agenda & minutes of an special economic development, … of the speaker... · for creation of...

AGENDA & MINUTES

of an

SPECIAL ECONOMIC

DEVELOPMENT, URBAN RENEWAL & TOURISM COMMITTEE MEETING

held on

27-06-17

SOL PLAATJE MUNICIPALITY

Office of the Municipal Manager KIMBERLEY

5 June 2017

MEMBERS: Cllr M M Moshweu (Chairperson) Cllr T Setholo Cllr K M Sebego Cllr B P Gilbert Cllr W van Rooyen Cllr O Mokae NOTICE is hereby given that an ECONOMIC DEVELOPMENT, URBAN RENEWAL &

TOURISM COMMITTEE meeting of the city council will be held in the Council Chamber, Civic

Offices, Kimberley on THURSDAY, 15 JUNE 2017 AT 09:00.

PLEASE BRING AGENDAS DATED 13 APRIL AND 11 MAY 2017 TO THE MEETING.

CLLR M M MOSHWEU CHAIRPERSON

i AGENDA AND MINUTES Special Economic Development, UR & Tourism Index 27 June 2017

RES NO ITEM NO & HEADING PAGE ANNEXURE

PLEASE NOTE THAT PAGE NUMBERS AND ANNEXURE NUMBERS FOLLOWS ON FROM THE APRIL 2017 AGENDA.

A. APPLICATION FOR LEAVE 1 B. CONFIRMATION OF MINUTES 1 C. PRESENTATION 1 NOTE: SECTION D - F AS PER AGENDA DATED 13.04.17 – 15.06.17 D. DIRECTORATE REPORTS: 13.04.17 Directorate: Strategy, Economic Development & Planning Local Economic Development

ECN27/06/17 1. ECN07/03/17: Frances Baard District Municipality: SMME Direct Support

2 1 -2

ECN28/06/17 2. ECN08/03/17: SMME Village: Service extended to the public

3

ECN29/06/17 4. Media Tour 2017 5 3 ECN30/06/17 5. Presentation of National LED Framework 7 18 - 268

E. MATTERS REFERRED BACK TO OCM: 19.04.17

ECN31/06/17 1. EM121/04/17 / ECN11/03/17: Report on SA

Jazz Festival 2016

18 1 - 16

ECN32/06/17 2. EM122/04/17 / ECN12/03/17: Diamonds and

Dorings 20147 State of Readiness

20 1 - 42

ECN33/06/17 3. EM124/04/17 / ECN03/02/17: Feasibility Study

For creation of consolidated Nature Reserve

22 44 - 70

F. DIRECTORATE REPORTS: 11.05.17 Directorate: Strategy, Economic Development & Planning Local Economic Development

ECN34/06/17 1. Investment Incentives Policy 25 269 - 307

G. DIRECTORATE REPORTS: 25.04.17 Directorate: Strategy, Economic Development & Planning Local Economic Development

ECN35/06/17 1. Report on Kim Fest 2016 (MTN Joyous Celebration) 28 1 - 8

ECN36/06/17 2. Report on Movie Night Under the Moon (MNUM) 29 9 - 35

ii AGENDA AND MINUTES Special Economic Development, UR & Tourism Index 27 June 2017

RES NO ITEM NO & HEADING PAGE ANNEXURE

ECN37/06/17 3. Report on Metro FM Heatwave 2016 31 36 - 47

ECN38/06/17 4. Report on the Gariep Arts Festival 2016 32 48 - 96

ECN39/06/17 5. Report on Barney Barnato Golf Tournament 34 97 - 102

H. DIRECTORATE REPORTS: 15.06.17 Directorate: Strategy, Economic Development & Planning Local Economic Development

ECN40/06/17 1. UDZ Boundary changes

39 308

I. SUPPLEMENTARY REPORTS: 15.06.17

ECN41/06/17 1. Tabling of the Preferential Procurement Policy Regulations

39 1 - 25

ECN42/06/17 2. Local Economic Development summit (LED) 2017: Preparations for the Inaugural LED summit 2017

44

1

SOL PLAATJE MUNICIPALITY AGENDA AND MINUTES OF A SPECIAL ECONOMIC DEVELOPMENT, URBAN RENEWAL & TOURISM COMMITTEE MEETING HELD ON THURSDAY, 27 JUNE 2017 AT 09:00. PRESENT: Members:

Cllr M M Moshweu (Chairperson) Cllr B P Tshite Cllr O Mokae Cllr K M Sebego Cllr W Van Rooyen None Members: Cllr O B Plaatije (until 10:30) Cllr R T Morwe (until 10:45) Cllr N D Maditse (from 11:30)

ED: Strategy, Economic Development & Planning Services (N Kesiamang), Tourism Manager (P N Poolo), Area-based Manager (L van Gensen),Senior Tourism Officer (R S Bezuidenhout) LED: General Manager (P Sithole), LED: Investment Promotion (T Mlonyeni) LED: GURP section (D Seeco) and (Z Mguza) LED: SMME (S Mathebula) Committee Services: Administrators (S Campher) and (J Knox). A. APPLICATION FOR LEAVE

None ABSENT WITHOUT LEAVE Cllr T Setlholo

B. CONFIRMATION OF MINUTES

None

C. PRESENTATIONS

None

2

AGENDA AND MINUTES Special Economic Development, UR & Tourism Directorate: SEDP 27 June 2017 LED

D. DIRECTORATE REPORTS: 13.04.17

1. ECN07/03/17: Frances Baard District Municipality: SMME Direct Support (S Mathebula)

--------------------------------------------------------------------------------------------------------------------------- Purpose The purpose of this item is to provide a report on the outcome of the FBDM SMME Support programme Background The FBDM has established a grant funding program for deserving SMME in the district area. The fund is aimed at assisting enterprises who are in operation for one year. SPM was requested to submit a list of names in order to stand a chance to benefit from the grant. Issue The outcome is that the SMME that was rewarded was from Ritchie and was provided equipment and machinery for farming. Annexure Attached please find letter from the District Municipality.

ANNEXURE p.1 - 2

Personnel The SMME Support. Financial implications None Inter-Sectoral Consultation Executive Mayor, Speaker, Municipal Manager, Ward Councillors, LED Committee, Director of Strategy, Economic Development and Planning Legal Authority Service delivery and budget implementation plan, the Municipal Integrated Development Planning. Contact Person Mr Sobuza Mathebula Ext: 6474

3



FOR INFORMATION

At the Economic Development Committee meeting held on 09.03.17 it was resolved per resolution ECN07/03/17: That in the absence of the author, the matter be held in abeyance until the next meeting. At the Economic Development Committee meeting held on 15.06.17 it was resolved per resolution ECN17/06/17: That due to time constraints the following item be held in abeyance until the next meeting.

ECN27/06/2017 RESOLVED TO RECOMMEND TO THE EXECUTIVE MAYOR That the report be noted

__________________________________________________________________________ 2. ECN08/03/17: SMME Village: Services extended to the public

(S Mathebula) --------------------------------------------------------------------------------------------------------------------------- Purpose The purpose of this item is to address the enquiry raised in council with regards to the extension of services provided to the public and that LED related matters be dealt with at the SMME Village. Background Sol Plaatje Municipality has established its business incubation programs known as the Galeshewe SMME Village. This business centers offer tenant incubation space to local small businesses that meet the criteria, while also offering a comprehensive range of small business development services to entrepreneurs, start-ups and small business owners that are non-tenant clients of the centers. These services include training, mentorship, coaching, computer skills, networking opportunities, tender advice and affordable shared services such as bookkeeping, internet access, marketing support and office services. The intention is to ensure that these centers become dynamic, vibrant and pro-active hubs for small business support and development, responsive to real client needs and able to accelerate the rate of entrepreneurial activity in the area, thus supporting job creation, social cohesion and economic participation. ISSUE 1. That services provided at SMME Village be extended to the public and not only be

confined to tenants. It is important to note that the services of the village have always been extended and available to the public, for example the renting out of the Training Room to the public for different meetings.

4



2. That LED related queries could be addressed at the Village instead of the public having to always come to the Civic Centre at cost (e.g. transport cost).

The main function of the village is to provide business service for business tenants however services have been extended to the non-tenants. Personnel The SMME Support. Financial implications None Inter-Sectoral Consultation Executive Mayor, Speaker, Municipal Manager, Ward Councillors, LED Committee, Director of Strategy, Economic Development and Planning Legal Authority Local Economic Development Strategy (LED Strategy), National Small Business Amendment Act, Integrated Provincial SMME strategy, the Municipal Integrated Development Planning. Contact Person Mr Sobuza Mathebula Ext: 6474

RECOMMENDATION: 1. That the Galeshewe SMME Village solely remain for SMME Development. 2. That an information session be organized to inform the community of the

services of the village.

At the Economic Development Committee meeting held on 09.03.17 it was resolved per resolution ECN08/03/17: That in the absence of the author, the matter be held in abeyance until the next meeting. At the Economic Development Committee meeting held on 15.06.17 it was resolved per resolution ECN18/06/17: That due to time constraints the following item be held in abeyance until the next meeting.

ECN28/06/2017 RESOLVED:

1. That stricter security measures be put in place at the Ritchie

SMME Village.

2. That local NGO services be extended to Ritchie.

3. That the LED unit devises a comprehensive strategy for

sustaining the 3 SMME Villages and report back at the next

meeting.

5



RESOLVED TO RECOMMEND TO THE EXECUTIVE MAYOR

4. That the Galeshewe SMME Village solely remain for SMME

Development for both tenants and non-tenants.

5. That an information session be organized to inform the

community of the services of the village.

6. That sign boards be erected for marketing purposes to inform

the public of different services harbored by the SMME Village.

__________________________________________________________________________ 4. Media Tour 2017 Mrs N. Poolo 22 February 2017

Purpose The purpose of this item is to inform the Economic Development, Urban Renewal & Tourism Committee about the scheduled upcoming Media Tour that will be facilitated by SPM through the tourism office from the 13th to the 14th April 2017. Background With the objective of marketing various tourist attractions in the city and ensuring that these attractions get as maximum exposure as possible via different platforms such as audio, visual and print media, a 2-day media tour is planned for the 13th till the 14th April 2017. Possible partnerships (Still awaiting responses) NCTA, Protea Hotel Kimberley, De Beers Consolidated Mines Ltd, MSCC, DEDAT, FBDM, Macronym, T’s Photography. Targeted Media: Local Media Radio Teemaneng, Revival FM, the New Age Newspaper, Kalahari Bulletin, DFA Social Media Trevor Stuurman (average of 60 000 followers), Obakeng Semane (I love my Northern Cape FB Page) National Media Etv, SABC, Lesedi FM, Sowetan/Sunday World, OFM, SA FM International Media Tsitsi Bertha (Platforms include: Zimbo Jam, Mafriqmusicfactory.com, BPM Magazine-USA, UK & Jamaica)

6



Total number for the group that is targeted to be invited, inclusive of media is 30, which will cover Councillors from Portfolio Committee, SPM tourism personnel, and representatives from tourism offices of the FBDM district. Support from Stakeholders: The following stakeholders still show willingness to support the initiative: The Big Hole, Francis Baard Tourism, NCTA, DEDaT. Annexure Description Tour itinerary

ANNEXURE p.3

Motivation Media tour is one of the tools helping to sell the city’s tourist attractions and is vital increasing tourist influx into the city. It should be facilitated on an annual basis. Personnel Implications SPM Tourism Personnel SPM Communications Office FBDM Tourism Personnel Financial Implications Does this item have any financial implications? Yes X

No ☐

Vote No. : 2722232360G11IUQZZ7E

Amount Budgeted : R 560 000.00

Amount Spent : R 206 120.60

Amount Available : R 353 879.40

Amount Required : R 130 650.00

The total costs of the media tour inclusive of flights of media, tour guiding fees and meals is

estimated at R130 650, exact amount can only be confirmed once minimum of 5 national media

has confirmed. As stated before, the tour will be facilitated in April 2017.

Legal Authority and Implications White paper on promotion & development of tourism in SA. Municipal System Act 2000- Section 26 (e) SPM Tourism Strategy (draft) Consultation Municipal Manager ED- SED&P,

7



General Manager-LED, FBDM LED/Tourism unit Contact Person Mrs N. Poolo Tourism Manager Contact number: 053 830 6779/80

FOR INFORMATION At the Economic Development Committee meeting held on 15.06.17 it was resolved per resolution ECN19/06/17: That due to time constraints the following item be held in abeyance until the next meeting.

ECN29/06/17: RESOLVED:

That it be noted that the Media tour has been rescheduled for September 2017 and therefor the item be withdraw from the agenda.

__________________________________________________________________________ 5. Presentation of National LED Framework Mr. Phetole Sithole 13 April 2017 --------------------------------------------------------------------------------------------------------------------------- Purpose To present to committee the framework National LED Framework for the purpose of reviewing LED Strategy of SPM and allocate funds for such review. The 2013–2018 National Framework for Local Economic Development (LED) is intended as a strategic coordination and implementation guide that provides and enhances a commonly shared understanding of LED in South Africa. It is a progressive development on the 2006 – 2011 National Framework for Local Economic Development in South Africa. For noting / for decision by

The item/report is for consideration by a portfolio committee. Background As a strategic coordination and implementation guide, the National Framework is a living policy document that draws together current global and national thinking and practice regarding Local Economic Development. Consequently, the National Framework is therefore comprised of five substantive components: a) The Policy Framework: provides policy grounding of LED with particular emphases placed on the National Development Plan, the National Growth Path and the Industrial Policy Action Plan. Moreover, the Vision, Objectives, Principles and Key Pillars of LED are dealt with under the policy framework.

8



b) The Planning and Strategy Framework: highlights the importance of contextualizing, locating and embedding LED within intergovernmental planning and strategy instruments such as the Provincial Growth and Development Strategies (PGDSs), The Integrated Development Plans (IDPs), The Spatial Development Frameworks (SDFs), and various Sector Plans (Tourism, Manufacturing, Green Economy, Agriculture, Transport and others). At this level, the pertinence of individual business/project/ implementation planning plus monitoring and evaluation to LED is highlighted. c) The Funding and Financing Framework: considers existing current approaches to LED funding, highlights the significance of the contribution and involvement of private and parasternal sectors in LED and recommends some proposals for consideration in funding LED. d) The Organizational and Institutional Framework: builds intergovernmental relations (IGR) business case on the functional division of responsibilities across the spheres of government for effective implementation of and support to LED. Beyond government, a justification is made for structured government-business engagement on LED. e) The Human Resources and Capacity Building Framework: recognizes that viable LED should be anchored by a developmental and capable cadre of professionals and institutions. The roles of academic and training institutions, setting up a communication program, developing operations guide and an incentivisation / rewards program are highlighted with a view to building a strong capacity for LED. STRATEGIC LOCAL ECONOMIC DEVELOPMENT CHALLENGES The analysis of key LED challenges is based on the Strategic Review of Local Economic Development and the Review of the National Framework for Local Economic Development (2006 – 2011). Both reviews identify the problem statement or “key strategic challenges” for Local Economic Development as follows: a) The meaning of Local Economic Development: There is a need for national government to provide greater clarity as to the meaning of LED, with particular emphasis placed on guiding LED activities and planning in small town and poorer municipalities. Such a requirement is also equally important even at metropolitan and urban cities so that a commonly shared understanding of LED is fully developed. b) Poor intergovernmental relations on LED: strengthening greater integration and closer cooperation amongst LED stakeholders and sector departments involved is pivotal for effective implementation of LED. Such integration should extend to all economic development stakeholders including the spheres of government, business sector and community sector. c) Productive partnerships: LED should be structured and organized in such a manner that it maximizes the potential for credible and productive partnerships between private and public sector. Equally important is the building of an effective private sector business development services sector to enhance local competitiveness through benchmarking and the upgrading of industrial clusters; d) A clear communication and knowledge sharing program: Disseminating good practice is as much important as communicating worst practice in LED so that the latter are avoided and former encouraged. Moreover, building LED networks and sustainable knowledge platforms are crucial for enhancing high level hands-on systemic learning.

9



e) Capacity constraints: The capacity of staff, improving the profile and professionalization of LED require significant investment. This is more so in urban and metropolitan municipalities wherein there is greater tendency of trivializing and equating LED to an insignificant and “back-bencher” aspect of broader municipal development. f) Differentiated approach on LED support: The practice of LED in large cities, small towns and poorer municipalities is not the same and so too is the scale of LED initiatives across these municipalities. Evidence based and contextually relevant differentiated LED support package and approach needs to be applied at various municipalities. g) Funding for LED: Addressing the financing and financing challenges of LED, especially for less well-resourced municipalities outside of the major cities is an important consideration for the National Framework design. Funding should be geared towards the targeting of investments and their coordination, be aimed at better coordination of fragmented funding sources, and be better defined with its products better packaged. h) Poor investment in economic information: Improving economic data for understanding local economies, identifying competitiveness and enhanced LED planning are vital for effective LED. i) Dedicated focus on supporting the “Second Economy”: Second economy program such as Urban Renewal, informal economy, Expanded Public Works Program, Integrated Rural Development, Small Medium Enterprises, Youth development and other related program need to occupy the Centre stage of LED since they are intrinsic to the nationwide job creation agenda. Annexures LED Framework Presentation, HRDSA, IPAP. Motivation The National Development Plan The overall purpose of the National Development Plan (NDP) is to develop an economy that will create more jobs, is more inclusive, more dynamic and in which the fruits of growth are shared equitably and poverty is eliminated. The plan envisages an economy that serves the needs of all South Africans and proposes the creation of 11 million jobs by 2030 by means of:

- Realizing an environment for sustainable employment and inclusive economic growth; - Promoting employment in labour-absorbing industries; - Raising exports and competitiveness; - Strengthening government’s capacity to give leadership to economic development, and - Mobilizing all sectors of society around a national vision

The contribution of LED towards the achievement of the NDP vision could be summarized as follows:

- Sector diversification of the economy is crucial for local economic development;

- Small business development (small, medium and micro enterprises) should anchor local economies;

- Inclusive rural economies13 anchored by land reform, agriculture and job creation are crucial for regional economic development;

10



- Spatial economic transformation (through Spatial Development Frameworks) is crucial in bringing about increased urban population densities, providing reliable and affordable transport and moving investments towards dense townships.

- Uniformity of effort and competence on local economic development across the entire public service is indispensable.

The National Growth Path The New Growth Path (NGP) seeks to contribute towards the creation of decent work, reduction of inequality and winning the war on poverty through the restructuring of the country’s economy so that there is an improvement in its performance in terms of labour absorption, as well as the composition and rate of growth. The NGP aims to maximise the creation of decent work opportunities by means of jobs drivers and a macro and micro economic policy package. The main economic indicators of success will be jobs (quantity and quality of jobs created), growth (the rate, labour intensity and composition of economic growth), equity (lower income equality and poverty redress), and environmental outcomes (a shift towards green economy). The NGP seeks to grow employment by five million jobs by 2020 by means of the following jobs drivers:

- Investment in infrastructure: construction, operation, and maintenance, and production of inputs;

- Sectoral labour-absorption: agricultural and mining value chains, manufacturing and services;

- New investment opportunities in the knowledge and green economies;

- Leveraging social capital in the social economy and the public services, and

Promoting rural development and regional integration. It is anticipated that the likely contribution of LED towards the NGP objectives could be explained in term of the following interventions:

- The job creation, reducing poverty and redressing inequality are central to local economic development;

- The diversification of local economies in terms of sectors is crucial for broader economic development;

- Public infrastructure investment, support for small business, skills development, working with the industry/ business sector and rural development are crucial instruments for effective local economic development, and

- The sustainable development agenda is a critical pillar for productive current and future economies.

The Industrial Policy Action Plan (IPAP) The Industrial Policy Action Plan purpose is three-fold: to promote labour-absorbing industrialisation; to broaden participation and economic transformation, and to raise competitiveness with manufacturing as the key anchor for dynamiting employment and growing the economy The IPAP is premised on a continuous engagement with industry stakeholders to effect continuous improvements identified transversal and sector-specific interventions required to

11



unlock industry growth. Moreover, longer term opportunities and policy instruments are identified and inform research and extensive preparatory work for future anchoring of the IPAP. Within the context of IPAP, the value addition of LED would lie in the following imperatives:

- Ongoing strengthening government-business-labour engagement;

- Investment in skills development – more so on those that are demanded by the economy;

- Strengthening the substantive contribution and involvement of Development Finance Institutions and the Parasternal Sector in economic development;

- Expanding functional economic linkages beyond the borders of RSA so as to leverage on neighbouring countries;

- COGTA to strengthen governance and intergovernmental agenda of local economic development;

Given the largely participatory, consultative, collective and consensus nature of the planning process in South Africa, the World Bank adaptation of LED has been adopted:

“Local Economic Development (LED) is the process by which public, business and nongovernmental sector partners work collectively to create better conditions for economic growth and employment generation with the objective of building up an economic capacity of a local area to improve its economic future and the quality of life for all”

Generally, the intended outcomes from LED are employment of more people in quality jobs; the building of economic sectors and vibrant economic institutions; leveraging on comparative advantages to build local competitive advantages and using knowledge as an economic generator in the local economy. The Objectives The objectives of this Framework could be summarized as being:

a) To launch a national fight against poverty, inequality and unemployment more effectively through the development of inclusive, dynamic and competitive local economies;

b) To deepen and enhance the economic importance and centrality of effectively functioning local economies in growing and developing the national economy;

c) To develop greater awareness of the significance of localities, regions and metropolitan municipalities as nodes of economic growth, development and generators of national prosperity;

d) To intensify support of local economies in realizing and building on their economic potential thereby achieving local economic stability, developing diverse economic and employment base and creating quality jobs for their communities, and

e) To strengthen intergovernmental coordination of economic development planning and implementation, and between government and non-governmental sectors.

The Guiding Principles The principles are value propositions that cut across and inform the strategic choices South Africa has made in respect of the LED Framework. These guiding principles that inform the Framework have been derived from the government’s development policy, valuable thoughts from experts in the field of LED in particular and, the collective inputs of economic development and implementation practitioners:

12



a) Accelerated, Shared and Inclusive Economy It is also worth noting that economic growth has been far below the country’s employment expectations - with particular reference placed on addressing unequal wealth distribution, broadly shared ownership of capital, youth unemployment and discontinuing the ‘Two Economies’ divide. As a matter of principle - extending even to practice – the National Framework should ensure economic growth that is accelerated, shared more broadly and inclusive. b) Local Competitiveness Competitiveness is determined by the productivity with which a locality uses its human, capital and natural resources. Local competitiveness refers to the ability of a locality to produce and market a set of products (goods and services) that represent good value (not necessarily lowest price) in relation to comparable products of other localities. In as far as the principle of competitiveness is concerned, the following important points need to be made: Firstly, productivity depends on the value of products and services (for example, uniqueness, quality) as well as the efficiency with which they are produced. Secondly, it is not what industries a locality competes in that matter for economic prosperity, but how firms compete in those industries. Thirdly, productivity in a locality is a reflection of what both local and foreign firms choose to do in that location, and finally, the productivity of local industries is of vital importance to competitiveness.

Consequently, South Africa needs to assist localities to offer the most productive environment for doing business. In so doing, it needs to be recognised that the public and private sectors play different but interrelated roles in creating a productive and competitive economy.

c) Redressing Poverty and Proactive Absorption of the Poor Despite positive advances by the State in the nearly two decades in areas such as social grants, educational and skills development programmes, housing and land reform programmes, the scars left by apartheid still remain indelible – with many local communities across the country faced with acute poverty. Given this context, LED should proactively facilitate the transition of the poor people (migrants, informal settlements, township residents and the rural poor) towards the mainstream of the economy. LED should be structured in a manner that assists the poor to gradually get into the ladder of economic prosperity and ultimately work towards discontinuing poverty. d) Economic Management by a Developmental Capable State Understanding the nature and deriving strengths out of a complex web of relationships across the three spheres of government, business, community and labour is crucial for the better appreciation of local economic dynamics at play and better economic management. For South Africa to better manage the implementation of LED, it is important that it commits itself to finding joint solutions to the LED challenges by working closely with the private sector, interested organisations, labour and the community.

13



The principle of economic management and governance refers to the fact that there is more than one agent in the sharing of power in economic development. Whilst coordination – and neither monopoly nor control – should remain in government, implementation support needs to be shared more broadly with private and community sectors. It is in this respect that creative partnerships with civil society and business would need to be encouraged.

e) Learning and Skills Development There is an increasing need and demand for appropriate skills and qualifications in today’s economy than was the case in the past. It could be said without a reasonable degree of unambiguity that such a trend will continue to stay for the eternal future. Therefore, in future there will be limited employment opportunities for those segments of society without basic economic skills. As a matter of principle, and very much so, of practice, it is important to prioritise skills and human resources development as an important thread of any local economic development intervention. As the economy grows, so will be the need for scarce skills to underpin the knowledge-based economy. f) Integrated Urban and Rural Economic Development That the distinction between “urban” and “rural” is obsolete in functional economic terms is an important principle for LED. Synergies between rural and urban economies need to be enhanced. Such an approach recognises that “urban” and “rural” do not signify closed systems within a particular geographical area, but a seamless continuum of economic activities and settlements distinguished by degrees of density, dependence on agriculture or manufacturing and social organisation.

THE CORE POLICY PILLARS The implementation of the National Framework would be government Four Core Pillars:

Building a diverse economic base;

Developing Learning and skillful local economies;

Developing inclusive economies, and

Economic governance. Building a Diverse Economic Base This pillar is intended to drive the modernization and diversification of local businesses to ensure that dynamic sectors are well supported, metropolitan economies are activated, regional economic development, particularly at District level is encouraged and regional industrial development programme is given the necessary traction. In simple terms, the development of a diverse economic base should be anchored by the following programmes:

A Sector Support Programme: focused on the IPAP and NDP prioritized sectors;

A Metropolitan Economic Development Programme: with the eight Metropolitan Municipalities forming the core of intervention and building on the Towards Integrated Urban Development Framework;

Regional Economic Development: with its spotlight on the District Municipalities;

14



Regional Industrial Development Programme: aimed at building a regionally diversified industrial economy, and

Industrial Cluster Development Programme: This would use the IPAP as the basis for leveraging on industrial value chains and investing upstream and downstream industrial opportunities.

The end outcome of this pillar is to put local economies on a high productivity, high growth and labour absorbing trajectory. This is premised on the recognition of the fact that in order to create jobs, create wealth and offer opportunities for wealth redistribution, it is important that economies are built on a diversified local economic base that rests on a number of sectors – such sectors which demonstrate a potential to be both globally and locally competitive. Developing Learning and Skilful Local Economies The “Developing Learning and Skillful Local Economies” pillar is aimed at creating highly skilled, innovative and adaptable workforce to attract and support the long term growth of high value jobs, wealth-creating businesses and fight unemployment at local level. Moreover, the point of departure here is that a skilled labour force is a sine qua non building economically competitive and inclusive development interventions. Given the capable state and developmental local government agenda, it becomes important that there is a continuous strengthening of skills in the fields of social and economic development. This pillar should be anchored by the following initiatives:

Tackling Basic Skills Gaps: to address low levels of basic skills in partnership with educational institutions and sector education and training authorities;

Development of Workforce Skills: to deal with the need for up-skilling or reskilling existing workforce in light of the advances, transformation and restructuring that the economy is going through, and

Enterprise and Entrepreneurship Programme: so that an supportive enterprise and entrepreneurship environment is created;

Developing Inclusive Economies South Africa is a country of contrasts between affluence, rapid rate of growth in development activity and productivity on the one extreme, and poverty, economic decay and underdevelopment on the other extreme. Within this context, the challenge for South Africa is to ensure that all pockets of the country benefit from overall economic performance. Economic inclusion of all communities in the country into the economic fabric is an important development milestone to be achieved. Six critical strategy interventions need to be deployed to reverse economic exclusion:

Informal Economy Support Programme: In the context of high unemployment, all work whether in the formal and informal sector needs to be valued. Government therefore needs to champion and elevate the importance of informal economy as a key thrust of the country’s development;

Inner City Economic Revitalisation Programme: The vitality and vibrancy of an inner city frees up resources which are required to address social and economic disadvantages; enhances return on public investment in infrastructure such as housing and transportation; eases constraints to local economic growth through utilising the

15



inner city labour force, land and infrastructure more optimally; and offers substantial growth and profit opportunities;

Township Economic Development Programme: Townships represent an underutilised resource for future economic development. Based on the lessons of the Urban Renewal Programme, the transformation of townships into productive nodes and assisting them to move from the “lock-in” of the Second to opportunities of the First Economy should be encouraged;

An inclusive and integrated rural economy: By building on successful land reform and productive agriculture, an inclusive rural economic development programmes needs to be developed with foci on basic services, expansive agriculture, productive land reform and agro-industries (or other non-agricultural sectors where appropriate);

Youth Economic Empowerment: “Millions of people remain unemployed and many working households live close to the poverty line. Many of these are young people who feel that the odds are stacked against them, as indeed they are often are18”. In this respect, LED must make a contribution towards taking the youth out of unemployment and facilitating access to both employment and business opportunities.

Broad-Based Black Economic Empowerment Support: needs to be accelerated with the view of offering empowerment and procurement opportunities within government, facilitating productive partnerships and developing a new cadre of ‘majority shareholder empowered firms.

Economic Governance This pillar is premised on the fact that “the state must play a central and strategic role by directly investing in underdeveloped areas and directing and incentivizing private sector investment, including through effective deployment of state-owned enterprises and development finance institutions”. Moreover, “a democratic developmental state, capable of intervening effectively to transform economic relations is therefore at the centre of our economic agenda”. Within this context, economic governance is very pivotal to the successful building of local economies. Key interventions here are recommended:

Leadership and Management Skills: so that the quality and quantity of management and leadership are improved to guide economic development;

Administrative Economic Development Capacity: so that municipalities in particular across the country have managerial, economic research, sector support, spatial economic planning, trade and investment, enterprise and entrepreneurship and stakeholder management competencies required for facilitating LED;

Access to Development Funding/ Finance: Access to finance and available public investment instruments is crucial since without it all the other interventions cannot go ahead or will not be fully realized. Whether it is running businesses or projects, conducting feasibilities, project planning or project management financial/ funding support is required, and

Distinct Branding: To ensure that municipalities communicate a coherent message with whomever it engages with on matters of economic development.

The key pillars highlighted herein are broad pointers to what an elaborate LED strategy should focus on. Since this is a National Framework, no attempt was made to deliberate on the pillars

16



since such as understanding will follow after the National Framework has been approved by government. Personnel Implications Chairperson of LED Committee Municipal Manager ED- SED&P, General Manager-LED Financial Implications The total amount R1, 5million towards the development of the LED Strategy to ensure that new strategy is aligned with National LED Framework. Yes X No Annexure Headings annexures: Expectation of LED by NDP and NGP ANNEXURE

National Framework for LED p.18 - 268 Summary on LED Framework Human Recourses Development SA (HRDSA) Industrial Policy Action Plan IPAP 2016/17 – 2018/19 Achievement Highlights IPAP 2015-2016 Key Action Programmes – Transversal Focus 1 Transversal Focus 2 Sectoral Focus Areas DTI key partners, Technical Support Institutions & Export Council Legal Authority and Implications National Development Plan” Vision 2030 New Growth Path Industrial Policy Plan Action II National LED Framework 2013 -2018 Human Resource Development South Africa Consultation National Development Plan” Vision 2030 New Growth Path Industrial Policy Plan Action II National LED Framework 2013 -2018 Human Resource Development South Africa

17



Contact Person Phetole Sithole General Manager Contact number: Ext 6211

RECOMMENDATION:

1. That Economic Development, UR & Tourism Committee recommend that a budget of R1, 500, 000 for the development of LED Strategy be availed.

2. That the strategy must be developed to respond to National Development Plan: Vision 2030, New Growth Path and Human Resource Development South Africa.

3. That the Economic Development, UR & Tourism Committee the review and development of LED Strategy must be aligned to the following LED pillars of National LED Framework.

Building a diverse economic base;

Developing Learning and skillful local economies;

Developing inclusive economies, and

Economic governance.

At the Economic Development Committee meeting held on 15.06.17 it was resolved per resolution ECN20/06/17: That due to time constraints the following item be held in abeyance until the next meeting.

ECN30/06/17: RESOLVED TO RECOMMEND TO EXECUTIVE MAYOR:

1 – 3 As recommended

4. That all sector plans shall be prioritized in new IDP.

5. That partnerships be formed with relevant institutions, were there is a lack of

internal resources to drive local Economic development (e.g. Johannesburg

University).

__________________________________________________________________________

18

AGENDA AND MINUTES Special Economic Development, UR & Tourism 27 June 2017

E. MATTERS REFERRED BACK FROM MAYCO: 19.04.17

1. EM121/04/17 / ECN11/03/17: Report on SA Jazz Festival 2016 Mrs N. Poolo 25 February 2017

Purpose The purpose of this item is to submit report on Jazz Festival to the committee of Economic Development, Urban Renewal & Tourism Committee as accompaniment to the presentation made by Macronym 37.cc. Background With SPM currently positioning itself as events destination, SA Jazz Festival was one of the events that SPM sponsored considering that it is seen as aligning to the objectives of the municipality, among which is the promotion of the city and growing tourism inflow to the city. The festival took place on the 17th December 2016 at Langley Resort. Annexure Description Report from Macronym 37.cc on SA Jazz Festival

ANNEXURE p. 1 – 16

Motivation Events that draw tourists from surrounding towns and cities are seen as supporting tools to help the municipality achieve its goals. Personnel Implications None Financial Implications Does this item have any financial implications? Yes X

No ☐

Vote No. : 2112232360G11IQMZZ7E

Amount Budgeted : R 1 450 000.00

Amount Committed : R 400 000.00

Sol Plaatje Municipality has sponsored the event with the amount of R400 000.00 and an SLA

was developed and signed between SPM and Macronym 37.cc

Legal Authority and Implications White paper on promotion & development of tourism in SA. Municipal System Act 2000- Section 26 (e) Mzansi Golden Economy National Tourism Sector Strategy (draft)

19



Consultation Municipal Manager ED- SED&P, General Manager-LED, Contact Person Mrs N. Poolo Tourism Manager Contact number: 053 830 6779/80 At the Economic Development, UR & Tourism meeting held on 9 March 2017 it was resolved per resolution ECN11/03/17:

1. That the Economic Development section exercises better control over logistics of events

for example ticket arrangements.

2. That Macronym 37 liaises with other Event Organisers to sort out dates and venues.

3. That the private sector be broad on board for branding purposes.

4. That it be noted that the Economic Development section is busy with the events policy

and that it will be submitted to the committee.

5. That the Economic Development section looks into the criteria that applies to vendors.

6. That the Economic Development committee approves the SA Jazz Festival for the future.

RESOLVED TO RECOMMEND TO EXECUTIVE MAYOR:

That the report be noted.

At the MAYCO meeting held on 19 April 2017 the Executive Mayor resolved per resolution EM121/04/17: That the item be referred back to the committee for recommendations to be made. At the Economic Development Committee meeting held on 15.06.17 it was resolved per resolution ECN21/06/17: That due to time constraints the following item be held in abeyance until the next meeting.

RECOMMENDATION:

That Council approves the funding, amount to be finalised by ED: SEDP and the CFO for each event based on availability of funds.


As recommended.

_________________________________________________________________________

20



2. EM122/04/17 / ECN12/03/17: Diamonds & Dorings 2017 State of Readiness Mrs N. Poolo 25 February 2017

Purpose The purpose of this item is to submit item to the committee of Economic Development, Urban Renewal & Tourism Committee as accompaniment to the presentation made by Macronym 37.cc on the Diamonds & Dorings 2017 State of Readiness. Background Diamonds & Dorings is an annual flagship event that normally takes place during Easter week, implemented through tourism sub-unit under the LED office of SEDP Directorate. This year’s event is scheduled to run from the 13th till the 17th April 2017. Annexure Description Presentation from Macronym 37.cc on D&D 2017 State of Readiness

ANNEXURE Replacement

p. 1 – 42 Motivation Macronym 37.cc is the appointed service provider to implement Diamonds & Dorings event on behalf of Sol Plaatje Municipality. They are awarded a 3-year contract which started from 2016 ending in 2018, whereby renewal of contract will be based on successful implementation and delivery performance per year. Given the successful completion and hosting of Diamonds and Dorings 2016 the contract of Macronym 37 cc is extended to 2017, which means the contract of 2018 will be determined by the success of 2017 event. Personnel Implications None Financial Implications Does this item have any financial implications? Yes X

No ☐

Vote No. : 2112232360G11IQMZZ7E



Amount Spent : R 1 350 000.00

As per the signed SLA, the service provider is appointed on risk basis and it is the responsibility

of the service provider to raise funds on behalf of the municipality for successful

implementation of the event. SPM as the owner of the event, allocated the amount of

21



R1 500 000.00 as seed funding for the year 2017. R1 350 000.00 has been forwarded to the

service provider for logistics, 10% (R150 000.00) will only be released upon submission of the

post report accompanied by audited financial Statement and the AFS has been accepted by

the Committee.

Legal Authority and Implications White paper on promotion & development of tourism in SA. Municipal System Act 2000- Section 26 (e) Mzansi Golden Economy National Tourism Sector Strategy (draft) Consultation Municipal Manager ED- SED&P, General Manager-LED, Contact Person Mrs N. Poolo Tourism Manager Contact number: 053 830 6779/80

FOR INFORMATION At the Economic Development, UR & Tourism meeting held on 9 March 2017 it was resolved per resolution ECN12/03/17:

1. That Macronym 37 must specify artist/celebrities by name including Gospel artist instead

of using the term “local artist”.

2. That councilors be invites to artist clinics.

3. That more international artists be broad on board.

4. That clarity be given to councilors on the social responsibility issue as mention in the

presentation.

RESOLVED TO RECOMMEND TO EXECUTIVE MAYOR:

That the report be noted. At the MAYCO meeting held on 19 April 2017 the Executive Mayor resolved per resolution EM122/04/17: That the item be referred back to the committee for a full progress report from the beginning of the project and include all financial reports.

FOR SUBMISSION OF PROGRESS REPORT At the Economic Development Committee meeting held on 15.06.17 it was resolved per resolution ECN22/06/17: That due to time constraints the following item be held in abeyance until the next meeting.

22




That the matter be held in abeyance until the next meeting for

submission of a full progress report from the beginning of the

project and include all financial reports.

___________________________________________________________________ 3. EM124/04/17 / ECN03/02/17: Feasibility Study for creation of consolidated Nature

Reserve/ Big 5 Conservation Area Mrs Neo Poolo December 2016

Purpose The purpose of this Item is to request the Economic Development, Urban Renewal & Tourism Committee to endorse, support and permit Siyathembana Group to conduct a Feasibility Study for creation of consolidated nature reserve / Big 5 Conservation Area in Sol Plaatje Municipality. Background Internationally, tourism is recognized as a long-term growth industry which is an important catalyst for the economy. As such, tourism has been identified by the South African government, through the adoption of the National Tourism Sector Strategy (“NTSS”) in 2011 as one of the priority sectors to stimulate job creation and to alleviate poverty. The NTSS envisions South Africa to be ranked a top 20 tourism destination in the world by 2020, and its mission is “to grow a sustainable tourism economy in SA with domestic, regional and international components based on innovation, service excellence, meaningful participation and partnerships.” ANNEXURE:

p. 44 - 70 Motivation With reference to the National Tourism Sector Strategy, the White Paper on tourism development, the Provincial Tourism Strategy, NCTA’s marketing plan, Frances Baard District Municipality Tourism Strategy and the draft Tourism strategy of Sol Plaatje Municipality, there are a number of areas within Sol Plaatje Municipality that have the potential to be turned into tourism destinations, but many of these are not being developed. Such areas present opportunities to develop new and different tourism products to address the changing requirements of the market – hence the municipality need to recognize natural tourism as an element or part of the niche-product development. Poor quality, poor management and the lack of maintenance of cultural and heritage attractions often detract from visitors’ experience, and also damage the image of our destination. This feasibility study will enable the municipality to make an informed decision in terms of tourism product development and investment promotion towards our tourism assets. The following are the proposed key deliverables of this study:

23



1. Conduct Regulatory Impact Assessment and draft necessary legislation necessary for the establishment and gazetting the Gazetted Big Five Conservation Area in Sol Plaatje Municipality as well as the proposed management agency

2. Produce comprehensive business case for the Gazetted Big Five Conservation Area in Sol Plaatje Municipality for onward submission to Northern Cape Provincial and National Treasuries for due consideration explicitly outlining:

3. Mandate, Vision, Mission Objectives of Gazetted Big Five Conservation Area in Sol Plaatje Municipality

4. Funding model 5. Micro and micro organizational structure of Gazetted Big Five Conservation Area 6. Conduct Project Management throughout the process including communication,

stakeholder consultations, internal workshops with management committees. Personnel Implications Executive Director: SEDP Chief Financial Officer LED General Manager Tourism Manager Tourism Staff Siyathembana Group Financial Implications Does this item have any financial implications? Yes No X

The Municipality is not expected to make any financial contribution towards the drafting of the

Feasibility Study, however the Siyathembana Group only require the endorsement of this

project from the municipality as the custodian.

Legal Authority and Implications White paper on promotion & development of tourism in SA, Mzansi Golden Economy Strategy National Tourism Sector Strategy (NTSS) Provincial Tourism Strategy NCTA’s marketing plan Frances Baard District’s Tourism Strategy Draft SPM’s Tourism Strategy Consultation ED: SED&P, CFO General Manager: LED Contact Person Mrs Neo Poolo Tourism Manager Contact number: 053 830 6780

24



RECOMMENDATION:

The presentation was made to the Economic, Development, and UR & Tourism Committee on the 10th November 2016 whereby it is recommended:

1. That Council endorse, support and permit Siyathembana Group to proceed with

conducting a Feasibility Study for creation of consolidated nature reserve / Big 5 Conservation Area in Sol Plaatje Municipality.

At the Postponed Economic Development, UR & Tourism meeting held on 20 February 2017 it was resolved to recommend to Executive Mayor per resolution ECN03/02/17: As recommended. At the MAYCO meeting held on 19 April 2017 the Executive Mayor resolved per resolution EM124/04/17: That the item be referred back to the committee to be withdrawn or give a full report on how Sol Plaatje will benefit from this project. At the Economic Development Committee meeting held on 15.06.17 it was resolved per resolution ECN23/06/17: That due to time constraints the following item be held in abeyance until the next meeting.

FOR DISCUSSION


As recommend

__________________________________________________________________________

25


F. DIRECTORATE REPORTS: 11.05.17

1. Investment Incentives Policy Mr Themba G Mlonyeni 8 March 2017 --------------------------------------------------------------------------------------------------------------------------- Purpose The purpose of this item is to follow up on a Council Resolution C12/12 (held on 1 February 2012) and therefore to present to the Committee members for consideration of the Sol Plaatje Municipality’s Investment Incentives Draft Policy document. Background In January 2007, the SEDP Directorate appointed a consultancy firm to develop an Investment Incentives Promotion Strategy for Sol Plaatje Municipality. This was done in view of the fact that Sol Plaatje Municipality’s old KINA Incentives Scheme had become outdated and did not encourage any new investments into the economy of Kimberley. The appointment of the Investment Promotion Manager in July 2007 saw the process – to finalise the Investment Strategy – gather new momentum. The Investment Promotion sub-unit completed the initial Investment Incentives Strategy in June 2008. However, a finalised investment strategy needs the input of a wide range if stakeholders within the Sol Plaatje Municipality. The need for broad consultation is re-emphasised by the fact – whilst awarding of incentives will mean a loss of revenue in the short-term – the investment brought into our local economy will have a positive impact on the broader municipality in the long term. Conversely, the issue on how to deal with the projected loss of revenue – in the short term – should thus not be the sole responsibility of the Directorate SEDP. The partially finalised Incentives Strategy was once tabled before the (then) Policy Committee of Council on 29 September 2010, but the said Committee referred the document back for further consultation, this was due to the various gaps in the document. In addition, at the Ordinary Council meeting held on 1 February 2012, the Incentives Policy was tabled and a number of recommendations about the policy document were made. (Please see attachment). Renewed attempts have since been made to ensure that this document can finally be presented to the LED Committee and Council in its full and workable final form. The Directorate Finance has indicated that they are in a position to add some substantial recommendations. The Directorate SEDP is ready to receive the said recommendations so as to bring the Incentives Policy formulation process closer to finality. However, it also needs to be said that whilst a substantial percentage of proposals amongst the original ideas in the Strategy is still relevant – the document will have to be reworked so as to include new sectors to be prioritised, newly identified spatial precincts and lastly, new formulae for calculating the incentives to be rewarded. Suffice to say that this finalization process will require a new round of consultations with relevant stakeholders.

26



The update The Investment Promotion Desk has included two versions of the Draft Incentives Policy, the shorter version (marked “for public”) and the longer version – marked “for internal.” For obvious reasons, the two documents differ in depth and detail, this is done so as to make the document user-friendly for the public. The LED Unit is now of the belief that the Draft Incentives Policy should be submitted to the Economic Development, Urban Renewal and Tourism Committee for the following reasons: 1. So as to remind the Committee of Council Resolution C12/12 of 1 February 2012. 2. For considering the appropriateness of the document in its present form. 3. For consideration on the implications that this policy may have on other Council policies,

e.g the policy relating to Council property and/or the Council policy relating to rates and taxes.

4. For consideration of the proposed practical steps needed (internally) to establish the necessary process for awarding an incentive certificate, i.e part 7 on page 23 of the “internal” version of the Incentive Policy document.

Annexures Investment Promotion Policy Draft documents: 1. Minutes of Council Resolution 1 February 2012 2. “internal” document 3. “external” document

ANNEXURE p. 269 – 307

Motivation Sol Plaatje Municipality is currently in serious competition with other Municipalities to convince potential investors to bring their investments to Kimberley. However, as the SPM’s Investment Incentives Policy has not been finalised, it makes it harder to demonstrate that the SPM is prepared to go the extra mile to land the investments. It would thus be imperative that the SEDP consultants with all relevant stakeholders, both internal and external, finalises this Investment Incentives Policy and submit it to Council for final adoption. Personnel Implications SEDP, LED, Investment Promotion, Town Planning Financial Implications None Legal Authority Local Economic Development Strategy (LED Strategy), National Small Business Amendment Act, Integrated Provincial SMME strategy, Municipal Integrated Development Planning.

27



Consultation Office of the Municipal Manager, Executive Director SEDP, LED Manager Contact person Themba G Mlonyeni Investment Promotion Manager Contact number: 6549 At the Economic Development Committee meeting held on 15.06.17 it was resolved per resolution ECN24/06/17: That due to time constraints the following item be held in abeyance until the next meeting.

RECOMMENDATION: 1. That the Committee takes note of the current status of the report and give the

go-ahead for the finalisation of the policy document. 2. That the Committee takes note of the new priorities that may have profound

influence on the economy of the Sol Plaatje Municipal area, which may – in turn – also influence our future Policy direction, they are: (a) Renewable energy (b) The ICT sector (c) The precinct-focussed spatial economic development (d) Primary agriculture (e) The Tourism sector (f) Agro-processing and Manufactiring (g) The Environment and Waste Management

3. That the Committee kindly considers the request for approval of the process

going forward.

ECN34/06/17: RESOLVED TO RECOMMEND TO EXECUTIVE MAYOR

1 3 As recommended ________________________________________________________________________

28

AGENDA AND MINUTES Special Economic Development, UR & Tourism Special Economic Development 27 June 2017 25 April 2017

G. DIRECTORATE REPORTS: 25.04.17

1. Report on Kim Fest 2016 (MTN Joyous Celebration) Mrs Neo Poolo 10 March 2017

Purpose

The purpose of this Item is to submit report on Kim Fest (MTN Joyous Celebration) to the Economic Development, Urban Renewal & Tourism Committee as supplement to the presentation that will be made by Zimko Promotions. This item is for: recommendation by the Executive Mayor to Council. Background With Sol Plaatje Municipality currently positioning itself as events destination, Kim Fest was one of the events that SPM sponsored considering that it is seen as aligning to the objectives of the municipality, among which is the promotion of the city and growing tourism inflow to the city. This Gospel festival took place at Mittah Sepere Convention Centre (MSCC) on the 29th October 2016. Annexures Report on Kim Fest

ANNEXURE p. 1 - 8

Motivation Events that draw tourists from all over the country or surrounding areas are seen as potential tourism promotion vehicle that will help the municipality to achieve its goals. Personnel Implications None Financial Implications Does this item have any financial implications? Yes X No

Vote No : 2112232360G11IQMZZ7E



Sol Plaatje Municipality has sponsored the event with the amount of R 300 000.00 as

contribution towards the implementation of the 2016 Kim Fest.

Legal Authority and Implications White paper on promotion & development of tourism in SA, Mzansi Golden Economy Strategy National Tourism Sector Strategy (NTSS)

29



Provincial Tourism Strategy Frances Baard District’s Tourism Strategy Draft SPM’s Tourism Strategy Consultation Municipal Manager ED: SED&P, CFO General Manager: LED Contact Person Mrs Neo Poolo Tourism Manager Contact number: 053 830 6779/80

RECOMMENDATION

That Council approves the funding, amount to be finalised by the ED: SEDP and the CFO for the event based on availability of funds.


As recommended __________________________________________________________________________ 2. Report on Movie Night Under The Moon (MNUM) Mrs Neo Poolo 10March 2017

Purpose The purpose of this Item is to submit report on Movie Night Under The Moon (MNUM) to the Economic Development, Urban Renewal & Tourism Committee as supplement to the presentation that will be made by Investong Events. This item is for: recommendation by the Executive Mayor to Council. Background With Sol Plaatje Municipality currently positioning itself as events destination, Movie Night Under the Moon was one of the events that SPM sponsored considering that it is seen as aligning to the objectives of the municipality, among which is the promotion of the city and growing tourism inflow to the city. This family out door event took place at West End Cricket Club on the 19 November 2016.

30



Annexures Report on MNUM

ANNEXURE p. 9 - 35






contribution towards the implementation of the 2016 MNUM, SLA to that effect was developed

and entered into by both parties ( SPM and Investong Events).

Legal Authority and Implications White paper on promotion & development of tourism in SA, Mzansi Golden Economy Strategy National Tourism Sector Strategy (NTSS) Provincial Tourism Strategy Frances Baard District’s Tourism Strategy Draft SPM’s Tourism Strategy Consultation Municipal Manager ED: SED&P, CFO General Manager: LED Contact Person Mrs Neo Poolo Tourism Manager Contact number: 053 830 6779/80

RECOMMENDATION That Council approves the funding, amount to be finalised by the ED: SEDP and the CFO for the event based on availability of funds.

31




As recommended __________________________________________________________________________ 3. Report on Metro FM Heatwave 2016 Mrs Neo Poolo 10 March 2017

Purpose The purpose of this Item is to submit report on Metro FM Heatwave to the Economic Development, Urban Renewal & Tourism Committee as supplement to the presentation that will be made by Wydex Promotions. This item is for: recommendation by the Executive Mayor to Council. Background With Sol Plaatje Municipality currently positioning itself as events destination, Metro FM Heatwave was one of the events that SPM sponsored considering that it is seen as aligning to the objectives of the municipality, among which is the promotion of the city and growing tourism inflow to the city. The event took place at West End Cricket Club on the 17th December 2016. Annexures Report on Metro FM Heatwave

ANNEXURE p. 36 - 47





32




contribution towards the implementation of the 2016 Metro FM Heatwave, SLA to that effect

was developed and entered into by both parties (SPM and Wydex Promotions).


RECOMMENDATION

That Council approves the funding, amount to be finalised by the ED: SEDP and the CFO for the event based on availability of funds. ECN37/06/17: RESOLVED TO RECOMMEND TO EXECUTIVE MAYOR:

As recommended

__________________________________________________________________________ 4. Report on the Gariep Arts Festival 2016 Mrs Neo Poolo 10 March 2017

Purpose The purpose of this Item is to submit report on The Gariep Arts Festival to the Economic Development, Urban Renewal & Tourism Committee as accompaniment to the presentation that will be made by Gariep Arts Festival (NPC). This item is for: recommendation by the Executive Mayor to Council.

33



Background With Sol Plaatje Municipality currently positioning itself as events destination, Gariep Arts Festival was one of the events that SPM sponsored considering that it is seen as aligning to the objectives of the municipality, among which is the promotion of the city and growing tourism inflow to the city. The event took place at Oppenheimer Gardens from the 1st – 4th September 2016. Annexures Report on Gariep Arts Festival

ANNEXURE p. 48 - 96


Vote No : 2112259264411IJ1ZZ7E


Amount Committed : R 1 500 000.00

Sol Plaatje Municipality has sponsored the event with the amount of R 1 500 000.00 as

contribution towards the implementation of the 2016 Gariep Arts Festival.

Legal Authority and Implications White paper on promotion & development of tourism in SA, Mzansi Golden Economy Strategy National Tourism Sector Strategy (NTSS) Provincial Tourism Strategy Frances Baard District’s Tourism Strategy Draft SPM’s Tourism Strategy Consultation Municipal Manager ED: SED&P, CFO General Manager: LED

34



Contact Person Mrs Neo Poolo Tourism Manager Contact number: 053 830 6779/80

RECOMMENDATION

That Council approves the funding, amount to be finalised by the ED: SEDP and the CFO for the event based on availability of funds. ECN38/06/17: RESOLVED TO RECOMMEND TO EXECUTIVE MAYOR:

As recommended

__________________________________________________________________________ 5. Report on Barney Barnato Golf Tournament Mrs Neo Poolo 10 March 2017

Purpose The purpose of this Item is to submit report on Barney Barnato Golf Tournament to the Economic Development, Urban Renewal & Tourism Committee as supplement to the presentation that will be made by Kimberley Golf Club. This item is for: recommendation by the Executive Mayor to Council. Background With Sol Plaatje Municipality currently positioning itself as events destination, Barney Barnato Golf Tournament was one of the events that SPM sponsored considering that it is seen as aligning to the objectives of the municipality, among which is the promotion of the city and growing tourism inflow to the city. The golf tournament event took place at Kimberley Golf Glub from the 22nd until 29 October 2016. Annexures Report on Barney Barnato Golf Tournament

ANNEXURE p. 97 - 102

Motivation Events that draw tourists from all over the country or surrounding areas are seen as potential tourism promotion vehicle that will help the municipality to achieve its goals. Personnel Implications None

35



Financial Implications Does this item have any financial implications? Yes X No

Vote No : 2722232360G11IUQZZ7E




contribution towards the implementation of the 2016 Barney Barnato Golf Tournament, SLA to

that effect was developed and entered into by both parties (SPM and Kimberley Golf Club).


RECOMMENDATION

That Council approves the funding, amount to be finalised by the ED: SEDP and the CFO for the event based on availability of funds.


As recommended

__________________________________________________________________________

36

AGENDA AND MINUTES Special Economic Development, UR & Tourism Directorate: SEDP 27 June 2017 Local Economic Development

H. DIRECTORATE REPORTS: 15.06.17

1. UDZ Boundary changes (Ms L van Gensen) 5 May 2017

--------------------------------------------------------------------------------------------------------------------------- Purpose The purpose of the item is for information purpose only regarding the extension period of the Urban Development Zone (UDZ) and for recommendation regarding changes to the UDZ boundaries. Urban Development Zone (UDZ) tax incentive extract from the Income Tax Act No. 58 of 1962. (Proposed amendment: Paragraph (c) to be substituted by section 34 (1) of Act No. 22 of 2012 with effect 30 March 2014 and applicable in respect of any building, part thereof or improvement thereto that is brought into use on or after the date). Background On 10 December 2004, National Treasury promulgated the Urban Development Zone Incentive Scheme in various municipalities; including Sol Plaatje Local Municipality. This scheme is a tax incentive to promote and stimulate property development within the inner city and create economic spin-offs for adjacent areas. The Urban Development Zone (UDZ) incentive scheme is meant to be a catalyst for general economic development, the creation of jobs and the attraction of more people to live and work in the inner-city. Policy rationale for the UDZ tax incentive

To address dereliction and dilapidation in South Africa’s largest cities and promote

urban renewal.

By encouraging the private sector to invest:

- The construction and / or improvement of commercial and residential buildings

(incl. low cost housing units)

- Situated within demarcated urban development zones

- Ideally areas with existing urban transport infrastructure, high population

carrying capacity and CBD’s or inner city environments

Secondary objectives: economic development and job creation.

UDZ tax incentive

Introduced as an accelerated depreciation allowance

Sunset clause has been extended to 31 March 2020

UDZ allowance is applicable in respect of:

- Erection, extension, additions or improvement of any commercial or residential

building or part of a building (1000m² requirement) which is owned by the

taxpayer and is used solely for the purpose of that tax payer’s trade;

- Erection, extension, improvement of addition to low-cost housing; or

- Purchase of such a building or part of a building directly from a developer on or

after 8 November 2005.

37



Annexures UDZ map ANNEXURE

p. 308 Motivation The LED Unit hereby wishes to inform council of the proposed amendment: Paragraph (c) to be substituted by section 34 (1) of Act No. 22 of 2012 with effect 30 March 2014 and applicable in respect of any building, part thereof or improvement thereto that is brought into use on or after the date. In other words, the LED Unit is informing council of the following regarding the UDZ:

The UDZ term which would have expired 30 March 2014 has been extended to 31

March 2020.

Organized businesses and various business forums will be informed accordingly of the

changes.

The intent of the LED Unit is also to revise the current UDZ boundaries. Proper and

inclusive public participation procedures will be followed accordingly.

Personnel implications SEDP LED Financial implications None Legal Authority and implications SARS Urban Development Zone (UDZ) Tax Incentive Consultation Office of the Municipal Manager Executive Director SEDP LED Manager Town Planning Contact person Lesley van Gensen Area Based Manager Contact number: Ext 6495 At the Economic Development Committee meeting held on 15.06.17 it was resolved per resolution ECN25/06/17: That due to time constraints the following item be held in abeyance until the next meeting.

38



RECOMMENDATION: That the current UDZ boundaries be revised and adjusted in terms of new development nodes and the Urban Network Strategy.


That the matter be held in abeyance since councilors requested a

workshop on the policy incentive to familiarize themselves with the

information.

__________________________________________________________________________

39



1. Tabling of the Preferential Procurement Policy Regulations (CFO: Ms Z.L. Mahloko) 19 April 2017

Purpose The purpose of the item is to present the latest Preferential Procurement Regulations 40558 issued on the 20 of January 2017 and the implementation strategy of the regulations. For noting / for decision by The following options exist in terms of noting / for decision by:

Council (to approve)

The item/report has been considered by a portfolio committee. This item is for recommendation by the Executive Mayor to Council.

Background The Municipal Finance Management Act 56 of 2003, with specific reference to Chapter 11 titled “Goods and Services” Section 112 (1) (e) – (h), states that 112. (1) The supply chain management policy of a municipality or municipal entity

must be fair, equitable, transparent, competitive and cost-effective and comply with a

prescribed regulatory framework for municipal supply chain management, which must

cover at least the following:

(e) open and transparent pre-qualification processes for tenders or other bids;

(f) competitive bidding processes in which only pre-qualified persons may participate;

(g) bid documentation, advertising of and invitations for contracts;

(h) procedures and mechanisms for—

(i) the opening, registering and recording of bids in the presence of interested persons;

(ii) the evaluation of bids to ensure best value for money;

(iii) negotiating the final terms of contracts; and

(iv) the approval of bids;

The PPPFA of 2000 as such gives further guidance to municipalities in their means to comply with the above extracted section and sub-section of the MFMA. In terms of the Municipal Scorecard, it has been part of performance measurement to procure goods and services to local suppliers as part of promotion of local economic development and job creation opportunities. All relevant role players in the Supply Chain Management systems of the Sol Plaatje Municipality must implement its policy in a way that gives effect to section 217 of the Constitution and Part 1 of chapter 11 of the MFMA and other applicable legislation. It is therefore required from Sol Plaatje Municipality to establish and implement an effective system to adhere to the new regulation. The new regulations, issued by the Minister of Finance were revised to align with certain changes to the B-BBEE legislation. The legislation encourages procurement from Small Enterprises, particularly through subcontracting if a tender is set above R30 Million threshold.

40



The regulations focus on the need by all organs of state and public entities to specify conditions that only local produced good or locally manufactured goods meeting the stipulated minimum threshold for local production and content will be considered for certain designated sectors. They also afford organs of state the freedom to choose to apply pre-qualifying criteria to advance certain designated groups. If applied with the pre-qualifying criteria and sub-contracting requirements, the Regulations could have the far-reaching empowerment effect with its predecessors sorely lacked. If not utilised, there will be pressure on organs of the state to motivate why these qualifying criteria and sub-contracting requirements are not being applied. Small businesses that have been battling to get Government departments to accept their B-BBEE Affidavits when tendering, will be pleased to note that the Regulations now clearly stipulate that an Affidavit as prescribed by the B-BBEE Codes of Good Practice is acceptable proof of B-BBEE status. Sworn Affidavits and SANAS Accredited B-BBEE Verification Agency certificated are the only acceptable from of proof of B-BBEE Status All tender documents must:

Stipulate the preference point system applicable;

Determine whether pre-qualification criteria are applicable

Determine whether the goods or services are in a designated sector for local production and content;

Determine whether compulsory sub-contracting is applicable: and

Determine whether objective criteria are applicable One major area of change is the freedom which the Regulations afford the organs of state to choose to apply pre-qualifying criteria to advance certain designated groups. This will allow them to focus for example on promoting Women Empowerment, Small Business Empowerment, Disability Empowerment or Black Empowerment.

Any tender which does not meet with this pre-qualification will be unacceptable, The criteria which the organ of the state can apply for pre-qualification are the tenderer:

Must have a stipulated BBBEE status level

Must be an EME (exempted micro enterprise ) or QSE (qualifying small business enterprise )

Must sub-contract a minimum of 30% of the value of the contract to:

EME or QSE which is at least 51% black owned;

EME or QSE which is at least 51% owned by black youth (from the ages 14 to 35);

EME or QSE which is at least 51% owned by black people who are women;

EME or QSE which is at least 51% owned by black people with disabilities;

EME or QSE which is at least 51% owned by black people living in rural or underdeveloped areas or townships;

A cooperative which is at least 51% owned by black people;

An EME or QSE which is at least 51% owned by black people who are military veterans

An EME or QSE. A significant change in the Regulations is the requirement to sub-contract for contract valued above R30 million, if feasible, in order to advance designated groups. It must be

41



advertised in the tender documents as a specific tender condition that a minimum of 30% of the value of the contract must be contracted to:

An EME or QSE

EME or QSE which is at least 51% black owned

EME or QSE which is at least 51% owned by black youth (from ages 14 to 35)

EME or QSE which is at least 51% owned by black people who are women

EME or QSE which is at least 51% owned by black people with disabilities

EME or QSE which is at least 51% owned by black people living in rural or underdeveloped areas or townships

A cooperative which is at least 51% owned by black people

EME or QSE which is at least 51% owned by black people who are military veterans or

More than one of the categories above All categories of the businesses listed above should ensure that they are registered on the National Treasury Supplier Database. The preference point system was also amended. For acquisition of goods and services for a Rand Value equal to or above R30.000-00 and up to R50 million a 80/20 formula must be used. Price score is 80 and B-BBEE status is 20. The previous thresholds were R30, 000-00 AND R1 million for 80/20 – above R50 million the 90/10 formula must be used. Implementation Plan Discussions took place between the Chairperson of the Economic Development, Urban Renewal and Tourism Committee, CFO, General Manager LED, Manager LED SMME Support, and the Manager SC. Further discussions between the CFO AND Manager Supply Chain took place to finalise the detail of the implementation plan.

Competitive Bidding Process The procurement plan template was amended to accommodate for the pre-qualification criteria for the PPPF, Reg. 2017 for bids on a case by case basis.

All procurement plans together with the specifications and special conditions will be tabled before a Special Demand Management Committee who will be represented by LED, SCM and the Line Manager. The pre- qualification criteria if relevant will be recorded together with the relevant motivations (called Annexure A of the procurement plan). This will forwarded to the ED. SEDP and CFO for final comments. The pre-qualification criteria selected must be motivated and justified and will be based on the supplier’s data base of LED.

The final specifications special conditions and pre-qualification criteria will be forwarded to the Demand Manager who will compile a complete bid document for the consideration and approval of the BSC.

After opening of the bids and during pre-evaluation only bids that meet the pre-qualification requirements will be considered.

Formal Written Quotations Specifications and special conditions of the requirements must be forwarded to the Demand Manager and forwarded to the Manager Supply Chain for comments who will return it to the Demand Manager. The draft quotation will

42



be forwarded to the General Manager LED’s office for comments, then forwarded to the CFO for consideration and then to the Manager Supply Chain for final processing.

Thresholds All bid documents have been amended to accommodate the new 80/20 preference point system.

Designated Sectors The relevant MBD6.2 (Local production and content document) is included with all other relevant documents (MBD’s) during the compiling of a draft tender document. This is the responsibility of the Demand Manager and it is done on a case by case basis. The Supply Chain Risk office verifies all submissions before it is then submitted to the BSC. The BSC considers and after approval will include it as a special condition of the tender. Only bidders that completed the MBD 6.2 in full will be considered for evaluation. Subcontracting

Subcontracting as a special condition will be considered by the Special Demand Management Committee and the same process followed as that of competitive bidding as explained. Subcontracting for contracts above R30 Million will only be followed if found to be feasible by the Special Demand Management Committee

Annexures ANNEXURE Preferential Procurement Policy Framework Act of 2000 p 1 - 12 Preferential Procurement Regulations of 2017 p 13 - 25 Motivation

The above listed policies had been reviewed to take into account new developments as well

as to bring in innovation, back to basics principles and customer care and Batho Pele

principles.

Personnel Implications In implementing the policy, only internal personnel shall be responsible for the implementation of the Act, as part of their job description. As such serving or participating in the proposed ad-hoc committee shall not result in an additional costs to company. However, training may be necessary to capacitate role players in terms of understanding the legislation and its implication. This will be done within the allocated budget to each cost centre. Financial Implications There shall be no additional financial implications, other than as budgeted for, for human resources, training and development and municipal running costs. Legal Authority and Implications

The Constitution of the Republic of South Africa

The Municipal Finance Management Act 56 of 2003

43



Preferential Procurement Policy Framework Act 2000: Preferential Procurement Regulations 40553 of 20 January 2017. Consultation The Executive Mayor, Municipal Manager, all Executive Directors and Senior Managers were consulted.

Contact Person Chief Financial Officer: Ms. Z.L. Mahloko ED: SEDP: Mrs N. Tyabashe-Kesiamang For enquiries Chief Financial Officer – Z.L. Mahloko

RECOMMENDATION:

It is resolved to recommend that council notes:

1. The Preferential Procurement Policy framework 10864 of 20 January 2017, with effective date of 1 April 2017.

2. The implementation plan as outlined in the item.

3. The achievements as a result of implementing this policy shall be reported to the LED Tourism and Urban Renewal, Finance and IDP, Budget and Performance Management committees of Council, for the purposes of noting the impact made to local businesses and those classified as EME’s, SQE.

ECN41/06/17 RESOLVED:

1. That the report be noted within the committee.

2. That the Finance section together with the LED section create

awareness in terms of the amendments of the policy framework.

3. That the item be referred to the Finance Committee for

recommendation to council.

_________________________________________________________________________

44



2. Local Economic Development summit (LED summit) 2017: Preparations for the Inaugural LED summit 2017

(N. Tyabashe-Kesiamang) --------------------------------------------------------------------------------------------------------------------------- Purpose To inform the committee of the upcoming inaugural LED Summit 2017. Background Emanating from the National Council of Provinces (NCPO) meeting held with SPM early this year, Sol Plaatje Municipality will host its inaugural Local Economic Development and Investment summit from 26 – 27 July 2017 at the Mitta Sperepere Conference Centre. The primary objective is to use the summit as a platform is to enhance and promote the profile of the city as a prime investment destination. This endeavour seeks to accelerate the pace of investor’s confidence across national and international lines. Discussions around, the township economy, Tourism promotion, investment promotion, manufacturing, warehousing, procurement opportunities, digital economy, agriculture/ beneficiation, business development precincts, among others will be on offer. To ensure the success of this summit Sol Plaatje Municipality will be seeking partnerships, financial sponsors and key stakeholder’s involvement to support and promote this important and unique event. The Investment summit attendees will consist of potential investors, government departments, Business, as well as selected national and international media Personnel Executive Director SEDP, Local Economic Unit Financial implications Projected Budgeted: R 800 000. 00 Inter-Sectoral Consultation Executive Mayor, Speaker, Municipal Manager, LED Committee, Director of Strategy, Economic Development and Planning, LED Unit Legal Authority Integrated Development Planning 2017/22, Municipal Finance Management Act, National Development Plan Vision 2030, National Framework for LED: 2013 to 2018

45



For information We, therefore, take this opportunity to inform and invite committee members to this prestigious event for our city. Full information around the summit i.e. the programme and logistics arrangements will be communicated in due time. Mr. Sobuza Mathebula Ext: 6474

ECN42/06/17: RESOLVED TO RECOMMEND TO EXECUTIVE MAYOR That the report be noted

__________________________________________________________________________ The meeting closed at 12:05 _________________________________ _____________________________ CHAIRPERSON DATE

46



AWAITING SIGNED HARD COPY. Received too late: 14.06.17. 1. Report on Heritage Programmes 2016 Ms. N. Mtai 23 May 2017

Purpose To submit report for to the Economic Development, Urban Renewal and Tourism Committee on the Heritage Programmes (DFTAC) 2016 in which the SPM in conjunction with the 3 local municipalities, (viz: Phokwane, Magareng, Dikgatlong), and the FBDM were participating in. Background Since September is regarded as the Tourism month/Heritage month, the SPM through Tourism sub-unit usually host the event to celebrate various cultures during this month. The events were hosted under the umbrella of Francis Baard District Municipality whereby the 4 local municipalities each had a turn to host their own themed heritage event. ANNEXURE

Report on Heritage Programmes

Report on LB Cricket Fiesta

Report on Galeshewe Carnival (p.

Motivation Such events and campaigns are a useful tool to ensure that an area or a region receives its fair share of the tourism market and are a means of encouraging Domestic, Cultural, Heritage and Eco Tourism, particularly as it more focused on promoting travel within one’s place of origin. These events were hosted in September 2016 in line with the Heritage/Tourism Celebrations taking place throughout the country. For the first time, in 2016, Sol Plaatje Municipality linked the Heritage Programmes with events taking place within Galeshewe, namely: The Loots Bosman Cricket Fiesta and Galeshewe Street Carnival, which were both facilitated by a local events company (Masedi Star). Please note that the Cultural Event had to be moved to the 29th October 2016 due to the National Heritage Celebrations that took place in the city on the 24th September. The Galeshewe Street Carnival took place on the 5th December 2016. SPM had the following as their planned activities for the month: Day 1 (3 September 2016)

Love My NC Run for Heritage and LB Cricket Fiesta

Day 2 (29 October 2016)

Cultural Event (IsiXhosa Culture)

47



Personnel Implications SPM Tourism Staff SPM Informal Trade Staff SPM Security Staff SPM Health Department SPM Choir FBDM Tourism Staff Magareng, Phokwane and Dikgatlong Municipalities Financial Implications Does this item have any financial implications? Yes X

No ☐

Vote No. : 2722232360G11IUQZZ7E


Amount Spent : R 242 430.96



Amount Required : R 104 949.99

Amount paid by SPM : R 85 459.99

Total spent by SPM on “Run for Heritage” was R 12 219.99

Total spent by SPM on Heritage Celebration was R 73 240.00

Total spent by FBDM on “Run for Heritage” was R 7 290.00

Total spent by FBDM on “Heritage Celebrations” R 12 500.00

Overall amount spent on Heritage Celebrations is R105 249.99

Legal Authority and Implications White paper on promotion & development of tourism in SA 1996 Domestic Growth Strategy 2012 – 2020 SPM draft Tourism strategy Consultation SPM Health Department SPM Traffic Department SPM Sporting Codes SPM Choir SPM Security Department FBDM LED/Tourism Office Magareng, Phokwane and Dikgatlong Municipalities Contact Person Mrs N. Poolo Tourism Manager Contact number: 053 830 6779/6272

48



FOR INFORMATION __________________________________________________________________________

49



The meeting closed at _________________________________ _____________________________ CHAIRPERSON DATE

SPECIAL ECONOMIC DEVELOPMENT, URBAN RENEWAL & TOURISM

COMMITTEE

27-06-17

ANNEXURES

NB PLEASE RETAIN FOR MAYORAL

COMMITTEE AND COUNCIL MEETINGS

COPIES WILL NOT BE RESUBMITTED


COMMITTEE

27-06-17

DIRECTORATE REPORTS:

LED FRAMEWORK

ANNEXURES P.18 – 268


COMMITTEE

27-06-17

MATTERS REFERRED BACK FROM MAYCO:

19.04.17

ANNEXURES

1. REPORT ON SA JAZZ FESTIVAL 2016 (P. 1 – 16) 2. DIAMONDS & DORINGS STATE OF READINESS (P. 1 – 42) 3. FEASIBILITY STUDY FOR CREATION OF CONSOLIDATED

NATURE RESERVE/ BIG 5 CONSERVATION AREA (P. 44 – 70

SPECIAL ECONOMIC

DEVELOPMENT, URBAN RENEWAL & TOURISM

COMMITTEE

27-06-17


Investment Incentives Policy

ANNEXURES

P.269 - 307


COMMITTEE

27-06-17

DIRECTORATE REPORTS: LED TOURISM

ANNEXURES

1. KIMFEST JOYOUS CELEBRATION (P. 1 – 8) 2. MOVIE NIGHT UNDER THE MOON (P. 9 - 35)

3. METRO FM HEATWAVE (P. 36 – 47) 4. GARIEP ARTS FESTIFAL (P. 48 – 96)

5. BARNEY BARNATO GOLFDAY (P. 97 – 102)


COMMITTEE

27-06-17


UDZ Boundary changes

ANNEXURES P. 308

agenda & minutes of an special economic development, … of the speaker... · for creation of...

Documents