NCPGDS

4.   DEVELOPMENT OBJECTIVES
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In response to the social and economic development imperatives yielded by an analysis of the socio-economic profile of the province, the following two primary development objectives have been identified:

 

Promoting the growth, diversification and transformation of the provincial economy.

Poverty reduction through social development.

 

The achievement of these primary development objectives depends on the achievement of a number of related objectives that, at a macro-level, describe necessary conditions for growth and development. These are:

 

Developing requisite levels of human and social capital.

Improving the efficiency and effectiveness of governance and other development institutions.

Enhancing infrastructure for economic growth and social development.

 

5.   DEVELOPMENT TARGETS
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To give effect to the Development Vision and Development Objectives, it is important to set a series of high-level development targets for economic growth and social development in the Northern Cape.Â

 

In doing so, it will be necessary to give consideration to development targets set by national government, the millennium development goals adopted at the summit on human development and the WSSD resolutions. As a consequence, targets were developed for the province that is quantifiable, measurable and achievable.

 

These are:

 

·       To maintain an average annual economic growth rate of between 4% and 6%;

·       To halve the unemployment rate by 2014;

·       To reduce the number of households living in poverty by 5% per annum;

·       To improve the literacy rate by 50% by 2014;

·       To reduce infant mortality by two thirds by 2014;

·       To reduce maternal mortality by two thirds by 2014;

·       To provide shelter for all by 2014;

·       To provide clean water to all by 2009;

·       To provide access to adequate sanitation to all by 2009;

·       To reduce crime by 10% by 2014;

·       To stabilize the prevalence rate of HIV and AIDS and begin the reverse by 2014;

·       To redistribute 30% of productive agricultural land to PDI’s by 2015;

·       To conserve and protect 6,5% of our valuable biodiversity by 2014; and

·       To provide adequate infrastructure for economic growth and development by 2014.

 

6.   UNPACKING THE CORE DEVELOPMENT OBJECTIVES OF THE NCPGDS
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6.1.    Promoting the Growth, Diversification and Transformation of the Provincial  Economy
6.1.1.    An approach to promoting economic growth and transformation    of the provincial economy
Provincial government led strategic interventions in support of the promotion of economic development are limited by conditions set by national government with regard to financial allocations, legislation and national policies. However, the Northern Cape provincial government remains a significant catalyst for economic development and can impact at five levels through:

·       its concurrent responsibility for the promotion of investment and regional economic development;

·       its ability to influence national government through formal parliamentary and legislative processes and lobbying;

·       the expenditure of its annual budget which amounts to roughly one-quarter of provincial GGP;

·       the promotion of local economic development initiatives; and

·       the facilitation of community investment initiatives.

Role of Provincial Government
The major role of provincial and local government in the Northern Cape should be the promotion of economic development through facilitation or providing an enabling environment for the private sector and other stakeholders such as the co-operative movements, to take advantage of economic opportunities.Â

Inter-Governmental Relations
In the case of national government, the NCPGDS must identify key macro-level interventions and support that are required from relevant national line ministries to reinforce provincial economic development initiatives. It is also essential to achieve the integration and alignment of national and provincial level economic sector development strategies with municipal IDP’s.Â

Strategic Alliances and Partnerships
The Northern Cape provincial government recognizes that it does not possess all the tools and instruments required to bring about increased economic growth and development by itself. It has therefore adopted the stance that collaboration with relevant role-players such as the private sector, the donor community, national institutions that support economic development and labour, is essential.

 

Supply-Side Measures

The NCPGDS must assist the private sector to leverage a comprehensive range of industrial support measures designed to enhance the attractiveness of South Africa as an investment destination. These support measures are administered by the DTI in conjunction with the IDC and TISA.

Ensuring the Availability of Economic Intelligence
The development of business intelligence systems that provide vital information for business decisions and market development is seen to be a critical requirement for the successful implementation of the NCPGDS.

Economic Sector Development Strategies
In line with the commitments made by parties to the national Growth and Development Summit, the development and maintenance of a series of economic sector development strategies is seen to be a fundamental requirement of the NCPGDS.

 

6.1.2.    Strategic Interventions: Agriculture and Agro Processing
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The Northern Cape provincial government, together with the private sector in agriculture, faces the challenge of growing the agricultural sector and increasing its contribution to GDPR, employment and income generation, while at the same time increasing access to agricultural resources by the previously excluded sections of society.Â

 

The provincial government seeks to grow the agricultural economy through the promotion of new investments in primary agricultural production, the more efficient use of water resources, by promoting crop diversification, the reduction of levels of risk in agriculture, the development of agro-processing and by stimulating increased export of high value agricultural produce.

 

Government is also committed to promoting transformation in agriculture through land reform, the allocation of water rights, transfer of skills and knowledge and the provision of agricultural credit to emerging black farmers.

 

Equitable access and participation

Without meaningful progress towards increasing access to productive agricultural resources for black agriculturalists over the short- to medium-term, the pressure for a more radical overhaul of the rural economy will mount. The Northern Cape provincial government believes that a managed and accelerated process of transformation of agriculture is the only way to ensure growth with equity in the rural economy, and as such, supports the intentions of the Agri-BEE Charter.Â

 

There is a need to improve and expand the existing support services to meet the needs of all farmers, in particular agricultural research, technology development, financial services, market access and development, training and skills development. This must be supported by the established agriculture that possesses a wealth of knowledge, experience and capacity that can be shared with new and emerging farmers.Â

 

Global competitiveness and profitability
Arising from the National Strategic Plan for South African Agriculture, a consultative process will continue with the aim of developing a series of agricultural commodity strategies that addresses all matters pertaining to sector development, in particular the grain, livestock, cotton, wine and horticulture industries.Â

 

The promotion of agro-industrial processing is recognised as being critically important to the expansion and diversification of the agricultural sector in the Northern Cape Province. Adding value through vertically or horizontally integrating primary production and agro-processing systems present the best opportunity to increase the viability, profitability and sustainability of agricultural production systems. For these and other reasons, the Northern Cape provincial government will actively promote the development of the agro-processing sector.

 

It is essential to find ways to support relevant and applied agricultural research and technology development if there is to be growth in the agricultural sector. Research and development is a means by which new and strategically important technologies can be introduced and enhanced. Provincial government is committed to working with other research institutions to access research and development facilities, knowledge and funding.

 

 

Sustainable resource management

The sustainable utilisation of the natural resource base on which agriculture depends is critical and the provincial government will promote the preservation of agricultural diversity and the sustainable use of soil and water.

 

Through the considered application of regulatory services, it will be possible to optimise the utilisation of the province’s agricultural resources and enhance crop and livestock productivity. Compliance with various regulatory protocols is also essential to ensure access to international markets.

 

The productive value of the natural agricultural resource on which the viability of this sector depends is highly vulnerable to natural disaster as a result of the semi-arid climate in the Northern Cape. As part of provincial government’s approach to disaster management in agriculture, it is important to develop a comprehensive risk management programme.

 

Food Security
The achievement of food security is a multi-faceted challenge that must be resolved. The agricultural sector can contribute to this on a macro level through the production of a marketable surplus of food and fibre. Moreover, through direct support to food security, nutrition programmes and compliance with food safety requirements much can be done to alleviate the plight of the poor by eradicating hunger.
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6.1.3.     Strategic Interventions:: Mining and Mineral Processing
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The economic history of the Northern Cape has evolved and developed upon a rich base of mineral resources, particularly the diamond, copper, manganese and iron ore deposits. Recent legislative changes at the national level regarding the management and utilisation of South Africa’s mineral endowments, provide the Northern Cape with a number of opportunities for catalysing future growth and development in the province around this resource base.Â

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Economic Growth through Minerals Development
Minerals provide a ‘window of opportunity’ on which to catalyse future economic development programmes and interventions in the Province. The Northern Cape provincial government must identify complementary strategies and initiatives that boost and expand opportunities between mining and other economic sectors, particularly agriculture, manufacturing, mariculture and tourism. Synergies between mineral-based projects and other resource-based activities must be identified in order to advance and ensure sustainable economic growth in the province.

 

The Northern Cape Province has been extensively explored, but (in geological terms) remains an interesting exploration target. The role of the provincial government should be to market the province as an exploration target and to make the general non-geological environment as attractive as possible to investors. In particular, the provincial government should establish and operate a system of marketing the province’s mineral investment opportunities and establish a Mining and Minerals Development Forum to provide the potential developers of medium to large mines with a single point of contact for all matters falling under the jurisdiction of the provincial government. This agency should also provide a mechanism for lobbying support from other spheres of government on matters related to mineral development that fall under the control of national government and parastatal service providers, such as Spoornet.

 

The Northern Cape contains a variety of deposits that lend themselves to small-scale mining activities, the development of which is often hindered by a lack of technical and financial resources. It is generally accepted that, if properly regulated and supported, the small-scale mining sub-sector could be the powerhouse of economic development in poor rural communities. The strategy of the province should entail assisting as many small-scale operations to get started as possible. To this end, the Northern Cape provincial government should take the lead in establishing regionally based Small Mining and Minerals Development Centres to guide and facilitate this process. It is suggested that one such body should be based in Springbok and the second in Kimberley.

 

The cost and availability of suitable transport systems remains one of the major factors inhibiting the further development of the Northern Cape mining industry. It affects both the expansion of the iron and manganese mines, as well as the development of new mines, both large and small. The Northern Cape provincial government should take the responsibility to ensure that all stakeholders continue to work together so that the upgrading of the iron-ore and manganese export lines takes place. It should also ensure that its regional development plans take cognisance of the potential demand for transport infrastructure to facilitate the development of new mineral operations. This may entail establishing a transport forum consisting of both users and service providers for liaison and co-ordination of provincial transport requirements.

 

The principles implied in the gold formula tax could be applied to other minerals in South Africa. This would assist in mitigating the risk associated with the price and currency of mining and as a result could be a major stimulant for employment in mines where these risks may currently keep prospective miners away. The Northern Cape government could consider carrying out a cost benefit study of this together with other issues raised and, depending on the results of such a study, lobby central government to consider a more innovative taxation system for marginal mining operations.

 

Promoting Industrial Development and Minerals Beneficiation
The perplexing challenge facing all provinces in South Africa, particularly the Northern Cape, is how to broaden and encourage the opportunities presented by the availability of mineral resources. Mineral-based activities, whether large- or small-scale, have the potential to stimulate economic diversification and industrial development provided a number of issues can be successfully addressed. Depending on the fullness and depth of the ‘cluster’ of activities that form and agglomerate around it, mining can generate varying degrees of backward, forward and side-stream activities. In order to capitalise on such diversification opportunities, the Northern Cape provincial government will have to conduct an analysis of such opportunities, quantify available technical, human and financial resources, assess the size of the existing SMME supplier sector, identify skill gaps, and suitable interventions and mechanisms needed in order to ensure that maximum linkages are developed. Close collaboration and interaction between the private and public sector will be critical in the capitalisation of these indirect opportunities.Â

 

Opportunities for Black Business Development
Through the provisions of the Minerals Charter and supported by the strategy for Broad-Based Black Economic Empowerment (BBBEE), there are now increased opportunities for black business development in mining. Firstly, through the availability of new mineral resource rights that can no longer be retained indefinitely by current rights holders; secondly, through the provision of professional and technical services to the mining industry; and thirdly, through the early adoption of cutting edge technologies that existing players often cannot speedily adopt. The Northern Cape provincial government must play a proactive role in assisting black businesses to identify and appraise these opportunities.

 

 

6.1.4.    Strategic Interventions:: Manufacturing
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Although the contribution of the manufacturing sector to the Northern Cape provincial economy is extremely low, economic diversification and the addition of value to the province’s agricultural and mineral output has been afforded a high priority by the provincial government. The sector faces major strategic challenges in the local, South African and global context, but pockets of manufacturing activity and capability exist in the province. With the right policy levers and support, scope exists for the growth of the sector. Provincial government is committed to promoting the manufacturing sector in the context of the Micro-Economic Reform Strategy – which seeks to remove obstacles to competitiveness and promote economic efficiency and equity – and the Integrated Manufacturing Strategy – an integrated set of interventions related to competitiveness that enhance prospects for the processing of natural products into manufactured goods and all associated and related services.

 

Promoting the development of the manufacturing sector
In order to promote the development of the manufacturing sector, provincial government needs to adopt a three-pronged approach. Firstly, it needs to intensify its engagement with the DTI to get recognition of the dynamics of the sector in the province and ensure that the Northern Cape receives its share of focus and support. Secondly, the establishment of a Manufacturing Development Centre that, in collaboration with NCMAC, actively promotes the development of the sector through a range of non-financial support measures should be considered. Thirdly, provincial government should facilitate the establishment of a Northern Cape Manufacturing Cluster that optimises the use of scarce provincial resources by co-ordinating joint programmes between manufacturing firms.

 

 

6.1.5.    Strategic Interventions:: Fishing and Mariculture
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Provincial government has attached a high priority to promoting investment in the fishing and mariculture sectors as a means to mitigate the future negative socio-economic impact associated with the down-scaling of diamond mining. Indications are that the optimal development of fishing and mariculture can create at least 2 500 jobs over 10 years, absorbing much of the unemployment created by the downscaling of mining.Â

 

Supporting the rejuvenation of the fishing industry

In recent years, the fishing industry on the West Coast, particularly Port Nolloth and Hondeklip Bay, has witnessed a sharp decline. Nevertheless, in both localities existing infrastructure, quotas and skills development amongst local communities are sufficient to sustain the fishing industry. Research carried out indicates that there is scope for the re-development of the fishing industry in the Northern Cape if existing harbour and shore-based infrastructure are rehabilitated and if a number of regional fishery management interventions could be effected in support of the development of the sector in the Northern Cape.

 

Promoting the development of the mariculture industry

Although mariculture development in the Northern Cape could be said to be embryonic, the province has arguably the best conditions for shore-based mariculture on the South African coast. This has been recognised by the Northern Cape provincial government that is actively promoting the development of mariculture in the area.

 

6.1.6.    Strategic Interventions:: Tourism
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The Northern Cape is a unique part of South Africa with exceptional natural and cultural attributes. The province has the potential to become the preferred adventure and eco-tourism destination in South Africa with its recognised cultural heritage and special interest tourism offerings, subject to the responsible development of natural and cultural resources. The Province has, however, not capitalised on its full potential as a tourism destination and lies largely undiscovered to both the sizable domestic and high-yield international markets. Tourism has the potential to significantly contribute to economic growth and the preservation of the natural and cultural heritage in the Northern Cape. Thus, it is critical that a more vigorous approach be developed for the promotion and development of the tourism sector.

Promotion and Development of Tourism in the Northern Cape
As alluded to, the potential for the Northern Cape to develop into a competitive tourism destination is significant. Based on the unique natural resource endowments of the province, it should be possible to use tourism as a vehicle for growth and development. This is particularly the case in remote rural areas, where the aforesaid natural resources can be employed to leverage capital investments in productive tourism assets by the private sector. Similarly, the Northern Cape has a rich history and cultural heritage that can be exploited for the purpose of growing the sector. However, the realisation of the growth potential in this sector depends on the availability of sufficient resources for tourism marketing and product development. At the same time, there is an imperative to accelerate transformation in the sector to ensure equitable growth. Â

 

6.1.7.    Facilitating the Growth, Diversification and Transformation of the Provincial Economy
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Ensuring the Availability of Inexpensive Energy

South Africa currently boasts the availability of relatively cheap electricity, which supports the price competitiveness of a number of our industries. To promote economic growth, it is essential to ensure the availability of electricity to key industrial users at critical localities at competitive rates and to develop new sources of energy, such as solar energy, the natural gas fields and bio-fuels.

 

Ensuring the Availability of Adequate Financial Services

Generally speaking, South Africa’s financial services sector is well developed in the global context and has been a significant enabler of economic growth. However, in the Northern Cape, there are areas where access to financial services is not optimal and to some extent this may constrain economic activity. Moreover, for the emerging business community, the cost of financial services is an impediment to their development. From a strategic perspective, the provincial government proposes to ensure adequate financial services through the Financial Services Charter.

 

Trade Development and Promotion

Since 1994, the South African economy has become increasingly re-integrated into the global economy. Tariff reductions and increased access to foreign markets have precipitated an increase in trade between this country and our trading partners. The development and promotion of exports offer a means to expansion of local production, with the attendant benefits that would accrue to the domestic economy.Â

 

The Northern Cape has already witnessed the expansion of its exports of mineral and agricultural output. From a strategic perspective, there is an opportunity to promote further increases in the level of export trade in both “traditional” commodities and in semi-processed and processed goods. In particular, we must promote increased trade with our SADC neighbours, take advantage of the EU trade agreement and the AGOA, lobby for recognition of provincial interests in new trade agreements and do more to enhance the export readiness of our potential exporters.

 

Enterprise Development
Levels of private sector development in the Northern Cape are low and the province lags in the key policy priority areas of SMME Development and Black Economic Empowerment. Through implementation of the Micro-economic Reform Strategy, the proposed changes to the National Small Business Act and the Strategy for Broad-Based Black Economic Empowerment, these processes must be accelerated.

 

Review and Reform Small, Medium and Micro Enterprise Development Support Programmes

Proposed new legislative changes are expected to give rise to the formation of the Small Enterprise Development Agency at national government level. Although this may well lead to an improved institutional framework for support to SMME’s, it is clear that at a provincial level, there is a need to adopt a better integrated and targeted approach to SMME Development and that more must be done if we are to successfully promote SMME development in the province. From policy and advocacy to market access, from training and technical assistance to infrastructure and from technology and market development to financing mechanisms, provincial government support measures to SMME’s need to be revamped. More coherent and effective SMME development support programmes must be put in place that complement support systems emerging from national government.Â

 

Promote Accelerated Black Economic Empowerment

Black Economic Empowerment must be incorporated into our economic sector development strategies as an integral part of the NCPGDS. It must be advocated as a broad-based and inclusive process that results in greater balance in ownership patterns in our provincial economy, so that our transformation objectives can be achieved in the shortest possible time. A policy and legislative framework for BEE now exists and a range of specific support measures is available at national level to support the process of BEE. Nevertheless, provincial government needs to adopt a more direct role in supporting BEE in the province through a range of complementary measures that remove some of the province-specific constraints that currently hamper this process.

 

Science and Technology

Increasingly, investment in research and technology development is becoming a major determinant of competitiveness in many industries through the efficiency gains that this can bring about. The provincial government believes that it will be imperative to support increased research and development spending in key economic sectors in which the province enjoys a comparative advantage. A proper determination should be made of the research and technology development requirements of the key economic sectors that are to be promoted as part of the NCPGDS.

 

Environment and Sustainable Development
The Northern Cape provincial economy is dominated by primary production in those sectors that utilize the natural resource endowments of the province. Moreover, in the short to medium-term it will be in these sectors that most new economic activity is generated. At a strategic level, it is important to ensure that the exploitation of our natural resources facilitates the development of sustainable economic activities that lessen our dependence on these natural resources over time.  In the past this requirement for diversification has been neglected and has, to some extent, led to many of the economic challenges that we now face in the province.

 

Utilising Natural Resource Endowments to Stimulate Sustainable Development

It is critically important for the future of the Northern Cape economy to ensure proper environmental management, so as to maintain the productive value of our natural resource endowments where this is possible. This is particularly important in a province with relatively fragile and vulnerable eco-systems where water is scarce and our soils, flora and fauna are vulnerable to environmental impact. The key strategic issue is to determine economic development strategies that utilize our natural resource endowments in a sustainable way. In those economic sectors that can utilize resources in a renewable way this can be achieved relatively easily. The biggest challenge is how, in this relatively late stage of the development of the sector, to promote sustainable development through the exploitation of our mineral wealth. To avoid the terrible social and economic consequences of minerals downscaling, effective responses to this challenge must be found.

 

 

6.2.    Poverty reduction through social development
6.2.1.    An Approach to Poverty Reduction
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In general, development literature identifies two “levels” of poverty: ‘absolute poverty’ and ‘relative poverty’. Poverty has three interrelated aspects:

· Poverty of money – results in the inability to accumulate assets that is the key ingredient to the creation of wealth and breaking the cycle of poverty;

· Poverty of access – not having access to basic infrastructure and services; and

· Poverty of power – the poor suffer from both traditional and environmental health risks and lack of access to information.

 

The following principles need to be adopted to reduce the current levels of poverty:

·       The utilization of our natural resources in a sustainable manner

This would include measures for the recycling of waste, the conversion of non-renewable energy to renewable energy (wind-, sun- and hydro power) and pollution control.

·       Ensure that all people lead healthy and productive lives

The main areas of attention would be, inter alia, education, health care and day care for the very young.

·       Improve the economic and social infrastructure

The emphasis should be on transport, communication, urban renewal, rural development fresh water supply and sanitation.

 

6.2.2.    Strategic Intervention: Meeting Basic Needs
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Water and Sanitation

The three principles of equity, sustainability and efficiency apply equally to integrated water resources management. This is intended to enable us to meet the needs of our people for water, jobs and economic growth in a manner that also allows us to protect and, where necessary, rehabilitate our aquatic ecosystems. The priority, however, remains that each household in the province should be given access to clean piped water before the end of the first decade of the 21st century.

 

Sanitation is vital for good health and good sanitation leads to increased life expectancy. The White Paper on Basic Household Sanitation lists the economic benefits of improved sanitation to be: savings in health costs, higher worker productivity, better school attendance, improved tourism and reduced water treatment costs. It is not only important to provide adequate sanitation to all in the medium-term, but also to strive towards improved community knowledge in health and sanitation matters.

 

Housing

Housing is an issue that needs to be addressed more acutely in terms of inter-governmental research and planning. Efficiency in service delivery could still be improved upon and housing development could be used to leverage economic and social development. Housing delivery should be utilised as an instrument to impact on settlement patterns in our efforts to build a non-racial society.

 

Expanded Public Works Programme
This programme would cover a wide range of areas that includes the infrastructure sector, the social sector, the economic and the environmental and cultural sector. The broad objectives of this programme are as follows:Â Â Â Â

·       Increasing the labour intensity of government-funded infrastructure projects;

·       Creating work opportunities in public environmental programmes;

·       Creating work opportunities in public social programmes; and

·       Utilising general government expenditure on goods and services to provide the work experience component of small enterprise learnership / incubation programmes.

 

Social Services
The strategy that has proved most effective in improving economic and social well-being consists of three elements, namely, labour absorbing growth, equitable investment in education and health care and social support for poor and vulnerable groups. Social welfare policies and programmes should be aimed at enabling the poor and vulnerable groups to break the cycle of poverty. The key challenges facing the social sector are:

·       To enhance social integration and protection of the most vulnerable; and

·       To build a caring society through sustainable development.

 

Health
The Health sector strategic framework for 1999-2004 was founded on the Ten Point Plan, the vision of which is “a caring and humane society in which all South Africans have access to affordable, good quality healthcare.” Various strategic objectives to tackle priority areas that would enhance the health status of the people of the Northern Cape have been identified. These include:

·       To maintain good health and prevent all diseases through activities such as promotion of good nutrition, immunisation programmes and strengthening our health education campaign;Â

·       To detect diseases early and prevent the spread of the diseases through the screening of those at risk;

·       To reduce the burden of disease of lifestyle that are tobacco related as well as hypertension, diabetes and trauma through health promotion, appropriate screening and effective interventions that will enhance optimal functionality; and

·       To consolidate our strength on programmes that will limit the impact of communicable diseases such as tuberculosis, sexually transmitted infections (STI’s) and HIV and AIDS.

 

Opportunities exist to strengthen links with other African countries to share best practises in the field of healthcare, particularly relating to HIV and AIDS. A strategy has been devised that will marshal the co-ordinated efforts of multiple stakeholders.

 

 

6.2.3.    Strategic Intervention: Targeting Vulnerable Groups
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Women

The objectives of the provincial gender programme includes monitoring and evaluating policy changes and socio-economic activities that affect women, lobbying for human rights and successful implementation of campaigns aimed at asserting constitutional rights, promoting and supporting the training and increasing the capacity of women.

 

Children

The objectives of the provincial programme includes developing a framework for a provincial programme of action for the rights of the child, promoting awareness of these rights, strengthening institutional arrangements and establishing partnerships to implement the programme.

 

People with Disabilities

The objectives of the programme include the promotion, facilitation, monitoring and evaluation of full and equal participation by persons with disabilities in the mainstream of society.

 

Youth

The objectives for youth development include instilling awareness of, respect for and active commitment to the principles and values enshrined in the Bill of Rights, to enable youth to initiate actions that promote their own development and that of their communities. This is particularly important for the Northern Cape, given its large proportion of youth relative to other age groups and considering the high rate of unemployment amongst the youth.

 

6.2.4.     Strategic Intervention: Urban and Rural Development
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The Integrated Sustainable Rural Development Strategy (ISRDS)

The ISRDS calls for the co-ordination and integration of programmes by various spheres of government and other stakeholders to maximise the development of rural communities. The core principles include the promotion of participatory development in an integrated manner by ensuring, where appropriate, that decision-making involves local communities and all three spheres of government, co-operative governance, the implementation of values of the Constitution and the principles of Batho Pele, the integration of various governmental rural development initiatives, the development of the capacity of local government to effectively implement the ISRDS and targeting the rural poor, women, youth and the disabled in particular.

 

The Urban Renewal Strategy (URS)
The core principles of the URS include the regeneration and renewal of dysfunctional urban areas, to address poverty alleviation and under-development, to achieve increased equity, to attain social cohesion, to enhance local government capacity to deliver and to promote innovative approaches to planning, design, implementation and financing.

 

Restitution

Restitution falls within the overall policy of Land Reform, which in turn is a key strategy of government to address the issues of social and economic development in order to alleviate poverty and to promote access to economic opportunities.

 

6.2.5.    Strategic Intervention: Crime Prevention
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The overall aim of a crime prevention strategy is to provide for a safer and a more secure society. This includes the improvement of integrating security and social matters that deal with the primary causes of the many crimes experienced by communities.

 

6.3.    Developing Human and Social Capital
6.3.1.    Approach to Developing Human and Social Capital
Human capital can be defined as the knowledge, skills, abilities, competencies and attributes embodied in individuals that are relevant to economic activity. Some of these skills, abilities, competencies and attributes are innate. However, the acquisition of these skills and competencies require us to spend time, effort and money to accumulate and maintain them.

 

The accumulation and development of human capital can be achieved through formal schooling, higher education, on-the-job training, work experience, investments in health, outreach and extension programmes and life experience, amongst others. The time and effort that many people spend accumulating human capital is an investment.

 

Social capital represents the value of social networks that people can draw on to solve common problems. Increasing evidence shows that social cohesion is critical for societies to prosper economically and for development to be sustainable (the World Bank, 1999). Social capital is seen as the focus for organisational maintenance and development and communities with a good “stock” of social capital are more likely to benefit from lower crime figures, better health, high educational achievement and better economic growth.

 

Growth and development can only be successful if productivity increases and this is more likely with the enhancement of human and social capital. However, we inherited an education and training system with a number of shortcomings, some of which are:

·       A lack of adequate planning for future skills requirements;

·       Unemployed are inadequately trained; and

·       Inequality of education has left a highly differentiated education system.

 

The process of South Africa’s reintegration internationally has placed a number of challenges on the country, in particular, in competing within the global economy. This has placed a number of increasing demands on the development of human and social capital. As new investors enter the country, we are continuously measured against other nations, not only in terms of goods and services, but also in terms of skills and motivation / productivity.

 

Central to this strategy, is the conviction that enhances the general and specific competencies of all citizens as a necessary response to high levels of poverty and unemployment, low levels of investment and literacy, in an attempt to interface the supply of skills and the market demands for skilled labour.

 

6.3.2.    Strategic Intervention: Social and Human Capital Development
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Improving access to knowledge and skills

The main element to a successful strategy on human and social capital development is access to life-long, universal general education.Â

 

Improving work force productivity

The main elements for successfully intervening in this regard are:

·       Improving the supply side of high-quality knowledge and skills which are more responsive to the demands of social and economic development needs;

·       Skills development; and

·       Improving access to repositories of knowledge.

 

6.4.    Improving the Efficiency and Effectiveness of Governance and Other Development Institutions
6.4.1.    An Approach to Good Governance
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A critical requirement for good governance is the alignment of governance standards in terms of transparency, accountability and a stakeholder-inclusive approach to economic, social and environmental stewardship. Public sector and institutional transformation is fundamental to meeting the developmental objectives of the growth and development strategy. On the one hand, there is the need to ensure the predictability and efficiency of governance systems, whilst it is also necessary to ensure maximum stakeholder participation at all levels. Good governance cannot be de-linked from critical provincial, national and global development trends.

 

As a point of departure we endorse the basic values and principles governing public administration (Chapter 10 of the Constitution) and our commitment to Batho Pele.Â

6.4.2.    Strategic Intervention: Strengthening Local Government
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In the first decade of democracy, substantial progress has been made towards the transformation of the system of local government. In recent years core systems of development that focus on integrated development planning, service delivery, community participation and performance management have been introduced.

 

The key objectives of the support strategy are to:

·       Entrench integrated development planning as an approach;

·       Improve the capacity of municipalities to plan so as to ensure sustainable, integrated and targeted development and investment;

·       Improve the implementation capacity of municipalities to ensure effective delivery of services;

·       Improve inter-sectoral co-operation between provincial departments and municipalities;

·       Ensure co-ordination and effective implementation of the various support initiatives; and

·       Support municipalities that have little or no structural capacity.

 

The key initiatives aimed at targeted support for municipalities to ensure sustainability, integrated service delivery and financial viability include the following:

·                   Inter-governmental Planning Support;     Â

·                   Project Consolidate; and

·                   Local Government Support Programme (MSP).

 

6.4.3.    Strategic Intervention: Inter-Governmental Relations
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In terms of Chapter 3 of the Constitution, all spheres of government are obliged to observe the principles of co-operative government.

 

The key elements for improving intergovernmental relations and thereby promoting good governance are the following:

·       Harmonisation of the National Spatial Development Perspective, the Provincial Growth and Development Strategy and the Integrated Development Plans of Local Government; and

·       Strengthening existing and creating new institutional arrangements.

 

6.4.4.    Strategic Intervention: Public Private Partnerships (PPP)
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Two types of PPP’s are defined:

·       Where the private party performs institutional functions; and

·       Where the private party acquires the use of state property for its own commercial purpose.

 

PPP’s are based on three primary principles:

·       Targeted public spending, principally on outputs to agreed standards;

·       Leveraging private sector finance and efficiencies; and

·       Allocating risks to the party best able to manage them.

 

In line with the BEE policy and in giving effect in the BBBEE Act, three core elements and principles have been adopted within the PPP strategy:

·       Direct empowerment through ownership and control of enterprises and assets;

·       Human resource development and employment equity; and

·       Indirect empowerment through preferential procurement and enterprise development.

 

6.5.    Enhancing Transport and Communication Infrastructure for Growth and Development
6.5.1.    Approach to Enhancing Transport and Communication Infrastructure for Growth and Development
The Northern Cape provincial government is committed to investing and leveraging investment in transport and communications infrastructure and systems that satisfy social, economic or strategic investment criteria in support of its role as an enabler of economic growth and the lead agent in social development.

 

Although the province is regarded as being relatively well serviced with roads, rail, harbour and telecommunications infrastructure, it faces a number of challenges in so far as the provision of transport and communications infrastructure is concerned. These challenges are:

·       financial requirements for the development and maintenance of infrastructure;

·       current transport planning in the absence of proper land-use and spatial development planning;

·       efficient transfer of goods and people between and within production and consumption centres; and

·       improvement of the safety, security, reliability, quality and speed of transporting goods and people.

 

The provincial government recognises the need to study and implement best practises elsewhere for the delivery of transport and communication infrastructure and systems. Entering into joint ventures with private sector users of transport infrastructure should be encouraged. Lastly, closer co-operation with national and municipal government to optimise public sector and parastatal investment in transport and communications infrastructure should be pursued.

 

6.5.2.    Strategic Intervention: Promoting an efficient and effective transport system in the Northern Cape
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Within the context of the Roads Infrastructure Framework of South Africa, the Northern Cape has developed a long-term strategy for the development and maintenance of roads in the province.Â

 

In recent years, road freight transport has, for a number of reasons, become more competitive than rail freight transport. As a result, Spoornet has considerably underutilised infrastructure and rolling stock. As part of national government’s Programme of Action, the target of increasing Spoornet’s freight capacity by 30% over the next five years has been set.

 

Depending on the prospects for growth in agriculture, particularly in the production of high value products for export, there may be scope for the development of cargo facilities and chartered cargo air services.

 

The fishing harbours of Port Nolloth and Hondeklip Bay have both experienced degradation of their basic infrastructure in recent years in parallel with the decline of the fishing industry in Namaqualand. There is a need to investigate the rehabilitation of harbour facilities to promote the area as a regional fishing node.

 

The lack of effective transportation systems is one of the major problems that hinder the full development of rural areas. The development of rural infrastructure would enhance the development of rural areas.

 

 

6.5.3.    Strategic Intervention: Enhancing competitiveness through cost-effective transport
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The province’s primary agricultural and mineral production is produced in localities distant from markets and from points of export. The province’s ability to efficiently convey goods by both road and rail is crucial for the further economic development. There is a need for a clear freight strategy that will ensure that goods are efficiently transported to the various markets.

 

6.5.4.    Information and Communication Technology
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Recent advances in Information and Communication Technology (ICT) provide an opportunity for growth and development at a number of levels. Firstly, from a narrow communications perspective, ICT enhances the efficiency of doing business in an increasingly competitive global economy. Secondly, from a broader industry perspective, ICT offers a business opportunity for growth and development through the promotion of businesses that provide ICT goods and services. At the same time, equal access to and utilisation of ICT is not enjoyed by all and the divide between rich and poor is growing. Because a lack of access to ICT has the potential to impact negatively on the growth and development of people and areas by constraining their growth and productivity, steps must be taken to avoid this outcome.

 

6.5.5.    Identification and Development of Critical Infrastructure
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Through the process of aligning the National Spatial Development Perspective, the NCPGDS and the IDP’s, a concerted effort should be made to identify critical infrastructure that, if developed, can play a key role in unlocking latent economic development potential. To a large extent, the development of a provincial spatial development framework will assist in the identification of short-, medium- and long-term infrastructure development requirements for growth and development.