EI PRESENTATION MAPHUMULO LM 2019/11/20 ABOUT EI Ownership - - PowerPoint PPT Presentation

EI PRESENTATION – MAPHUMULO LM

2019/11/20

ABOUT EI

Ownership Wholly owned by iLembe District Municipality Registration Registered company in terms of Company’s Act of 1978 and 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 under iLembe KwaDukuza, Mandeni, Maphumulo and Ndwedwe 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

Weaknesses Identified Action Plans for mitigation

• Failure to attract more investors in the

District, Facilitated Local Investment & partnered with TIKZN

• Lack of planning capacity within the Agency,

Organogram reviewed and approved by Board

• Projects not sustainable in the current form,

All projects reviewed

• Inability to raise funds – due to inability to

package business plans, Internal capacity enhanced through organogram

• 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

New EI Board and Executive conducted SWOT Analysis and implemented action plans for mitigating Weaknesses and Threats:

EI SWOT ANALYSIS AND ACTION PLANS

Threats Identified Action Plans for mitigation

• Lack of proper cash flow management

resulting in low quick ratio (<1) Improved networking capital

• Lack of cooperation with LMs (with no

alignment and cooperation) Allignment completed

• Becoming irrelevant (redundancy and

mundane day-to-day activities). Strategic repositioning completed

• Lack of Political buy in (particularly from

the ruling party). Continous Engagement

• Low staff moral

Learning and Growth in place

EI Board Strategy Implementation Roadmap

2017/2018 FY

Strategy Pillars adopted EI Funding Model presented Projects Status Quo & Ownership presented SWOT Analysis done

2018/2019 FY

Strategy Pillar 1 – Financial Sustainability - Implemented Strategy Pillar 2 – Business Development - Implemented Strategy Pillar 3 – Stakeholder Engagement Implemented Some of Weaknesses and Threats identified in 2017/18 addressed

2019/2020 FY

Internal Capacity building Projects – Old/New EI LED Mandate – Review (Vuthela) Strategic Pillars - Review

EI Strategic Pillars

EI Board has identified the following three (3) strategic pillars as the enablers for the entity to implement its mandate: I. Financial sustainability – Going concern pillar. II. Business development – Operational excellence and monitoring and evaluation pillar. III. Stakeholder engagement – Relevance, partnerships and buy-in pillar

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

57% 68% 57% 42% 29% 0% 10% 20% 30% 40% 50% 60% 70% 80% 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020

% EI Revenue from IDM

FY Total IDM 2015-2016 44,034,977.00 24,982,341.00 2016-2017 30,909,169.00 21,098,202.00 2017-2018 43,308,193.22 24,605,984.72 2018-2019 72,171,888.50 30,647,932.25 2019-2020 109,288,038.47 31,813,899.80

• Financial Sustainability – Board Focus

Historical Projects - revitalized

Project Benefit Sustanable? Comment 1) Revenue Generation YES Operational: 2) Job Creation Mandeni 3) Increased Local Supplier KwaDukuza 4) Capacity Building Maphumulo Ndwedwe - 1 site 1) Revenue Generation YES Linked to tourism strategy 2) Public, Private Partnerships 1) Secure employment NO Operational model being reviewed - with Vuthela 2) Be able to trade/sell grapes to the winery NSNP

• 1. Social service

YES Appointed implementing agent

• 2. Job Creation
• 3. SMME development

OPEN FIELDS

• 1. Job creation

NO Grant dependent

• 2. SMME development
• 1. SMME Development

TBD Bankable business

• utstanding - DBSA funding
• 2. Job Creation

Hydroponic Tunnels Winery Vineyards Implementation of Broadband

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

New Projects Pipeline

Project name Local Municipalities

• No. of

farmers/Coops & Transporters No of beneficiaries Male Female Youth People with disabilities iLembe Open Fields Mandeni 30 249 112 137 98 1 KwaDukuza 27 227 101 126 68 5 Maphumulo 31 243 130 112 72 Ndwedwe 46 387 181 206 105 2 134

1106

524 581 343 8

• No. of jobs created over the past year through

LED Projects - Employment

Demographic groups

UIF LAP

PROGRAMME MANDENI NDWEDWE KWADUKUZ A MAPHUMULO TOTAL NUMBER OF LEARNERS

National Certificate: Accommodation Services 55 32 87 National Certificate: Farm Worker 47 46 93 National Certificate: Farm Owner 36 44 80 National Certificate: Generic Management 49 50 99 National Certificate: General Travel 40 40 80 National Certificate: Mixed Farming 45 46 91 National Certificate: New Venture Creation 100 100 National Certificate: Pest Control 49 37 86 National Certificate: Plant Production 22 22 45 89 National Certificate: Poultry Production 85 85 National Certificate: Water & Water Waste 25 25 50 100

TOTAL 283 227 386 94 990

53 businesses operating in different sectors are supported;

18 in Agriculture 26 in construction 10 in Manufacturing, Engineering and Tourism

SMMEs in the iLembe business incubator

Agriculture Construction Manufacturing, Engineering and Tourism Enterprise iLembe business incubatotr

Business incubator

EI Incubator SMMEs Supported

EI FACILITATED INVESTMENTS

Project Description Investment No of Jobs Prominance Africa

Phase: Operational

UPVC Window Manufacturing in Compensation, Ballito R25mil 25 direct INSA

Phase: Operational

Pot Manufacturing Factory in Woodmead, Shakaskraal R150mil 80 direct Phambili Energy

Phase: Start-Up October 2019

Biomass Processing Plant in Isithebe Mandeni R25mil 25 direct 40 indirect

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.

Pillar II – Business Development

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.

Pillar III – Stakeholder Engagement

Stakeholder Engagements Media Platforms

• Trade & Investment KZN Roadshow
• KwaDukuza Youth Summit
• Ndwedwe Youth Day & Career Expo
• Maphumulo Youth Summit & Career Expo
• Mandeni Youth Council Workshop
• KZN Growth Coalition Business Breakfast
• TIKZN Women in Business Dialogue
• TIKZN Export Week & Golf Day
• Entrepreneur Competition with iCCT
• KZN Investment Seminar
• SA Presidential Investment Summit
• Opportunity SMME Roadshow
• iLembe

District IDP Roadshow & Community Engagements

• Business Stability Initiatives
• Isithebe Revitalization Committee
• Radio 2000 Pre-Vodacom Live Broadcast
• Connecting Africa Radio Journalists with ECR
• Mandela Day Media Articles
• Radio Interviews on Gagasi and Ukhozi and SA FM
• Radio 2000 Strawberry Festival Pre & During Live

Broadcasts

• Heritage & Tourism Month Feature in the North Coast

Courier

• iThemba Magazine
• Local and Provincial newspapers

DISTRICT TOURISM

Description Foreign Domestic Total Total Overnight tourist staying in formal accommodation 120 951 550 997 671 948 Total overnight tourist staying with family & friends 21 345 97 235 118 580 Total overnight tourist 142 296 648 232 790 528 Number of day visitors 12 039 288 940 300 979 Total Visitors 154 335 937 172 1 091 507

EI-currently conducts an annual study of the status of tourism in the District Resulting Impact: Over R5billion to the GDP of iLembe and the preservation/creation of an estimated 11 000 jobs

TOURISM STATS (GEOGRAPHIC)

NC 1% EC 4% FS 7% Gauteng 64% KZN 17% Mpumalanga 4% WC 3%

4,4 3,6 1,8 10,2 2,2 20,4 2,7 10,7 1,8 7,1 4,0 7,6 4,4 20,0 9,3 0,0 5,0 10,0 15,0 20,0 25,0 %

Origin of International Tourists

Domestic

PIPELINE PROGRAMS

PROGRAMS BENEFIT POTENTIAL PARTNERS EI Skills Development Program

• Drone Accelerator

Program

• iLembe Techno Hub
• Rural Economic

Development (RASET/Agriprocessi ng/ tourism products)

• Job creation
• Job retention
• SMME Development
• 4IR readiness
• Link iLembe with

Aerotropolis Project

• EDTEA
• COGTA
• NDT
• Premier’s Office
• Foodberv
• MICT Seta
• GCI (Blythedale)
• Katmandu (Rob)

STRATEGIC PARTNERSHIPS WITH LMs

Through change management and capacitation process with Vuthela, EI is geared towards partnering with LMs such that:

• EI is the implementation agent for LED projects within the LM.
• EI is the source of information for economic development feasibility

studies and R&D for the District and LMs.

• EI plays prominent role in identification and packaging of economic

development projects and programs

• EI plays a leading role in revitalization of economic hubs e.g.

Isithebe and tourism routes.

Contact Details: Tel: 032 – 946 1256 Fax: 032 – 946 3515 Email: info@enterpriseilembe.co.za Web: www.enterpriseilembe.co.za Enterprise iLembe @EnterpriseiL

Thank You