www.salga.org.za presentation outline defining the context economic dynamics institutional...
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www.salga.org.za
PRESENTATION OUTLINE
• Defining the Context
• Economic Dynamics
• Institutional Arrangements
• Functionality Risks
• Challenges
• Support to improve
Service Delivery
• Suggested Way Forward
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www.salga.org.za
Employer Body
Act as an employer body representing all
municipal members and, by
agreement, associate members.
The Voice of Local GovernmentThe Voice of Local Government
Support and advise our
members on a range of issues
to assist effective
execution of their mandate.
Build the capacity of the municipality as an institution as well as leadership
and technical capacity of both Councillors and
Officials.
Lobby, advocate, protect and
represent the interest of local government at
relevant structures and
platforms.
Transform local government to
enable it to fulfil its
developmental mandate.
SALGA Mandate
Lobby, Advocate & Represent
Support &Advice
Capacity Building
Build the profile and image of
local government within South
Africa as well as outside the
country.
StrategicProfiling
Serve as the custodian of local
government intelligence and facilitate inter-municipal peer
learning
Knowledge & Information Sharing
The Voice of Local GovernmentThe Voice of Local Government
SALGA MANDATESALGA MANDATE
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WSA FUNCTION(Governance Function)
•Ensuring access to water services•Bylaws and regulation•Policy development •Tariff determination•Allocation of equitable share and financial planning and decision making• Financial management (budget)•Infrastructure development •Prepare water services development plan (WSDP)•Selecting Water Services Provider institutional arrangements•Taking Transfer
WATER SERVICES AUTHORITY (WSAs)
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WATER SERVICES PROVIDER (WSPs)
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Water Services Trajectory
13 years
in the
water
business
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Operational Service Challenge (h-holds served)
Census 2011
The Authorised DMs are amongst the largest WSAs in the country
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POPULATION and HOUSEHOLD DYNAMICS
% share of District population to EC Province population (2011)
%share of households in Chris Hani District (2011)
• Of the total population in the Eastern Cape province, Chris Hani DM accounts for 17.1% making it the third largest District after O.R Tambo (29.3%) and Alfred Nzo (17.2%) DMs.
• Chris Hani is made up of eight LMs with Lukanji LM having the highest population size and Inkwanca being the smallest in population size
• With regards to the total households in the District, a similar pattern is evident where Lukanji remains in the lead with the highest proportion of households and Inkwanca with the least households in 2011.
• The DM in 1996 had a total of 168,754 households. An additional 40,298 households have been recorded to reach 210,852 households in 2011, a 1.6% growth over the two periods.
Total EC population: 4.7 mil
Total households: 210,852
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GDP CONTRIBUTION
2007 R7.3bn
2011R19.0bn • According to StatsSA simulated estimates
of municipal GDP, in 2007 Chris Hani had a GDP of R7.3 bn which grew by 27% to reach R19.0 bn in 2011.
• Emalahleni’s contribution to the GDP of the District grew from 6.0% in 2007 to 50.0% in 2011, making it the major driver of economic growth in the District. This is because it is an administrative area with Government and Services sectors the major employers.
• The economic contribution of Inxuba Yethemba and Lukanji to the total GDP of the District declined significantly compared to the decline recorded by the remaining LMs.
• However these two LMs continue to be major drivers to economic growth in the District.
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UEMPLOYMENT RATE
• Unemployment rate in the District and in the LMs has declined between 2001 and 2011. The unemployment rates have been highest in Emalahleni, Engcobo and Instika Yethu LMs in 2001 peaking at an average of 68%. However significant declines have been recorded although at high rates of over 46% in 2011.
• Inxuba Yethemba has the lowest unemployment rate in the District. Community services and finance are main economic sectors driving employment in the area.
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• No Water Board
• All Local Municipalities were Water Services Providers until 1 July 2014
• Water Services Authority
– Regulates
– Infrastructure Planning and investments
Water Services Delivery Institutional Arrangements
– Chris Hani
www.salga.org.za The CHDM Operational Dynamics
Key:-Level of Servicersp = rural (stand-pipe)ryard = rural (yard connection)rhouse = rural (house connection)usp = urban (stand-pipeuyard = urban (yard connection)uhouse = urban house connection)
• Areas in the west have more private connections.• Areas in the East are more rural and more people are served by communal standpipes.• Lukanji is significantly bigger than other areas.
www.salga.org.zaGrant Dependency
NT MTEF
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Reduction of Backlogs
AG Reports 2013
• CHDM have been the best performer in reducing water backlogs.– Reduction of 67%
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Performance (functionality)
Census 2011
The top performers are:--Camdeboo - Kouga-Baviaans - Buffalo City
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MOPANI
www.salga.org.zaOperational Service Challenge (h-holds served)
Census 2011
The Authorised DMs are amongst the largest WSAs in the country
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POPULATION and HOUSEHOLD DYNAMICS
% share of District population to Limpopo
Province population (2011)
%share of households in Mopani District (2011)
Total Mopani population: 1.1 mil
Total LIM population: 5.4 mil
Total households: 296,320
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GROSS DOMESTIC PRODUCT (GDP) CONTRIBUTION
• According to StatsSA simulated estimates of municipal Gross Domestic Product, Mopani District grew by an average growth rate of 7.5% between 2007 and 2011
• Of the five LMs in Mopani District, Greater Tzaneen and Ba-Phalaborwa LMs have contributed significantly to the economy of Mopani.
• Greater Tzaneen is characterised by extensive and intensive farming activities and considerable untapped tourism potential. Major economic sectors in Greater Tzaneen include community services , finance, trade , agriculture and manufacturing.
• Ba-Phalaborwa ‘s contribution to the District’s GDP grew significantly over the two periods from 27.1% in 2007 to 30.1% in 2011 – a 3.1 percentage growth. The area has vast tourism and manufacturing investment opportunities.
• Main economic sectors include mining, agriculture, manufacturing and tourism .
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UNEMPLOYMENT RATE
• Mopani District has been characterised by high unemployment rate over the past 15 years. • Marginal increases in most of the LMs have been recorded except for Greater Giyani municipality.• The unemployment rate in Greater Giyani fell significantly by 21.6 percentage points from 68.6% in 1996 to 47% in 2011. Giyani Town is the largest
and most densely populated centre, featuring the most employment opportunities, as well as the best shopping and recreational facilities. • The labour force consists of skilled, semi-skilled and a large percentage of unskilled people. his
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• Supported by Lepelle Northern Water Board
• All Local Municipalities are Water Services Providers
• Water Services Authority
– Regulates
– Infrastructure Planning and investments
Water Services Delivery Institutional Arrangements
– Mopani DM
www.salga.org.zaPotable Water (operational challenge)
Census 2011
Mopani DM has a high proportion of rural yard taps … this could imply elevated consumption and difficult cost recovery
www.salga.org.za Performance (functionality)
Percent Reporting Interruptions
Percent Long Interruptions
www.salga.org.zaPerformance (functionality)
Census 2011
LMs reliabilityrapid repair
Ba-Phalaborwa 64% 43%
Greater Giyani 29% 5%
Greater Letaba 39% 9%Greater Tzaneen 42% 18%
Maruleng 36% 15%
Ba Phalaborwa performed better than other LMs??
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Challenges
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the tasks
Bulk Supply and WTWElectro - Mech
Sewer and WWTW
Pit Latrines
Civils
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Bulk Supply and WTW Electro - Mech
Sewer and WWTW
Pit Latrines
Civils
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Challenges (1) Operational
(a) Vandalism of Infrastructure and Illegal Connection
(b) Reliability of constant service
(c) Types of Infrastructure Managed and its logistical arrangements
(2) Financial (a) Grant Dependent
(b) Non payment of services (cost of service vs equitable share)
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Support to improve Service Delivery – (1) Political
(a) Training of Cllrs – Understanding roles and responsibilities including service delivery imperatives (2014- 2016) and beyond
(b) Water Sector Specific - unpacking the operational issues of water service delivery including legislative mandate of Council
(2) Operational
(a) Facilitate Training of Water Services Managers –Master Classes
(b) Benchmarking to gauge municipal performance with peers – including blue and Green Drop Certification
(c) Advisory on service delivery related issues
(3) Financial (a) Analysis and understanding cost of providing services
(b) Grant Infrastructure to include renewal of old infrastructure
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Suggested Way Forward
(1) Political (a) Continue with Cllr development programmes including post 2016 elections
(b) Emphasise the role of Water Services Authority and Providers
(c) Constant Community Engagements (payment and vandalism)
(2) Operational
(a) Bringing other players in the space to help with service delivery
(b) Investment in renewal
(c) Borehole management is key to service delivery
(3) Financial (a) Analysis and understanding cost of providing services
(b) Grant Infrastructure to include renewal of old infrastructure
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