Authorities » Nkangala

Nkangala district municipality is constituted of six Local Municipalities, namely:

• Emalahleni Local Municipality
• Emakhazeni Local Municipality
• Thembisile Hani Local Municipality
• Dr JS Moroka Local Municipality
• Steve Tshwete Local Municipality
• Delmas Local Municipality

The Nkangala District Municipality consists of 160 towns and villages. The District shares the western side of its borders with the economic hub of South Africa, Gauteng. In meeting the eight Millennium Development Goals, which range from halving extreme poverty to halting the spread of HIV/AIDS and providing universal primary education, by 2015, the District is driven by the consensus 'business unusual'.

The district's economy is dominated by electricity, manufacturing and the mining sectors. These sectors are followed by community services, trade, finance, transport, agriculture and construction. The relatively large economies of Steve Tshwete (Middelburg) and Emalahleni (Witbank) sustain the economy of the Nkangala District to a large extent, and are based on the steel industry with high reliance on the manufacturing sector.

District projects

• Delmas Cargo International Airport, Highlands Gate & Estate Development
• Multi-purpose Community Centres
• Catalytic Converter
• Agro-Processing
• Moloto Rail Development System
• Truck Port/Logistics Hub
• International Convention Centre
• Loskop Zithabiseni Tourism Corridor

» Vision

Improved quality of life through balanced, sustainable development and service excellence.

» Mission

The Nkangala District Municipality is committed to the improvement of the physical, socio-economic and institutional environment in order to address poverty and promote development.

» Physical Address

2A Church Street
Middelburg
1050

» Postal Address

PO Box 437
Middelburg
1050

Tel: +27 13 249 2000
Fax: +27 13 249 2050
Website: http://www.nkangaladm.org.za

» Vision

Striving together to be an excellent center for service delivery and development.

» Mission

Providing affordable, accessible and sustainable quality service, enhancing community participation and creating a climate for economic development.

• Emalahleni Municipal Motto: Together in service delivery and development.
• Area: 2677.67 km squared
• Population: 299 206
• Location of Head Office: eMalahleni

» Physical address

Municipal Building,
President Street
eMalahleni
1035

» Postal address

P O Box 3
eMalahleni
1035

Tel: +27 13 690 6208
Fax: +27 13 690 6479
Website: http://www.emalahleni.gov.za

» Vision

A secure environment with sustainable development to promote service excellence, unity and community participation resulting in a caring society.

» Mission

Emakhazeni Local Municipality is a category B municipality and a tourist destination within the Nkangala District existing to provide sustainable basic municipal services to the local community and the visitors, creating a conducive environment for socio-economic development and promoting democracy, accountability and public participation in our affairs.

• Area: 52 730 hectares
• Population (estimated): 59 000
• Location of Head Office: Belfast
• Towns and Settlements within the Municipal Boundaries: Airlie, Belfast, Dalmanutha, Dullstroom, Kwaggaskop, Laersdrif, Machadodorp, Nederhorst, Stoffberg, Waterval Boven, Wonderfontein

» Physical address

25 Scheepers Street
Belfast
1100

» Postal address

PO Box 17
Belfast
1100

Tel: +27 13 253 1121
Fax: +27 13 253 2440
Website: http://www.emakhazenilm.co.za

» Vision

To better the lives of our people through equitable, sustainable service delivery and economic development.

» Mission

We will achieve this by:

• Allocating resources within annual constraints
• Participative integrated development planning
• Sustainable and accountable, accelerated service delivery
• Promotion of socio-economic development
• Intensified community participation
• Shared economic growth

• Thembisile Municipal Motto: Ascende et Splende
• Area: 2384.29 km squared
• Population(estimated): 258 875
• Location of Head Office: Mpumalanga
• Towns and Settlements within the Municipal Boundaries include: Boekenhouthoek, Bundu, Ekangala, Ekandustria, Enkeldoornoog, Goedered,KwaMhlanga, Kwaggafontein,Moloto Phola Park, Seringkop, Sybrandskraal, Tweefontein, Vlakfontein, Verena, Witnek

» Physical address

Opposite Police Station
Kwaggafontein C
Mpumalanga

» Postal address

Private Bag X 404
Mpumalanga
0458

Tel: +27 13 986 9100
Fax: +27 13 986 0995
Website: http://www.thembisilelm.gov.za

» Vision

An effective, efficient public institution delivering quality, sustainable services to better the lives of people.

» Mission

Bettering the lives of communities through sustainable service delivery, provision of sustainable jobs, creation of opportunities and public participation

• Municipal Motto: Disce Vive Larora
• Area: 140819 km squared
• Population (estimated): 243 304
• Location of Head Office: Siyabuswa
• Towns and Settlements within the Municipal Boundaries: Bamokgoko, Dikgwale, Ga-Maria, Kwa-Phake, Lefiso, Maboko, Mapoch, Masobe, Matshiding, Moteti, Phake, Siyabuswa, Vaalbank

» Physical Address

A2601/3
Bongimfundo Street
Siyabuswa

» Postal Address

Private Bag X 4012
Siyabuswa
4012

Tel: +27 13 973 1101
Fax: +27 13 973 0974
Website: http://www.drjsmorokamun.gov.za

» Vision

To be the best community driven Local municipality in the world in the provision of sustainable services and developmental programmes.

» Mission

The Steve Tshwete Local municipality is committed to the total wellbeing of all citizens through:

• The rendering of affordable, cost-effective, accessible, efficient and quality services for present and future customers
• The maximizing of infrastructural development through the utilization of all available resources
• The implementation of effective management systems and procedures
• The creation of an enabling environment for LED
• Ensuring effective co-operation with relevant stakeholders
• To ensure a skilled, motivated and committed work force
• Compliance with the Batho Pele principles.

» Physical Address

Wanderes Avenue
Middelburg
1055

Postal Address
PO Box 14
Middelburg
1050

Tel: +27 13 243 7000
Fax: +27 13 243 2550
Website: http://www.stevetswetelm.gov.za

»Vision

To provide a better life for all members of our community by striving to provide quality services and active participation.

» Mission

To create an enabling environment through:

• The provision of quality services in response to community needs
• The promotion and sustaining of local economic growth
• The enhancement of the standard of living of all members of our community.

• Municipal Moto: Disce Vive Larora
• Area: 157,050 Ha
• Population(estimated): 56 207
• Location of Head Office: Delmas
• Towns and Settlements within the Municipal Boundaries: Arbor, Argent, Delmas, Lionelton

» Physical Address

Cnr Van Der Walt & Samuel Streets
Delmas

» Postal Address

PO Box 6
Delmas
2210

Tel: +27 13 665 6000
Fax: +27 13 665 2913
Website: http://www.delmasmunic.co.za

Geographic location of the District

The NDM is one of three District municipalities in Mpumalanga Province situated between the Ekurhuleni, Tshwane to the west and the Ehlanzeni District Municipality to the north east and Gert Sibande District Municipality to the south. The N4 Maputo Freight Corridor, stretching from the City of Tshwane and the N12 from the City of Johannesburg in the west to the Maputo harbor in the east, transverses the District. The corridor forms part of a transcontinental freight corridor initiative, aimed at linking Walvis Bay on the west coast of Africa with Maputo on the east coast, thereby creating strategic linkages for trade and tourism between Namibia, Botswana, South Africa and Mozambique.

The Nkangala District Municipality covers a vast area of approximately 188 118 hectares. The District is predominantly a rural area, comprising extensive farming, forestry, nature reserves and mining areas. There are approximately 165 towns and villages spread throughout the area.

The areas are classified into three main categories, namely towns, rural villages (mainly residential) and settlements associated with mining or electricity activities (collieries).

Emalahleni and Middelburg are the two main towns in the District, both in terms of location and function. Delmas and Belfast are secondary service centres serving as central places to the surrounding farming areas. The tourism potential associated with the eastern regions of the District has resulted in the regeneration and growth of Dullstroom and Waterval-Boven in the Emakhazeni Municipality.

» Abstract

The geographic and environmental setting of NDM has profound implications for freight operators, operations and sustainability strategies. This section presents a succinct review of the environmental setting of NDM which impacts and is impacted by freight transport and logistics.

