Ndlambe
LED Strategic Plan
2009 – 2014
Final Document
Contents
1
Factors influencing LED strategies .................................................................................................. 1
2
Local Imperatives............................................................................................................................... 2
2.1
3
4
5
6
Strategic Implications.............................................................................................................. 3
Strategic Pillars .................................................................................................................................... 6
3.1
Pillar 1 – Sector Prioritisation ................................................................................................. 6
3.2
Pillar 2 – Strategic Infrastructure Development ..................................................................... 7
3.3
Pillar 3 - Business Support Initiatives ...................................................................................... 7
3.4
Pillar 4 - Skills Development .................................................................................................... 8
3.5
Pillar 5 – Social Upliftment ...................................................................................................... 8
Strategic Enablers ............................................................................................................................ 10
4.1
Robust Project Un-bottlenecking .......................................................................................... 10
4.2
Assessment of Municipal and Public Assets ......................................................................... 10
4.3
Institutional Development .................................................................................................... 11
4.4
Partnership Building .............................................................................................................. 12
4.5
Strategic Approach................................................................................................................ 12
Organisational Strategy .................................................................................................................. 14
5.1
Towards a LEDA or LED unit .................................................................................................. 14
5.2
Recommendations ................................................................................................................ 15
5.2.1
Strengthening of the LED units ..................................................................................... 15
5.2.2
Towards Establishing a LEDA ........................................................................................ 15
Knowledge Management Strategy ............................................................................................. 18
6.1
Developing Internal Capacity ................................................................................................ 18
6.2
Developing Critical Partnerships ........................................................................................... 19
6.3
Managing Information & Documents ................................................................................... 19
7
Financing Strategy ........................................................................................................................... 21
8
Project Categorisation .................................................................................................................... 24
8.1
9
Interventions by Category..................................................................................................... 24
Project Implementation Plan ......................................................................................................... 26
Ndlambe LED Strategy 2009
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LED Strategic Planning:
Context
Contents
1
Factors influencing LED strategies
1
2
Local Imperatives
2
LED...is about local activities to make markets work better
(Dr Jörg Meyer-Stamer, GTZ)
1 Factors influencing LED strategies
A range of generic factors have a bearing on the focus and content of LED strategies. The policy
guidelines for implementing LED in South Africa distinguish between ‘supply side’ and ‘demand side’
drivers for LED in the context of a developmental state.
Supply-side measures involve what national and provincial government do within district and
metropolitan areas, and are captured in:
National policies and programs
Provincial priorities (articulated in the PGDP)
Demand-side measures refer to what district and local municipalities together with local role players
do to grow the local economy. These include:

Understanding the socio-economic environment

Institutional capacity

The local development agenda

Current programs of local municipalities as expressed in their IDPs
The challenge for municipalities, when developing an LED strategy, is to ensure the correct /
desirable balance between the 2 sets of measures. Strategies are currently dominated by the supplyside measures (availability of funding or the need to comply with legislation, for example). Unless
the appropriate balance is achieved, strategies will continue to be mechanistic, and lack the local
responsiveness that will give them dynamism and lead to positive LED results.
The following figure outlines the influencing factors of an LED Strategy:
Figure 1 - Influencing Factors
Ndlambe LED Strategy 2009
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2 Local Imperatives
The development of this LED strategy is guided by the existing policies of the Ndlambe Municipality,
as well as the District, Provincial and National frameworks. These include:

Ndlambe IDP (Review 2008/09)

Ndlambe Spatial Development Framework (2006)

Ndlambe Responsible Tourism Sector Plan (2008, draft Review of Situation Analysis)

Cacadu Area Based Plan and Land Availability Audit (2008)

EC Provincial Growth & Development Plan

National Spatial Development Perspective
In alignment with the NSDP and PGDP, the Ndlambe Municipality projects are assessed in terms of
the following principles:

Contributes towards economic growth and poverty alleviation

Government spend – over and above basic services provision – is directed towards the
stimulation of sustainable economic development and income-generating / employment
opportunities

The developmental efforts of the municipality are focused on people rather than places –
this may include capital investment, human resource development and social transfers

Nodal and corridor development which supports the aim of redressing the spatial distortions
of development

Increasing the opportunity for meaningful stakeholder participation
From the Ndlambe IDP, we recognize the following priorities which have a direct bearing upon the
LED Strategy:

Addressing Infrastructure issues:

Sanitation backlogs

Road condition

Business infrastructure – including light industry & commerce

The implementation of effective development planning and implementation, – especially as
the upper-income residential, holiday home and tourism construction sector play such a vital
role in Ndlambe’s economy

Addressing internal capacity issues
Ndlambe LED Strategy 2009
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
Promoting effective management of Council assets through the implementation of critical
systems

Improving the role of the Municipality with regards to economic development – with specific
reference to Tourism

Increasing disaster management capacity
The IDP further outlines some of the critical challenges facing the Ndlambe Municipality with regards
to LED. Whilst the section on Institutional Development focuses in more detail on these issues, some
key points include:

Limited institutional capacity to deliver on LED – although one expects this to increase
somewhat with the appointment of the LED Manager (April 2009)

Lack of meaningful participation from stakeholders

Existing municipal assets are not sufficiently used to promote the local economy

The municipality is currently not ma

The key economic sectors upon which the municipality would wish to focus are:

Tourism

Agriculture

Entrepreneurship development & the small business sector
2.1 Strategic Implications
This study has served to highlight a number of key strategic issues, and provides a basis upon which
to develop the strategic interventions necessary to enhance local economic growth in the Ndlambe
region. In particular, the following is noted:







The region is dominated by the coastal assets, agricultural and tourism sectors;
The economy is primarily a seasonal one – being influenced by both the seasonal tourism
market and the seasonal agricultural market
The population is largely an urban one – only 22% of the population being rural, residing
mostly on private farming operations
Agriculture is the key employment sector – employing some 32% of the workforce
Tourism, property development and trade are the key drivers of the local economy,
accounting for some 46% of the local economy
Ndlambe has rich natural resources, including the agricultural produce (pineapples, chicory
& livestock), the coastline. These are further enhanced by the involvement of a wide range
of organisations, such as the Hospitality School (EISS), the Air School (43 Air School) and
involvement of Rhodes University in the region.
The Ndlambe economy is very diverse and unlike most of the rest of the Province, is not
heavily reliant on the Public Sector
Ndlambe LED Strategy 2009
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

There are a significant number of projects already in the pipeline, at various stages of
actualisation. These range in size, significance and sector, suggesting that the Ndlambe
Municipality is already working towards sustainable economic development. However, for a
range of reasons, the Municipality is having limited success with many of these projects
Although a wide range of opportunities exist, the positive developmental outcomes are
largely not being realised.
In assessing the current status quo, it was noted that there are a number of key projects which are in
the pipeline. In order for the Municipality ensure that the resources available are utilised responsibly
and effectively towards economic growth, it is imperative that a rigorous de-bottlenecking of
projects be undertaken. In this regard, it is important that those factors which are inhibiting the
progress and actualisation of projects be addressed as a matter of priority. Some of the critical
bottlenecks which are generic to many of the projects include:



Incomplete, or non-existent feasibility studies
Insufficient funding procured
Resource management/co-ordination – including
management, etc.
land
management,
beneficiary
The fundamental objective of this strategy, therefore, becomes to build on the work which has
already been done at Ndlambe, and to direct and enhance the current resources to promote
sustainable and effective economic development at the local level.
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Strategic Framework
Contents
3
Strategic Pillars
6
4
Strategic Enablers
10
3
Strategic Pillars
3.1 Pillar 1 – Sector Prioritisation
The following criteria are useful considerations to be taken into account when deciding which
sectors should be regarded as priorities for the allocation of resources:

Is there a strong, positive linkage between the sector and the area’s Natural Resource Base?

Does the identified sector have strong linkages with current economic activities
o
For example, agriculture

Is there direct/indirect linkage to existing value chains?

Does this sector have notable employment potential?

Is there market potential for the end product, or for products at various points along the
value chain, either locally or globally?

Does the area currently have the necessary skills base to develop this sector, both currently
and in the future? If not, is it possible to attract the necessary skills?

Can we make use of State assets in the expansion of this sector?

Can this sector create sustainable jobs?

Would focus on this sector be supported by the principles outlined in the IDP, PGDP and
NSDP?
Based on the above, the following priority sectors were identified in Ndlambe:

Tourism

Agriculture

Entrepreneurship & SMME

Social Upliftment
Given the wealth of projects and interventions which are already in the pipeline, the strategy must
focus on giving life to the identified projects which meet the Strategic aims of the Ndlambe
Municipality.
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3.2 Pillar 2 – Strategic Infrastructure Development
Infrastructure plays a critical role in promoting economic growth through enhancing productivity,
improving competitiveness, reducing poverty, linking people and organisations through
telecommunications and contributing to environmental sustainability.
The importance of infrastructure in creating an enabling environment for Local Economic
Development cannot be overlooked. Infrastructure delivery must be optimized in such a manner as
to enhance economic development and sustainability.
In particular, the following strategic infrastructure must be in place in order to develop the priority
sectors as identified above:

Adequate potable water to meet the demands of the local residents, the influx of holidaymakers and a certain amount of future expansion of the existing urban settlements

Roads infrastructure – it is imperative that the roads infrastructure is seen as a strategic
asset. The road network enhances the accessibility of the municipal area as a tourism
destination, whilst also facilitating transport of goods to/from/through the area

Adequate sewerage infrastructure to meet current and future demands
3.3 Pillar 3 - Business Support Initiatives
In order to arrive at a situation where SMMEs are sufficiently developed to access and exploit the
opportunities identified, significant resources need to be mobilised in respect to building capacity
and providing ongoing support. The general purpose of SMME development and business support
initiatives are depicted in the diagram below.
Information
dissemination to
SMME’s
Access to finance &
financial services
Facilitate skillstransfer & capacity
building services
Facilitate and provide
infrastructure support
Promote access to
markets
SMME-enabling
environment thru’
policies & procedures
Guidance to quality
control, product
development &
marketing
Facilitate
communication
between stakeholders
& SMMEs
Figure 2 – Purpose of Business Support Initiatives
Ndlambe LED Strategy 2009
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Support can be offered through both training and direct services. Training programs set out to equip
emerging entrepreneurs with the necessary skills to contribute to and benefit from the economy. A
range of capacity building programs could be offered, usually covering the following general and
specific skill sets:
 Writing a business plan
 Market intelligence
 Retail: Buying, Costing, Pricing, Selling
 Money management
 Stock control
 Financial management
 Business communication
 Budgeting
 Record-keeping to meet SARS and
 CIPRO requirements
A mechanism should be introduced to provide entrepreneurial support services which would assist
emerging entrepreneurs to manage and overcome the most common obstacles to economic
participation. Such services could include:
 On-site business advice and support
 Supervision during the drafting of a business plan
 Business counselling
 Mentorship services
3.4 Pillar 4 - Skills Development
The identification, development, management and continuation of investment all require the
availability of competent personnel in the local municipality, as well as the District municipality and
within communities and among private sector investors. Capacity gaps are currently most evident at
the municipal level, where officials grapple with interpreting, implementing and enforcing legislation
in the context of a complex set of regulatory requirements, whilst also carrying larger-thannecessary loads due to the number and type of unfilled posts. Communities too, are often
disadvantaged by the complexities of the regulatory environment. They are further often unable to
fully exploit the potential benefits of investment as a result of limited skills.
Skills development must, therefore, address both the municipal and private sectors. It is essential
that investment and skills are systematically linked with the overall direction that the municipality
has identified for the economic growth of its region.
3.5 Pillar 5 – Social Upliftment
Social Upliftment programmes are generally associated with Poverty Alleviation and not often with
local economic development. However, the potential to make a significant impact through social
upliftment projects is so great that it is deemed a pillar in the LED Strategy. Indeed, the current
Ndlambe LED Strategy 2009
Page 8
levels of poverty provide an opportunity for the Municipality to lobby for increased public sector
input into this region. Whilst the social upliftment projects in themselves will have a beneficial
impact on the beneficiaries, there will be significant spin-offs which are likely to contribute to the
development of the local economy, if the projects, programmes and policies are correctly
implemented.
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4 Strategic Enablers
There are four strategic enablers which provide the platform for effective local economic
development, these being:

Robust Project Un-bottlenecking

Assessment of Municipal Assets

Institutional Development

Strategic Relationship Building
4.1 Robust Project Un-bottlenecking
As has been identified throughout this study, there are a number of seemingly good projects which
have simply failed to progress for a variety of reasons. A key in unlocking the economic potential of
the Ndlambe region, therefore, is in Un-bottlenecking the projects which are already in the pipeline.
This would include:

The consolidation of projects and the identification of the genuine developmental potential;

Rigorous project and even sectoral prioritization based upon thorough cost-benefit
assessments, assessments of potential and a thorough unpacking of the value chains;

Identification of the spatial focus and configurations of the key projects
It is not enough to simply create a wish list of projects – a thorough feasibility of each project is
required, upon which the possibility of securing the necessary funding becomes far more likely.
Through a detailed assessment of each project, unique bottlenecks and potential stumbling blocks
will also more readily be avoided or dealt with.
Through the process of developing this Strategy, Ndlambe has received in-principle offers of help in
this process from ECDC, National Development Agency, and DEDEA. The municipality must enter into
formal arrangements with these and other institutions in aggressively tackling the bottlenecks.
4.2 Assessment of Municipal and Public Assets
The Municipal and Public Sector assets include natural (coastline, sea, rivers, land), infrastructure
(including buildings) and institutional resources (including skills, people, institutional memory and
networks). Whilst some preliminary assessment of the existing resources is contained in this
document and other associated documents (Asset Audit, Ndlambe SDF, Cacadu Area Based Plan &
Land Availability Audit), it is essential that the Municipality comes to terms with (a) what it owns and
(b) how this can benefit the economy of the region. The assessment would therefore include:

The identification of all the resources owned by the municipality and the LED potential
which they have. This could involve some or all of the following processes – land audit, asset
inventory, Participatory Appraisal of Competitive Advantage (PACA), etc
Ndlambe LED Strategy 2009
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
Enhancement of the work begun in this process with regards to consolidating and
strengthening the institutional capacity of the municipality – this should focus on the
potential of creating a Ndlambe Local Development Agency, and the associated risks and
opportunities which this poses

The formulation and assessment of empowerment and ownership models which would
open and maximise access to the local economy and resources
4.3 Institutional Development
Based on this research, through our discussions with both internal and external stakeholders,
institutional capacity is a critical area of intervention.
Institutional capacity speaks to two major areas:
1 LED Research and Planning
2 General LED-associated capacity (such as management, farming, etc)
LED Planning requires an accurate, relevant and accessible information base. This requires good
data-management so that existing information can be easily accessed for planning purposes. Our
experience during the course of developing this LED Strategy suggests that the municipality has not
consciously developed a LED databank which could feed into the planning. In addition, the
institutional memory is weak, given the limited Knowledge Management systems, and the fact that
those systems which are in place are not being utilized effectively.
There are three ways of addressing this problem:

Building the internal capacity of the LM to undertake focussed research in relevant areas;
and/or

Developing an additional “arm” of the municipality, in the form of a Development Agency,
which can undertake significant LED interventions and become the primary research organ;
and/or

Build strategic partnerships with research institutions both in the pubic and private sector,
which would provide information support to the LM.
We propose a combination of all three of the above:
It is strategic and imperative that the Municipality develops the capacity to undertake “actionresearch” which would ensure that lessons are drawn from the day-to-day experiences. Planning
could then be based on an ongoing analysis of data.
However, given the success rate to date, it is unlikely that the municipality will attract critical highlevel skills in the areas of research and general LED-associated fields. There is therefore a strong case
for the establishment of a strong Development Agency, which would be a municipal owned entity,
run on business principles. The experiences of many regions suggest that such an agency would
Ndlambe LED Strategy 2009
Page 11
benefit Ndlambe – if the process is well managed and the Terms of Reference for the Agency are
well developed.
Over and above the internal arrangements, the municipality must also build alliances with
institutions such as ECSECC, RuLiv, NMMU, Rhodes University, GCIS, CSIR, etc. as these organisations
already have existing databanks of information relevant to the mandate of the local municipality.
Key information and research areas should focus on the priority sectors, in order to develop a full
and clear picture of the potential and constraints of each sector. For example, a clear picture of the
make-up of the commercial agricultural sector may point to opportunities for the future purchase of
farms.
Information management is also a key intervention which will enable the municipality to make use
of resources which are already in existence.
With regards to General Capacity, the Ndlambe Municipality is in the fortunate position that a
number of seasoned professionals have chosen to retire to the area. It is therefore a resource which
is waiting to be maximized on, as many retirees would be only too willing to provide assistance to
the Municipality, which will be an effective way of providing mentorship opportunities to municipal
and associated staff. In addition, the development and strengthening of the voluntary sector is also a
critical component as this sector can often be involved in small, yet significant LED projects which
the municipality does not have the resources to be involved in, as they often require significant
hand-holding.
4.4 Partnership Building
Central to the ability of the Ndlambe Municipality to implement this LED Strategy is the ability to
create strategic partnerships with key stakeholders. There are two types of partnerships which are
identified:
1. Strategic relationship – where the LM would draw from the broader resource base of
existing organisations, for purposes of augmenting the municipal capacity
2. Operational relationship – drawing operational support from third party in order to directly
support the LM’s own objectives
This distinction is made as the two types of relationship have different requirements in terms of
accountability, types of support received, etc.
4.5 Strategic Approach
Based on the above, the overall approach to local economic development should be to increase
public-sector spending in the area, which in turn would be a catalyst for private-sector investment.
Furthermore, the focus of public-sector spending on social infrastructure will have direct economic
spin-offs. It is therefore imperative that the Ndlambe Municipality forges strong intergovernmental
relationships in order to maximize the potential input into the region.
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Institutional Arrangements
Contents
5
Organisational Strategy
14
6
Knowledge Management Strategy
18
7
Financing Strategy
21
5 Organisational Strategy
As described in the Status Quo Report, there are some critical capacity constraints in the Ndlambe
Municipality, which are negatively impacting upon the Municipality’s ability to deliver adequate and
appropriate support within the LED realm.
In addressing these constraints, there is one question which must be asked:
What is the most effective and efficient vehicle likely to be in driving, implementing and supporting
Local Economic Development in Ndlambe?
There are two options which must be explored: The first is the establishment of a Local Economic
Development Agency (LEDA) and; the second is the up-skilling and further capacitation of the
existing LED Unit within the Municipality. It is noted at the outset that these two options are not
mutually exclusive – it would be quite possible, and indeed favourable, to embark upon both options
simultaneously, in order to develop the strongest possible LED capacity in the region.
5.1 Towards a LEDA or LED unit
In assessing the need for a LEDA or a LED Unit, there are critical issues that must be considered
before such a decision can be taken:
Issues
Size of the municipality
Considerations
In which category does the municipality fall?
Resource base of the municipality
What is the size of the budget?
Infrastructure and assets of the municipality?
Human Resource capacity of the municipality?
Planning capacity
Size of investment that the municipality have a potential to attract?
Current investments?
Investment opportunities
Economic sectors
Viable economic sectors
Population size
How big is the population
Mortality rate
Number of skilled people
Number of semi-skilled people
Ability to attract and retain scarce skills
Skills base
Economic Planning
On answering the above questions, it will become apparent that the Ndlambe Municipality may be
ideally positioned to have both a LEDA and an LED Unit, as it has the resources to be an effective LED
role-player. Furthermore, Ndlambe is a region which is economically diverse – in a good and bad
way: it is diverse in the sense that the economy is not reliant on any one industry for its survival, but
it is also diverse in the sense that there are huge disparities between the rich and the poor. As a
result, the LED arm of the Municipality must have the ability to deal with grassroots initiatives, whilst
also having the muscle to interact with high-level players in what is essentially a global economy.
Ndlambe LED Strategy 2009
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5.2 Recommendations
It is imperative that the Municipality plays a pivotal role in the LED environment, in order to ensure
that the local economy is stimulated, whilst addressing the needs of both the small businesses and
the larger businesses. In doing this, it is important that Ndlambe draws upon all the resources
available. The recommended strategy, therefore, is threefold:
1. Strengthen existing and develop new relationships with key role-players;
2. Strengthen the existing LED Unit and build capacity; and
3. Establish a LEDA which can interact at a high level and work on large, cross-cutting projects
which are likely to have a significant impact on the economic landscape of Ndlambe.
5.2.1 Strengthening of the LED units
Ndlambe Municipality has recently embarked upon a process to strengthen the human resource
capacity of the LED Unit – specifically through the appointment of the LED Manager. Whilst this is
certainly a critical step towards the strengthening of the LED Unit, it is unlikely to be sufficient. It is
also critical that the process of filling vacant positions – notably the administrative assistants – be
completed as a matter of priority. It then becomes a matter of strategic intervention to provide
access to the necessary training and resources to build additional capacity within the Municipality.
It is unlikely that the LED Unit will be able to become a significant resource to the region without
engaging with other key role-players. Therefore, in providing access to the necessary resources, it
becomes imperative that the LED Unit build strong relationships with the wide variety of
stakeholders who have already indicated a willingness to be of assistance – this includes (but is not
limited to) the Nelson Mandela Metropolitain University, ECSECC, the local Chamber of Business,
RuLiv, ECDC, and other organs of state. Additional relationships must be forged and developed, with
organisations such as Rhodes University and the South Africa Association of Retired Persons, who
already have a presence in the region, as well as those who could be brought into the area – such as
SEDA. Such relationships will provide access to key resources in the areas of data collection and
anlaysis, research, project management, project planning, financial management and much more.
5.2.2 Towards Establishing a LEDA
What exactly is a LEDA? According to the IDC, a LEDA is:

An entity with public interest and accountability but which uses private sector tools and
strategies;

A specialized entity essential to fill the gap between the crafting of development plans and
the implementation thereof;

A delivery tool owned by the municipality to co-ordinate and manage public resources,
potential investors and regional investment opportunities in accordance with the identified
development objectives;

Tasked with pursuing key strategic projects, which are catalytic in nature; and
Ndlambe LED Strategy 2009
Page 15

A central receptacle for funding, technical assistance and skills.
The LEDA’s main objectives are to:

Promote and develop economic potential on a local/regional basis by building on
opportunities which recognize the unique competitive strengths of a region’s economy;

Leverage public and private resources for development linked to opportunities which offer
economic and spatial development potential;

Manage the spatial organization of the area, in a socially efficient manner, particularly
through the use of public land and targeted private projects;

Develop and foster entrepreneurial potential and innovative activities which supports and
drives economic growth; and

Strengthen the respective areas, real and perceived environment so that they can compete
effectively for capital investment necessary to develop their full economic potential.
The manner in which a typical LEDA functions is illustrated in Figure 3, below:
Figure 3 – A Typical LEDA
Source: IDC
Initial discussions have been held with IDC, with a view towards establishing a LEDA in Ndlambe. The
intention is to explore the possibility of establishing a LEDA which focuses specifically on larger,
Ndlambe LED Strategy 2009
Page 16
cross-cutting initiatives, which would potentially have a massive impact on the region. In doing so,
and in taking advantage of the support offered by the IDC, it would be possible to create an
organisation which will attract a highly skilled and motivated group of employees.
In moving forward, the IDC offers three grants: a Pre-Establishment Grant, which will be utilised to
undertake a rigorous assessment of the viability of the establishment of a LEDA. Once it is agreed
that the establishment of a LEDA is a suitable vehicle for the Ndlambe Municipality, it will be
necessary to apply for the Establishment Grant and then the Operational Grant – which is typically a
3-year grant.
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6 Knowledge Management Strategy
Wikipedia (www.wikipedia.com) defines Knowledge Management as:
… compris(ing) a range of practices used in an organisation to identify, create, represent,
distribute and enable adoption of insights and experiences. Such insights and experiences
comprise knowledge, either embodied in individuals or embedded in organisational
processes or practice.
Within the context of the Ndlambe Municipality – specifically the LED Unit – this entails:

Identifying knowledge (information, data, etc) which exists, either within the organisation or
externally, as well as identifying that which is lacking and must be created for successful
planning;

Developing the capacity to understand, research, distribute and promote this knowledge for
adoption; and

