EI PRESENTATION – MAPHUMULO LM 2019/11/20
ABOUT EI Ownership Wholly owned by iLembe District Municipality Registered company in terms of Company’s Act of 1978 and Registration established in terms of the Municipal Systems Act (Section 86C) Regulations Regulated to act as a municipal entity (Systems Act: Chapter 8A & Municipal Finance Management Act Chapter 10 & 11) Entity type Economic Development Agency for iLembe District Local Municipalities KwaDukuza, Mandeni, Maphumulo and Ndwedwe under iLembe • Mandate To drive and facilitate Local Economic Development [LED] • To pursue and attract investment within the district • To promote iLembe as a district of choice through tourism • Objective To improve competitiveness of iLembe • To package projects that will ensure local economic dev • Sector focus Agriculture • Construction • Manufacturing • Renewable energy • Tourism
ABOUT EI..(cont.) Audits Outcome Clean Audits by AG for 5 consecutive years Accreditation ISO 9001:2015 Awards KZN Investor Awards: - Finalists Job Creator - Finalists most impactful investments
EI SWOT ANALYSIS AND ACTION PLANS New EI Board and Executive conducted SWOT Analysis and implemented action plans for mitigating Weaknesses and Threats: Weaknesses Identified Action Plans for mitigation Failure to attract more investors in the - Facilitated Local Investment & partnered with TIKZN District, Organogram reviewed and approved by Board Lack of planning capacity within the Agency, - Projects not sustainable in the current form, All projects reviewed - Inability to raise funds – due to inability to - Internal capacity enhanced through organogram package business plans, Stagnant or lack of growth, Revenue enhanced - Bogged down by badly perceived projects, Proper business plans in place - Lack of stakeholder engagement Continuous engagement and improved PR -
EI SWOT ANALYSIS AND ACTION PLANS Threats Identified Action Plans for mitigation Lack of proper cash flow management - Improved networking capital resulting in low quick ratio (<1) Lack of cooperation with LMs (with no - Allignment completed alignment and cooperation) Becoming irrelevant (redundancy and - Strategic repositioning completed mundane day-to-day activities). Lack of Political buy in (particularly from - Continous Engagement the ruling party). Low staff moral Learning and Growth in place -
EI Board Strategy Implementation Roadmap 2018/2019 FY 2017/2018 FY 2019/2020 FY Internal Capacity Strategy Pillar 1 – Financial Strategy Pillars building Sustainability - Implemented adopted Strategy Pillar 2 – Business EI Funding EI LED Mandate Development - Implemented Model presented – Review (Vuthela) Strategy Pillar 3 – Projects Status Quo Strategic Pillars - Stakeholder Engagement & Ownership Review Implemented presented Projects – Some of Weaknesses SWOT Analysis and Threats identified Old/New done in 2017/18 addressed
EI Strategic Pillars EI Board has identified the following three (3) strategic pillars as the enablers for the entity to implement its mandate: Financial sustainability – Going concern pillar. I. Business development – Operational excellence and monitoring and II. evaluation pillar. Stakeholder engagement – Relevance, partnerships and buy-in pillar III.
Pillar 1 – Financial Sustainability • Under this pillar, EI identified the need to diversify its revenue streams to reduce the overreliance on IDM. • The action plans were: - Packaging of projects for funding - Positioning EI as implementing agent for projects - Partnerships with public and private sector
Revenue Enhancement – Reducing Burden to IDM - Financial Sustainability – Board Focus % EI Revenue from IDM 80% 68% 70% FY Total IDM 57% 57% 60% 2015-2016 44,034,977.00 24,982,341.00 50% 42% 2016-2017 30,909,169.00 21,098,202.00 40% 29% 30% 2017-2018 43,308,193.22 24,605,984.72 20% 2018-2019 72,171,888.50 30,647,932.25 10% 2019-2020 109,288,038.47 31,813,899.80 0% 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020
Historical Projects - revitalized Project Benefit Sustanable? Comment 1) Revenue Generation YES Operational: 2) Job Creation Mandeni Hydroponic Tunnels 3) Increased Local Supplier KwaDukuza 4) Capacity Building Maphumulo Ndwedwe - 1 site 1) Revenue Generation YES Linked to tourism strategy Winery 2) Public, Private Partnerships 1) Secure employment Operational model being NO reviewed - with Vuthela Vineyards 2) Be able to trade/sell grapes to the winery Appointed implementing NSNP 1. Social service YES agent 2. Job Creation 3. SMME development OPEN FIELDS 1. Job creation NO Grant dependent 2. SMME development Bankable business 1. SMME Development TBD outstanding - DBSA funding Implementation of Broadband 2. Job Creation
New Projects Pipeline Projects Source of Fund Amount Project Sustanaible? Mandeni YEP COGTA 6,000,000 YES Raset Program Support COGTA 5,000,000 YES Biomass Processing Project COGTA 5,000,000 YES Public WiFi COGTA 2,500,000 YES Mini-Factories - LM COGTA 2,500,000 YES UIF Venture Creation UIF 4,750,750 N/A UIF -LAP UIF 57,942,500 N/A EI Business Incubator IDM/AfricaIgnite 3,600,000 Partly IeC Maphumulo MLM/ Engeng 12,700,000 YES Cooperatives funding SASA/LDS 1,720,000 N/A KwaShushu Hotspring IDM/EDTEA/MLM 1,800,000 TBD ISO 9001 :2015 IDM 150,000 Grant dependent TOTAL 103,663,250
No. of jobs created over the past year through LED Projects - Employment Demographic groups Project name Local No. of No of Male Female Youth People with Municipalities farmers/Coops beneficiaries disabilities & Transporters iLembe Open Mandeni 30 249 112 137 98 1 Fields KwaDukuza 27 227 101 126 68 5 Maphumulo 31 243 130 112 72 0 Ndwedwe 46 387 181 206 105 2 134 524 581 343 8 1106
UIF LAP PROGRAMME MANDENI NDWEDWE KWADUKUZ MAPHUMULO TOTAL A NUMBER OF LEARNERS National Certificate: 55 32 87 Accommodation Services National Certificate: Farm 47 46 93 Worker National Certificate: Farm 36 44 80 Owner National Certificate: Generic 49 50 99 Management National Certificate: General 40 40 80 Travel National Certificate: Mixed 45 46 91 Farming National Certificate: New 100 100 Venture Creation National Certificate: Pest 49 37 86 Control National Certificate: Plant 22 22 45 89 Production National Certificate: Poultry 85 85 Production National Certificate: Water & 25 25 50 100 Water Waste TOTAL 283 227 386 94 990
EI Incubator SMMEs Supported 53 businesses operating in different sectors are supported; SMMEs in the iLembe business incubator 10 in Manufacturing, 26 in construction Engineering and Tourism Business incubator 18 in Agriculture Agriculture Construction Manufacturing, Engineering and Tourism Enterprise iLembe business incubatotr
EI FACILITATED INVESTMENTS Project Description Investment No of Jobs Prominance Africa UPVC Window Manufacturing R25mil 25 direct Phase: Operational in Compensation, Ballito INSA Pot Manufacturing Factory in R150mil 80 direct Phase: Operational Woodmead, Shakaskraal Phambili Energy Biomass Processing Plant in R25mil 25 direct Phase: Start-Up October Isithebe Mandeni 40 indirect 2019
Pillar II – Business Development This pillar focused on internal business processes that the Agency needed to do in order to be able to fulfil its mandate. The focus has been on the following aspect of the business development pillar: Alignment of EI’s strategic goals with national, provincial and regional economic - development programs and initiatives. - Optimization of performance objectives through balanced score card.
Business Development – Performance The following alignment with provincial and district development programs and entities has been successfully done with good results: RASET Program – Entity has been chosen as the implementing agent for the RASET - program in the district. TIKZN – alignment with TIKZN on implementing one stop shop through the EI business - incubator has been agreed and reported to the PTIC. Note: iLembe District will be the first District to implement the One Stop Shop. TIKZN – EI has been included in the PSC for the development of the KZN Investment - Strategy done by TIKZN. TKZN – MOU signed with Tourism KZN to facilitate tourism in the District the partnership - has led to the holding if two successful broadcast at the agency where HW Mayor of the District participated. iCCT, KZN Growth Coalition, TIKZN – Business Stability Initiatives. -
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