Presentation Transcript

1. Making LED Work For Rural Communities: The Ilembe Case Study__________________________________________________REGIONAL AND LOCAL ECONOMIC DEVELOPMENT SUMMIT – 2012 Basil Sikhakhane: MD- Enhance Strategies International and Chairperson, KZN Commission on Traditional Leadership Disputes and Claims (CTLDC)
2. Local Economic Development In Rural Areas Key Focus Is On Land Productive use Ease of Access to land Commercially viable tenure system(s) Improved value through infrastructure Empowerment of women and children Access to Agri-logistics
3. Nature of rural communities in kzn Rural (small) town areas Large-scale commercial farms Small-scale farms __________________________________________________ Rural traditional community areas Excludes small towns Excludes large and small scale commercial farms Carries the bulk of the development and service delivery backlog Vicious cycle of deprivation Looks up to LED for relief
4. Rural Communities in Kwazulu-natal LAND AS KEY A FACTOR OF PRODUCTION:
5. Led challenges in rural areas (agricultural context) THE AGRI-LOGISTICAL DIVIDE
6. Structural challenges (districts) The “duality” challenge Different economies Different communities Differentiated legacies Marginalisation/ expansion The pressure to address “marginalisation” issues The need facilitate growth and expansion outside traditional community areas The need to maximise effort in current opportunities The creation of ladders between the two economies
7. Distortions Global trend: 60% small-scale farmers contribution- agricultural production 40% large-scale farmers contribution Bulk support and funding to small scale RSA trends: 95% large-scale contribution 5% small-scale contribution 5% small-scale not necessarily “rural” Bulk support and funding for large-scale Funding/ tenure mismatch
8. Ilembe district case study Challenging realities Spatial inequality Dual economy Cycle of deprivation in free-fall mode in rural areas General development backlog Service delivery backlog Poor productivity Shortage of skills Unemployment Poverty Vulnerability
9. Ilembe Approach & principles Acknowledgement of the spatial context of the district Collective/ regional response Family of municipalities as opposed to competing enclaves Acknowledgement of different strengths Capitalizing on the diversified strengths One district one economy Elimination of duality
10. Alignment Regional alignment Provincial alignment Sector alignment Alignment of regional (district) processes within provincial strategic objectives
11. Options Local municipality driven LED Local focus Local view Competition Missing out on complimenting advantages Compliance challenges District municipality driven LED Diluted local focus Competency challenges Legislative/ compliance challenges
12. The Development agency option Legislative framework Municipal entity Opportunities in addition to PFMA and MFMA Access to different sources of funds Ability to pilot District wide coordination Alignment with IGR framework Shared destiny (regional vision) Coordination of public and private sector efforts Inline with Provincial Growth and Development Plan as a regional planning forum Enhanced accountability measures
13. Ilembe district case study The LED Governance & Implementation Model The DM supported by COGTA established a regional Development Agency (Enterprise ILembe)
14. OBJECTIVES OF ENTERPRISE ILEMBE To optimise on the regional competitive advantages of Tourism, Agriculture & Low Impact Manufacturing; To develop creative mechanisms to rapidly achieve BEE targets; To design an organisational vehicle to leverage catalytic economic opportunities; To involve Business In functional regional economic decision-making; To leverage all possible resources to the benefit of the ILembe region.
15. FUNCTIONS OF ENTERPRISE ILEMBE Developing and strengthening the local economic development strategy on behalf of the district and local municipalities; Championing a wide range of activities which emerge as important from the LED strategy; Fundraising for specific projects, and potentially project managing some of these; Funding certain services to be applied across the area, eg specialist business advice; Coordinating activities to ensure that an integrated service is provided across providers, eg for business advice; Monitoring and quality control of services available in the area; Directly undertaking certain functions, eg regional marketing; Promoting regional activities, eg collective marketing, regional food brands etc. Facilitating the identification, packaging and implementation of catalytic projects. Provide a professional and multi-skilled support and networking service to major investors who wish to invest in the region by:- Working with local government to improve the business enabling environment ; Establishing a research unit to develop and maintain a regional socio – economic and investor database Facilitating the establishment of a Destination Management Office (DMO) in Ilembe. Provide a “turn-key” service to investors who wish to relocate to Ilembe Implement an aggressive business retention and expansion (BR&E) programme coupled with a business development and support (BDS).Priority will be given to those businesses committed to black economic empowerment (BEE) partnerships. Build twinning relationships with developed regions internationally.
16. Operational principles The Council and Board of Directors of Enterprise ILembe have set out the following operational principles for the organisation : Bring the poor and previously disadvantaged to the centre of development Build a synergistic relationship between Local Economic Development and Social Upliftment. Build Linkages between the established coastal economies and historically marginalised rural areas. Build a culture of Social, Economic & Environmental interdependency as the first test when evaluating opportunities. (i.e. triple bottom line) Focus LED around realistic catalytic initiatives natural to the region and wherever possible building on the uniqueness of local competitive advantage and market differentiation. Building a capacity to nurture effective and mutually beneficial partnerships based on fair and equitable business principles. Ability to leverage Black Economic Empowerment (BEE) as measured by direct or potential equity and not only new jobs created.
17. Governance structure
18. Operational structure
19. District footprint
20. Funding To date the agency has had two core funders of its operational costs, these being the District Municipality (which provides a grant of about R2m) and the Industrial Development Corporation (IDC), (which provides a grant of R3.5m for operational costs). Both these funders have required that the agency progressively develop financial self-sustainability strategies. As regards project funding, the agency presently manages about R15m of project funds from the Provincial Corridor Development Fund (managed by the KZN Dept of Cooperative Governance and Traditional Affairs), and the IDC.
21. Alignment of projects with strategic objectives Strategic Objectives: Job Creation Human Resource Development Human & Community Development Strategic Infrastructure Environmental Sustainability Governance And Policy Spatial Equity
22. Extent of link with strategic objectives JOB CREATION Unleashing the agricultural sector Enhance industrial development through trade, investment & exports Expansion of government- LED creation programmes Promoting SMME, Entrepreneurial and youth development Enhance the knowledge economy HUMAN RESOURCE DEVELOPMENT Early Childhood Development, Primary and Secondary Education Skills alignment to Economic Growth Youth Skills Development & Life-Long Learning HUMAN & COMMUNITY DEVELOPMENT Poverty Alleviation & Social Welfare Enhancing Health of Communities and Citizens Enhance Sustainable Household Food Security Promote Sustainable Human Settlements Advance Social Capital Enhance Safety & Security STRATEGIC INFRASTRUCTURE Develop-ment of Harbours Development of Ports Development of Road & Rail Networks Development of ICT Infrastructure Improve Water Resource Management & Supply Develop Energy Production and Supply ENVIRONMENTAL SUSTAINABILITY Increase Productive Use of Land Advance Alternative Energy Generation Manage pressures on Biodiversity Adaptation to Climate Change GOVERNANCE AND POLICY Strengthen Policy and Strategy Co-ordination & IGR Building Government Capacity Eradicating Fraud & Corruption Promote Participative, Facilitative & Accountable Governance SPATIAL EQUITY: Actively Promoting Spatial Concentration Facilitate Integrated Land Management & Spatial Planning Job Creation (100%) Human Resource Development (100%) Human & Community Development (100%) Strategic Infrastructure (100%) Environmental Sustainability (100%) Governance And Policy (100%) Spatial Equity (100%)
23. Lead sectors
24. Key transformation outcomes (in projects) Ownership Operations Joint ownership of factors of production by local co-ops and technical partners Programme joint ownership of agri-logistics Access to agri-logistics Compliance Access to commercial markets Improved land value Empowerment of women and the youth.
25. Projects (Funded)
26. Projects (unfunded) In addition to the funded projects above, the Project Management Unit pursues other opportunities for projects which have some level of feasibility, but do not yet have funds for implementation or for piloting. Some of these include :
27. Current/ future milestones Contractual finalisation(s) of ownership model Pilot results assessment on operational practices Setting up of regional structure to monitor progress Documentation of lessons learnt Sharing
28. Success factors for led (rural communities): What have we learnt District approach Complimenting against competing Diverse strengths against diverse weaknesses Integration (Ownership & Operations) Land-value through productivity Bridging of the agri-logistical divide Skills development Access to commercial markets
29. Critical immediate/ future requirements for ilembe More pilot projects (in all sectors) Additional funding Training (for co-operatives & other structures) Establishment of Regional Support structure Monitoring
30. Elimination of duality (Conclusion) Addressing the marginalization factors of rural communities Implementing the “one district” approach Traditional rural communities accessing the developed rural area infrastructure Ownership partnerships across the Agri-logistical divide Robust and competent regional structure to support the partnerships
31. Thank you