[PPT] - DELMAS 1 of 44 CONTENTS Purpose of the presentation PowerPoint Presentation

SLIDE 1

JOB CREATION SUMMIT AUGUST 2013 DELMAS

1 of 44

SLIDE 2

approach

Socio-economic challenges of Mpumalanga
Socio-economic profile/situation of Victor

Khanye

Challenges and recommendations

2 of 44

SLIDE 3

PURPOSE OF PRESENTATION

To inform the House about the socio-economic situation

and challenges of Victor Khanye for:

– planning, – budget, – strategy & – intervention purposes

“Dashboard approach”
Socio-economic data challenges on municipal level!

3 of 44

SLIDE 4

SOCIO-ECONOMIC RESEARCH

Socio-economic research

Inform budget & planning process

Planning and Budget

Priorities, strategies & spending

Economic impact

Demographics
Labour
Education & health
Basic service

delivery/infrastructure

Development & income
Poverty & inequality
Economic sectors &

performance

Service delivery
Economic growth &

development

Poverty
Unemployment
Inequality

Socio-economic framework

MTSF & Outcomes
National priorities
National budget
SONA
National Department

Policies & NDP

PGDS & IDP/LED
SOPA & MEGDP
Vision 2030

4 of 44

SLIDE 5

SOCIO-ECONOMIC CHALLENGES OF MPUMALANGA

Socio- economic challenges

High HIV prevalence Educational challenges High unemployment Low HDI High inequality High poverty Basic service delivery challenges Low economic growth Sectoral dependency Unequal economic distribution High inflation

MEGDP

1. Reduce

unemployment

2. Reduce

inequality

3. Reduce poverty

5 of 44

SLIDE 6

DEMOGRAPHIC INDICATORS

DEMOGRAPHIC INDICATORS Stats SA Census Stats SA Census Share of Nkangala's figure Share of Mpumalanga’s figure Ranking: highest (1) – lowest (18) 2001 2011 2011 2011 Population number 56 335 75 452 5.8% 1.9% 15 Number of households 13 428 20 548 5.8% 1.9% 14 Area size (km2) 1 568 9.4% 2.0% 17 Population per km2 32 6 of 44

According to Stats SA (2011 Census), 75 452 people were recorded in 2011 – 5.8%
f Nkangala’s population.
Population grew by 33.9% between 2001 & 2011 while the annualised population growth

rate was measured at 2.9%.

Population in 2007 Community Survey was under-estimated at only 50 452.
Females 51.4% and males 48.6% of the population – 82.3% Africans, 16.0% Whites, 1.1%

Coloureds, 0.3% Asians and 0.3% Others.

Youth/children up to 34 years, 72.8% of Victor Khanye’s population.
Number of households 20 548 (3.7 people per household) – 5.8% of Nkangala’s

households.

Female headed households 30.2% and child headed (0-17 years) households 0.4 % in 2011.

SLIDE 7

POPULATION NUMBER

7 of 44

42 390 75 452 83 235 171 982 186 010 249 705 310 458 390 610 541 248

100 000 200 000 300 000 400 000 500 000 600 000 700 000 Dipaleseng Emakhazeni Umjindi Victor Khanye Dr Pixley Ka Isaka Seme Thaba Chweu Lekwa Msukaligwa Mkhondo Chief Albert Luthuli Steve Tshwete Dr JS Moroka Govan Mbeki Thembisile Hani Nkomazi Emalahleni Bushbuckridge Mbombela Population number

Population by Local Municipal Area, 2011

= CRDP Sites

SLIDE 8

POPULATION GROWTH RATE

8 of 44

0,9%

2,6% 3,1% 8,2% 9,8% 16,7% 20,2% 21,0% 33,9%

10%

0% 10% 20% 30% 40% 50% 60% 70% Chief Albert Luthuli Dr JS Moroka Dr Pixley Ka Isaka Seme Bushbuckridge Dipaleseng Emakhazeni Lekwa Nkomazi Msukaligwa Mpumalanga Mkhondo Thaba Chweu Thembisile Hani Mbombela Umjindi Govan Mbeki Victor Khanye Emalahleni Steve Tshwete Percentage

Population growth rate between 2001 & 2011 by Local Municipal Area, 2011

= CRDP Sites Mpumalanga = 20.0%

SLIDE 9

LABOUR INDICATORS

Unemployment rate of 28.2% (strict definition) in 2011 – 8 573 unemployed

as a percentage of the EAP of 30 415 – decreasing trend.

Unemployment rate for females 37.9% and males 21.6% - youth

unemployment rate of 35.8% in 2011.

Employment number 6.1% of Nkangala's employed.
Employment increased with 8 619 between 2001 & 2011!

LABOUR INDICATORS Census Census Share of Nkangala's figure Ranking: best (1) – worst (18) 2001 2011 2011 Economically Active Population (EAP)/Labour Force 23 074 30 415 Number of employed 13 266 21 843 6.1% Number of unemployed 9 808 8 573 5.6% Unemployment rate (%) 42.5% 28.2% 10 9 of 44

SLIDE 10

LABOUR - UNEMPLOYMENT RATE

10 of 44

52,1% 46,6% 37,2% 37,0% 36,1% 35,9% 35,4% 34,3% 28,2%

0% 10% 20% 30% 40% 50% 60% Bushbuckridge Dr JS Moroka Dipaleseng Thembisile Hani Dr Pixley Ka Isaka Seme Mkhondo Chief Albert Luthuli Nkomazi Mpumalanga Victor Khanye Mbombela Emalahleni Umjindi Msukaligwa Govan Mbeki Emakhazeni Lekwa Thaba Chweu Steve Tshwete Unemployment rate

Unemployment rate by Local Municipal Area, 2011

= CRDP Sites

Mpumalanga = 31.6%

SLIDE 11

YOUTH UNEMPLOYMENT RATE

11 of 44

= CRDP Sites

64,6% 61,4% 49,4% 45,2% 45,1% 45,1% 44,6% 42,3% 35,8%

0% 10% 20% 30% 40% 50% 60% 70%

Bushbuckridge Dr JS Moroka Thembisile Hani Dipaleseng Chief Albert Luthuli Dr Pixley Ka Isaka Seme Mkhondo Nkomazi Mpumalanga Mbombela Umjindi Emalahleni Victor Khanye Lekwa Msukaligwa Govan Mbeki Emakhazeni Thaba Chweu Steve Tshwete Youth unemployment rate (%)

Youth unemployment rate by Local municipal area, 2011

SLIDE 12

(Sectoral employment) LABOUR INDICATORS

12 of 44

Agriculture 24,1% Mining 10,3% Manufacturing 7,9% Utilities 0,6% Construction 4,7% Trade 21,7% Transport 5,4% Finance 3,5% Community services 10,8% Private households 10,9%

2001

Agriculture 18,2% Mining 12,7%

Manufacturing 7,8%

Utilities 0,5% Construction 5,9% Trade 18,7% Transport 5,2% Finance 4,9% Community services 14,3% Private households 11,9%

2011

Leading industries in terms of employment – trade 18.7%, agriculture 18.2% and

community services 14.3%.

Decreasing role/share of agriculture & trade and increasing role/share of community

services & mining as employer.

SLIDE 13

EDUCATION INDICATORS

Citizens of 20+ with no schooling, 11.8% - 5 529 people (6.0% of Nkangala’s figure).
Population 20+ with matric & higher 34.5% - improving but lower than district and

provincial averages.

Functional literacy rate (15+ and grade 7+) – increasing but lower than district and

equal to provincial averages.

Matric pass rate 76.7% in 2012 – improving and ranked 5th - university/degree

admission rate of 26.2% in 2012.

EDUCATION INDICATORS Trend Latest figure Better (+) or worse (-) than Nkangala Better (+) or worse (-) than province Ranking: best (1) – worst (18) 2001 2011 Number of people 20+ with no schooling 8 361 5 529 4 Population 20+ with no schooling (%) 25.9% 11.8% (-) (11.5%) (+) (14.1%) 7 Population 20+ with matric & higher (%) 18.7% 34.5% (-) (39.7%) (-) (38.7%) 10 Functional literacy rate (%) 56.0% 76.9% (-) (79.0%) (=) (76.9%) 8 13 of 44

SLIDE 14

EDUCATION – NO SCHOOLING

14 of 44

25,7% 19,9% 19,4% 18.6% 18,1% 18,0% 17,5% 12,0% 11.8%

0% 5% 10% 15% 20% 25% 30% Nkomazi Chief Albert Luthuli Dr Pixley Ka Isaka Seme Bushbuckridge Mkhondo Thembisile Hani Dr JS Moroka Emakhazeni Mpumalanga Msukaligwa Dipaleseng Mbombela Victor Khanye Lekwa Umjindi Thaba Chweu Govan Mbeki Steve Tshwete Emalahleni % with no schooling

% of people 20+ with no schooling by Local Municipal Area, 2011

= CRDP Sites

Mpumalanga = 14.1%

SLIDE 15

EDUCATION – FUNCTIONAL LITERACY

15 of 44

67,6% 69,7% 70,4% 71,4% 71,7% 72,1% 73,4% 74,0% 76,9%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Nkomazi Mkhondo Dr Pixley Ka Isaka Seme Dr JS Moroka Thembisile Hani Chief Albert Luthuli Dipaleseng Bushbuckridge Emakhazeni Lekwa Mpumalanga Victor Khanye Msukaligwa Umjindi Thaba Chweu Mbombela Govan Mbeki Steve Tshwete Emalahleni % with functional literacy

Functional literacy rate (15 years+ with Grade 7+) by Local Municipal Area, 2011

Mpumalanga = 76.9%

= CRDP Sites

SLIDE 16

HEALTH INDICATORS

HIV prevalence rate of pregnant women was 55% in 2011 – increasing trend and third

highest in 2011 among the 18 municipal areas.

HIV prevalence rate excluding pregnant women was 23.0% in 2011 - decreasing trend.
TB cases – decreased & 3rd lowest in province.
Clinics – 3 of Nkangala’s 84 clinics.
Community health centres - none of Nkangala’s 19 CHCs.
Hospitals – 1 of Nkangala’s 8 hospitals.

16 of 44 HEALTH INDICATORS 2009 2010 2011 Ranking: best (1) – worst (18) HIV prevalence rate

survey

(pregnant women attending antenatal clinic 15-49 years old) 30.0% 25.0% 55.0% 16 HIV prevalence rate – DHIS (excluding pregnant women) 44.2% 34.4% 23.0% 10 2010 2011 2012 Ranking: best (1) – worst (18) TB cases 485 499 428 3 PUBLIC HEALTH FACILITIES 2011 Number of clinics 3 Number of community health centres (CHC) Number of hospitals 1

SLIDE 17

HEALTH - HIV PREVALENCE RATE

17 of 44

60,0% 56,1% 55,0% 43,2% 39,0% 37,5% 31,5% 27,4% 19,0%

0% 10% 20% 30% 40% 50% 60% 70% Dipaliseng Mkhondo Victor Khanye Emakhazeni Msukaligwa Govan Mbeki Mbombela Umjindi Chief Albert Luthuli Dr Pixley Ka Isaka Seme Nkomazi Thaba Chweu Emalahleni Lekwa Thembisile Hani Steve Tshwete Bushbuckridge Dr JS Moroka

= CRDP Sites

SLIDE 18

BASIC SERVICE DELIVERY/ INFRASTRUCTURE INDICATORS

Households with connections to piped water: on site & off site, weekly municipal refuse

removal levels better than district and provincial levels and relatively high rankings.

Households with informal dwellings, electricity for lighting lower/worse than district and

provincial levels.

In general improving indicators.
Victor Khanye ranked fourth in Blue Drop Report.
Ranked 17th in Green Drop report – critical state of all aspects of waste water services.

BASIC SERVICE INFRASTRUCTURE INDICATORS Trend Latest figure Better (+) or worse (-) than Nkangala Better (+) or worse (-) than province Ranking: best (1) – worst (18) 2001 2011 % of households in informal dwellings 29.2% 15.4% (-) (13.8%) (-) (10.9%) 13 % of households with no toilets or with bucket system 11.8% 5.7% (-) (3.8%) (+) (7.2%) 10 % of households with connection to(tap) piped water: on site & off site 93.6% 95.7% (+) (92.7%) (+) (87.4%) 4 % of households with electricity for lighting 65.0% 84.9% (-) (85.7%) (-) (86.4%) 10 % of households with weekly municipal refuse removal 62.3% 73.7% (+) (48.3%) (+) (44.1%) 5 18 of 44

SLIDE 19

HOUSING - 2011

Formal 79,3% Traditional 2,5% Informal 15,4% Other 2.8%

19 of 44

Formal housing 79.3% - 16 291 households in Victor Khanye.
Traditional housing 2.5% – 521 households.
Informal housing 15.4% - 3 158 households.

SLIDE 20

BASIC SERVICE DELIVERY - HOUSING

20 of 44

31,5% 15,4% 10,2% 7,7% 7,3% 6,0% 3,1% 2,9% 1,2%

0% 5% 10% 15% 20% 25% 30% 35% Dipaleseng Govan Mbeki Lekwa Thaba Chweu Emalahleni Victor Khanye Steve Tshwete Msukaligwa Umjindi Emakhazeni Mpumalanga Thembisile Hani Dr JS Moroka Dr Pixley Ka Isaka Seme Chief Albert Luthuli Mbombela Mkhondo Nkomazi Bushbuckridge % of households in informal dwellings

% of households in informal dwellings, 2011

= CRDP Sites

Mpumalanga = 10.9%

SLIDE 21

SANITATION - 2011

No toilets 2,3% Flush toilet/chemical toilets 81,8% Pit toilet with ventilation 1,1% Pit toilet without ventilation 9,0% Bucket toilet 3,4% Other 2.4%

21 of 44

Flush/chemical toilets 81.8% - 16 806 households.
Pit latrines 2 072 – pit toilets with ventilation 1.1% - 232 households & pit

latrines without ventilation 9.0% - 1 840 households.

No toilets 2.3% - 465 households.

SLIDE 22

BASIC SERVICE DELIVERY- SANITATION

22 of 44

15,9% 13,5% 13,1% 6,9% 6,2% 5,7% 5,1% 3,5% 2,4%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Nkomazi Mkhondo Bushbuckridge Mbombela Emakhazeni Mpumalanga Dipaleseng Chief Albert Luthuli Msukaligwa Victor Khanye Umjindi Steve Tshwete Dr Pixley ka Isaka Seme Lekwa Thembisile Hani Thaba Chweu Emalahleni Govan Mbeki Dr JS Moroka % of households with no toilets or with bucket system

% of households with no toilets or with bucket system, 2011

= CRDP Sites

Mpumalanga = 7.2%

SLIDE 23

PIPED WATER - 2011

Piped (tap) water inside dwelling or yard 83,2% Piped (tap) water on a communal stand 12,5% No access to piped water (tap) 4,3%

23 of 44

Piped water in a dwelling or yard 83.2% - 17 100 households.
Piped water on a communal stand 12.5% – 2 565 households.
No access to piped water 4.3% - 882 households.

SLIDE 24

BASIC SERVICE DELIVERY - WATER

24 of 44

77,9% 78,5% 79,0% 81,5% 81,8% 92,9% 94,6% 95,4% 95,7%

0% 20% 40% 60% 80% 100% 120% Dr JS Moroka Mbombela Mkhondo Bushbuckridge Nkomazi Chief Albert Luthuli Mpumalanga Msukaligwa Umjindi Dr Pixley Ka Isaka Seme Dipaleseng Emalahleni Thaba Chweu Emakhazeni Thembisile Hani Victor Khanye Lekwa Steve Tshwete Govan Mbeki % of households with access to piped water

% of households with access to piped (tap) water in dwelling, on-site or off- site, 2011

= CRDP Sites

Mpumalanga = 87.4%

SLIDE 25

BLUE DROP PERFORMANCE

MUNICIPAL AREA 2010 2011 2012 Ranking: best (1) – worst (18) Steve Tshwete 92.2 96.5 97.5 1 Dr JS Moroka 95.7 84.4 92.4 2 Mbombela 80.9 74.9 87.6 3 Victor Khanye 18.2 80.0 4 Emakhazeni 71.2 83.7 79.8 5 Thembisile Hani 37.8 27.7 78.3 6 Govan Mbeki 78.9 77.5 77.5 7 Umjindi 52.5 60.5 75.5 8 Dr Pixley Ka Isaka Seme 46.9 40.4 9 Dipaleseng 6.8 40.4 10 Emalahleni 29.7 46.9 37.5 11 Lekwa 19.5 10.4 34.4 12 Bushbuckridge 8.4 29.8 30.8 13 Msukaligwa 10.5 21.2 14 Thaba Chweu 45.1 59.4 19.0 15 Chief Albert Luthuli 8.2 9.7 18.4 16 Nkomazi 17.5 59.4 17.2 17 Mkhondo 28.6 5.0 11.3 18 25 of 44

SLIDE 26

GREEN DROP PERFORMANCE

MUNICIPAL AREA 2011 2012 Ranking: best (1) – worst (18) Thaba Chweu 45.2% 23.9% 1 Steve Tshwete 54.9% 44.2% 2 Mbombela 48.5% 46.6% 3 Lekwa 88.9% 54.0% 4 Chief Albert Luthuli 87.0% 56.5% 5 Emakhazeni 68.9% 62.4% 6 Thembisile Hani 64.8% 62.8% 7 Dr JS Moroka 61.6% 70.2% 8 Umjindi 69.6% 72.7% 9 Dr Pixley Ka Isaka Seme 78.9% 72.9% 10 Msukaligwa 90.7% 73.1% 11 Bushbuckridge 83.3% 73.5% 12 Emalahleni 72.5% 78.4% 13 Govan Mbeki 68.4% 83.2% 14 Mkhondo 91.7% 88.2% 15 Dipaleseng 72.2% 92.7% 16 Victor Khanye 94.4% 94.0% 17 Nkomazi 74.4% 96.5% 18 26 of 44

Risk profile and log by municipal area

SLIDE 27

BASIC SERVICE DELIVERY - ELECTRICITY

27 of 44

66,8% 83,1% 83,3% 84,9% 85,2% 87,5% 92,3% 93,9% 96,7%

0% 20% 40% 60% 80% 100% 120% Mkhondo Emalahleni Msukaligwa Umjindi Dipaleseng Nkomazi Emakhazeni Thaba Chweu Victor Khanye Dr Pixley Ka Isaka Seme Mpumalanga Chief Albert Luthuli Lekwa Mbombela Govan Mbeki Steve Tshwete Thembisile Hani Bushbuckridge Dr JS Moroka % of households with electricity for lighting

% of households with electricity for lighting, 2011

= CRDP Sites

Mpumalanga = 86.4%

SLIDE 28

BASIC SERVICE DELIVERY - REFUSE REMOVAL

28 of 44 4,6% 7,5% 13,6% 19,3% 20,3% 33,8% 62,0%

73,7%

81,8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Thembisile Hani Bushbuckridge Dr JS Moroka Chief Albert Luthuli Nkomazi Mbombela Mkhondo Mpumalanga Thaba Chweu Dr Pixley Ka Isaka Seme Umjindi Msukaligwa Emalahleni Emakhazeni Victor Khanye Dipaleseng Lekwa Steve Tshwete Govan Mbeki % of households with weekly municipal refuse removal

% of households with weekly municipal refuse removal, 2011

= CRDP Sites

Mpumalanga = 42.4%

SLIDE 29

BASIC SERVICE DELIVERY

Household Services Index by Local municipal area, 2001 - 2011

29 of 46

0,58 0,65 0,65 0,62 0,68 0,70 0,70 0,68 0,72 0,77 0,77 0,72 0,71 0,73 0,74 0,71 0,75 0,84 0,70 0,70 0,71 0,71 0,72 0,74 0,76 0,79 0,81 0,81 0,82 0,83 0,83 0,84 0,84 0,85 0,87 0,89 0,0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1,0 Household services index Region 2001 2011

SLIDE 30

HUMAN DEVELOPMENT INDEX

2001 2007 2011 Ranking: best (1) - worst (18) Emalahleni 0.61 0.63 0.70 1 Steve Tshwete 0.62 0.63 0.69 2 Govan Mbeki 0.59 0.62 0.68 3 Thaba Chweu 0.52 0.57 0.64 4 Umjindi 0.53 0.56 0.64 5 Mbombela 0.52 0.55 0.64 6 Emakhazeni 0.51 0.56 0.63 7 Lekwa 0.52 0.54 0.62 8 Msukaligwa 0.51 0.54 0.61 9 Victor Khanye 0.52 0.53 0.61 10 Dr JS Moroka 0.46 0.50 0.60 11 Thembisile Hani 0.45 0.49 0.58 12 Dipaleseng 0.46 0.49 0.57 13 Dr Pixley Ka Isaka Seme 0.46 0.49 0.57 14 Bushbuckridge 0.43 0.48 0.57 15 Chief Albert Luthuli 0.43 0.47 0.56 16 Mkhondo 0.43 0.44 0.53 17 Nkomazi 0.39 0.42 0.52 18

30 of 44

SLIDE 31

AVERAGE HOUSEHOLD INCOME

MUNICIPAL AREA 2001 2011 Ranking: highest (1) – lowest (18) Steve Tshwete

R55 369 R134 026 1

Govan Mbeki

R47 983 R125 480 2

Emalahleni

R51 130 R120 492 3

Mbombela

R37 779 R92 663 4

Lekwa

R38 113 R88 440 5

Thaba Chweu

R35 795 R82 534 6

Msukaligwa

R31 461 R82 167 7

Umjindi

R35 244 R81 864 8

Victor Khanye

R35 281 R80 239 9

Emakhazeni

R36 170 R72 310 10

Dr Pixley Ka Isaka Seme

R23 399 R64 990 11

Dipaleseng

R19 454 R61 492 12

Mkhondo

R26 935 R53 398 13

Chief Albert Luthuli

R22 832 R48 790 14

Thembisile Hani

R18 229 R45 864 15

Nkomazi

R19 195 R45 731 16

Dr JS Moroka

R17 328 R40 421 17

Bushbuckridge

R17 041 R36 569 18

31 of 44

SLIDE 32

INEQUALITY AND POVERTY

Gini-coefficient at 0.60 - improving but ranked 12 in the province.
Poverty rate of 37.7% - 28 640 poor people (6.6% of Nkangala’s poor) – decreasing

trend.

Poverty gap (an indicator of how far poor households are below the poverty line)

at R79 million – increasing trend.

INDICATORS Trend Latest figure Better (+) or worse (-) than Nkangala Better (+) or worse (-) than province Ranking: best (1) – worst (18) 2001 2007 2011 Gini-coefficient (0 best to 1 worst) 0.68 0.64 0.60 (+) (0.61) (+) (0.62) 12 Poverty rate 42.9% 40.5% 37.7% (-) (33.1%) (+) (39.4%) 8 Number

f

people in poverty 25 896 27 246 28 640 4 Poverty gap (R million) R37 R59 R79 4 32 of 44

SLIDE 33

INCOME INEQUALITY

33 of 44

0,62 0,61 0,60 0,60 0,60 0,58 0,57 0,57 0,56

0,00 0,10 0,20 0,30 0,40 0,50 0,60 0,70 0,80 0,90 1,00

Msukaligwa Dr Pixley Ka Isaka Seme Lekwa Mkhondo Emalahleni Govan Mbeki Victor Khanye Bushbuckridge Steve Tshwete Mbombela Dipaleseng Umjindi Thaba Chweu Chief Albert Luthuli Emakhazeni Dr JS Moroka Nkomazi Thembisile Hani

Gini- coefficient

Gini-coefficient by Local Municipal Area, 2011

= CRDP Sites

Mpumalanga = 0.62

SLIDE 34

POVERTY RATE

34 of 44

= CRDP Sites

Mpumalanga = 39.4% 63,4% 57,1% 45,3% 44,7% 43,6% 43,2% 39,8% 37,9% 37,7%

0% 10% 20% 30% 40% 50% 60% 70%

Mkhondo Nkomazi Dipaleseng Bushbuckridge Chief Albert Luthuli Thembisile Hani Msukaligwa Dr Pixley Ka Isaka Seme Umjindi Dr JS Moroka Victor Khanye Mbombela Lekwa Thaba Chweu Govan Mbeki Emalahleni Steve Tshwete Emakhazeni

SLIDE 35

HOUSEHOLD GOODS - 2011

Television Stove Computer Motor-car Cellphone Refrigerator Household goods 75,1% 72,4% 15,1% 28,9% 89,3% 63,3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Percentage access Household goods

35 of 44

SLIDE 36

HOUSEHOLD GOODS INDEX

Household Goods Index by Local municipal area, 2001 - 2011

36 of 46

0,31 0,37 0,29 0,33 0,39 0,38 0,42 0,41 0,51 0,38 0,34 0,36 0,44 0,46 0,47 0,42 0,46 0,53 0,55 0,62 0,62 0,63 0,63 0,64 0,65 0,65 0,65 0,65 0,67 0,67 0,72 0,72 0,72 0,72 0,73 0,74

0,0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1,0 Household goods index

Region 2001 2011

SLIDE 37

ECONOMIC INDICATORS

ECONOMIC INDICATORS Trend 1996-2011 Forecast 2011-2016 Better (+) or worse (-) than Nkangala Better (+) or worse (-) than province Ranking: best (1) – worst (18) GDP growth (%) 2.0% 3.4% (-) (4.0%) (-) (3.5%) 9 Trend Latest figure Ranking: best (1) – worst (18) 2001 2007 2011 Contribution to Mpumalanga GVA (%) 2.0% 1.7% 1.7% 12

Expected to record a GDP growth of 3.4% per annum over the period 2011-2016 –

lower that district and province – historic growth rate in the period 1996-2011 relatively low at 2.0% per annum.

Agriculture, transport, community services, finance and mining should contribute

the most to Victor Khanye’s economic growth in the period 2011-2016.

GVA in 2011 – R3.4 billion at current prices and R1.9 billion at constant 2005

prices.

37 of 44

SLIDE 38

GDP GROWTH

38 of 44 2,5% 2,6% 3,0% 3,3% 3,3% 3,4% 3,4% 3,6% 3,7% 0% 1% 2% 3% 4% 5% Dipaleseng Mkhondo Thaba Chweu Nkomazi Umjindi Lekwa Msukaligwa Bushbuckridge Dr JS Moroka Victor Khanye Chief Albert Luthuli Dr Pixley Ka Isaka Seme Mbombela Thembisile Hani Steve Tshwete Emalahleni Local Emakhazeni Govan Mbeki % GDP growth forecasted

Forecasted GDP growth by Local Municipal Area, 2011-2016

= CRDP Sites

Mpumalanga = 3.5%

SLIDE 39

INDUSTRY Victor Khanye Emalahleni Steve Tshwete Emakhazeni Thembisile Hani Dr JS Moroka Nkangala Agriculture 30.8% 13.0% 42.8% 6.8% 2.0% 4.6% 100.0% Mining 2.4% 52.8% 40.6% 3.3% 0.8% 0.0% 100.0% Manufacturing 1.4% 19.0% 74.9% 1.7% 2.4% 0.6% 100.0% Utilities 0.3% 74.1% 20.9% 1.2% 1.9% 1.7% 100.0% Construction 4.4% 52.5% 27.7% 3.9% 6.7% 4.8% 100.0% Trade 5.8% 46.1% 26.0% 3.2% 14.7% 4.3% 100.0% Transport 8.5% 48.3% 25.9% 9.9% 4.8% 2.6% 100.0% Finance 5.1% 48.9% 39.6% 2.3% 2.3% 1.9% 100.0% Community services 6.6% 34.5% 26.1% 3.6% 14.9% 14.3% 100.0% Total 4.5% 45.2% 38.7% 3.5% 4.9% 3.2% 100.0%

ECONOMIC INDICATORS

Contribution by Local Municipal Areas to Nkangala's industries (GVA constant 2005 prices)

39 of 44

Contribution to Nkangala economy only 4.5% - relatively small economy.
Agriculture contributing 30.8% to the district’s agriculture industry – other

contributions relatively small.

SLIDE 40

ECONOMIC INDICATORS

Leading industries in terms of contribution to Victor Khanye economy – community

services (20.0%), transport (17.0%), mining (16.4%), finance (15%) and agriculture (13.2%).

40 of 44

Agriculture 12,7% Mining 20,6%

Manufacturing 4,7%

Utilities 0,8% Construction 1,3% Trade 11,4% Transport 14,6% Finance 16,2% Community services 17,7%

2001

Agriculture 13,2% Mining 16,4%

Manufacturing 4,3%

Utilities 0,6% Construction 2,0% Trade 11,6% Transport 17,0% Finance 15,0% Community services 20,0%

2011

SLIDE 41

TOURISM INDICATORS

Number of tourist trips increasing – 9.7% of Nkangala and 3.4% of the

provincial total.

Total spent R253.8 million in 2011 – increasing trend.
Total tourism spent equal to 6.9% of municipal area’s GDP- increasing

percentage share of GDP since 2001.

41 of 44 TOURISM INDICATORS Trend Latest Percentage share of Nkangala Percentage share of Mpumalanga Ranking: highest (1) – lowest (18) 2001 2007 2011 Number of tourist trips 20 407 49 105 118 031 9.7% 3.4% 10 Bednights 132 481 198 895 535 137 9.7% 3.4% 10 Total spent R million (current prices) R30 R86 R253.8 6.9% 2.2% 12 Total spent as a % of GDP (current prices) 2.0% 3.4% 6.9% 7

SLIDE 42

NATIONAL & PROVINCIAL GRANTS & EXPENDITURE

Decreasing total allocation – 1.6% of total allocations to local municipalities

in Mpumalanga & third lowest in province.

MPG total expenditure (especially CoE) in VKLM increased from R210

million in 2009/10 to R295 million in 2012/13 according to NT’s Vulindlela database – R1 billion in total over the relevant period.

MPG infrastructure expenditure in VKLM between 2009/10 to 2012/13 just

more than R70 million according to the IRM database of NT.

Remark: Victor Khanye Local Municipality (VKLM) obtained an unqualified

audit opinion in both 2011/12 and 2012/13 – received a clean audit opinion in 2010/11.

42 of 44 TYPE OF ALLOCATION 2011/2012 (R million) 2012/2013 (R million) 2013/2014 (R million) % of allocations to all local municipalities in Nkangala % of allocations to all local municipalities in Mpumalanga Ranking: highest (1) – lowest (18) Total allocation R90.6 R112.7 R83.3 5.9% 1.6% 16

SLIDE 43

TOTAL ALLOCATIONS

43 of 44

= CRDP Sites

R70 R83 R128 R212 R304 R381 R398 R566 R885

100 200 300 400 500 600 700 800 900 1000

Emakhazeni Dipaleseng Victor Khanye Umjindi Dr Pixley Ka Isaka Seme Lekwa Thaba Chweu Steve Tshwete Msukaligwa Mkhondo Govan Mbeki Chief Albert Luthuli Emalahleni Dr JS Moroka Thembisile Hani Nkomazi Mbombela Bushbuckridge

Thousands

DORA budget allocations to Mpumalanga municipalities in 2013/14

SLIDE 44

CHALLENGES & RECOMMENDATIONS

Challenge Recommendation

1. High proportion

f

population aged 0-34 years (children/youth) and relatively high unemployment rate Resources must be channelled to youth development – importance of skills development & creation of jobs Importance of a job creation strategy targeting youth, women & people with disabilities 2. Educational challenges – relatively low university/degree admission rate Improving the level of education Importance of interventions to improve the quality of grade 12 certificate & employability of matrics 3. Basic service delivery challenges – especially in terms of informal dwellings Faster roll-out of basic services and municipal infrastructure 4a. Relatively high poverty number & rate 4b. Very high HIV prevalence rate! Importance of poverty strategy – emphasis on job creation - impact positively on reduction of poverty Interventions to reduce high HIV prevalence rate 5. Relatively low contribution to Mpumalanga GVA and low growth rate Importance

f

attracting new businesses through an investment strategy & active Business/LED forum 6. High dependence/reliance

n

community services (government) Identification of key industries/sectors/projects to drive the economy sustainably into the future – role of tourism, manufacturing, trade, transport, agriculture etc (role/impact

f Kusile, cargo airport etc?)

7. Reduce unemployment, poverty and inequality (MEGDP & NDP) Effective and efficient government spending making an impact on the triple challenges 8. Budget must be in line with and respond to IDP & socio- economic challenges Municipality must work closely with COGTA, Finance and

ther role-players – IDP Manager & CFO working closely

44 of 44