Nkangala District Municipality Breakdown

1. Dr J S Moroka Local Municipality

2. Emalahleni Local Municipality

3. Steve Tshwete Local Municipality

4. Thembisile Local Municipality

5. Delmas Local Municipality

NDM Institutional Framework & Set-up

Overall the NDM has five (5) departments: viz; the Office of the Municipal Manager, Technical Services, Social Services, Corporate Services and Finance. The organogram of the District is as depicted below. The NDM is a fast growth institution wherein three (3) units were established in the 2008/9 financial year, that is, Local Economic Development, Development and Planning Unit (DPU) and Project Management Unit. These Units report directly to the Chief Accounting Officer of the District. The LED Unit functions as an advisory and implementation arm of the LED Strategy of the District. The Development Planning Unit deals with land use and spatial planning, strategic planning and integrated development planning. However there is still no explicit freight transport function is provided in the organogram for an explicit freight transportation function.

»Abstract

While Nkangala District Municipality has no explicitly stated freight transport vision and mission the implied vision and mission is derived from the overall vision and mission of the District Municipality. By the same token the principles and values of the District Municipality are taken to incorporate and pervade all areas of mandate and operations covered by the District freight included. This section provides a brief presentation of the vision, mission, principles and values that guide the operations of the District Municipality within the ambit of freight transport.

The Vision of the NDM is: Improved quality of life through balanced, sustainable development and service excellence.

The Nkangala District Municipality is committed to the improvement of the physical, socio-economic and institutional environment in order to address poverty and promote development.

• To be responsive to the needs of citizens and partner-local municipalities.
• To be transparent, accountable and participative in our dealings with each other and our partners.
• To cultivate a work ethic focused on performance, achievement and results.
• To promote and pursue key national, provincial and local development goals.
• To ensure a representative organization.
• To be democratic in the pursuance of our objectives.
• To show mutual respect, trust and ensure high levels of co-operation and discipline in our dealings with one another.

Nkangala District Municipality Key Focus Areas

In order to focus on a developmental trajectory that will ensure progressive realization of the vision of the council, the council has resolved to focus on seven (7) Key Focus areas, as follows:

• Infrastructure Development
• Service Provision
• Meeting the priority needs of communities, addressing poverty and promoting infrastructure development and maintenance are key in this regard, through:
• Developing infrastructure to enable and ensure service provision that meets the priority of communities
• Promoting Integrated Development Planning and the proper coordination and alignment of infrastructure development initiatives in the District through sector planning
• Encouraging and supporting the effective performance and functioning of local municipalities in ensuring access to basic services within the District.
• Enhancing economic growth and development within the District through infrastructure project implementation

The synergy, alignment and coordination between the development plans of the three spheres of government (i.e. IDP, PGDS and NSDP) take precedence in order to achieve proper coordination and alignment of development initiatives within the region. Development should occur in a manner that promotes the integration of the social, economic, institutional and physical aspects of land development to achieve a safe and healthy environment. Through these initiatives all municipalities within the District will have credible IDPs.

The focus on this strategic pillar is the need to enhance economic development, job creation and poverty alleviation through:

• Formulation of District-wide Local Economic Development strategies thereby creating a conducive environment for promotion and attraction of investment projects and economic growth.
• Planning and co-ordinating strategies within the framework of the IDP.
• Diversification of the economy by promoting agriculture, tourism and SMME.
• Establishing LED programme structures which include the District and Local municipalities so as to co-ordinate and enhance co-operation of policies, structures and LED initiatives.
• To collect and disseminate economic information as to assist local municipalities with LED interventions.

Implementation monitoring of all IDP projects is pivotal. Impact monitoring and evaluation of all projects inclusive of projects implemented by Sector Departments, the NDM, local municipalities within the NDM, and key social partners must be done on an ongoing basis. Shared understanding of key priority issues of the District communities and the broader strategic developmental trajectory will lead to better coordination, alignment of programmes and improved impact on the ground.

The effective and efficient functioning of municipalities through strengthened performance management systems that encourage and support municipalities in delivering on their mandate is essential. Associated with this is a focus on organisational design and capacity building to enable municipalities to respond to challenges they are faced with. In this manner corporate governance, transparency and accountability will be improved.

The gist of this strategic pillar is to help bridge the gap between the three spheres of government, District municipality and the six local municipalities and the community at large. It further seeks to stress the importance of communicating Council matters with beneficiaries and other stakeholders through:

• Promoting the positive image and brand of Nkangala District Municipality.
• Widely communicating the values, successes and objectives of the District.
• Improving relations between the three spheres of government, District and its Local municipalities and the community at large.
• Improving public participation, accountability and transparency.

Financial viability and sound financial management are key to ensuring continuous ability of the institution to meet its mandate through:

• Improved financial management and unqualified municipal audit reports.
• Ensuring fair and just allocation and distribution of resources within the District.
• Building financially viable municipalities and uphold and maintain sound financial management principles.
• Upholding the principles of Batho Pele.
• Rendering efficient and effective support services in a transparent and accountable manner.
• Ensuring effective and efficient income and expenditure management.
• Contributing towards the maintenance of a high credit rating.

» Abstract

Population dynamics has a direct and indirect impact and bearing in terms of the growth and decline in the volume of goods and cargo that is transported between areas of demand and zones of supply. It is therefore important to have an idea of population trends including attributes that can inform geographic market segmentation including targeted freight services in sync with existing population realities related to spaces, places and cultures. This section briefly reviews some of the key demographic trends in NDM which have resonance with freight transport and logistics.

Demographics

The total population of the NDM amounts to 1 226 500 (Stats SA 2007) persons, constituting approximately 34% of Mpumalanga's population. In the context of the Disrict, the highest population concentrations are found in the Emalahleni, Thembisile Hani and Dr JS Moroka local municipalities at 435 223, 278 522 and 246 958 respectively. The population growth rate increased by about 2% between the period 2001 and 2007.

Mode of Transport

A relatively high percentage of people (32%) in Nkangala, travel by foot to school or to work. The public transport users in Delmas (8%), Emalahleni (9%) and Middelburg (8%) prefer taxis to buses, while it is just the reverse in Thembisile Hani (8%) and Dr. JS Moroka (4%). In essence small volume cargo is conveyed by these transport modes including bakkies.

Labour force or economically active population

In general there is a decline in formal job opportunities with an escalation of unemployment and a fast growing informal sector. The economically active population (as a percentage of the total population) was very low (34,8%) in Nkangala and Mpumalanga (34,2%) compared to Gauteng (51,5%). One of the reasons could be the relatively high number of young children (age 0-15) in Thembisile and Dr. JS Moroka. The unemployment rate (44%) in Nkangala and Mpumalanga (41%) is very high, compared to 36% in Gauteng. Dr. JS Moroka (61%) and Thembisile (51%) registered an extremely high unemployment rate. There is perhaps a need to explore ways of making the freight industry absorb more people from the unemployed ranks.

Employment by industry

The breakdown of employment by industry in the Nkangala District is as follows:

• 15,8% in community and social services;
• 13,6% in wholesale and retail;
• 12,9% in mining and quarrying;
• 12,7% in private households.

The most important industries by Local Municipality are the following:

• Delmas agriculture (23%);
• Emalahleni mining and quarrying (23%);
• Middelburg mining and quarrying (14,8%), wholesale (14,1%), community services (14,3%);
• Emakhazeni agriculture (25,8%);
• Thembisile private households (22,6%); and
• Dr. JS Moroka community and social services (30,3%).

26,5% of the employed in Nkangala worked in elementary occupations which was slightly better than Mpumalanga (32,1%), followed by craft and related trades workers (19,8%) and plant and machine operators (12%). A relatively high percentage of skilled agricultural workers were found in the Emakhazeni (9%) and Delmas

Conservation, Tourism And Culture

Concerning nature conservation and tourism, the western region of the District poses opportunities by consolidation of nature reserves. The promotion of tourism opportunities in this region is essential to address the problems of poverty and unemployment affecting this area.

The development of the Sun City resort in North West Province provides an example of how development of the hospitality and tourism industries achieved the integration of similar marginalised homeland areas, specifically Bafokeng, Mankwe and Madikwe, at physical and economic level. The extension and consolidation of various nature reserves and open spaces in the Thembisile and Dr. JS Moroka Municipalities could similarly unlock the tourism potential of this region. It is proposed that the Loskop Dam Nature Reserve be extended westwards across the mountainous area to functionally link to the Mabusa Nature Reserve and to the north towards the SS Skosana Nature Reserve. This system could eventually also be linked to the Mkhombo Nature Reserve and the Mdala Nature Reserve in Dr JS Moroka. Further towards the west this system could be supplemented and supported by the proposed Dinokeng Nature Reserve initiative in Gauteng Province. If properly developed, this belt of conservation areas could serve as a core area around which to develop a future eco-tourism and recreational precinct.

One of the biggest assets in this regard is the Zithabiseni Holiday Resort (in the middle of the Mabusa Nature Reserve) which is neglected at this stage. This holiday resort, if restored to its previous glory, could serve to promote the Thembisile Local Municipality to visitors from Gauteng and overseas countries and to expose the area to the outside world specifically during the 2010 Soccer World Cup.

The northern and eastern regions of the Nkangala District already offer a variety of tourism opportunities associated with the scenic qualities, wetlands and conservation areas. A large part of the Emakhazeni Municipality forms part of the Trout Triangle, an area designated for tourism facilities associated with fly-fishing as part of the N4 Maputo Corridor initiative.

The Nkangala District offers considerable tourism potential. The economy of the eastern areas of the District is already growing due to the increasing popularity of tourist destinations in the Emakhazeni Municipality. The natural beauty, rural character and popularity of fly-fishing are the main attractions to this area. The north western areas of the District also offer opportunities for tourism, through the consolidation of the various nature reserves and open spaces in this area.

The demarcation of a Tourism Belt and Focus Areas in the District will serve to promote and enhance the tourism potential in this area. It should be noted that the intention is not to reserve this area purely for tourism developments or to exclude tourism developments from any other area in the region. The intention is rather to focus investment and incentives in this area, to the benefit of poor communities in the northern regions and rural areas. This Tourism Belt incorporates sensitive wetlands and conservation areas, nature reserves and some of the proposed ecological corridors in the District, and the protection of these areas should be of high priority as part of this concept.

In principle, tourism facilities should be promoted within this belt, but in terms of the following guidelines:

• Protection of prime agricultural land;
• Ability to provide adequate infrastructure services to the developments;
• Environmental protection and conservation; and
• Protection of the rural character and scenic qualities of the area.

The Tourism Belt could also serve as an area from which to promote the culture and traditions of the Ndebele residents in the north west of the District. The existing development potential thereof should be promoted through dedicated projects and strategic interventions. The proposed tourism or cultural nodes to be promoted throughout the District, include:

Belfast which has the opportunity to serve as a tourism gateway, due to the fact that tourists underway to the Kruger National Park along the N4 or Dullstroom/Pilgrims Rest/Hoedspruit along the R540 have to travel through Belfast. This centre could therefore be used to promote the tourism opportunities in the Tourism Belt and the entire District.

Dullstroom which is already a major attraction point to tourists and is expanding rapidly.

The major attraction to this area is however the rural character and scenic qualities, which should be protected from over-exposure and commercialisation.

The cultural nodes in the Thembisile Local Municipality area have the potential to attract tourists into this area. There is a node situated to the south between KwaMhlanga and Ekangala. The Kgodwana Ndebele Village and Loopspruit winery are situated along the KwaMhlanga-Ekangala road and form the main cultural/tourism node.

Another cultural area is proposed near the Klipfontein residential area to the north of KwaNdebele. This will link with the proposed tourism area on the eastern side of the Klipfontein-Kameelpoort road.

Other proposed tourism areas are at Sybrandskraal near Moloto, to the south of the Wolvenkop residential settlement near Verena, and at Zithabiseni in the Mabusa Nature Reserve.

Middelburg and Emalahleni can be used as accommodation (overflow) centre in view of the 2010 Soccer World Cup by utilising the strategic location between Gauteng and Nelspruit.

The agriculture sector is an important economic activity in the Nkangala District which should be protected and promoted through the development of supplementary activities, such as agriprocessing.

Mining occurs in the southern regions of the District and is closely related to the power stations.

In the southern regions of the District extensive farming, specifically in the form of crop farming, is promoted. Extensive farming is also promoted in the northern regions, for cattle and game farming. Intensive agriculture is promoted along the N4 and N12 Corridors, to capitalise on the access to markets at local and regional level. Eco-tourism, agriculture and forestry are promoted in the eastern regions of the District, in support of the tourism sector.

The north western regions of the District are characterised by subsistence farming and rural residential uses. The initiation of community farming projects is necessary to enhance the agricultural sector in this area and to address the high poverty levels.

The District has considerable mining potential. The mining activities in the south of the region and especially in the Thembisile Municipality should be enhanced, to contribute to job creation for poor, unskilled workers. The regeneration of power stations would also contribute to the stimulation of the local economy.

Natural resources make a significant and direct contribution to the District economy due to the nature of the District economy which is a resource based economy (coal, water, land capacity, geographical features, climate, conservation areas and ecosystems, natural features).

Business And Industrial Activities

The occurrence of business activities in the District is closely related to the hierarchy of settlements. The business activities developed as a result of the demand for goods and services at service centres, such as Middelburg, Emalahleni, Delmas, Belfast and the smaller villages in the District.

The stimulation of business centres in the dormitory residential areas in the north west of the District is however necessary to enable the development of local economies. Development of nodes at Kwaggafontein and KwaMhlanga in the Thembisile Municipality and Siyabuswa in Dr JS Moroka is proposed through the concentration of economic activities and social facilities. This requires strategic intervention in the form of service upgrading and investment programmes.

Despite the fact that the CBDs of both Middelburg and Emalahleni are well-developed and represent the two highest order activity nodes in the District, both areas are experiencing rapid decline and require some strategic intervention such as development incentives or restructuring initiatives to be implemented. The Emalahleni CBD has been declared an Urban Development Zone qualifying for Urban Renewal Tax Incentives, but more needs to be done to prevent these areas from further decay. As far as industrial activity is concerned, the existing industrial areas in Steve Tshwete (Columbus Steel) and Emalahleni (Highveld Steel) should be maintained and enhanced through service maintenance and upgrading programmes. These industrial areas would be the main focus areas for heavy industries and manufacturing.

The four industrial areas in the Thembisile and Dr JS Moroka Municipalities (KwaMhlanga, vicinity of Tweefontein, Kwaggafontein, and Siyabuswa) along the Moloto Road and the future Moloto Rail Corridor should be promoted in support of the stimulation of the local economy. The industrial area at KwaMhlanga holds the most potential in terms of the surrounding activities. It is proposed that a concerted effort be put in place to promote development and to also facilitate the establishment of small industries and other commercial activities in this area. If this requires that the industrial area be expanded in future this should also be considered seriously.

The industrial potential of Belfast and Machadodorp to the east, and Delmas (agro-processing) to the west should also be promoted to capitalise on its strategic location in relation to the major transport network.

Geology & Mineral deposit in NDM

Most business trips (33.8% of all business trips in the province) start and end within Gert Sibande District Municipality. Other high contributors are trips from Gert Sibande District Municipality to Ehlanzeni District Municipality, and Ehlanzeni District Municipality to Nkangala District Municipality (19.7% and 14.1% of all business trips in the province respectively);

Gert Sibande District Municipality attracted most of the business trips in the province (45.1% of all business trips in the province), followed by Ehlanzeni and Nkangala district municipalities (at 31.0% and 21.9% of all business trips in the province respectively);

Most business trips in the province also originated from Gert Sibande District Municipality (53.5% of all business trips in the province), followed by Ehlanzeni and Nkangala district municipalities (at 28.2% and 18.3% of all business trips in the province respectively).

Moloto Freight Corridor

The Moloto Corridor is situated in the western regions of the Mpumalanga Province. The name is derived from the R573 provincial road - the Moloto Road - which connects the main employment destinations within the Tshwane Metropolitan areas with the rural communities situated in the Nkangala District of Mpumalanga Province and some adjacent areas of the Sekhukhune District of Limpopo Province.

The figure below reflects the bus routes of the different operations within the Nkangala DM that form the study area of the Moloto Corridor.

Bus Route Information Moloto Corridor

In an attempt to specifically deal with the spatial restructuring component in an integrated manner, and to comply with the Municipal Systems Act (2000), local authorities embarked on a process of formulating Spatial Development Frameworks (SDFs) for their areas of jurisdiction as part of their Integrated Development Plans (IDPs). The Nkangala District Municipality launched a project to review not only the District's existing SDF, but also to review each of the District's six local municipalities SDFs. The reviewed SDF for the District was adopted by Council in January 2008.

Spatial socio-demographic characteristics of the District

There are noticeable variations in the distribution of population within the NDM as shown in the map below. The District is also characterised by geographical disparities and a dispersed settlement pattern as illustrated above. The largest concentrations of people are found at Emalahleni, Thembisile and Dr JS Moroka local municipalities. This presents challenges for service delivery and freight logistics as the population is dispersed raising the costs of delivery and infrastructure provision.

Spatial Concentrations of Pupulation in Nkangala District Municipality

Due to the predominantly rural area with scattered settlements the District has a dispersed spatial structure. Population densities vary from very high (urban areas) to very low (small settlements and the rural areas). Most people are located in settlements in adjacent to urban towns and there is a high level of need (housing and sanitation) but there is also a high degree of need in the more rural areas where the population is less. Backlogs are the highest in the areas of sanitation, followed by electricity and then water. Electricity backlogs are most severe in rural areas and amongst households on farms, which is ironical when considering the leading role that the District plays in the generation of electricity.

This structure makes the provision of infrastructure and community facilities costly and problematic. The threshold levels for the provision of community services are low in rural areas, due to vast distances and low population densities. The vast distances make use of public transport to access community facilities necessary, while the rural nature of the area also makes the viable provision of public transport problematic. The dispersed spatial structure with low population concentrations in the Nkangala District is very costly and problematic for the following reasons:

• Community services and facilities have to be duplicated at a great cost;
• The threshold levels for viable provision of community services are low;
• Engineering services are expensive to provide; and
• Communities have to make use of public transport to move between areas.

Activity Concentration Areas

Emalahleni, Middelburg area of the NDM is home to major economic activity concentrations. However, the main concentrations of economic activity around Emalahleni and Middelburg are starting to encroach on environmentally highly significant areas and important and necessary areas.

Significant Economic Activity Zones

The south western regions of the District are referred to as the Energy Mecca of South Africa, due to the large deposits of coal reserves and associated power stations, particularly the Emalahleni and Steve Tshwete areas. The regeneration of some of the mothballed power stations pose opportunities for the mining and energy sectors, as well as the regeneration of some of the smaller towns in the District, such as Delmas, Hendrina and Arnot. Greater portions of the District, particularly the Dr JS Moroka Thembisile Hani municipal areas, are characterised by subsistence agriculture.

Existing Land use and the related potential within NDM

Agriculture is very important to the economy of the district. The southern regions of Nkangala are suitable to crop farming, specifically for fresh produce such as maize and vegetables. The northern regions are suitable for cattle farming and game farms.

Freight Corridor Development

The N4 Maputo Corridor, N12 Corridor, and the Moloto Corridor hold significant opportunities for the Nkangala District area, both in terms of economic spin-offs from the corridor and tourism potential. Activities capitalising on the economic opportunities associated with these corridors should be encouraged to locate at locations adjacent to the corridors. The map below outlines the spatial development proposals and land use guidelines that have guided development on which future development decisions will be based. This could include intensive agriculture, agro-processing and hospitality uses. The significance of the railway lines in the District in terms of export opportunities to the Maputo and Richards Bay harbours should also be promoted.

The N12 freeway has been classified as a development corridor in Nkangala District as it links Nkangala with the industrial core of South Africa (Ekurhuleni Metro as well as the financial and commercial capital of South Africa Johannesburg). Along the N12 corridor, development opportunities around Delmas and, to a lesser extent Ogies-Phola, should be identified and developed.

Development along the N4 and N12 corridor will be nodal in nature with a concentration of activities around some of the most strategically located intersections along the route. Apart from the Emalahleni and Middelburg areas it is suggested that economic activity should also be actively promoted at Belfast and Machadodorp, as well as Delmas along the N12 freeway.

The specific section of route R555 Emalahleni and Middelburg pose the opportunity for consolidation and enhancement of the economic opportunities in the form of a mainly Local Development Corridor. Desirable land uses along the corridor would include agro-processing, service industries for the agricultural sector, manufacturing, warehouses, wholesale trade, clean industries and hospitality uses.

In terms of the conglomeration of settlements in the north-west of the District, the majority of future residential and economic development in the region should be promoted along the Moloto Corridor. The intention is that the Moloto Road and the proposed future Moloto railway line should serve as a Local Activity Spine to these settlements.

The settlements along the Moloto Road are mainly dormitory residential areas and communities in these areas rely on the City of Tshwane for employment opportunities and economic activities. These former homeland areas were previously considered as no go areas during the apartheid regime, but now need to be integrated into the physical structure and regional economy. By improving the regional linkages through these areas, regional traffic can be promoted to move through the area. This could improve the exposure of the area, thereby generating economic activities and stimulating a viable local economy. Functionally, this corridor would also link communities in Greater Sekhukhune and the Platinum activities in Burgersfort to Tshwane. The upgrading and maintenance of Moloto Road and/or the construction of the railway line and concentration of activities are however essential for the success of this initiative.

The Moloto Rail Corridor Project identified 24 potential railway stations along this corridor of which 20 are within NDM. The Moloto Corridor Development Study furthermore suggested that future urban development be consolidated around these railway stations by way of Transit Orientated Development.

Transit Orientated Develop (TOD) is defined as a unique mix of land uses located at a high density within a predetermined walking radius of a railway station. TODs are purposely designed to facilitate access to the railway stations and so increase the use of the public transportation systems. Thereby land use and transportation integration can be achieved. TOD programmes seek to create high-quality living and working environments, to improve station access, to implement local land use plans, and to increase tax revenue. It also offers the possibility of enhanced utilisation volume, particularly off-peak and reverse-flow riders.

The intention is to develop high density, mixed use areas around the proposed future railway stations and to incorporate Multi Purpose Community Centres (Social Services), residential (including subsidised housing) development, as well as commercial, retail and even light industrial uses in these developments. The number of people residing within or in close proximity to these TODs will then create a critical mass to sustain the economic and social activities within the area, and will thus promote Local Economic Development (LED).

Background and Problem Statement

Due to capacity and establishment constraints, the NDM has assumed responsibility for several functions at the LMs, albeit at differing levels. Functions such as physical planning for Emakhazeni, Thembisile Hani and Dr JS Moroka were adjusted to the District in 2003. These municipalities are considered as low capacity municipalities. Engineering, planning, performance monitoring and evaluation are some of the critical skills that are required. The District must devise a long-term capacitation strategy for the concerned municipalities to enable them to perform these functions.

The Traditional Leadership and Governance Framework Act 41 of 2003 are yet to be put in operation and the provisions of the Act are still to be implemented. The Mpumalanga House of Traditional Leaders Act was promulgated in 2005. The Act will enable the MEC for Local Government and Housing to appoint representatives of the Traditional Leaders in the area of jurisdiction of the NDM to participate in NDM's Council as provided for in the Systems Act.

The question of service boundaries for Provincial and National spheres of government needs further attention with a view of alignment of these with municipal boundaries to facilitate service delivery. Although this matter should now be regarded as extremely urgent in view of the disparities and uncertainties caused, it must be noted that significant progress has been achieved in this regard. As far as powers and functions are concerned, the NDM performs certain function that in some cases are powers and functions of a local municipality. This is due to the fact that some local municipalities within the District are low capacity municipalities and will over time build adequate capacity to execute such functions. The division of these powers and functions is outlined in table below.

Some Highlights of Transport and Freight Related NDM Functions

Strategies that can be employed and deployed in strengthening freight transport and logistics delivery

The NDM should focus on the following strategies to efficiently deal with Freight Transportation issues in the District:

• Institutional strategies, including the establishment of a transport authority for the District; the establishment of internal coordinating structures or committees; the establishment of external forums and consultation mechanisms; the establishment of a transport development agency.
• Financial strategies, including incorporation of transport including freight transport as a new budget item, determination of the transport financial needs profile, development of specialized financial processes, identification and development of additional local funding sources.
• Transport planning strategies, including transport management information, transport policy formulation and ITP planning, integrated land use and transport development, transport freight corridor development, application of alternative transport technologies, modal integration and coordination.
• Operational strategies, including identification and prioritisation of service provision requirements, subsidised road based commuter services, services for special category passengers, rail freight corridor developments and other transport infrastructure developments.
• Transport regulation and control strategies, including creating regulatory capacity, implementation of the OLS and RATPLAN, law enforcement of permit system, conflict resolution.
• Training and capacity building strategies, including assessment of the training and capacity building needs, developing and implementing training and capacity building programs.

Nkangala District Municipality's Spatial Development Objectives

Following from the results of the Situational Analysis, and in view of the Land Development Principles as stated in the Development Facilitation Act, the National Spatial Development Perspective (NSDP), and the Provincial Growth and Development Strategy (PGDS), it is proposed that the future development of the District be based on the following objectives:

• To capitalise on the strategic location and linkages within regional and provincial context;
• To integrate and consolidate the dispersed settlements in the north west of the District;
• To establish a hierarchy of service centres to ensure equitable access to social infrastructure and development of economic activities throughout the area;
• To utilise the nature reserves in the municipal area to promote eco-tourism and to identify and develop the local cultural historic heritage;
• To consolidate economic activities along the major corridors/around the major nodes in the District, with specific focus on the N4, N12 and Moloto Corridors as well as the Emalahleni-Kriel-Secunda mining-manufacturing spine and the Groblersdal- Middelburg-Hendrina-Ermelo mining/extensive agriculture development spine;
• To stimulate the economic interaction between Emalahleni and Middelburg in the form of a local development corridor along route R555. In a long term perspective a metropolitan development process should be encouraged and flanked by transport development;
• To consolidate, through infill development and densification, the urban structure in the form of Transit Orientated Development around the Moloto Corridor. This will be achieved by way of upgrading of existing infrastructure (rail) and improved access to public transport;
• To improve living conditions through the formalisation and upgrading of informal settlements and provision of basic services;
• To actively manage the natural environment in order to ensure a sustainable equilibrium between the mining, agriculture and tourism industries in the District;
• To ensure protection of natural resources (i.e. water, land and air) from degradation and pollution (i.e. protection of water catchment areas, control of settlement encroachment on watersheds etc, i.e. through buffer zones, environmental impact assessment etc.);
• To enhance Biodiversity conservation through environmentally sustainable development.

Strategic Development Areas

The following Strategic Development Areas in the Nkangala District exist:

• Middelburg Central Business District and industrial areas;
• Emalahleni Central Business District and industrial areas as well as Ga-Nala (Kriel);
• Belfast town as the gateway to the major tourism centres in the Province;
• Dullstroom, Machadodorp and Waterval-Boven;
• Delmas and the agricultural holdings to the west thereof; and
• The areas around the Moloto Rail Corridor in the Thembisile and Dr JS Moroka areas with special emphasis on KwaMhlanga, Kwaggafontein and Siyabuswa.

These areas have a natural propensity/potential for development where private sector investment is currently occurring. Strategic direction should however be given to this private sector investment, to sustain and manage the development. These areas should be prioritized in terms of capital expenditure and intervention programmes. Specific aspects to be addressed in this regard in Middelburg and Emalahleni are:

• Renewal and upgrading programmes for the CBDs and industrial areas;
• Maintenance and upkeep of existing services and infrastructure.
• Expansion of industrial/commercial areas towards the N4 Corridor.

Aspects to be addressed in respect of Belfast are:

• Creating a tourism gateway at the Belfast off ramp from the N4;
• Upgrading the entrance into Belfast from the N4 freeway in support of tourism development; and
• Earmarking of land between the N4 freeway and railway line for industrial development.

Aspects to be addressed in respect of Dullstroom, Machadodorp and Waterval Boven are:

• Upgrading and maintenance of services in support of tourism development or industrial development;
• Formalisation of informal settlements; and
• Land use management and provision of services for new developments.
• In Delmas the main focus should be on industrial development (agri-processing) adjacent to the N12 freeway.
• Along the Moloto Corridor the main objective would be to promote Transit Orientated Development around all the proposed railway stations in order to create a critical mass in terms of population numbers and densities to stimulate economic development.

The 1997 Rural Development Framework, compiled by the Rural Development task Team (RDP) and the Department Of Land Affairs, defines rural areas as the sparsely populated areas in which people farm or depend on natural resources, including the villages and small towns that are dispersed through these areas. In addition, they include the large settlements in the former homelands, created by the apartheid removals, which depend for their survival on migratory labour and remittances. The whole District is characterised by some of these factors, particularly the Dr JS Moroka and Thembisile Hani local municipalities. Thus for developmental strategies to have any meaningful impact on the lives of the communities of the District, the rural nature of the District must provide guidance towards pro-rural and pro-poor systematic interventions.

The 2004 and 2006 reviewed Local Economic Development Strategy, Spatial Development Framework, NDMs concept document on the implementation of Thusong Service Centres, and other strategic planning documents compiled by the District have identified rural development and rural-urban integration as a central pillar in addressing unemployment, poverty and inequality within the District. People living in rural areas face the harshest conditions of poverty, food insecurity and lack of access to economic and social services. Women in particular, are the most affected.

Evidently, the District is characterised by various rural settlements, particularly areas of Dr JS Moroka and Thembisile Hani local municipalities which rely on the economic opportunities presented by the major urban centres, that is, Emalahleni and Middelburg, while majority of the population relies on subsistence agriculture. The population Census of 2001 and Community Survey of 2007, point clearly to the fact that the District must focus on rural development as one of the key strategies towards the betterment of the communities within the District.

The importance of rural development in the country is further highlighted in the 2009 National Budget in which R1.8 billion was allocated to rural development and small farmer support. It is recognized that key to transforming rural livelihoods is to better enable small scale farmers to use land more productively. In this regard increasing agricultural output, raising rural incomes, supporting small scale farmers and investing in rural roads are key objectives of government's rural development strategy.

Joblessness, poverty and levels of underdevelopment are disproportionately high in rural areas, where the majority of those with jobs earn poverty wages. This burden of rural poverty falls hardest on women who are the majority in rural communities. Since 1994, commercial agriculture has continued to develop in a manner that is characterised by a growing concentration of ownership and farm size, underutilisation of vast tracts of land, capital intensity, job-shedding and the casualisation of labour.

Limited opportunities of sustainable livelihoods in rural areas, insecurity of tenure and widespread evictions contribute directly to the growth of informal settlements in cities and towns. Many rural areas still lack basic infrastructure such as roads, water and electricity supply. This lack of infrastructure entrenches the problems of chronic poverty and limits the potential of communities to sustain economic growth, rural livelihoods and social development. The agricultural sector is critical for the economic development of rural areas and the country as a whole because of its potential to:

• Create work, both as a direct employer and through its linkages to other sectors;
• Provide the basis for sustainable livelihoods and small business development on a mass scale in rural communities;
• Raise rural incomes and build local economies;
• Ensure the efficient production of affordable food and other wage goods, assure food security for the poorest, and contribute to a climate of low inflation.

The prime importance of broadening access to land resources, the establishment of partnerships between local government and the private sector and NGOs for the promotion of a wide range of enterprises must be recognised. These should be built upon to utilise the local natural resource base and of the potential for trading links within an area. These should be strengthened through the establishment of rings of markets for locally and regionally produced goods and services, linking small towns into regional economies, building total production and cash circulation and a more competitive position in the wider economy.

Food Security: linked to the Millennium Development Goals (MDGs), the pursuit of household and national food security is a constitutional mandate of the government which seeks to create an environment which ensures that there is adequate food available to all, now and in the future, and that hunger is eradicated. Equitable distribution of basic foods at affordable prices to poor households and communities remains a challenge. As confirmed in the 2008 Agricultural Summit of the District the government must create an environment that ensures that there is adequate food available to all, that communities grow their own food and protect the poor communities from the rising prices of food and eradicate hunger.

In order to address these challenges, the government must take the following practical steps:

• Promote food security as a way of lessening dependence on food imports.
• Introduce a food for all programme to procure and distribute basic foods at affordable prices to poor households and communities.
• Introduce measures to improve the logistics of food distribution such as transportation, warehousing, procurement and outsourcing in order to reduce food prices in the long term.
• Continued enforcement of stronger competition measures must be used to act against food cartels and collusion, which inflate food prices.
• Expand access to food production schemes in rural and peri-urban areas to grow their own food with implements, tractors, fertilizers and pesticides.
• Supplementary government measures that support existing community schemes, which utilise land for food production in schools, health facilities, churches, urban and traditional authorities areas must be initiated.
• Ensure an emergency food relief programme, on a mass-scale, in the form of food assistance projects to the poorest households and communities including through partnerships with religious and other community organisations.

Land and agrarian reform: A comprehensive and clear rural development strategy, which builds the potential for rural sustainable livelihoods, particularly for African women, as part of an overarching vision of rural development is needed. Strong interventions in the private land market combined with better use of state land for social and economic objectives, must transform the patterns of land ownership and agrarian production, with a view to restructuring and deracialising the agricultural sector.

The land reform programme must be intensified so as to ensure that more land is in the hands of the rural poor. Government should provide the rural poor with technical skills and financial resources to productively use the land and to create sustainable livelihoods. The existing land redistribution programme, introduce measures aimed at speeding up the pace of land reform and redistribution and promotion of land ownership by South Africans. However, the pace and successes and failures of the programme must be appraised.

Notwithstanding the fact that rural areas remain divided between well-developed commercial farming areas, peri-urban and impoverished communal areas, economic development in the rural areas needs to go beyond land and agrarian reform. It must include affordable financing to promote economic development; support programmes and training in assisting co-operatives and small enterprises; public sector ventures; and strategies to develop appropriate industries including light manufacturing, handicrafts, services, tourism etc. This also requires the putting in place of the necessary economic infrastructure including IT services, roads and rail.

Linked to the land reform programme must be an expanded agrarian reform programme. This programme must focus on the systematic promotion of agricultural co-operatives throughout the production cycle. Active promotion of agro-processing in the agricultural sector must also be promoted. Government must develop support measures to ensure more access to markets and finance by small farmers. Social grants are making a huge contribution to pushing back the frontiers of rural poverty, fighting hunger and improving potential for economic growth in rural areas. However, in the struggle to build a better life for all, grants are no substitute for a broader strategy of rural development and employment creation.

Part of government measures to support rural development must include infrastructure development to produce thriving rural economies and ensure sustainable development. The expansion of basic infrastructure, which includes roads, electricity, water connections and public toilet systems in rural areas, becomes a central priority. Effective rural development programmes that ensure investment in infrastructure, services and training reaching those areas of the country that have been most adversely affected must be promoted. Relaxation of all the bottlenecks and the regulatory systems that could stifle self-improvement initiatives must also be prioritised.

Issues of education, health safety and security, LED, development of small enterprises and cooperatives are all critical elements of rural development. In a nutshell, the District rural development strategies and initiatives must seek to address the following issues:

• Fast-track delivery of infrastructure and targeted rural infrastructure
• Fast-track delivery of social and basic services
• Reduce distances between areas where communities reside and administrative centres
• Reduce bureaucratic bottlenecks,
• Strengthen municipal planning and budgeting systems
• Strengthen institutional capacity, skills, experience and implementation mechanisms in smaller municipalities including land reform, and food production and security.
• Encourage participation by rural people in decision-making processes that affect their lives.

Increasingly world-wide the importance of having an efficient transport system is recognised in terms of the vital role transport plays in economic and social development. As an essential catalyst for development, the road network must be in a sound condition as an underdeveloped or poorly maintained network will act as an inhibiting factor on sustainable development. Equally, the quality of life for residents and their ability to access social and economic opportunity is largely determined by the transport system serving the community. In this regard public transport is of particular importance.

It has long been acknowledged that lack of sufficient funding resources for the transport sector is one of the key obstacles to implementation and delivery.

Poorly functioning transport systems directly and indirectly constrain economic growth and accessibility to opportunities for both urban and rural area residents.

Negative impacts include inter alia:

Poor mobility and unaffordable transport, in particular impacting on the poor;

Freight movements being retarded through poorly maintained infrastructure; and

Long journey times for commuters.

Operational Expenditure

The operating budget of the Nkangala District Municipality can be defined as the combination of the operating costs of the NDM (shown in Figure 1) and the primary functions of the NDM (shown in the Figure below).

The NDM operating costs amount to R 87,924,531.70 and the NDM primary function costs relate to R 28,576,896. These amounts culminate to an operational expenditure of R 116,501,427.70 for the Nkangala District Municipality.

NDM Operating Costs

NDM Primary Function Costs

Capital Expenditure

The total capital expenditure for the Nkangala District Municipality amounts to R 312,973,214.66. This amount is divided into capital expenditure for the District Municipality and all the Local Municipalities and is divided as indicated in Figure 3.

Distribution of Capital Expenditure between Municipalities

The capital expenditure is further distributed between the various uses within each municipality. The distribution for the NDM is shown in Figure 4 and indicates that the majority of funds are being spent on District Capital projects.

NDM Capital Expenditure Distribution

The Tables below demonstrates the amounts spent by the municipalities on various uses. The local municipality that received the most money for capital projects was Emalahleni Local Municipality with R57 million of which less than R1 million was spent on Roads and Stormwater

Table 1

Table 2

Operating Grants and Subsidies

Operating grants and subsidies represent the bulk (52%) of the revenue sources of the Nkangala District Municipality. With the abolishment of RSC levies, the NDM is almost totally dependant on National and Provincial grants and subsidies as a revenue source. A breakdown of the income for 2007/2008 is as follows:

In this table only the categories Grant and Division of Revenue Act Allocations can be considered grants. If we however look back at the 2006/2007 budget we can see that a considerable part of the Surplus brought forward is from previous RSC levies and thus can also be considered as grants. Serious attention needs to be given to the lack of funding for road and maintenance projects in order to address the current status quo.

The LED Strategy 2004 of the District identified seven LED anchor projects that are linked to the pillars of the economy in the District. Prior to the adoption of the reviewd LED Strategy in 2006 the Delmas International Freight Airport was identified as an eighth project. During the Lekgotla in December 2007 the Loskop-Zithabiseni Tourism Belt Development was added as a ninth anchor project.

For the first seven anchor projects, business plans were developed accordingly in order to provide appropriate implementation guidelines and act as instruments through which investment can be attracted. Business plans for the two additional anchor projects will have to be developed. The business plans provide a roadmap with reference to the development of the ventures and assist the various role players and partners in implementing the projects by acting as a point of departure. The local municipalities have their own anchor projects and are also encouraged to identify more of these economic drivers. A brief description of the NDMs Anchor projects is captured below.

Catalytic Converter (R290 million)

The development of a catalytic converter component manufacturing plant would be a job-creating private investment within the automotive sub-industry. The catalytic converter component is part of the exhaust system of vehicles and has an outer shell made of stainless steel. Therefore the manufacturing plant should be located in immediate vicinity of steel mills around Nkangala. The Emalahleni/Middelburg region provides a favourable location for such a development. The facilitation role of Local, District and Provincial Government in the identification, lobbying and establishment of the plant is critically important.

Truck port/Logistics Hub (R16, 395/sqm)

The project aims to promote the development of a truck port including a distribution and logistic hub. By attracting the required investment to the region, distribution and logistic related services will be provided. With an integrated, sophisticated set of transportation, warehousing and distribution facilities including the necessary services; access to marketplaces will be largely improved and linkages to the different modes of transport enhanced. The movement of goods into, out of and within the region with minimized delays and duplication processes can be achieved with a network structure at a strategic location. The N4 Maputo Corridor provides an excellent location for such a development. The area between Emalahleni and Middelburg is taken into consideration for this project.

Multi Purpose Community Centre (R63 million)

Through the establishment of Multi Purpose Community Centres (MPCC) or Thusong Service Delivery Centres easy access to government services, technology and information shall be provided for the communities especially in the more rural areas of the District. Besides the information, communication and service component of the MPCC, learning and transactional activities as well as local economic activities should be included to use agglomeration advantages of concentration. By means of these strategically positioned facilities an economic effect will be triggered in rural areas. MPCCs should ideally be located at intersections of important rural roads.

Agro-processing (R73 million)

The NDM is one of the Districts throughout the country with high potential to produce the quality and quantity of crops that are needed for bio-fuel production. Considering the current National and Provincial initiatives bio-fuel focused local projects will have a major impact on the District economy. Through increased employment opportunities an improvement of income and poverty alleviation can be achieved. The proposed project involves cultivating, harvesting and processing essential oils in Nkangala District that will supplement the existing agricultural/agro-processing activities in the District.

The proposed location of the project is Dr JS Moroka local municipality. The town of Middelburg has been selected to be home to one of the seven Ethanol factories to be erected. For commercial production, trial areas of approximately 200 plants each with selected cultivars to determine quality and yields before planting on a large scale will be identified. A total of 24 hectares will be established with these cultivars during the 2nd phase of the project.

International Convention Centre (R110 million)

With the proposed Nkangala Convention Centre the region aims to attract events of a larger scale and serve those that are beyond the capacity of the existing facilities. As a technically fully equipped conference centre the multi-use facility will be able to accommodate various activities beyond normal conferences and therefore promote the cultural, economical and social development of the entire region likewise.

It is proposed that the centre be placed adjacent to the envisaged regional shopping complex to be developed north of the N4 highway. Thus, the location of the convention centre has been determined to be the Steve Tshwete local municipality. It will also be recommended that the developers be granted a remission of assessment rates for a period of at least 3 years. The necessary town planning activities will be undertaken by Council at its own cost. Services such as water, sewerage and electricity will be supplied by the municipality up to the border of the property to be utilized. It should be borne in mind that the Steve Tshwete tariffs for the provision of the above services are extremely competitive.

Moloto Corridor Rail System

The proposed Moloto Corridor Rail system is one of the biggest and most important projects that will be implemented in the region. The cost for the first phase was estimated at R2.4 billion which has escalated to R8.5 billion. It is expected to provide affordable, safe and comfortable transport for the commuters and highly benefit the local economic development in the rural, historically disadvantaged communities of Thembisile and Dr. JS Moroka.

A detailed feasibility study for phase 1, which is regarded as the primary section (Siyabuswa to Tshwane) was completed by the end of 2007 and the necessary decisions were taken. The project management preparations for the implementation are currently underway. The commissioning of the Rail System, the Road Feeder System and the integrated management structure is envisioned for 2013.

Highlands Gate and Estate Development (R850 million)

This private development of a Golf and Trout Estates within Emakhazeni local municipality aims to enhance Dullstroom as a tourist destination. Besides the establishment of a new golf course the project will include a housing estate, a wellness centre, a lodge and a conference centre. The main parts are already under construction. The full completion of this development is expected by the end of 2009. The developments of similar major Golf Estate projects are also underway (e.g. St. Michels near Belfast).

Delmas International Cargo Airport (R111 billion)

Growth in air traffic, both passenger and air freight, to and from South Africa has placed pressure on all facilities, especially freight handling, at O.R. Tambo International. Continued, significant interest in this development has encouraged the originators of the concept to convert the proposals and discussions into a viable development.

This project aims to enhance and integrate the entire import and export industry in the region through building an airport with international status, dealing primarily with cargo but not limited to this category of business. It will also serve as means to relieve the pressure on existing infrastructure (OR Tambo International Airport), especially around 2010 World Cup soccer games.

Air traffic to South Africa, both passenger and freight, is expected to continue to show good growth.

O.R. Tambo International Airport is primarily a passenger airport and it lacks the appropriate infrastructure to provide sustainable, suitable, dedicated freight facilities.

A Johannesburg-based company proposes to build the International Freight Airport in Delmas. Beside air cargo, an area to be used for a Free Trade Zone (FTZ) will be included. The need for the airport has been thoroughly researched and is supported by various traffic forecasts e.g. Boeing and Airbus. Development of conferencing facilities in the vicinity of the airport is also considered. Core businesses of the Airport incorporate:

• Passenger handling
• Aeroplane handling
• General freight
• Perishable goods
• Frozen goods
• Quarantine facilities
• Dangerous goods
• High value goods
• Oversize cargo
• Ambulance and mercy flights
• Aviation repair and maintenance facilities
• Neutral zones for the UN, Red Cross
• Training facilities for ATNS, Fire Brigades

As far as progress is concerned, various detailed Feasibility Studies have been conducted, indicating a project that is necessary, as well as being viable in all regards, including financially. The following activities have been undertaken:

• Suitable land has been identified. Offers to purchase this land have been made, and deposits paid to secure it.
• Numerous major freight companies have indicated their support for the project.
• Meetings have been held with companies, both local and international, who have expressed interest in the development of the general area.
• Negotiations are at an advanced stage with potential investors into the project, to the extent that financial guarantees are being issued.
• ATNS (Air Traffic and Navigation Services) have been consulted with regard to the airport, to the extent that a paper was presented on Delmas at Opscom 2007, towards the end of July 2007.
• Discussions have been held with both local and international Airport Management Companies for the operation of the airport.
• The Professional Team is in place to manage this development to its successful conclusion.

Loskop-Zithabiseni Tourism Belt Development

Various Nature Reserves in the north west of the District carry enormous potential for further tourism development (Mdala, Mkhombo, SS Skhosana, Mabusa, Loskop nature reserves, etc). The close proximity to Gauteng as the main market or entry point for tourists must be seen as a strong advantage and calls for action. The main focus of the development proposal centres on the establishment of an integrated ecotourism concept.

The existing game reserves and tourism facilities are currently under-utilized and underdeveloped. Through upgrading the reserves and associated infrastructure, revitalization and expansion of tourism facilities, enhanced economic development with regional significance and relevance, (especially for the historically disadvantaged areas of the former homelands) can be achieved. The identification of the Loskop-Zithabiseni Tourism Belt Development as an anchor project is the first step that the District in collaboration with the MPTA seeks to undertake in unlocking the tourism development potential of the area, within the broad tourism belt.

Rust de Winter Development

Rust de Winter Development Project is a Major Tourism Development Project that is planned for the North Eastern part of the Nkangala District Municipality covering parts of Thembisile and Dr JS Moroka Municipalities. The development is aimed at covering areas around Rust De Winter, some parts of Moloto, KwaMhlanga, Klipfotein, Loding Almansdrift, Mdala Nature Reserve, Mkhombo/Rhensterkop Dam, Rooikoppen Dam, Rust De Winter Dam including some major tourist sites like General Smuts House in the Rust de Winter area.

The development will mainly centre around Tourism attraction based on the Game Reserves, the dams listed, hotel accommodation, condominiums and Corporate Lodges, Sangoma Village with Muti Nursery (Traditional Medicinal Plants), Bird Park, Equestrian Centre and Polo Clubs. The development project is earmarked to use Commuter traffic using efficient and economic diesel electric train sets hauled by steam locomotives hence local power generation is expected to further boost economic growth within the area.

Kusile Power Station Project: (R111 billion)

Kusile Power Station, formerly code-named as Project Bravo, is South Africa's largest construction project four times larger than Gautrain. This project is being built by Eskom as part of its multi-billion rand expansion build programme with expected completion scheduled for 2017 and is aimed at meeting South Africas surging power needs. The project is expected to cost an estimated R111 billion. The last unit is expected to be commissioned in 2017.

This project is a government supported initiative through Eskom's revised plan for electricity growth. Eskom revised its electricity growth projections two years ago from 2.3% to 4% per annum. The upward revision of the electricity demand growth to 4% was required to align to government's target of a 6% gross domestic product growth between 2010 and 2014. Hence the Kusile power station had to be brought forward as a result of the revised plan.

The new base-load power station, which will consist of six-unit, green field, mine-mouth, coal fired plant generating a total of approximately 4 800 megawatts (MW) (6 by 800 MW) of gross output, is located on the west of R555 between the N4 and N12 freeway and some 30 km north of the existing Kendal power station. The project is located in the Delmas Local Municipality's area of jurisdiction near the town of Witbank in Mpumalanga province.

It is essential that the country maintains its momentum and size of the build programme currently underway as delays will place security of energy supply at risk. Kusile with its former working name Bravo constitutes the second most advanced new generation coal-fired power stations being brought into the system after the Medupi power station, which is currently being built at Limpopo province. The time of completion for the Kusile project is expected to be in 2017. Kusile's first 803-MW units would begin coming on commercial stream in 2013, with the subsequent five units being commissioned in eight-month intervals thereafter. The last unit is expected to be in commercial operation in 2017.

