GA-SEGONYANA LOCAL MUNICIPALITY
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1 introduction The Housing Development Agency ( HDA ) is a national public development agency that promotes sustainable communities by making well located and appropriately planned land and buildings available for the development of human settlements. The Agency has developed and deployed an information system which includes municipal profiles for selected municipalities. The intent of this profile is to provide guidelines and advice to Provincial Department of Human Settlements as well as municipalities on efficient utilization of land and economic government infrastructure investments in support of integrated human settlements development. about the template The template was compiled for the Housing Development Agency using a number of different data sources. The 2011 Census information from StatsSA was used extensively to represent socio-economic information. The financial profile data was extracted from the municipalities most recent financial statements. The Integrated Development Plan (IDP), Housing Development Plan (MHDP) and Spatial Development Framework of each municipality also provided inputs into the municipal profile. Where possible, each source of information is quoted as part of the specific figure, table or chart. The municipal profile is structured in the following sections: Section 1 provides background information on the municipality, including land use data; Section 2 deals with demographic information such as population growth and income; Section 3 provides an economic overview of the municipality; Section 4 investigates the financial status of the municipality; Section 5 gives headline data on the property market in the municipality; Section 6 looks at housing demand and historic delivery of RDP houses; Section 7 displays a land rent analysis; Section 8 provides a snapshot of water, sanitation and electricity delivery; Section 9 displays a cost surface analysis; Section 10 deals with budget implications of servicing the housing backlog, Section 11 analyse the performance of the planning function at municipal level. Ga-Segonyana Local Municipality Source: Municipal Demarcation Board (2013) Ga-Segonyana Local Municipality is an administrative area in the John Taolo Gaetsewe District of the Northern Cape in South Africa. John Taolo Gaetsewe (formerly Kgalagadi) is one of the five districts of the Northern Cape province of South Africa. The municipality s economy is mainly based on the surrounding mining and agricultural activities. The municipal seat, Kuruman, is situated on the Namaquari route, forming part of the main route between Gauteng and Namibia and Cape Town via Upington. The name Ga-Segonyana means small calabash with bubbling water. The municipality covers an area of hectares. Contact Details: Private Bag X 1522, Kuruman, 8460 Municipal Switchboard: (053) Speakers office:(053) Fax: (053) registry@ga-segonyana.gov.za Ga-Segonyana Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 1
2 Land Cover Category Hectare Woodland 10,53% Thicket, Bushland, Bush Clumps & High Fynbos 50,20% Shrubland & Low Fynbos 14,79% Grassland 19,56% Forest Plantations (Eucalyptus spp) 0,01% Waterbodies 0,00% Wetlands 0,69% Degraded land 2,56% Cultivated land 0,26% Urban / Builtup : rural cluster 0,78% Urban / Built-up : residential 0,58% Urban / Built-up : commercial 0,01% Urban / Built-up : industrial / transport 0,02% Mines & Quarries 0,01% Source: National Geo-spatial Information (NGI), National Land Cover 2000 (NLC 2000). The total extent of Ga-Segonyana LM is hectares. Almost 50,20% (in terms of geographic area) of Ga-Segonyana LM is covered in thicket, bushland, bush clumps & high fynbosbush fields. Mining, although a very important economic industry, consumes only about 0,01% of the surface area of Ga- Segonyana LM. GA-SEGONYANA LOCAL MUNICIPALITY Section 1: Background More than 98,60% of the municipality is currently vacant/undeveloped. % population residing on Traditional or Tribal areas 84,89% Source: National Geo-spatial Information (NGI), National Land Cover 2000 (NLC 2000). The municipality consists of 33 residential areas of which 20% is constituted of urban and peri-urban areas and 80% is rural areas. All rural residential areas are administered by the Traditional Authorities. These areas do not obtain title deeds because they are not formalised. There are two Paramount Chiefs representing the Batlharo Ba-ga Motlhware and the Batlhaping Ba-ga Jantjie in the municipal council. % population residing in Urban Areas 14,01% Ga-Segonyana has many Traditional or Tribal areas. 84,89% of the municipalities people resides in traditional of Tribal areas. StatsSA Demarcation Board Ga-Segonyana Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 2
3 Number of households GA-SEGONYANA LOCAL MUNICIPALITY Section 2: Demographics population Population y = 2 147,59x ,76 R² = 0, Ga-Segonyana Local Municipality has a population of people (StatsSA, 2011). Although the population density has increased since 2002, it is still well below the metro average. Year RSA Population Ga-Segonyana LM % ,15% ,16% ,18% Growth 2,75% 3,30% Ga-Segonyana has a LOW POPULATION DENSITY OF 0,21 people per hectare, largely due to 98,60% of the municipality not being developed to to 2011 By 2020, the population of Ga-Segonyana Municipality is expected to be Local income Households that may qualify for subsidies based on income Household Monthly Income From , the % people earning less than R3500/month increased with: 1,45% per annum Less than R 3500/month R R12 801/Month Households that may qualify for subsidies based on income Households in Ga-Segonyana Local Municipality are relatively poor with almost 16% earning no income at all. 89,51% of the households earn less than R12 800/month. There has been significant growth in the income bracket earning between R3 500 and R12 800/month a clear signal for rental or gap market housing options. Monthly income category From , the % people earning between R 3500 to R12 801/month grew at: 20,48% per annum Less than R 3500/month R R12 801/Month Ga-Segonyana Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 3
4 Number of people Highest level of education achieved in 2011 GA-SEGONYANA LOCAL MUNICIPALITY Section 2: Demographics level of education Highest level of education : Other 28: Higher Degree (Masters / PhD) 27: Honours degree 26: Bachelors Degree and Post graduate Diploma 25: Bachelors Degree 24: Post Higher Diploma (Masters, Doctoral Diploma) 23: Higher Diploma 22: Diploma with Grade 12 / Std 10 21: Certificate with Grade 12 / Std 10 18: NTC VI / N6 17: NTC V / N5 16: NTC IV / N4 15: NTC III / N3 / NIC / (V) Level 4 12: Grade 12 / Standard 10 / Form 5 / Matric / NTC111 5: Grade 12 / Std 10 / Form 5 20: Diploma with less than Grade 12 / Std 10 19: Certificate with less than Grade 12 / Std 10 14: NTC II / N2 / NIC / (V) Level 3 13: NTC I / N1 / NIC / (V) Level 2 11: Grade 11 / Standard 9 / Form 4 10: Grade 10 / Standard 8 / Form 3 09: Grade 9 / Standard 7 / Form 2 / ABET 4 08: Grade 8 / Standard 6 / Form 1 07: Grade 7 / Standard 5 / ABET 3 06: Grade 6 / Standard 4 05: Grade 5 / Standard 3 / ABET 2 04: Grade 4 / Standard 2 03: Grade 3 / Standard 1 / ABET 1 (Kha Ri Gude,SANLI) 02: Grade 2 / Sub B 01: Grade 1 / Sub A 00: Grade 0 1: No schooling The percentage of people with no schooling decreased between 2001 and 2011 with 10,78% Number of people 54% 52% 50% 48% gender distribution Gender Distribution ,25% 52,84% 47,16% 46,75% 48,25% 51,75% The female gender constitutes approximately 51,75% of the total population. This is an unlikely trend to be observed in mining towns where the mining industry is predominantly male orientated. 46% 44% 42% Male Female Ga-Segonyana Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 4
5 % Share GA-SEGONYANA LOCAL MUNICIPALITY Section 3: Economics economic sector & strength Economic strength Share of GVA Share of employment 40% 35,01% 30% 20% 10,89% 10% 0% Economic Strength - GVA (R Millions) Based on constant 2005 prices Economic sector Metro Average Gamagara LM The dominant economic sector in Ga-Segonyana LM is Mining, which contributes to more than 35,01% of the GVA of the municipality. This industry employs more than 10,89% of Ga-Segonyana s people. All the other economic sectors contribute less than 20% each of the GVA of Ga-Segonyana LM. 8% 6% 4% 2% 0% -2% -4% Comparison of Economic Growth Rates ( ) Ga-Segonyana LM Northern Cape Metro Average National GDP In 2011, the unemployment rate was: 33,7% In 2011, Ga-Segonyana LM contributed to 0,12% of the National GVA. Municipality Economic Growth Rate Average City of Cape Town 4,0% -1,1% 3,0% 3,0% 3,1% Buffalo City LM 3,3% -1,3% 1,2% 2,1% 2,0% Nelson Mandela Bay Metro 0,0% -4,6% 0,6% 0,6% -0,2% Mangaung 4,8% -0,9% 1,8% 2,4% 2,8% ethekwini 2,9% -1,6% 2,1% 2,4% 2,2% Ekurhuleni 4,1% -3,5% 3,3% 3,8% 2,7% City of Johannesburg 5,7% -1,0% 2,9% 3,8% 3,6% City of Tshwane 2,6% 3,1% 3,0% 3,1% 3,7% Ga-Segonyana LM 4,6% -0,8% 4,5% 4,3% 3,98% Ga-Segonyana LM has the highest average annual economic growth rate between 2008 to 2011 in comparison to all 8 metropolitan municipalities in South Africa. Ga-Segonyana Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 5
6 RAND/MILLION GA-SEGONYANA LOCAL MUNICIPALITY Section 4: Financial Status of the municipality annual collection rate 92,28% of all billed revenue has been collected, the benchmark is 95% Revenue billed Renevue collected Loss in cash flow Annual Collection Rate (2013) 2013 (Rand/million) R111 R103 R9 The payment level of 92,28% resulted in a loss of R9 million in cash flow which should have been utilised in service delivery or in capital investment. Future sustainability and growth is dependent on a collection rate of approximately 95% and a focused revenue collection strategy should be implemented. own revenue to total operating revenue Total Revenue (excl. Capital grants); R230 Own revenue; R129 Operational grants; R100 R- R50 R100 R150 R200 R250 RAND/MILLION In 2013, 56,35% of the Municipality s revenue was internally generated, this has increased from 50,86% during 2012, which indicates an decreasing dependency on government grants to sustain operations. R1 000 R800 R600 R400 R200 R- R (Rand/million) asset turnover R894 9,07% R (Rand/million) R903 10,44% Infrastructure carrying value Service charges Service revenue to assets employed (asset turnover) measures whether there is sufficient investment in economic assets. The benchmark is 20% The historic infrastructure base is sufficient to support the current service delivery demands. The upward trend indicates the municipalities growth in economic assets thus ensuring excellent revenue growth. Ga-Segonyana Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 6
7 No of Transfers GA-SEGONYANA LOCAL MUNICIPALITY Section 4: Financial Status of the municipality budget implementation Revenue and expenditure management 148,23% R R ,59% R ,06% Indicates to what extent the Municipality is able to deliver on its planned budget. The target is 100%. 54,59% actual expenditure on capital budget 148,23% actual expenditure on operational budget 117,06% actual revenue realised R 0 Capital Expenditure Operating Expenditure Operating Revenue Budgeted Actual Section 5: Property market Average land value(r/m²) per land use Vacant Residential RDP Dwelling Municipal Multi-purpose Institutional Industrial Goverment Farms District Municpal Commercial Business R 291,96 R 414,59 R 124,15 R 1 163,18 R 559,73 R 241,94 R 260,54 R 651,18 R 37,44 R 863,96 R 1 851,62 R 2 962, Total Number of Transfers R R R R R R R R 0 Highest Transfers Source: Ga-Segonyana Valuation Roll 2013 Final Draft Ga-Segonyana Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 7
8 Section 6: Housing demand and supply dwelling type & housing backlog Housing backlog The municipal housing backlog increases between 1996 and 2001 with 10,65% and with 4,65% between 2001 and housing delivery Other Servants quarters/granny flat Informal settlement Backyard shack House/flat/room in backyard Semi-detached house Townhouse Cluster house Flat or apartment Traditional dwelling House Dwelling type Households Annual Delivery of RDP Houses Number of Residential Buildings Completed Dwelling Houses Completed Flats & Townhouses Completed Dwelling Houses Smaller than 80 (m2) Dwelling Houses Smaller than 80 (m2) The building plan statistics indicates that 1 RDP house was built in Project name Total houses Location completed 3386 in-situ low Within 23 villages in 3386 cost houses Ga-Segonyana Discussions with the Municipality confirmed that the housing backlog is Two business plans have been submitted for the construction of in-situ low cost houses in 23 villages for the Ga-Segonyana Local Municipality. A business plan will have to be submitted to address the remaining housing need of Annual housing delivery target: (Ga-Segonyana LM IHSP 2010/2015) Average annual delivery: (StatsSA Building plans approved ) Current total number of units planned: (Ga-Segonyana LM IHSP 2010/2015) Current own fund committed towards housing development: (Ga-Segonyana LM IHSP 2010/2015) Ga-Segonyana Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency R 341 (mill) Page 8
9 Rand per/m² Rand per/m² Rand per/m² Rand per/m² Rand per/m² GA-SEGONYANA LOCAL MUNICIPALITY land rent analysis Section 7: Land Rent Analysis The land rent theory is a geographical economic theory that refers to how the price and demand for real estate change as the distance from the central business district (CBD) increases. It states that different land users will compete with one another for land close to the city centre. Average Total Property value Residential Properties Average Total Property value Municipal Properties R R R R 800 R 600 R 400 R 200 R R R R R R Time in min from CBD Time in min from CBD Average Total Property value Business Properties Average Total Property value Agricultural Properties R R R R R R Time in min from CBD R 350 R 300 R 250 R 200 R 150 R 100 R 50 R 0 Time in min from CBD Average Total Property value Vacant Properties R 500 R 400 R 300 R 200 R 100 R Time in min from CBD Source: Ga-Segonyana Valuation Roll 2013 Final Draft Ga-Segonyana LM:. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 9
10 Section 8: Water, sanitation & electricity No access to piped water Water on community stand: >200m from dwelling Water on community stand: <200m from dwelling Access to Piped Water: 2011 Water inside yard Water inside dwelling water 100% 80% 60% 40% 20% % Access to Piped Water: No access to piped water Water on community stand: >200m from dwelling Water on community stand: <200m from dwelling Water inside yard Number of Households 0% % in 2001 % in 2011 Water inside dwelling sanitation % Sanitation: Sanitation % Other Bucket toilet Other Bucket toilet Pit toilet without ventilation Pit toilet with ventilation (VIP) Chemical toilet Flush toilet (with septic tank) Flush toilet (connected to sewerage None Sanitation Number of Households 80% 60% 40% 20% 0% % in 2001 % in 2011 Pit toilet without ventilation Pit toilet with ventilation (VIP) Chemical toilet Flush toilet (with septic tank) Flush toilet (connected to sewerage system) None electricity % Source of Lighting: None Solar Candles Paraffin Gas Electricity Source of Lighting % 80% 60% 40% 20% None Solar Candles Paraffin Gas Electricity Number of Households 0% % in 2001 % in 2011 Ga-Segonyana Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 10
11 cost surface analysis Section 9: Cost surface analysis To develop land everywhere in the municipality does not necessarily cost the same. Often vacant land is developed at a cost significantly higher than elsewhere in the municipality. This cost surface map for the municipality will indicate the premium payable based on certain environmental and geological constraints. Ga-Segonyana Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 11
12 Section 10: Spatial development framework spatial development framework Source: Ga-Segonyana Spatial Development Framework, July 2008 Source: Ga-Segonyana Spatial Development Framework, July 2008 Ga-Segonyana Local Municipality :. Developed by (Pty) Ltd on behalf of the Housing Development Agency Page 12
13 accessibility analysis -CBD Section 10: Spatial development framework This map tests housing projects identified in the SDF in terms of how accessible these projects are to the CBD of the Municipality (essentially a test to see if proposals attempt a compact city design). Ga-Segonyana Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 13
14 accessibility analysis active mines Section 10: Spatial development framework This map tests housing projects identified in the SDF in terms of how accessible these projects are to employment opportunities. Since mining is the major employer in the municipality, all active mines were used as origins. Ga-Segonyana Local Municipality :. Developed by (Pty) Ltd on behalf of the Housing Development Agency Page 14
15 Section 10: Spatial development framework budget implications of the SDF Discussions with the Municipality confirmed that the housing backlog is This divers from the Census information which indicates a backlog of approximately units. Budget required to service Total Housing Backlog (at different densities) R R R R R R R GROSS DENSITY (UNITS/HECTARE Water Sewer Electricity Roads & Storm water Top Structures The annual housing target must be 812 units in order to complete the planned projects by Budget required to service Annual Housing Target (at different densities) R R R R R R GROSS DENSITY (UNITS/HECTARE Water Sewer Electricity Roads & Storm water Top Structures Ga-Segonyana Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 15
16 Section 11: Planning practises assessment summary The purpose of this practises assessment for the municipality was to: audit planning capacity within the municipality, as it relates to; land use management capacity; spatial planning capacity; audit the actual planning systems, tools and methodologies of the municipality; long term development strategy; spatial development frameworks; integrated development plans; land use management systems, land use schemes, zoning schemes or town planning schemes; other policies and frameworks such as densification policies, nodal plans etc.; audit planning governance within the municipality; processes used to compile and implement the plans listed in the previous point; audit any software tools, systems and data used in the compilation of the above planning products or in support of planning governance. scope of planning practises Ga-Segonyana Local Municipality :. Developed by (Pty) Ltd on behalf of the Housing Development Agency Page 16
17 Section 11: Planning practises assessment planning activities This section investigates the legislative requirements of having an IDP, SDF and land use scheme in place. Though not legislated, it also includes a long term strategic plan (e.g. a growth and development strategy). On the whole it the planning scope of practises in the municipality can be seen as competent. All the requirements of legislation are met. systems The various planning tools and products at the disposal of a municipality are supported by various information systems. These systems can be relatively large and complex (e.g. an agent based transport and land use modelling system) or relatively simple (such as an excel spread sheet calculating the number of social facilities to be provided as for different population scenarios). Information systems can thus be defined in this particular context as the means by which skilled municipal officials use software and information to support the process of spatial restructuring. Ga-Segonyana Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 17
18 Section 11: Planning practises assessment organisational tactics The organisational tactics, or rather the extent to which the organisation support the Planning function can at best be described as being in its awareness phase. It is largely left up to individuals to up skill themselves or to acquire necessary information required for personal growth. More interaction with planning role-players are required for the planning function to grow the municipality. This includes access to information and networking with planners at other municipalities or other spheres of government. human resources Ga-Segonyana Local Municipality :. Developed by (Pty) Ltd on behalf of the Housing Development Agency Page 18
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