Developing the capacity or relationships to create new, targeted knowledge – in the form of
new statistics, new research, etc.
The above must be grounded in a useful system, through which the relevant information/knowledge
is made available to the municipal role-players.
The aim of this section is to provide a strategy for strengthening the Knowledge Management
capacity of the Ndlambe Municipality.
6.1 Developing Internal Capacity
Before one can begin to address the issues of what information, data or knowledge is required,
there must be a certain capacity within the institution. There must be someone who has the skills
necessary to take the information presented and draw from it the relevant material and conclusions,
with specific reference to the work being undertaken. From the Institutional Review we note that
this capacity is largely lacking in Ndlambe.
It is therefore critical that Ndlambe Municipality seeks out support from a variety of institutions to
build internal capacity. This may require that an additional staff member is employed in the capacity
of “researcher” or “knowledge manager”, who will be able to draw on information and knowledge
from a variety of sources and package it in such a manner as to make it available to the LED officials
and decision-makers. It is also possible that this function be left to the Development Agency,
although we still believe that there must be some internal capacity within the LED Unit to at least
make sense of the information which is all around them.
Some of the partners who would be able to assist the municipality in this regard are:

Development Bank of Southern Africa – for example DBSA (Vulindlela Academy) is currently
collaborating with Global Insight on statistical training. Whilst these courses are being held
outside the Eastern Cape, Ndlambe Municipality should prioritise such training for its staff;
Ndlambe LED Strategy 2009
Page 18

RuLiv & GTZ – who have run a number of successful training events and work closely with
local municipalities in capacity development

Nelson Mandela Metropolitan University (NMMU) – having been involved in this project,
NMMU has already committed themselves in principle to assisting the municipality with
capacity building. This relationship needs to be further developed. It may also be possible to
engage with Rhodes University for additional training support.
6.2 Developing Critical Partnerships
There is little doubt that it is impossible for a municipality such as Ndlambe to go it alone when
trying to navigate the sea of knowledge & information; and to try to do so would be a waste of
resources. Rather, the intention is to build Critical Partnerships with institutions whose primary
purpose lies in the fields of knowledge management and information gathering/dissemination.
During the course of developing this strategy, Ndlambe has already had some very positive
interactions with:

ECSECC – who have agreed in principle to support the municipality with relevant information
on an ongoing basis. The priority now is for the Municipality to take the lead in accepting the
offer and reaping the benefits;

NMMU – as discussed above, the offer in principle has been made. As an institution for
higher learning, NMMU has access to significant volumes of information which they could
easily package into useful tools for the municipality.

RuLiv – there is an in-principle agreement that they will assist the municipality with social
mobilization and the building of social capital (community focused).
Other institutions, such as Rhodes University who already have a relationship with the area, should
also be approached to provide support in this arena. Lastly, government institutions such as GCIS
and CSIR are invaluable sources of information and relationships with these institutions should also
be sought out.
6.3 Managing Information & Documents
At an institutional level, our research shows that there is some organisation and management of
information through the Archives Unit. However, a key point which was pointed out by the Director:
Community Services is that not all data reaches the archives, and therefore not all data is made
accessible to the majority of the officials who may require this data.
Another institutional challenge is the manner in which the departments seem to work in silos, with
little sharing of knowledge on a regular basis.
Whilst the municipality does have a very effective information/document management system, this
system can only be as effective as the operators.
In addressing the institutional issues surrounding how information is managed, the following is
highlighted:
Ndlambe LED Strategy 2009
Page 19

All documents should be copied to archives as a matter of policy or directive from the
Municipal Manager’s office

Within the LED Unit, an electronic document repository or mini-library should be created. All
documents which are not available electronically can be scanned and kept here.
Ndlambe LED Strategy 2009
Page 20
7 Financing Strategy
It is critical that a multi-faceted approach to funding LED is crafted. Reliance on single-source funding
reinforces the undesirable situation of dependency, improper or insufficient budgetary allocations,
and inability to achieve sustainability in respect of interventions.
There are 4 main elements to the financing strategy. Accessing the potential resources represented
by each requires significant research to ensure alignment of objectives and intent. This is only
possible if the municipality is very clear as to its own policy and strategic direction. An indicative list
of resources attached to each element is presented here:
National Grants and Subsidies
 The Foundation for Research and Development
 Credit Guarantee Insurance Corporation
 Khula
 Regional Industrial Development Board
 National Economic Development and Labour Council (NEDLAC)
 Industrial Development Corporation (IDC)
 Department of Trade and Industry (dti)
 Department of Transport subsidy program
 SDIs
 National Housing Programme
 MIG
 Social Fund
 Lotto
Existing and Own Revenue
 Local collections
 Traffic fines
 Rentals
 Free Basic Services Grant
 Equitable Share
Programmatic Support
 Crafts and Tourism program (Department of Arts, Culture, Science and Technology)
 Employment and Skills Development services (Department of Labour)
 Community Development Funds (Department of Social Development)
 Land Care Program (Department of Land Affairs)
 Extended Public Works Programme
 Working for Water (Department of Water Affairs and Forestry)
Ndlambe LED Strategy 2009
Page 21
 Municipal Services Partnerships (dplg)
 National Heritage Council
 Dept Environment & Economic Affairs
 Project Consolidate (dplg)
Private Sector and Donor Funding
 Loan financing
 International donor community, especially DANAID, USAID, EU, UN, and DFID
 Grants of in-kind support to community organisations
 Joint Ventures
 Private Sector investment
Agencies from which to seek Technical Support
 GTZ & DED – German Government support programmes
 Difd – British support programme
 USAid – American support programme
 Development Bank of Southern Africa
 AusAid – Australian support programme
 Sida – Swedish support programme
 Swiss Development Corporation
Ndlambe LED Strategy 2009
Page 22
Implementation Plan
Contents
8
Project Categorisation
24
9
Project Implementation Plan
26
8 Project Categorisation
In moving forward, it is important to understand the nature of the projects which the municipality is
involved in, as each will require a different set of skills and resources from the Municipality and
other stakeholders. In certain instances, it is possible that the projects will cut across more than one
category. Nonetheless, the projects can be broadly categorised as follows:

Strategic Projects – these projects have an economic and social impact which is wider than
Ndlambe alone. They are also projects which cut across many sectors and link into regional,
national and international value chains

Nodal Projects – these projects are very area specific – they seek to regenerate the local
area and take advantage of the local assets and resources

Social Projects – these projects are primarily low key projects whose main aim is income
generation for a relatively small group of beneficiaries

Nationally/Provincially Driven Projects – in some instances, projects come into being as a
direct result of national or provincial imperatives, and take advantage of the resources made
available by these tiers of government.
8.1 Interventions by Category
Strategic Pillars
Strategic
Project
Tourism
Agriculture
Entrepreneurship &
SMME
Social
Upliftment
Albany Coast Bulk Water Supply Scheme
Pineapple Industry
Natural Fiber
Initiative- Ndlambe
Natural Industrial
Products (NNIP)
Chicory
Nodal Project
Bathurst Eco-Tourism
Hub
Ndlambe Heritage
Route
Essential Oils
Bio-Fuels
Marine Tourism
Forest Hill Farm
Hospitality & Tourism
Dairy
Agro-Tourism
Real Estate
Development Sector
Support
Agro-Tourism
Economic
Revitalisation of
Alexandria
Social Project
Ndlambe LED Strategy 2009
Piggeries / Poultry
Nomzamo Business
Hive
Ndlambe Tourism &
Cultural Village
Tourism - SMME
Development &
Training
Vegetable
Gardens
(Bathurst)
Piggeries /
Poultry
Bathurst Commonage
Bathurst
Commonage
National/Provi
ncially Driven
Project
The above matrix outlines the different types of projects in Ndlambe. It is noted that there is very
little said about the Social Upliftment sector. However, the Bathurst project and most of the
agricultural sectors have a strong social upliftment component although they are essentially
agricultural/nodal projects.
The full project plan also outlines additional relationships which the Municipality should seek to
forge and strengthen which would address the issue of Social Upliftment in a more holistic and
deeper manner.
Ndlambe LED Strategy 2009
9 Project Implementation Plan
Project
1. Albany Coast Bulk
Water Supply Scheme.
Project Outcomes





Addressing the major
water problem (limited
ground water, poor
water quality, high
salinity in water), in
the area.
Providing bulk potable
water.
Improving economic
development in the
area.
Improving tourism
potential in the area.
Creating 13 000 jobs
by 2030.
Project activity


Tapping water from
the Gariep-fish river
water transfer
scheme.
Building a second
water treatment plant
at the James
Kleynhans Water
treatment Works.
Cost
R880 Million, funding to
come from a government
grant, and Absa DevCo.
Next steps and
timeframes





Ndlambe LED Strategy 2009
This project has been
put on ice.
The main reason for
this is that they are
waiting for the
confirmation and
allocation of the R400
million government
grant.
Private sector funding
has been secured.
Those initially opposed
to the project seem to
have reached
agreement on project
benefits for the area
A high level meeting
with relevant
government
departments (DWAF,
DPLG, DLGTA) and
other role-players
(DBSA) needs to
happen to secure
public sector funding
for the project
Institutional driver




ABSA’s
development
company –
Absa DevCo
Bigen Africa – a
multidisciplinary
Company
specializing in
engineering
and
management
consulting.
Ndlambe
Municipality.
Local and
National
Government.
Page 26
Project
2. Pineapple
Beneficiation Project
Project Outcomes






Revitalizing the
Pineapple Industry in
the province.
Growing the agroprocessing sector in
the Eastern Cape.
Securing
approximately 1 500
jobs, and creating an
additional 1500 new
jobs.
Innovation with green
energy and
technology
Black economic
empowerment
Facilitating black
commercial pineapple
farming and land
redistribution.
Project activity






Ndlambe LED Strategy 2009
Relocating
Summerpride
Pineapples from East
London to Bathurst.
Securing of lease and
re-zoning of Mount
Pleasant Farm in
Bathurst.
Establishing the agriprocessing operation,
that will focus on
juicing and fibrous byproducts.
Generating electricity,
steam, and organic
fertilizer through an
anaerobic digestor.
Establishing a black
empowerment trust
that will have a 26%
equity stake in NNIP.
Establishing a black
commercial pineapple
farming industry,
integrated into an
active land
redistribution
programme.
Cost
This 5 year project is
estimated to cost R500
million, which includes the
development of the
Bathurst plant at an
estimated cost of R260
Million.
Some funding has been
secured but significant
additional funding is
required.
Next steps and
timeframes





The first phase - PGA
purchasing
Summerpride
Pineapples has been
completed in 2008.
The next phase is the
relocation of the factory
from East London to
Bathurst.
For the next 6 months
the PGA is busy with
the feasibility study and
securing of the funding
for the project (building
and establishing of the
agri-processing
operation). The PGA is
negotiating with the
IDC, the DBSA, the
Doa and private
equities.
Securing of 50 year
proposed lease
agreement from the
Ndlambe Municipality.
Rezoning the property
– Mount Pleasant farm.
Institutional driver







Pineapple
growers
Association
(PGA).
ECDC
CSIR
Ndlambe
Muncicipality
DoA
DBSA
IDC
Page 27
Project
3. Chicory
Project Outcomes






Ndlambe LED Strategy 2009
Reviving the Eastern
Cape Chicory
Industry.
Scaling-up chicory
production
Capitalizing on the
health benefits of
chicory.
Developing and
empowering black
emerging farmers,
linked to land
redistribution
Making the most of
the market that
Chicory SA can
provide.
Making use of the
technical assistance
that Chicory SA are
willing to provide.
Project activity


Initiating two chicory
farming projects on
the Municipal owned
farms, Brakfontein,
and Forest Hill farm.
Possibly scaling up
black chicory
production linked to
active land
redistribution
Cost


The Department of
Social Development
has allocated R500
000 for the Forest Hill
farm project.
The Ndlambe
Municipality has
submitted a proposal
for R800 000 for the
Brakfontein chicory
project (with NDA).
Next steps and
timeframes


Both projects are up
and running. To date
farmers have been
working the land,
preparing the soil and
fencing. Planting is due
to start in April this
year.
Follow-up with NDA
and other funders
needs to be made to
accelerate
implementation of
Brakfontein project.
Institutional driver




Ndlambe
Municipality
Chicory SA
Department of
Social
Development
NDA
Page 28
Project
4. Essential Oils
Project Outcomes




Ndlambe LED Strategy 2009
Utilizing the Eastern
Cape’s natural
suitability towards
cultivating essential
oils.
Empowering the
elderly in the
community.
Establish sustainable
black commercial
farmers, integrated
into essential oils
value chain
Realize competitive
advantage of area for
essential oil
production
Project activity




Essential oil project
on Mill Farm.
Cultivate geranium,
lemon balm,
camomile and
lavender.
Negotiate with Forest
Hill farm for
distillation,
Acquire more
commercial
agricultural land for
land redistribution
linked to essential oils
production
Cost

Project has received
R500 000 funding
from DEDEA.
Next steps and
timeframes




The first phase of the
project has been
completed. This phase
focused on water and
electricity provision to
the farm.
The project is ready for
soil preparation and
planting.
In the process of
negotiating a service
agreement with the
owner of Hill Side farm
for the distillation
process.
Needs more active
linkages to other small
essential oils projects
to realize economies of
scale and product
quality to secure
markets access (linked
to clusters)
Institutional driver





Ndlambe
Municipality
DEDEA
ECDC
CSIR
DoA
Page 29
Project
5. Bathurst Project
Project Outcomes



Unlock the dormant
potential of the
Bathurst.
Commonage.
Protect the
commonage’s
environmental and
ecological heritage.
Create tourism and
economic
development
opportunities for the
benefit of the
disadvantaged
Bathurst community
opportunities.
Project activity



Ndlambe LED Strategy 2009
Implement the
Bathurst Community
Conservancy Project,
in partnership with the
SA Biodiversity
Institute.
Develop ecologically
sustainable and
viable development
projects such as a
Craft and Tourism
Hub, Medicinal plant
nursery, Nguni cattle
farming project, Aloe
sap project,
pineapple growing
project (Linked to
NNIP) among others
Consolidate existing
projects on
commonage such as
the raft learnership
program, and the
Masipatisane
Community Garden
Project.
Cost


An amount of R208
000 has been
allocated by the SA
Botanical Institute
(which produced the
feasibility study and
project identification).
Individual projects
need to be properly
packaged and costed
as a basis to leverage
funding
Next steps and
timeframes

The potential projects
proposed in the 2006
feasibility study need to
be packaged into
bankable business
plans to leverage
necessary (public
sector and private)
funding and technical
support.
Institutional driver












Ndlambe
Municipality
SA Botanical
Institute
Bathurst
Commons
Sustainable
Land Use
Project
SA Biodiversity
Institute
RULIV
Rhodes
UniversityEnvironmental
education unit,
DEAET
Dept Social
Development
NDA
Eastern Cape
Parks Board
IDC
ECDC
Page 30
Project
6. Forest Hill Farm
Project Outcomes

Developing
sustainable black
commercial farmers
linked to active land
reform and mixed
land use production
(chicory, maize,
pineapple, soya and
livestock)
Project activity




Ndlambe LED Strategy 2009
The farm is currently
being used for Beef
Cattle farming –
grazing and dipping.
The Ethemba Trust
Chicory Project has
received funding from
the Land Bank and
off-take agreements
have been secured.
The second chicory
project has R500 000
secured from the
Department of Social
Development and is
due to be launched.
A soya bean project
linked to biofuel
production is about to
be launched (see
below).
Cost


Both chicory projects
have received
funding.
Funding for bio-fuel
and pineapple
projects should be
relatively easy to
secure given that
market off-take is
guaranteed
Next steps and
timeframes


Bankable business
plans need to be
developed to secure
funding for the
pineapple and bio-fuel
projects (within 6
months);
The livestock project
needs to be more
actively linked into an
Nguni Livestock value
chain project for the
broader area (for stock
improvement, product
development,
marketing etc)
Institutional driver







Ndlambe
Municipality
Department of
Social
Development
Landbank
Chicory SA
Fort Hare
University –
Nguni program
DoA
PGA
(Pineapple
Growers
Association.
Page 31
Project
7. Biofuel project
Project Outcomes




Mass production of
raw soya beans
linked to biofuel
production in Coega
IDZ.
Creating 200
permanent jobs.
Development and
growth opportunities
for emerging farmers.
Empowering women
and youth.
Project activity





Ndlambe LED Strategy 2009
This project is set to
be rolled out in
Bathurst at Mill Farm,
Forest Hill farm and
Brakfontein farm
(near Alexandria).
This project involves
the mass production
of raw soya beans.
A Coega based
Biofuel company has
agreed to buying the
raw soya beans from
emerging farmers.
Setting up a section
21 company to
manage and facilitate
this project.
Special focus on
employing women
and youth.
Cost

The budget to set up
this project is R1.5
Million rand. Funding
is currently being
sourced for the
project.
Next steps and
timeframes




The project is currently
in its first phase the
concept development
phase. This phase is
estimated to take
approximately one
year.
The project is set to
kick of in March 2010.
First crop should is set
to be harvested at the
end of 2010.
Bankable business plan
is being developed for
fund-raising (3 months)
Institutional driver








Ndlambe
Municipality
Coega IDZ
DoA
IDC
ECDC
Dept Social
Dev
NDA
Land Bank
Page 32
Project
8. Poultry, Piggery
and Dairy Projects
Project Outcomes


Setting up poultry,
piggery and dairy
projects.
Creating opportunities
for emerging black
farmers.
Project activity



Ndlambe LED Strategy 2009
Ndlambe municipality
is planning to set up a
poultry project on
Brakfontein farm with
8 beneficiaries,
The Ndlambe
Municipality is
planning to set up a
dairy farming project
on the Kruisfontein
farm in Alexandria.
The Ndlambe
Municipality is
planning to set up a
piggery project in
Alexandria.
Cost

It is estimated that
approximately R500
000 per project is
needed to set up
each of these
projects.
Next steps and
timeframes



These projects are all
in the early planning
stages.
The Ndlambe
Municipality is in the
process of sourcing
funding for these
projects.
The Department of
social Development
has already committed
some funding towards
the poultry project.
Institutional driver






Ndlambe
Municipality
Department of
Social
Development
ECDC
DoA
Rhodes
University
NDA
Page 33
Project
9. SMME - Business
hives
Project Outcomes


Establishing a viable
SMME business hive
in Port Alfred
Increasing the
development potential
of emerging small
businesses.
Project activity



Ndlambe LED Strategy 2009
The Nomzamo
business Hive was
established in 2001,
on the 43 Air School
premises.
Most of the original
businesses closed,
and one of the main
reasons for this is the
location (too far from
the main road and
CBD), as well as
inappropriate product
choices, and
uncompetitive
business practices.
The Ndlambe
Municipality plans to
move the hive to a
better, bigger venue,
closer to the markets.
The new venue is a
Municipal owned
venue in the Port
Alfred. Township
Cost


The Nomzamo
Business hive was
established in 2001
and was funded by
the National LED fund
(1,3 Mil).
The move and setting
up some additional
business support will
cost approximately
R1,5 million
Next steps and
timeframes

The business hive is
planned to move to its
new premises by
October 2009.
Institutional driver



Ndlambe
Municipality
ECDC
SEDA
Page 34
Project
10. Ndlambe Tourism
and Cultural Village
Project Outcomes


Establishing a
Tourism and Cultural
village on the R72 on
the Bushmans River.
Providing a one-stopshop which will
provide a market
outlet for traditional
arts and crafts and
tourism products.
Project activity




Ndlambe LED Strategy 2009
The project was
conceptualized in
2005 by the Ndlambe
Municipality.
The project proposed
the development of a
Ndlambe cultural and
tourism village.
The Tourism and
Cultural village will be
situated on the R72
on the
Bushmansriver.
The Tourism and
cultural village is
proposed to have and
art and craft shop, a
conference centre,
tourism information
and booking office,
work spaces where
traditional artists and
crafters can work and
restaurants.
Cost

The project has been
allocated a budget of
R5 million by DEAT.
Next steps and
timeframes




The project is in the
planning phase.
The implementing
agent is working on the
business plan.
Land still needs to be
re-zoned.
The aim is to have the
venue open to the
public before the 2010
soccer World Cup.
Institutional driver





Ndlambe
Municipality
DEAT
ECDC
ECTB
DSRAC
Page 35
Project
11. Tourism SMME
Development –
training.
Project Outcomes


Address the narrow
skills base.
Skills development
Training programs in
the tourism and
hospitality industry
Project activity


Ndlambe LED Strategy 2009
This training project
started in 2008, and is
a joint venture with
the Ndlambe
Municipality and the
Eastern Cape tourism
Board and TEP.
The training program
includes business
administration and
tourism training,
communications and
tourism, web site
planning, and SA host
training (an
internationally
accredited program).
Cost
This project has an
annual budget of
approximately R250 000,
which has been paid by
TEP. The Ndlambe
Municipality has been
providing the trainees
accommodation.
Next steps and
timeframes


They are currently
working together with
Fair Trade Tourism
South Africa (FTTSA)
on planning the next
training program.
The next training
program will include
training on sustainable
tourism development, B
+B establishment
training, tourism
awareness campaigns,
tour guide training, and
eco tourism and its
benefits.
Institutional driver






Tourism SETA
Ndlambe
Municipality
ECTB
TEP (Tourism
Enterprises
Program)
FTTSA (Fair
Trade Tourism
south Africa)
Dept of Labour
Page 36
Project
12. Ndlambe Heritage
Route
Project Outcomes


Develop and package
a Ndlambe heritage
route.
Honoring and
showcasing our
natural and cultural
heritage.
Project activity



Ndlambe LED Strategy 2009
This project was
initiated in 2007.
The project entails
identifying all the
heritage sites in the
area, and developing,
designing and
packaging Ndlambe
Heritage route.
This project is a joint
venture between, the
Ndlambe Municipality
and Rhodes
University and the
National Heritage
Council.
Cost


The National
Heritage Council has
earmarked R200 000
to fund this project,
but has only provided
R50 000.
The additional funding
needs to be secured
to facilitate
implementation
Next steps and
timeframes



The project is still in the
research phase
(Rhodes University is
doing research on all
the sites).
Funding bottlenecks
with the NHC need to
be addressed urgently
The heritage route
needs to be up and
running by 2010.
Institutional driver





Ndlambe
Municipality
Rhodes
University
National
Heritage
Council (NHC)
DSRAC
ECTB
Page 37
Project
13. Marine Tourism
Project
Project Outcomes


Developing a range of
tourism activities
alongside the Kowie
River.
Skills development,
especially local youth
in aquatic activities.
Project activity



Ndlambe LED Strategy 2009
This project is a joint
project between the
Ndlambe Municipality
and the Rhodes’s
University Fishery
Department.
This project proposes
Canoe hiring, bird
watching, cultural
tours, fishing
excursions, hiking
and horse trails, and
establishing a skills
development centre.
This project needs to
link with the SMME
Tourism Training
project mentioned
above.
Cost

The project still
requires to be
properly packaged
and costed
Next steps and
timeframes


This project is in its
initial phase, and to
date Rhodes University
has prepared a concept
document which was
presented to ECDC at
the end of 2008.
Business plans require
to be developed to
acquire funding
Institutional driver




Ndlambe
Municipality
Rhodes
University
ECDC
ECTB
Page 38
Project
14. Hospitality and
Tourism Project
Project Outcomes

Developing township
tourism opportunities.
Project activity



Ndlambe LED Strategy 2009
This project is based
on the concept of the
successful Kwam e
Makana hospitality
project (which
resulted in 40 bed
and breakfasts in Rini
township linked to
township tours).
Ndlambe Municipality
is aiming to establish
a similar project,
working with those
beneficiaries who
have already received
previous tourism and
hospitality training
through the
municipality.
The project will
mobilize funding for
B&B owners, and
provide business and
quality assurance
support to these
SMME’s
Cost


It is estimated that an
amount of
approximately R920
000 will be needed to
get this project of the
ground.
The Ndlambe
Municipality has
approached the EU
for possible funding.
Next steps and
timeframes


The project is in its
initial planning phase.
The Ndlambe
Municipality has
already approached the
Dutch Hospitality
school EISS for training
support the project.
Institutional driver








Ndlambe
Municipality
ECTB
ECDC
EISS
DSRAC
EU
Dept of labour
DEDEA
Page 39
Project
15. Economic
Revitalization of
Alexandria
Project Outcomes

The economic
revitalization of
Alexandria and
surrounds
Project activity




Ndlambe LED Strategy 2009
Alexandria and its
immediate surrounds
show high economic
potential.
Ndlambe Municipality
has indicated its
intention to revitalize
the area.
Focus should be on
developing agriculture
through the
establishment of an
agricultural
development zone.
This project will
involve the revamping
of all the existing
infrastructure in the
area
Cost

Costs are still being
calculated
Next steps and
timeframes



This project is in its
concept phase.
The Ndlambe
Municipality has
developed a project
framework.
They are now looking
at developing the
business plan/feasibility
study.
Institutional driver





Ndlambe
Municipality
ECDC
Dept. of
Agriculture
Chicory SA.
PGA
Page 40