen as secure.
It can be seen that in the manufacturing sector, growth
has occurred in the food-processing sub sector. In the
Trade, Catering and Accommodation sector there has
been very little growth in the catering side with the
largest growth occurring in the retail sub-sector. On the
Transport and Communication sector, the bulk of the
growth has been in the communication sector, and in
the Finance and business services sector, there has been
an increase in the finance sector but a decrease in the
business services sub-sector.
Overall the GGP of the district has remained a fairly
constant proportion of the provincial GGP, and the per
capital GGP of individuals within the Ukhahlamba area has
also remained fairly constant (when using constant prices)
at around 41% of the provincial per capital income.
The District area contributes about 3% of the provincial
Gross Geographic Product (GGP).
The Ukhahlamba area is one of the 13 poorest and most
poverty stricken districts of South Africa.
The 2001 Census indicated that over 86% of the residents
of the area live in poverty. This is based on that the annual
household income is below the basic annual substance
level of R19200 per year.
Of those of working age, only 18% are employed, 21% are
unemployed and 60.3% are not economically active (that is
that they have not sought work during the past 2 years).
Of those that are employed over 90% are employed
by someone else and only a very small 2.2% are self-
employed. This has a significant impact on the spirit of
entrepreneurship, where most people do not have the
experience of running their own business, and have
a history of reliance and dependency on others for
employment.
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factor mobility, reduce transport costs, promote linkages
with neighboring regions and reduce time spent in
survivalist activities such as collecting fuel and water
is the salient need in terms of Ukhahlambas economic
competitiveness.
Comparative advantage and associated opportunities
do exist in the agricultural sector as a result of labour
surpluses, pockets of fertile land and under-utilised
irrigation potential. Wool processing (in Maletswai -
which is advantaged by the N6 link to East London, and
Gariep), livestock husbandry (Elundini and Gariep), maize
(Elundini, and Senqu) and dry-land lucerne (Senqu) have
all shown signs of being suitable, but commercializing
these activities and enhancing productivity remains a
major challenge. The relative humidity (particularly in
Senqu and Elundini) and abundance of water creates
the potential for forestry (wattle) enterprises in Elundini
and for an expansion of the irrigated agricultural sector,
provided the supporting infrastructure is available.
The Districts stark topography and spectacular landscapes
in conjunction with low reported crime levels, creates the
potential for tourism. Currently inhibiting the realization
of this potential are perceptions about crime, the fact
that tourist products are neither well packaged nor well
marketed, and the lack of suitable road or rail access.
The district can reasonably anticipate investment in
infrastructure as a result of its nodal status and infrastructure
grant allocation. This should create opportunities for local
contractors in the construction industry, provided they
have the capacity to compete for tenders.
E C O N O MI C C O MP E T I T I V E N E S S
The composite competitive index for competitive
advantage in Ukhahlamba District is low in comparison to
the rest of the province. The main reason for the regions
lack of competitive activity appears to be the dearth of
basic services and economic infrastructure. Only 43.1% of
the population has access to electricity and almost 60% of
the population does not have access to reticulated water.
Further constraints on the Districts competitiveness
include prevailing tenure insecurity and ambiguous
tenure arrangements, which act as a deterrent to private
sector investment and complicate public sector efforts to
address the infrastructure backlog. There is a clear need
for an approach to communal tenure that is conducive to
attracting investment.
Easy communication is undermined by the Districts
distance from a major economic hub. As a result,
transaction costs are high. This barrier to enterprise
creation is exacerbated by the limited levels of finance
and enterprise support in the District.
The municipal economies of Ukhahlamba District are
highly concentrated. There is excessive reliance on two
sectors - agriculture and government and community
services. This renders these economies dependent on
outside goods and services (sixty per cent of purchases
are produced and manufactured outside of the region)
and vulnerable to change. Gariep is the only municipality
that does not rely on community services as the primary
contributor to revenue and employment.
The Competitiveness report (conducted for the
Provincial LED Programme) also stated that the provision
of economic infrastructure and services that enhance
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Very little agro-processing is done in the area, and most
produce is transported via road to larger centers out of
the district. Aside from agro-processing, the District has
virtually no manufacturing industry. The agro-processing
industry is also small and mainly concentrated in Aliwal
North. Nevertheless, it is quite possible that this sector
could attract some new investment linked to existing
and new primary production. Areas of interest could
include, for example game meat, fruit-processing (e.g
peaches, raspberries), nuts processing, wool products,
potato processing, tanning, stock feed etc. A thorough
sector study is required to identify and package the most
viable investment opportunities.
Livestock farming (cattle, dairy, sheep, goats) and game
are very important in the District, both for commercial
and communal farmers. Livestock farming in communal
areas is being supported by the Provincial Department of
Agriculture through construction of stock dams, dipping
tanks, shearing sheds, fencing, veterinary services etc.
Also, the District Municipality together with Gold Fields
Foundation have a Livestock Improvement Programme
in Elundini, and there is a goat project in Mount Fletcher.
The challenge is to increase incomes from communal
livestock farming. Black emerging farmers suffer from
inadequate technology, skills and market knowledge,
and therefore receive an income significantly less than
better-equipped white commercial farmers. Also, land
ownership (and not land claims: there are very few in the
District) is a major concern. Large tracts of land are either
in the hands of a few white farmers or the state. The
District Municipality should develop a register of state-
land in conjunction with DLA.
A G R I C U L T U R E
Extensive livestock farming of sheep, goats and cattle
dominate agriculture. There are pockets of dry land crop
farming especially in the wetter eastern area. Only small
isolated pockets of land are suitable for irrigation despite
having the Orange River and Gariep dam as the northern
boundary. It is currently unknown as to the impact of the
Mzimvubu Basin Asgi-SA programme on the Elundini area.
There is a diferentiation between the commercial farming
areas, which are the main economic drivers in the economy,
and the subsistence farming areas that are located in the
communal land areas. This latter sector is very dependent
on the state for fnancial support and has little ability to
use the land as collateral for obtaining loans.
The depopulation of the remote rural areas while people
move to the main roads to access services is seen as a
positive move for agriculture.
Two large areas of agricultural land reform exist in the
district, namely; Umnga Flats and Pitseng, both located
in the Elundini area.
The care and rehabilitation of land as a means of
protecting agricultural resources is of critical importance
if agriculture is to grow in the area. There is presently a
land care trials in ward four in Sterkspruit.
Land redistribution is still to be suitably addressed in the
area. For example, there is no single land redistribution
project in the area of Barkly East in Senqu LM .
Road access is constraining agricultural development in
the district area.
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New irrigation investments being implemented/planned
include the Tsitsa River Basin Project, Mzimvubu Basin
Project, Orange River Water Scheme, and Holo Hlahatsi
Dam development. Senqu Municipality has already
undertaken studies on bulk water for irrigation purposes
for the Orange and Karringmelkspruit rivers.
It is clear that crop production under irrigation if managed
well, has huge potential for job and income creation.
An industry Action Plan for arable agriculture would
probably include:
Evaluation of all existing studies relevant to the
expansion of irrigation farming in the District
Selection of priority interventions
Project design and feasibility (including environmental
impact assessment)
Land acquisition and ownership
Project financing
Farmer training and support
An industry action plan for livestock would probably
include:
Expansion of the effective NWGA model of support
Improving existing programmes designed to facilitate
skills transfer between commercial and emerging
farmers
Improved Agricultural Extension Services
Improved market access (e.g. drawing on experience of
USAID-funded project in the Chris Hani District; Middle
East goat market)
Accelerated land redistribution (with effective support)
Building animal feeds industry
Improved veld management
Move to formal land administration in communal areas
Upgrading access roads/farm logistics
Dry cropping is only feasible in small parts of the District,
underscoring the important role that irrigation schemes
can play. Dry-cropping is practiced in Elundini, and this
years ploughing under the Massive Food Programme
was 1700 hectares.
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T O U R I S M
The Districts tourism industry has grown from a low base
over the last decade and a niche market seems to have
found in the area of adventure tourism. The impact of
tourism has not really been wide felt, but it is perceived
to be a growth sector for the area due to the unique
environments, the only Ski resort in Southern Africa, hot
springs and the largest dam in South Africa.
Improved access to the District through the tarring of the
R56 between Mount Fletcher and Maclear, access from
Lesotho at Telle Bridge and the new Ugie to Langeni road
are likely to positively impact on the district area.
The potential of linking the N1 near Gariep Dam via
a scenic route to the N2 at Mthatha is currently being
explored. There is an indication that the route between
Cape Town and Durban through the district may prove to
be more attractive to tourists.
Environmental and land rehabilitation programmes
should be expanded to create jobs and to preserve the
agricultural and tourism potential of the District.
There are several interventions being planned that will
grow tourism in the District:
The Provincial Gateway Project at Aliwal North. This
involves the beautification of the town to attract
tourists to stopover. Presently the N6 with heavy trucks
passes through the town center. It would be preferable
to divert the N6 onto a parallel Street (aligned with the
bridge over the Orange River) and restore the main
street (Somerset Street) to its former glory: trees for
shade and pedestrianised.
F O R E S T R Y
There are large untapped forestry potentials in the Elundini
area, and an additional 30 000ha could be available for
the expansion of the current plantations. Construction
has recently started on the R1.5 billion PG Bison North
East Cape Forests Cluster near Ugie. This will create 3000
direct jobs and many thousands of indirect jobs. This
forestry initiative is part of the AsgiSA initiative. The
National government AsgiSA programme has identified
forestry development as a key pillar to achieving the
economic growth and development targets, and has
prioritized forestry as a key sector for support across all
tiers of government. The same is true in the PGDP, as well
as in the emerging provincial industrial plan.
There is also a potential for more forestry development in
the area but this is constrained by lack of road access into
the hinterland.
Improved linkages to Mthatha through the new Ugie
/Langeni road will enable products to be exported
from Mthata via the rail link to East London Industrial
Development Zone. With the improved road access to this
area coupled with the forestry investments it is likely that
there will be signifcant economic growth, in this area.
About 100 Interlink transport vehicles will be leaving
the particle board plant per day, this is likely to have an
impact on the tarred road networks as well as the towns
through which they will drive when taking the products
to markets (Johannesburg, Durban, exports etc).
C O N S T R U C T I O N
The Districts relatively high infrastructure budget
allocation in the Medium Term Expenditure Framework
presents opportunities for the growth of the local
construction industry (including housing, water and
sanitation, roads), and may enhance competitiveness
by addressing critical shortcomings in economic
infrastructure. The sector also offers great potential to
enhance livelihoods through the EPWP.
F I N A N C I A L S E R V I C E S
Most towns do have banks however there are exceptions,
such as Venterstad and Mount Fletcher. Due to the rural
nature of the area, while there may be banks, these do
not offer the full one-stop services, and managers are
often based in centralized offices in the district (such as
Aliwal North) or outside the district such as in Elliot. There
has been an increase in accessibility to ATMs through
the provision of in-store facilities. Financial advice is still
however very limited.
Revitalization of Aliwal Spa: This project has been
delayed by the local municipalitys determination to
retain land ownership of the facility. A more pragmatic
approach is required.
A public-private partnership should be packaged to
revive the tourist steam trains on the famous railway
reverses between Lady Grey and Barkly East.
The Madiba Corridor Route between Aliwal North and Port
St. Johns. This would include the new road between Ugie
and Langeni (with a long bridge over indigenous forest)
The Gariep Complex Project is one of the district
attractions.
There is also a dedicated District tourism organization that
would strengthen marketing and product development.
T R A D E
Social grants and employment by the government is the
largest economic sector in Ukhahlamba comprising more
than 40% of the GGP.
The District has a significant informal trading sector
(including petty producers of traditional garments etc).
This sector could be boosted by better institutional
support (e.g. SEDA has not yet established an office in
the District) and by CBD regeneration and the provision
of improved trading environments for hawkers.
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BASI C SERVI CES
Free basic services are currently being implemented in
urban areas but still at differing levels. A policy around
the matter is currently being developed.
Excepting Maletswai (22%) all local municipalities
in Ukhahlamba fall below the provincial average of
households not having any formal sanitation.
The sanitation backlogs for Elundini and Senqu make up
three quarters of the district backlogs.
Estimates of the cost of eliminating water and sanitation
backlogs in Ukhahlamba are R376 million and R332
million respectively.
Service delivery backlogs are most acute in Elundini due
to the poor road network and historical factors related
to the peripheral nature of the area under the former
Transkei regime.
WAT E R A N D S A N I T AT I O N
Significant inroads have been made in terms of extending
household water access in Ukhahlamba. The more
populous eastern parts of the district (Elundini) faces
the greatest challenges as far a water backlogs with one
third of households (34%) still relying on natural water
sources. This is significantly greater than the provincial
average (28%). According to Ukhahlamba DM 43.37% of
the people are in need of water services while 75.55% are
in need of sanitation services.
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E L E C T R I C I T Y
Some 16% of households in Ukhahlamba have been
linked to the electricity grid between 2001-2006 with 70%
and more households in Senqu, Maletswai and Gariep
now accessing electricity. Elundini however again faces
the greatest challenges as far as backlogs is concerned.
Household electricity connections in Elundini more than
doubled between 2001-2006. This however amounts to
only slightly more than one quarter (28%) of households,
which is significantly below the district and provincial
averages (60% of households for Ukhahlamba and 67%
of households for the Eastern Cape). A new 90km 132kV
line (costing about R58m) is required from Mount Frere
to Mount Fletcher to provide additional capacity to
eradicate backlogs.
It is necessary to lobby for more Municipal Infrastructure
Grant (MIG) funding to achieve national targets. There is
a clear need to revise Water and Sanitation Sector Plans,
and in particular to calculate the MIG allocations that are
required to ensure that National water and sanitation
targets are met
The eradication of water and sanitation backlogs are being
used to expand the Expanded Public Works Programme
in the District and strengthen the construction industry.
This is being implemented in the provision of water in
Mount Fletcher and in the construction of the water
pipeline to Steynsburg from the Fish River Tunnel. It
could be expanded if there were funds available.
About 50% of clinics in the district have no piped water.
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WA S T E
Solid waste removal and disposal currently poses a
significant challenge to municipalities and communities
leading to inadequate compliance with legislation and
poor service delivery.
There are however economic opportunities attached to
the management of waste in the form of recycling and
innovative concepts around space reduction in waste
processes. This potential is largely connected to the
larger economic nodes, but there are also opportunities
in smaller communities such as Rhodes, using waste from
the large tourism establishment of Tiffendell.
H O U S I N G
Due to the rural nature of the Ukhahlamba area, and
having a low proportion of urbanization, the prevalence
of informal houses (shacks) is below the provincial
average. Although there are low levels of informal housing
across the District, this does not mean there is no further
need for further RDP housing, because the definition of
informal housing does not include traditional dwellings.
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T R A N S P O R T
Of significant concern in the district with regard to its
future economic growth is that no public transport
services are offered between Venterstad and Burgersdorp
and between Lady Grey /Aliwal North and Barkly East. This
has an impact on the potentials for economic and social
linkages, and is highly frustrating for commuters and
does not support the spatial economic growth strategies
of the district area.
The improvement of roads in the Elundini area is likely
to have a wide impact on passenger transport across the
district. If the R56 becomes an alternative (even if not the
official alternative) to the N2 due to the route being shorter
(as identified in the Spatial Development Framework) this
will increase the amount of commuter traffic. Services
for public transport will need to be provided in Mount
Fletcher, Maclear, Ugie and Steynsburg.
Over the past five years, taxi facilities were constructed in
Aliwal North (as a larger modal interchange), Maclear and
Mount Fletcher. There is still a need to improve public
transport facilities in Senqu especially at Sterkspruit.
Related to provision of public transport is the need for
basic essential services such as water, sanitation and
shelters at key facilities. There is a need to provide these
services at all the nodes (rural and urban) as defined in the
Spatial Development Plan. Areas with high dependency
on public transport, especially the primary and secondary
nodes should receive priority.
R O A D MA I N T E N A N C E
While the district is covered by a network of tarred and
gravel roads, the conditions of these are a significant
challenge for the growth of the economy.
Without improved maintenance of urban streets, access
roads, district and provincial roads, goods are unable
to get to market and the market cannot be effectively
accessed by residents of the area.
Of significant importance is the constant maintenance
of key economic roads as identified as mobility corridors
in the Spatial Development Framework. This should
be supported by maintenance of gravel access roads
especially in the Elundini and Senqu areas where
population numbers are higher and untapped economic
potentials are higher.
The maintenance of tarred provincial roads will become
a significant issue of concern as they are already
deteriorating beyond reasonable repair, and the timber
industry development in the Ugie area will further
exacerbate this issue.
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6
Airfields are currently used fairly infrequently but form a
key element of the disaster management system as well
as the emergency medical system across the district area.
There are also moves afoot to bring specialised medical
support to the district areas by flying in specialised
personnel and equipment.
Tourism is also in need of improved air transport services
especially in the mountain areas. This is due to the
remote location of this area from the main urban hubs
of South Africa, but which could be a way of overcoming
the challenge of distance. The area around the town of
Rhodes has motivated for a long time for such a facility.
The maintenance of municipal airfields has received very
low priority from municipalities over the past years.
With regard to railway transport services, only one out of
the four railway lines existing in the district is effectively
operational the main line between Johannesburg and
East London. This is only accessible at Burgersdorp. This
rail line has very little impact on public transport and the
conveyance of goods to and or from the area. Infrequently
the line between Burgersdorp and Aliwal North is used
for goods.
The line between Aliwal North and Barkly East is of
unique value and could be a significant tourist attraction
if effectively maintained, managed and marketed.
Airfields are found in most of the urban settlements
and form part of the function of local municipalities. A
new airfield has been constructed in Sterkspruit by the
Department of Roads and Transport.
Communities have raised the issue of improved telephone
services as a key priority. There are also still police stations,
clinics and schools without any telephone service and
this impacts on their ability to deliver services. The
more remote areas of Elundini and Senqu are the worst
affected.
Funding for an investigation into the possibility of
providing broadband internet connections in the district
area have been agreed to by the European Union. This
could provide potential for Business Outsourcing.
T E L E C O MMU N I C AT I O N S
According to the 2001 census more than 50% of the
population has access either to a private telephone or
one nearby but there is still a section of the population
that has no access to a telephone at all. Urban areas
receive the best service. Parts of the commercial farming
areas and rural areas are provided with telephone services
based on radio linkages to towers, driven by solar panel
technology.
Cellphone services are used by a large proportion of
the population. However this service does not cover the
whole area. The mountainous nature of the area affects
reception.
It is important to note that Wetlands cover 32 square
kilometres in Elundini which includes the Gatberg
wetland the breeding ground for the endangered
wattled crane. The conservation of wetland is
being attended to through the Working for Water
programme (an EPWP programme) .
C O N S E R V AT I O N A R E A S
One provincial nature reserve, the Oviston Nature
Reserve on the banks of the Gariep Dam is located within
the Ukhahlamba District. There is discussion underway
between the Eastern Cape and Free State conservation
boards to amalgamate the management of the nature
reserves around the Gariep Dam. There have also been
proposals to expand the area under conservation in
this area, but it is likely that this will be in the form of
stewardships and not through the purchase of land by
the state.
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SOCI AL SERVI CES
is clearly the improvement of services delivery while
health infrastructure needs to be addressed in the more
desperate municipalities of Elundini and Senqu.
In the District 40% of clinics have no electricity and 50%
have no piped water.
The services delivery challenges are again greatest in
the eastern and more populous areas of Elundini and
Senqu. Generally, access to clinics and emergency health
services is lower here and often compounded by poor
access roads.
Access to primary education within the more infrastructure
poor areas of Elundini and Senqu is well within the district
and provincial norm. The focus in terms of education
Approximately 25.5% of the adult population does not
have any form of training or education, with 40.2%
only having completed grades 3-7. Only 3.3% of the
population has completed Grade 12 compared to 6.6%
in the Eastern Cape. Only 1.7% of the District population
has obtained a tertiary qualification.
The Elundini area has the largest proportion of people
having only received primary education, while the Gariep
area has the highest proportion of people (31.5%) having
never received any form of education.
This highlights the extremely low levels of education in
the District and the need to focus on education and skills
training. This can only be accomplished if the backlog in
education facilities is met.
E D U C AT I O N A N D S K I L L S
There is very limited access to higher education facilities
in the district area. Ukhahlamba has higher than the
national average of people between 5-24 years attending
school but lower than the national average for those
attending tertiary education.
According to the latest information from the Department
of Education since 1999 only five schools have been built.
The ratio between learners and educators is 1: 36.3, which
is a slight improvement.
Number of Schools, Learners and
Educators in Ukhahlamba DM:
TYPE OF SCHOOL
Combined Primary Secondary Total
Schools 173 168 46 397
Learners 60 783 31 997 22 577 126 449
Educators 1 863 984 241 3 482
Census figures show that about 50% of the total
population is of school going age.

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Other skills development initiatives will be geared
towards the Ugie development project.
LGSETA is to fund a Learnership on Municipal Finance and
Administration as well other skills programme focusing
on the unemployed. Other learnerships will be rolled out
to support the water and sanitation programmes and
more young people will be employed.
Partnerships will be forged and individual MoUs will
be entered into between the District Municipality and
the following Higher Education and Further Education
institutions :
Ikhala Public FET College
University of Fort Hare
Walter Sisulu University of Technology
University of the Free State
University of Western Cape
University of Stellenbosch
and various SETAs including LGSETA.
In partnership with the aforementioned stakeholders a
district wide skills development plan will be developed
as a post summit activity and it will be guided by the
summit resolutions .
About 41% of the Ukhahlamba Districts workforce is
made up of elementary or unskilled workers, which
is the highest percentage in the province. In Gariep,
elementary/unskilled workers make up 53% of the
workforce, but the largest numbers of unskilled workers
are in the more densely populated Senqu (3 682) and
Elundini (3 253) municipal areas. On average, 14% of
Ukhahlambas working people have professional skills,
rising to 17% in Elundini and Senqu. The less densely
populated parts appear to have more skilled people:
in Maletswai, 15% of working people are skilled, and in
Gariep, 13% are skilled.
Ukhahlamba has lower levels of senior management,
technical and clerical skills than the provinces other
district municipalities. This corresponds with low levels of
education in Ukhahlamba, and indicates a need for skills
development and education programmes.
STRATEGI C SKI LLS
DEVELOPMENT I NI TI ATI VES JI PSA
Ukhahlamba District Municipality will in partnership with
the Office Of the Premier, civil society, the business sector ,
sector departments ,community based projects and local
municipalities, embark on a massive skills development
drive in the following sectors of the economy to support
the 6% economic growth of the district:
1. Agriculture
2. Tourism
3. Infrastructure
4. Manufacturing
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0
H E A L T H C A R E
The Ukhahlamba area has 11 hospitals, including health
care centres, and 43 clinics with at least 2 clinics in each
magisterial district. The most densely populated Mount
Fletcher and Sterkspruit areas have 13 and 10 clinics
respectively. The District has about 998 hospital beds with
a serviced supply average of about 328 people per bed.
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1
H I V A N D A I D S
HIV and AIDS will have a major impact on growth and
development, and the daily lives of people in Ukhahlamba.
Ukhahlamba District had an antenatal prevalence rate
1
of
22.4% in 2004, up from 19.0% in 2002, which is well below
the average for the Eastern Cape (28.03% in 2004).
According to the HSRC 2003 household survey, HIV
prevalence is generally higher in urban informal and
urban formal settlements and lower in farm and tribal
settlements. This may account for the Districts slightly
lower prevalence rate. There is not a signifcant diference
in HIV prevalence among those working and those
unemployed. However economic status defnes access to
health facilities, education and information, assumed to
have an impact on HIV incidence, quality of life while living
with HIV and mortality. Unlike the results for South Africa
as a whole, the Eastern Cape survey shows an increasing
HIV prevalence with increasing education up to matric. The
epidemic in the province is expected to reach a peak by
2010, at about 16% of the population, before the number
of new infections evens out (ECAC, 2004).
The Department of Health has embarked on a range
of prevention, care and treatment interventions. As of
November 2006, Ukhahlamba had only one medical
facility accredited for dispensing anti-retroviral treatment,
treating a total of 825 patients. Hence, there is still a need
to accredit additional points and increase the number of
people on treatment.
Voluntary Counselling and Testing ( VCT) is officered at all
service points and in 2006 77.5% of those visiting public
clinics in the district would undergo VCT, with 71.96% in
Elundini Local Service Area (LSA), 75.84% in Maletswai
LSA and 88.14% in Senqu LSA. 26.3% of males attending
clinics did undergo VCT (DHIS).
Within the health sector the following challenges have
been identified:
Improved access roads is a necessity in order to deliver an
improved service
Water, electricity and sanitation to rural clinics
Land lines, cell phone networks for fixed clinics, radios for
mobile clinics
Plans to recruit scarce skills and train locals, incentives
to attract staff. The lack of key skills such as pharmacists,
doctors and dentists negatively affects the delivery
of services
Stipends for community participation structures, as
without active clinic committees, primary health care
cannot improve and meet the needs of communities
Mobile services replace fleet and increase to provide
equitable services. The current mobile clinic service does
not cover the whole district area and is unreliable
Build new clinics and renovate existing clinics
24 hour PHC services are lacking in the district
Emergency services are lacking in the district and with
expected economic growth it is essential that these
services improve
Availability of drugs and clinic supplies is problematic
Roll out of ARV programme is moving slowly
1 Antenatal prevalence refer to the percentage of pregnant women attending public
clinics who test positive for HIV. Data is only available per district, and it is difficult to
extrapolate this data for the entire population.
2
2
According to the RSS 2006 there has been a radical
decrease in the number of households reporting
no household income between 2001-2006. This is
accompanied by a significant increase in households
with incomes in the lower income categories accounted
for by the widespread uptake in social grants.
With a poverty index of 42.0, Ukhahlamba is the fourth
poorest district in the province.
The HDI (Human Development Index) is a reliable indicator
of development as it measures the overall achievements
in longevity, knowledge and standard of living by utilising
life expectancy, literacy and income level statistics. The
table below indicates the HDI as provided by ECSECC
HUMAN DEVELOPMENT INDEX
Approximation of Areas 1996 2001 2004
Gariep
Albert (Burgersdorp Magisterial Area) 0.49 0.51 0.50
Venterstad 0.49 0.50 0.50
Steynsburg 0.39 0.44 0.43
Maletswai
Aliwal North 0.52 0.55 0.54
Senqu
Lady Grey 0.43 0.47 0.45
Barkly East 0.45 0.48 0.47
Sterkspruit (Hershel) 0.40 0.45 0.44
Elundini
Maclear 0.43 0.47 0.45
Mt. Fletcher 0.41 .46 0.45
Ukhahlamba District Municipality 0.43 0.47 0.46
NGOs, CBOs and other community based organisations
play a major role in prevention, treatment, care and support
of people infected or affected by HIV and AIDS. Much of
the work of such organisations goes unrecognized, and
funding for activities is a problem. The district and local
AIDS councils should integrate the response such that it
is more effective, and that services of community-based
organisations is utilised more effectively to complement
the heavy burdens on Departments of Health and Social
Development.
P O V E R T Y

HOUSEHOLDS WITH AN INCOME OF LESS THAN R 1 500 PER MONTH
%
Elundini 80.6
Senqu 65.1
Maletswai 58.4
Gariep 58.1

In the context of the very high unemployment and
poverty rates mentioned above, there is clearly an urgent
need for new investments to create jobs and improve
livelihoods in Ukhahlamba District. Based on existing
economic activity, market opportunities and present
resource/assets/skill bases the particular industries
offering potential include:
Livestock farming
Crop production
Agro-processing
Forestry and Wood-using industry
Construction
Trade
Tourism
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3
add-on to the programmes being implemented in the
district area, or as a stand-alone programme/project, not
recognizing that women comprise more than 50% of the
population of the area.
Womens programmes are still often viewed as projects
and often there are sustainability issue. These are often
due to the low level of skills, lack of economic and
business knowledge, and a high level of dependency.
There is a strong demand for women to be their own
entrepreneurs but at the same time there is an indication
that the majority of women want a job but do not wish
to take the risks attached to being entrepreneurs.
Within the political realm there has been an increase in
the number of women councilors but their skill level is
fairly low. This is likely to impact on their ability in the
future to shape programmes.

WO ME N
Within the Ukhahlamba area, there is an active Women
Economic Empowerment forum, representing black
women in the economic sphere. Localised representation
per municipality is however not efficient. There are also
women agricultural groups within the white population,
as well as a number of faith based and political groupings
across the district area.
It is difficult at present to get a representative perspective
of the state of women in the district area and to determine
their priorities. However based on the information at hand,
it seems as if economic development and activism against
violence are of priority. Women are also still prominent in
the social issues such as health care, education, HIV and
AIDS, but play a very limited role in shaping issues around
agriculture, infrastructure, and governance.
Within womens organisations there is still a deficit in
leadership skills and the womens agenda is still not fully
bought into by all. Often womens programmes are an
There are distinct factions within organized youth resulting
in conflicts, differences of opinion and misinformation.
There are faith based youth organisations as well as
political youth structures that cover the whole area.

Y O U T H
A Youth Council exists in the district area but organization
at a local level is still a challenge.
Economic issues are high on the agenda of the youth, with
a strong focus on skills development and empowerment.
They seem to have an understanding of mainstreaming
of their issues into the functioning of government.
A lack of localised information on the status of youth
in economic development results in a perception that
they are not involved in the economy and governance of
the area.
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E L D E R L Y

The elderly have prioritized the following areas as critical
points of intervention
Increase services to the elderly such as bringing services
to the people
Raise awareness around safety and security issues
affecting the elderly
Seek appropriate ways for the elderly to be cared for
Improve pension/grant payout points to make them
more conducive for the elderly
Improve health care and awareness of health issues
among the elderly
Prioritise the elderly in the provision of basic housing
Increase the number of activities involving the elderly
Involve the elderly in education (ABET) programmes and
small income generating programmes.
D I S A B L E D
There is a Disabled Forum active in the district area. Local
and district action is however limited. This is possibly due
to the historic marginalisation of disabled people, and
this has impacted on their confidence, organization and
leadership resulting in programmes are not prominent in
the district area.
Economic issues are high on their agenda, but they also
have highlighted social issues such as access, care and
education.
Often disabled programmes are seen as projects
or poverty alleviation activities and often there are
sustainability challenges and a lack of integration into
the main economy and programmes of government.
These are often due to the low level of skills, lack of
economic and business knowledge and a high level of
dependency.
There is insufficient sporting activities and social
activities for the whole community to be involved in
There is also often a negative educator-learner
relationship between teaches and learners
There is an increase in the number of street children
There is ostracization of returning prisoners and an
exclusion of them from community life
There is no organized structure running/coordinating
moral regeneration in the district

MORAL REGENERATI ON MOVEMENT CHALLENGES
The moral regeneration movement consisting of
traditional leader, faith based organisations, government,
and CBOs has been initiated in the district area.
Abuse of girl children
High abuse of liquor and drugs
Women and child violence and abuse
(both community and domestic)
Lack of knowledge around human rights
Escalating rate of commercial sex
Absence of bylaws to regulate taverns,
shebeens and bars
Illegal immigration into the area and also xenophobia
Perception of an escalating
crime situation in Ukhahlamba
probably Improved as a result of ISRDP. However, as
already mentioned, there are several areas where
cooperation seems to be lacking.
The municipalities would be assisted by the Provincial
Departments always planning spatially (using DM
and LMs as the geographic units), and by Departments
consulting DMs/LMs at District level when preparing
their Strategic Plans.
MUNI CI PAL NATI ONAL
DEPARTMENTS/SOES COOPERATI ON
Cooperation with relevant National Departments/SOEs
could also be improved. A particular case is the need to
work with Eskom regarding the electrification backlogs.
I NTEGRATED DEVELOPMENT PLANS I DPs :
All Ukhahlamba Municipal IDPs give attention to building
their own delivery capacities. The filling of critical vacancies
(e.g. Municipal Managers etc) is critical, as are measures to
attract and retain critical skills. IDPs have improved over
the last few years and are generally aligned to PGDP etc.
However, there are some important gaps (e.g. housing,
EPWP). IDPs are in process of integrating the activities of
all three levels of Government active in their areas.
MUNI CI PAL BUSI NESS COOPERATI ON:
It is necessary for municipalities to give a higher priority
to improving communication with local business.
MUNI CI PAL PROVI NCI AL
DEPARTMENTS/AGENCY COOPERATI ON:
The District IDPs show some evidence of cooperation
with Provincial Departments, and this cooperation
stable administrations and therefore service delivery and
the other three municipalities having some instability
and perceptions of poorer service delivery.
The relationship between the head of administration
and the political leadership needs to be close. Political
instability and or administrative instability has an impact
on the other.
A D MI N I S T R AT I O N O F MU N I C I PA L I T I E S
In all municipalities over the past five years there have
been municipal managers. In Senqu and Ukhahlamba
District the municipal manager post has been the most
stable while in Maletswai the Municipal Manager did not
serve a full five years, and in Elundini and !Gariep there
have been challenges and interim arrangements made
during the period.
The stability of the head of administration has had an
impact on the administration of municipalities as a whole.
It has resulted in Senqu and Ukhahlamba having more
GOVERNANCE & ADMI NI STRATI ON
2
5
affected their income. Challenges around the spending
of funds in municipalities has been more skewed
towards the previously disadvantaged and has meant
that maintenance of infrastructure (such as tarred roads
in Aliwal North) have deteriorated beyond reasonable
repair. This impacts on the ability of the municipality to
attract and or retain commercial enterprises that could
generate income for the municipality.
In Elundini there has been income (higher population
and that means higher equitable share) but the efficient
and strategic management of allocation of the funding
has been a challenge. This has resulted in large under
expenditures in some areas, skewed expenditure in
others, high expenditure on staff salaries, but the overall
impression is that of poor service delivery, deteriorating
services and poor administration. Elundini is a prime
example of the issue of deteriorating services creating
animosity between communities and the municipality
and this has under the new political leadership required
careful and tactful handling.
F I N A N C I A L R E S O U R C E
C H A L L E N G E S O F MU N I C I PA L I T I E S
Within the Ukhahlamba area, the most stable municipality
in terms of financial administration and security has
been Senqu. This has been due to historic as well as
current management factors. The stability of finances
in a municipality have an impact on the ability of the
municipality to deliver services, keep their staff happy
and respond effectively to community needs.
Gariep and Maletswai have both had challenges around
the amount of income available for them to deliver
services. There have been times over the past five
years when their financial viability as municipalities has
been questioned. Due to their small population size
(even though this is disputed) they receive only a small
amount of equitable share. This coupled with the fact
that they have urban areas with old infrastructure, which
is of a high level of service, but which still needs to be
maintained, they are not drawing in much income from
the sale of services to these communities. They have not
managed to implement systems around levying rates
on the commercial farmland and this has negatively
GOVERNANCE AND ADMI NI STRATI ON
Building of partnerships and relations
and improving cooperation and coordination
Access to information
Institutional Capacity Development
Democratic Governance
I NTERNAL LOCAL GOVERNMENT PRI ORI TY I SSUES
Basic Service Delivery
Municipal Institutional Development and transformation
Local Economic Development
Municipal Financial Viability and Management
Good Governance and Public Participation
Ukhahlamba District-wide priority issues are:
ECONOMI C GROWTH
Stimulation of the Economy
Skills development
Environmental awareness
Economic infrastructure
SOCI AL GROWTH
Water and Sanitation provision across the District
Social infrastructure
Addressing of Social Issues
PRI ORI TY I SSUES
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7
To improve the literacy rate of the province
by 50% by 2014
To eliminate gender disparity in education
and employment by 2014
To reduce by two thirds the under-five
mortality rate by 2014;
To reduce by three quarters the
maternal mortality rate by 2014;
To halt and begin to reverse the
spread of HIV/Aids by 2014;
To halt and begin to reverse the
spread of tuberculosis by 2014;
To provide clean water to all by 2008;
To eliminate sanitation problems by 2010;
To provide all houses access to electricity by 2012;
To eradicate bucket systems by 2007;
The Strategy for development in Ukhahlamba is based
on six key elements. Three that are strongly connected
to the economy and three that are support for the
growth of the economy. Therefore it can be seen that the
economy forms the basis for the development strategy of
the Ukhahlamba area.
VI SI ON:
An improved quality of life for all residents.

MI SSI ON:
Fight poverty through stimulating the economy and by
meeting basic needs, improving service delivery quality
and capacitating government and communities.
HI GH LEVEL TARGETS
The key performance indicators (KPIs) related to the
millennium goals, national KPIs and provincial (PGDP)
targets, defined as follows: -
To increase the growth rate to 6% per annum by 2014
To halve the unemployment rate by 2014
To reduce by between 60 and 80% the number of
households living below the poverty line by 2014;
To reduce by between 60 and 80% the number of
people suffering from hunger by 2014;
To establish food self sufficiency in the District by 2014
To ensure universal primary education (UPE) by 2014
with all children proceeding to the first exit point in a
secondary education
STRATEGY FOR DEVELOPMENT
2
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GOAL 4: Improve Service Delivery Quality (through
efficiency, economy, effectiveness and ethics).
GOAL 5: Capacity-building programmes for
government and communities.
GOAL 6: Meet basic needs.
Cutting through these strategic areas are cross cutting
multisectoral priority programmes that are listed in the
following section.
GOAL 1: Grow Agriculture, agri-businesses, forestry
and timber industries and household food security
programmes.
GOAL 2: Grow Tourism, trade and related business
development programmes.
GOAL 3: Grow labour-intensive and pro-poor
development programmes.
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c. Maximizing agricultural potentials development
programme (maximizing economic potentials).
d. Eradication of backlogs in water and sanitation (pro-
poor programme that also meets basic needs).
e. Service upgrading in primary and secondary towns, key
rural nodes, and mobility corridors (maximizing spatial
priorities and structural elements of the district economy,
maximizing economic potentials).
f. Improvement of access and linkages to basic services
to support the economy (support for the maximizing of
economic potentials and spatial structural elements).
g. Creation of a secure social safety net (from the NSDP,
pro-poor programmes.)
h. Governance and administration development
programme (support for the growth of the economy).
P R I O R I T Y P R O G R A MME S
O R A N C H O R P R O J E C T S
These cut across the various other projects and
programmes, packaging elements of each to create
the key integrated programmes. These are the revised
Integrated Sustainable Rural Development Programme
priority projects for the Ukhahlamba area and form an
integral part of the development of the district area.
Further to this, these programmes support the national
programme of accelerated and shared growth and
combine contributions from government, business, civil
society, labour and higher education. These stakeholders
will all participate in the Growth and Development
Summit held on the district in February 2007. These
programmes directly link to the programmes discussed
in the summit agreement:
a. Timber cluster development programme (a mega
project of ASGISA and the province).
b. Tourism Gateway to the District and Province
development programme (maximizing economic
potentials, preparation for 2010 world cup).
3
1
The only new construction planned in the district over
the medium term is the R6.5m Amasango Special School
in Aliwal North.
The budget for routine maintenance in Ukhahlamba
over the medium term amounts to a total of R43m:
R7m in 06/07, R15m in 07/08, and R21m in 08/09. These
maintenance amounts are crucial in two respects, 1) by
maintaining and protecting existing assets ensuring
guarantee of returns well into the future, and 2) direct and
indirect cash injections boost local economies, as routine
maintenance activities are generally labour-intensive.
Education infrastructure spending per capita in
Ukhahlamba over the three year period is R425, however
on an annual basis it ranges from R103 to R115.

DEPARTMENT OF HEALTH
The provincial health department has planned and
budgeted for a total health infrastructure spending of
R131m in the current medium term expenditure cycle
for the Ukhahlamba district, rising from R34m in 06/07 to
R50m in 08/09.
These amounts, in total, will revamp, rehabilitate and
upgrade 23 clinics and 2 hospitals in the District.
The allocations will be spent on clinic and hospital revamps
and upgrading, and not on any new construction.
The proportion of the Ukhahlamba allocation relative to
the total provincial health infrastructure spend, ranges
from 4% - 6% reflecting a relatively small share that the
district receives relative to other districts.
The provincial health infrastructure spending per capita
in the Ukhahlamba district rises from R97 in 06/07 to
R131 in 08/09.
It has been repeatedly suggested that one of the major
factors contributing to the low level of economic com-
petitiveness, and failure to exploit economic potential,
has been the poor state of infrastructure and infrastruc-
ture-related services. This section of the district profle at-
tempts to summarize the physical infrastructure develop-
ment plans that have been budgeted for over the medium
term, and that are likely to contribute to a more enabling
social and economic environment in Ukhahlamba.
The total infrastructure spend directed to Ukhahlamba
by Eastern Cape provincial government departments
amounts to a total slightly above R1bn over the current
medium term expenditure cycle. This represents
significant public sector infrastructure investment that
hopefully crowds in private investment.

DEPARTMENT OF EDUCATI ON
Education is a key element of social and economic
development. The Provincial Department of Education
has planned and budgeted up to R149m on education
infrastructure in Ukhahlamba over the current medium
term expenditure cycle (06/07 08/09).
The Department is spending R36m in 06/07, R48m in
07/08 and R65m in 08/09, representing approximately
5% of total departmental education infrastructure
investment. The spending is targeted almost exclusively
at rehabilitation/ upgrading and recurrent maintenance
(i.e. focus on quality).
It is planned that through this expenditure 19 mud
structures will be upgraded over the medium term, that
FET schools get a R5m boost, and better school quality
becomes the focus. Excluding the 19 mud structures
that are going to be rehabilitated, a total of 26 schools
and colleges in the District are targeted by the provincial
department of education.
PROVI NCI AL
DEPARTMENT I NFRASTRUCTURE
EXPENDI TURE PLANS
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DEPARTMENT OF ROADS AND TRANSPORT
Another key element of required infrastructure devel-
opment in the district is the road network. Although
Ukhahlamba has relatively good inter-connectivity to the
major centres in the province and beyond, there is still
quite a large backlog in terms of connectivity between
areas within the district, as well as access roads within
various local municipal areas, especially access to areas
with economic potential tourist resorts, great places,
agricultural markets.
In light of these backlogs, and recognising the key
enabling role that transport infrastructure has for
economic and social development, the provincial roads
and transport department has allocated a whopping
R715m over the current medium term cycle, with over
R330m planed and budgeted for 06/07 financial year.
The Ugie-Langeni new road construction represents
the largest road infrastructure project in the district,
accounting for up to R475m over the current medium
term. This road is linked to the massive forestry and
timber development at Ugie-Maclear, as well as opening
up links to the Madiba Tourism corridor.
The other significant road investments over the
medium term for the district include the upgrading and
rehabilitation of the Maclear to Mt.. Fletcher road (R215m),
and the Sterkspruit to Telle bridge road (R2.5m).
The rest of the spending on road infrastructure will be
on recurrent maintenance (R20m), access to great places
(R0.5m), and access to resorts (R2m).
DEPARTMENT OF AGRI CULTURE
The potential for agricultural expansion in Ukhahlamba
is undoubted, but is dependent on the level of targeted
infrastructure that can unleash this economic potential.
Over the current medium term period (06/07 08/09),
the provincial department of agriculture will spend just
under R24m in the Ukhahlamba District, representing
just above 10% of total agriculture infrastructure spend
by the department over the medium term.
Amounts of R5.5m are allocated for 06/07, as well as R8m
and R9m for 07/08, and 08/09, respectively.
These amounts represent an infrastructure per capita
spend of R16 in 06/07 rising to R25 in 08/09.
The department will spend the entire Ukhahlamaba
allocation on new infrastructure such as stock handling
facilities, shearing and storage sheds, dip tanks, fencing,
stock water/boreholes, irrigation systems and soil
conservation. These are positive developments that seek
to enhance productivity of the land and profitability for
farmers, especially emerging and small scale farmers.
The spending is spread (not evenly) across all local
municipal areas (Gariep, Senqu, Maletswai, and Elundini),
with Elundini receiving by far the highest allocation (50%
of the total district allocation), underlying its strategic
importance in the district as an agricultural hub.
The Ukhahlamba allocation of provincial roads and
transport budget represents approximately 15% of the
total provincial allocation. This is obviously a huge boost
for the district, and the road infrastructure has very
strong complementarity linkages to forestry and timber,
and tourism.
The road infrastructure spending per capita in the district
over the medium term is an impressive R2000 per person
of infrastructure spend.
DEPARTMENT OF SPORT,
RECREATI ON, ARTS AND CULTURE
The Ukhahlamba district is receiving R5m in the 06/07
financial year for the new construction of, 1) the Sterkspruit
Arts Centre in Senqu (R1.5m), 2) Steynsburg Indoor Sports
Complex in Gariep (R2.5m), and 3) Venterstad Sport Field
in Gariep (R1m).
There is no budget allocated from this provincial
department to the district in the next two years of the
three-year medium term expenditure cycle.
The infrastructure per capita spending for the department
in the district lies at R15 per person of infrastructure
spend.
DEPARTMENT OF SOCI AL DEVELOPMENT
The provincial department has allocated just under R7m
in infrastructure spending over the current medium term
expenditure cycle to the Ukhahlamba District.
The expenditure is targeted at new construction of 1)
Aliwal North Community Development Centre (R2.7m),
and 2) Sterkspruit Multi-purpose Centre (R3.6m).
A further R0.5m is allocated for maintenance and upgrade
of park homes, and routine maintenance of existing social
development infrastructure.
The social development infrastructure per capita
spending over the medium term is approximately R20
per person.
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The district GDS presents a unique opportunity for
constructing partnerships and harnessing the collective
energies and contributions of a range of actors and role
players with a view to enhancing accelerated and shared
growth.
The district GDS has the potential to unlock the potential
of all localities, and ensure that all sectors of society
identify their role and contribute to the common national
objective to build a better life for all.
The Ukhahlamba District is clearly grappling with very
entrenched problems of poverty and unemployment,
and progress seems to have been quite slow so far in
addressing these problems. It is of concern that while
public investment in the District is increasing, there
seem, apart from the Steinhof timber investment, to be
very few substantial private sector projects in the pipe-
line. The Summit is potentially very important for setting
in motion processes to improve municipal planning and
management capacities, particularly with respect to
cooperation with other arms of Government, and with
Business. The private sector, business-support agencies
and the municipalities need to work together to develop
the detailed priority industry action plans.
The outcome of the Summit should be the development
of a Framework Agreement that outlines institutional
roles and responsibilities to accelerate growth and
development in the District. This Agreement should also
suggest the mechanisms and processes for monitoring
progress on the decisions reached and the governance
framework for ongoing dialogue and feedback among
the social partners.
CONCLUSI ON
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LGSETA Local Government Sector Education and
Training Authority.
LMS Local Municipalities
LSA Local Service Area
MI G Municipal Infrastructure Grant
NGO S Non Governmental Organisations
NSDP National Spatial Development Perspective
NSF National Skills Fund
NWGA National Wool Growers Association
PGDP Provincial Growth and Development Plan
PHC Primary Health Care
PPP Public - Private Partnerships
RDP Reconstruction and Development
Programme
RI DS Regional Industrial Development Strategy
RI DZ Rural Industrial Development Zone
RSS Rapid Services Survey
SEDA Small Enterprise Development Agency.
SETA Sector Education and Training Authority
SOES State Owned Enterprises
UKDM Ukhahlamba District Municipality
UPE Universal Primary Education
USAI D United States Agency for International
Development
VCT Voluntary Counselling and Testing
AI DS Acquired Immune Deficiency syndrome
ARV Anti Retro Virals
ASGI SA Accelerated and Shared Growth Initiative
of South Africa
ATM S Automated Teller machines
CBD Central Business District
CBO S Community Based Organisations
DHI S Department of Health Information System
DLA Department of Land Affairs
ECDC 14 Eastern Cape District Council
(Ukhahlamba District Municipality)
ECAC Eastern Cape Aids Council
ECDC Eastern Cape Development Corporation
ECSECC Eastern Cape Socio Economic
Consultative Council
EI A Environmental Impact Assessment
EPWP Expanded Public Works Programme
FET Further Education and Training
GDS Growth and development Summitt
GGP Gross Geographic Product
HDI Human Development Index
HET Higher Education and Training
HI V Human Immune Virus
HSRC Human Science Research Council
I DP Integrated Development Plan
JI PSA Joint Initiative for Priority Skills Acquisition
KPI S Key Performance Indicators
LED Local Economic Development
ACRONYMS
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GDS AGREEMENT
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eastern cape socio-economic consultative council
Tel.: +27 (0)40 635 1590 | Fax: +27 (0)40 635 1571
E-Mail: info@ecsecc.org | Internet: www.ecsecc.org