However, as such project is implemented moving forward it is imperative to assess its economic impact to the region and the entire economy. It has come to be convincing that a project of such magnitude poses huge effects on the socio-economic cluster of the region thereby contributing immensely to the economic growth in the economy. The state-owned electricity utility has selected Anglo Inyosi, the black economic empowerment subsidiary of Anglo Coal South Africa, to supply the required coal for the life of the power station. The coal, which will be transported by conveyor belt, shall be supplied from the nearby new Largo reserve as well as from the Zondagsfontein reserve. This shows that a significant number of personnel will be employed and thus contributing to the reduction of un-employment in the country.

It is important to note the positive impact the project would have on economic and social aspects. Kusile will be the first power station in South Africa that will have Flue Gas De-Sulphurisation (FGD) plants installed. According to Eskom, this is a state-of-the-art technology meant to remove oxides of sulphur, including sulphur dioxide, from the exhaust flue gases in coal-fired power plants. This will enable Eskom to use the technology as an atmospheric emission abatement technology, thereby ensuring compliance with air quality standards, as is a result of the location of the Kusile project in the greater Witbank area where the existing atmospheric pollution is perceived to be a problem. Hence the installation of such plants will mitigate the air pollution, and clean air to the environment will be maintained.

There is little doubt that the construction of Kusile will have a positive impact on the economy of the Mpumalanga province. Therefore, the project is expected to create over 8000 jobs for local people. For both project Kusile (Bravo) and Medupi more than 50% of the contracts would be secured locally with the potential to create thousands of jobs (TradeInvestSA, 2008). On a specific view, staffing will be at the level of approximately 483 people divided between permanent Eskom employees and outsourced functions. Due to the relatively high level of automation compared to older stations, each operating shift would have 17 persons per shift on a five shift cycle. In addition, significant skills development will occur as a result of the project going forward. Though, shortages of much needed skills remain a challenge that must be addressed urgently to meet the needs of the economy provided by such a project opportunity.

However, there is an adverse economic impact that needs to be tackled as brought about by the Kusile power station, the urgent problem of the condition of the roads in the Mpumalanga area. The road network between the mines and the power stations has been severely damaged. This is the result of an average 800 heavy trucks travelling such routes on a daily basis. An additional 45 million tons of coal have been procured from mines in order to maximize output at coal-fired power stations. 90% of this will be transported by road and thus will further exacerbate an already critical situation. Government, mines, Eskom and Transnet must assess various rail and conveyor options as would the creation of dedicated roads for coal haulage as various logistical solutions.

The demand for water is another impact posing its crucial challenge to government, Eskom and mines. Proper budget, coupled with water infrastructure construction for adequate water ration and conservation is critical as a solution to easing the challenge.

The sole aim positive impact to be brought about by this project is increase in electricity supply to command the necessary security for the needed socio-economic development and thus economic growth in the country. It is envisaged that the energy will be fed into the National Grid at a transmission voltage of 400kV and /or 765kV that will have direct usage by the various sectors of the economy and the balance possibly for export.

The District embarked on a process to formulate a Local Economic Development (LED) Strategy that will through implementation place the District on a higher economic development trajectory. Currently the NDM has identified nine anchor projects. The identified anchor projects are: Delmas Cargo International Airport, Highlands Gate & Estate Development; Multi-purpose Community Centres; Catalytic Converter; Agro- Processing; Moloto Rail Development System; Truck Port/Logistics Hub; International Convention Centre; and Loskop Zithabiseni Tourism Corridor.

The Mpumalanga Province launched five flagship programmes in February 2007. The aim is to further stimulate economic growth and socio-economic development in the Province. The need to adopt a business unusual approach to realise tangible outcomes by 2009 is emphasised. The section below briefly outlines the Provincial Flagship programmes.

Heritage, Greening Mpumalanga and Tourism

Key components of this Flagship include promotion and preservation of heritage resources, tourism and greening. It is a programme that integrates the elements of defining and recording Mpumalanga's heritage, enhancing biodiversity conservation, sustainable development and effective environmental management practices to create a green' Province'. The focus on biodiversity conservation and sustainable use will enable the Province to conserve sensitive ecosystems, including sites of heritage significance. It starts with simple things, combating wrong attitudes, poor but clean environs, promoting the right community and public manners.

However, the challenge of creating a Green Province will need to enhance capacity in communities and municipalities to design and implement environmental management programmes.

Accelerated Management of Capacity Building

The objective of the Province here is to ensure a continued drive to provide the necessary support on capacity building. Part of the targeted support to senior managers is the implementation of this flagship project as part of the 'Provincial Big Five' flagship projects. This project is aimed at enhancing key competencies and skills for senior managers to perform at the required level, particularly women. Senior female managers are participating in the Executive Development Programme (EDP) to sharpen their leadership and management skills.

Another challenge that must be addressed is the positioning of the school curriculum offering and programmes to progressively provide a sustainable pool of skills and competencies to support the implementation of Big Five developmental flagship projects. FET institutions also need to be positioned in such a manner that they play a central role in addressing the skills needs of the Province. The underlying principle is that skills development intended to create delivery and implementation capacities remains a critical success factor.

Maputo Development corridor

The Province is indeed cognisant of the fact that to address poverty and unemployment it is critical to stimulate the economy so that it creates jobs and income opportunities. The development corridors will unlock economic development opportunities that will benefit the people of the Province. Besides the rehabilitation of the primary infrastructure, the project seeks to stimulate the social and economic development within the broad corridor along the N4.

The Maputo Freight Development Corridor has a potential to further advance economic cooperation and partnerships between Mozambique and South Africa, in particular Mpumalanga. It is essential that private and public sector partnerships are mobilized to leverage business development and investment opportunities along the Maputo corridor in order to benefit the people of Mpumalanga and Mozambique.

Moloto Development Corridor

Key within this freight development corridor is the Moloto Rail System Development, which is also an anchor project of the NDM. The system will link the District with Gauteng through the Dr JS Moroka and Thembisile local municipalities. This has a potential to invigorate economic activities within the two municipalities alleviating poverty within the communities and creating employment opportunities.

Road Safety in Nkangala District Municipality

According to the World Injury Report on road traffic injury prevention (WHO, 2004), road traffic injuries represent a major public health and development crisis, and is a neglected global health problem. It is estimated that almost 1.2million people are killed in crashes each year, while the number of injured can be as much as 50 million.

The total number of people killed in road accidents in regions of the developing world continues to increase, whereas in the West there has been a steady decrease over the last 15 years. The highest fatality rates (deaths per 10 000 motor vehicles) occurred in African countries while the highest fatality risk (deaths per 100 000 population) occurred in a disparate group of countries. South Africa is in the top five of all countries in terms of fatality risk (27 deaths per 100 000 of the population).

The Mpumalanga Road Safety Strategy identifies the following as key challenges with regard to road safety:

• Fragmented Management of Road Safety
• Fraud and Corruption
• High Level of Passenger Casualties
• Poor Driver Behaviour
• Inadequate Punishment and Follow-up of Fines
• High Level of Pedestrian Casualties
• Unroadworthy Vehicles
• Inadequate Policing
• Defining Road Safety as a Social/Health Problem

There is a very distinct trend towards worsening road conditions along the paved network in the Nkangala District as can be seen in Graph 1. This is mainly due to the ever increasing amount of heavy vehicle traffic that flows along these roads. Some of the key reasons for this is large coal hauling operations in progress in the area, a nation wide trend towards the use of road freight rather than rail freight, and the high toll charges along the N4 corridor causing many of the freight companies to move their operations to lower class and lesser equipped provincial and local roads.

Paved Road Condition per District Municipality (2004 condition)

The following conclusions can be made with regards to the spatial distribution of the road conditions:

On average, the road condition in Nkangala District Municipality is the poorest in the province. Only 37% is in a good or very good condition, while 32% is in a poor or very poor condition;

The road condition on provincial roads shows that the poor and very poor roads are concentrated in the coal haulage area in southern Nkangala and northern Gert Sibande districts.

Typical costs of road construction, maintenance and upgrade are indicated in Table 3. It should be noted that these costs and frequencies represent typical averages only, and that unit rates may vary from contract to contract and from area to area.

Table 3: