SPECIAL ECONOMIC DEVELOPMENT, URBAN RENEWAL & TOURISM COMMITTEE MEETING

Transcription

1 AGENDA & MINUTES of an SPECIAL ECONOMIC DEVELOPMENT, URBAN RENEWAL & TOURISM COMMITTEE MEETING held on

2 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

3 i 27 June 2017 Index 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 D. DIRECTORATE REPORTS: Directorate: Strategy, Economic Development & Planning Local Economic Development ECN27/06/17 1. ECN07/03/17: Frances Baard District Municipality: SMME Direct Support ECN28/06/17 2. ECN08/03/17: SMME Village: Service extended to 3 the public ECN29/06/17 4. Media Tour ECN30/06/17 5. Presentation of National LED Framework E. MATTERS REFERRED BACK TO OCM: ECN31/06/17 1. ECN32/06/17 2. ECN33/06/17 3. EM121/04/17 / ECN11/03/17: Report on SA Jazz Festival 2016 EM122/04/17 / ECN12/03/17: Diamonds and Dorings State of Readiness EM124/04/17 / ECN03/02/17: Feasibility Study For creation of consolidated Nature Reserve F. DIRECTORATE REPORTS: Directorate: Strategy, Economic Development & Planning Local Economic Development ECN34/06/17 1. Investment Incentives Policy G. DIRECTORATE REPORTS: Directorate: Strategy, Economic Development & Planning Local Economic Development ECN35/06/17 1. Report on Kim Fest 2016 (MTN Joyous Celebration) ECN36/06/17 2. Report on Movie Night Under the Moon (MNUM)

4 ii 27 June 2017 Index RES NO ITEM NO & HEADING PAGE ANNEXURE ECN37/06/17 3. Report on Metro FM Heatwave ECN38/06/17 4. Report on the Gariep Arts Festival ECN39/06/17 5. Report on Barney Barnato Golf Tournament H. DIRECTORATE REPORTS: Directorate: Strategy, Economic Development & Planning Local Economic Development ECN40/06/17 1. UDZ Boundary changes I. SUPPLEMENTARY REPORTS: ECN41/06/17 1. Tabling of the Preferential Procurement Policy Regulations ECN42/06/17 2. Local Economic Development summit (LED) 2017: Preparations for the Inaugural LED summit

5 1 SOL PLAATJE MUNICIPALITY 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

6 2 27 June 2017 LED D. DIRECTORATE REPORTS: 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

7 3 27 June 2017 LED D. DIRECTORATE REPORTS: FOR INFORMATION At the Economic Development Committee meeting held on 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 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 nontenant 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.

8 4 27 June 2017 LED D. DIRECTORATE REPORTS: 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 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 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.

9 5 27 June 2017 LED D. DIRECTORATE REPORTS: 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 13 th to the 14 th April 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 13 th till the 14 th April 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 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)

10 6 27 June 2017 LED D. DIRECTORATE REPORTS: 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 Motivation ANNEXURE p.3 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 No X Vote No. : G11IUQZZ7E Amount Budgeted : R Amount Spent : R Amount Available : R Amount Required : R The total costs of the media tour inclusive of flights of media, tour guiding fees and meals is estimated at R , exact amount can only be confirmed once minimum of 5 national media has confirmed. As stated before, the tour will be facilitated in April Legal Authority and Implications White paper on promotion & development of tourism in SA. Municipal System Act Section 26 (e) SPM Tourism Strategy (draft) Consultation Municipal Manager ED- SED&P,

11 7 27 June 2017 LED D. DIRECTORATE REPORTS: General Manager-LED, FBDM LED/Tourism unit Contact Person Mrs N. Poolo Tourism Manager Contact number: /80 FOR INFORMATION At the Economic Development Committee meeting held on 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 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 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 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.

12 8 27 June 2017 LED D. DIRECTORATE REPORTS: 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 ( ). 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.

13 9 27 June 2017 LED D. DIRECTORATE REPORTS: 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 backbencher 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;

14 10 27 June 2017 LED D. DIRECTORATE REPORTS: 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

15 11 27 June 2017 LED D. DIRECTORATE REPORTS: 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:

16 12 27 June 2017 LED D. DIRECTORATE REPORTS: 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.

17 13 27 June 2017 LED D. DIRECTORATE REPORTS: 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;

18 14 27 June 2017 LED D. DIRECTORATE REPORTS: 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

19 15 27 June 2017 LED D. DIRECTORATE REPORTS: 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

20 16 27 June 2017 LED D. DIRECTORATE REPORTS: 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 No X Annexure Headings annexures: Expectation of LED by NDP and NGP ANNEXURE National Framework for LED p Summary on LED Framework Human Recourses Development SA (HRDSA) Industrial Policy Action Plan IPAP 2016/ /19 Achievement Highlights IPAP 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 Human Resource Development South Africa Consultation National Development Plan Vision 2030 New Growth Path Industrial Policy Plan Action II National LED Framework Human Resource Development South Africa

21 17 27 June 2017 LED D. DIRECTORATE REPORTS: 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 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).

22 18 27 June 2017 E. MATTERS REFERRED BACK FROM MAYCO: 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 17 th December 2016 at Langley Resort. Annexure Description Report from Macronym 37.cc on SA Jazz Festival Motivation ANNEXURE p 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 No X Vote No. : G11IQMZZ7E Amount Budgeted : R Amount Committed : R Sol Plaatje Municipality has sponsored the event with the amount of R 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 Section 26 (e) Mzansi Golden Economy National Tourism Sector Strategy (draft)

23 19 27 June 2017 E. MATTERS REFERRED BACK FROM MAYCO: Consultation Municipal Manager ED- SED&P, General Manager-LED, Contact Person Mrs N. Poolo Tourism Manager Contact number: /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 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. ECN31/06/17: RESOLVED TO RECOMMEND TO EXECUTIVE MAYOR: As recommended.

24 20 27 June 2017 E. MATTERS REFERRED BACK FROM MAYCO: 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 13 th till the 17 th April Annexure Description Presentation from Macronym 37.cc on D&D 2017 State of Readiness Motivation ANNEXURE Replacement p 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 No X Vote No. : G11IQMZZ7E Amount Budgeted : R Amount Available : R Amount Spent : R 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

25 21 27 June 2017 E. MATTERS REFERRED BACK FROM MAYCO: R as seed funding for the year R has been forwarded to the service provider for logistics, 10% (R ) 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 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: /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 it was resolved per resolution ECN22/06/17: That due to time constraints the following item be held in abeyance until the next meeting.

26 22 27 June 2017 E. MATTERS REFERRED BACK FROM MAYCO: ECN32/06/17: RESOLVED: 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 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:

27 23 27 June 2017 E. MATTERS REFERRED BACK FROM MAYCO: 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: