Finance and Economic Development PROVINCE OF KWAZULU-NATAL
Office of the MEC
Ibambeni December 2008
THUMBS UP FOR COOPERATIVES WHO HAVE DONE WELL FOR THEMSELVES ooperatives in KwaZuluNatal received a boost recently when their work came under the spotlight following a regional tour by the MEC for Finance and Economic Development and Leader of Government Business, Dr Zweli Mkhize. He congratulated those enjoying success as well as encouraged those that are not yet so successful. The departmental Cooperatives Roadshow began on December 2, where Dr Mkhize toured more than 400 cooperatives in the Southern Region, culminating in a stadium-packed event in Port Shepstone. Some of the very first cooperatives visited by Dr Mkhize include the Durban-based Khanyanjalo cooperative, an ICT-specialist company owned and run by the young people. They provide computer training and their target market is private companies, schools, government departments and the public. Then came the Gamalakhe Township mayoral award-winning Maluju, a crop production cooperative that is made up of five women. They specialise in growing tomatoes and spinach which they sell to various renowned shops, including Pick’n Pay, Hibiscus Coast Municipality and Spar supermarkets. Also on the list was Mbusomusha, a toilet paper manufacturing cooperative operating from Mthwalume. Their market includes local municipalities, supermarkets, schools and the public. This was followed by another tour in uMkhanyakude District, north of KwaZulu-Natal on December 9, which took the same format as the Southern Region tour. The Cooperatives Roadshows are aimed not only at congratulating cooperatives that are doing well, but also of encouraging those that are faced with various challenges as well as those who are keen to start up cooperatives. “It gives me great joy to see small businesses in the cooperatives sector beginning to play a meaningful role in fighting poverty and promoting employment,” said Dr Mkhize.
He said research has shown that small businesses are playing a vital role in the stabilisation of the country’s economy and fighting poverty through job creation. “There are so many people who have been able to find meaningful and gainful employment through small business, who otherwise would have been declared unemployable for a number of reasons including lack of skills,” said Dr Mkhize, adding that 40 % of the cooperatives in South Africa are in KwaZulu-Natal. “It is encouraging to see people wanting to stand up and do things for themselves like cooperatives are doing. They serve as inspiration to young people who must learn that our future will be much more secured if we go back to planting our own crops instead of relying on others. This will help us address issues of food security,” said Dr Mkhize. Dr Mkhize said government is also mindful of challenges faced by small business, and encouraged those who face tough times to persist. “Some small businesses have gone under because of a number of factors, but primarily the issue of access to finance,” said Dr Mkhize. He said government has come up with strategies to assist, which include agreements with some lending institutions. “We are also still appealing to big financial institutions to revisit some of their practices, which seem to shut the door on small businesses,” said Dr Mkhize. Dr Mkhize said one of the challenges that needs to be addressed is the issue of training for cooperatives to be effective in what they do. He said training will also help cooperatives to grow and be competitive. “We are negotiating with some educational institutions in a bid to ensure that quality training and relevant skills are passed on to cooperatives so that those who are currently doing well can continue to do well, and those that are not doing so well can get capacity to make their mark in the economic development of their communities and KwaZuluNatal,” he said.
Above: Ms. Shusha, Mayor of Hibiscus Coast Municipality, Dr. Zweli Mkhize, MEC for Finance and Economic Development, Ms. Ruth Bhengu, Deputy Mayor of Ugu District Municipality while Ms. Busi Molefe, Chairperson of Maluju Co-operative (Second from Right) explains the damage caused by the floods. Below: The MEC for Finance and Economic Development, Dr. Zweli Mkhize, with members of Maluju Co-operative assessing progress in the tomato garden.
Finance and Economic Development PROVINCE OF KWAZULU-NATAL
Office of the MEC
KWAZULU-NATAL REMAINS COMMITTED TO ECONOMIC GROWTH
AWARDS INSERT 1
Dr Zweli Mkhize MEC for Finance and Economic Development waZulu-Natal’s economic growth can only be guaranteed by the continued facilitation of public-private partnerships as well as the development of skills so that everyone can be afforded a chance to play an active role in positively influencing the economic development. The provincial government is committed to ensuring that this province becomes the leading economy in this country and in the Southern African region in general. To realise this, we are pulling out all the stops to strengthen our relations with the private sector as well as to create more business relations with the developed international countries. Part of our mission is to continue to instil confidence in our local and international investor community through Trade and Investment KwaZulu-Natal which is a government’s investment arm and showcase our province as investor friendly. We are also in the process of exploring new markets with the aim of soliciting investors to partner local companies in the establishment of operations in KwaZulu-Natal. It is in this context that we have numerous trade missions comprising government and local industry showcasing key invest-
ment opportunities within the province. Key to this initiative has been matching local companies with potential international partners within selected regions. The area of skills development is also very critical in ensuring growth of the economy. Following the business tours to India, the Czech Republic and Russia early this year, we have succeeded in forging relations with key international academic institutions to ensure that our students and small businesses get trained in the IT and textile disciplines. Bearing testimony to this, in September, already ten students from KwaZulu-Natal have already gone to the Czech Republic to study textile at the Technical University of Liberec – the world’s reknowned specialists in textile, with which we forged partnership. Through another partnership between the Provincial Treasury and Ifihlile Training Academy, 300 youth is being training on air-conditioning, refrigeration and construction. These are some of the scarce skills in South Africa and acquiring them will help open more employment opportunities for the youth and those that want to start their own businesses will now have the opportunity to do so, contributing to the development of a large pool of small
business in the province. While the economic part of our lives looks bright and welltaken care of, it is also important to know that the political aspect is as important. In the next few months, the country will, once again, embark upon a very critical process –elections, that determines the form of government we want. This is a process where you, the people of this country get to exercise your right to vote. It is therefore very important for all citizens to stand up and play their part in protecting our democracy. One of the most important ways of protecting our democracy is by ensuring that we all participate in the electoral process. This right was earned through the blood of many of our people, who stood up in very trying times and ensured that we have this right to vote, so let us use it. It is important to take advantage of all these economic and political developments that are presented to us because this is the only way that helps us ensure that our communities not only develop, but also position themselves to being a positive influence in the political processes taking place in their country.
(1) MEC, Dr. Zweli Mkhize and Manager for Corporate Communication in the Office of the MEC, Mrs. Zodumo Mbuli receiving PMR certificates for exceptional work by the MEC. (2) MEC, Dr. Zweli Mkhize receiving a PMR award from the Managing Consultant of PMR, Mr. Sipho Makhanda. (3) MEC, Dr. Zweli Mkhize addressing the deligates at the PMR Awards Ceremony held in September, Durban.
Ibambeni UNPACKING DEPARTMENT’S PROCUREMENT POLICIES
Mr Sipho Shabalala HOD for Provincial Treasury n Government institutions, service delivery is the primary measure of success. Public procurement refers to the purchasing of goods and services which government requires in order to deliver services to the people. This is done within the
confines of the following procurement policies :Supply Chain Management system signified the dawn of a new era in procurement and provisioning. It was developed in order to give effect to the provisions of Section 217 of the Constitution, which regulates procurement of goods or services in government, by mandating that it be done in accordance with a system which is fair, equitable, transparent, competitive and cost-effective. Further, in giving effect to subsection 2 of Section 217 of the Constitution, National Treasury in terms of its Subsection 217(3) obligation, issued the Preferential Procurement Policy Framework Act (PPPFA). The PPPFA thus provides for the granting of preference in the procurement process to Historically Disadvantaged Individuals (HDIs) by means of a points system that ensures that socioeconomic objectives are addressed, it further allows for the pursuance of socio-economic goals as set out in the RDP. Equitable support of service
providers, particularly SMMEs and Cooperatives, is at the heart of government procurement policies, and to this end, KZN Provincial Treasury introduced a Supply Chain Management Policy Framework as a tool to achieve this objective. The Framework was designed to promote consistency in the application of preferential procurement objectives. The critical areas of focus were the establishment of a KZN supplier database and the Bids Appeal Tribunal. The Provincial Supplier Database’s objective is to maintain supplier information in terms of ownership and commodities offered by all companies registered thereon. This information assists the Province in identifying the status of companies with whom government is engaging. It further assists in analysing the Provincial government’s spend and ensuring that it is directed towards addressing the imbalances of the past. Suppliers registered in the database are encouraged to ensure that they constantly
update themselves on available procurement opportunities in government by daily checking the Tender bulletin (available on the National Treasury’s website) as well as local newspapers. The Bids Appeal Tribunal provides a platform for aggrieved suppliers to appeal decisions taken during the evaluation of bids (tenders) by departments. The MEC for Finance and Economic Development , Dr Zweli Mkhize established an impartial and independent BAT consisting of members appointed from civil society. These efforts ensure that there is fair, transparent and open competition for the procurement of goods and services in the public sector. The latest development in procurement is the promulgation of Broad Based Black Economic Empowerment Act (BBBEE) Codes of Good Practice. Section 10 of the BBBEE Act requires that every organ of state must apply any relevant code of good practice in developing and implementing a preferential procurement policy.
This would ultimately translate to a socioeconomic process that directly contributes to the economic transformation of South Africa as it brings about significant increase in the number of black people that manage, own and control the country’s economy. Suppliers should understand that the BBBEE expands the focus from ownership as a criteria for assessing suppliers’ empowerment status to a broader base that includes Ownership; Management control; Affirmative procurement; Enterprise development; Skills development; Employment equity and Corporate social investment. Suppliers are encouraged to ensure that their BEE status is verified by the relevant accreditation institutions. Supply Chain Management has reached its fifth year of implementation, and it continues to evolve as our public sector tries to parallel international best practices.
DED GROWING ECONOMY THROUGH DISTRICT OFFICES
Ms Carol Coetzee HOD for Economic Development he demand for business advice and development services in the province has called for the Department of Economic Development (DED) to invest around R14 million in establishing the district offices and this amount is expected to escalate in each financial year. The KwaZulu-Natal provincial government has realized the need to pull all out the stops to encourage economic development essential for the creation of job opportunities and deletion
of poverty in the province. The province is laden with two streams of the economy – featuring the highly developed first economy and the precariously marginal second economy in which the preponderance of the population is stuck in. However, to ensure a stable and really equitable socio-economic transformation, the province is determined to reduce or collapse the disparities between these two sections of the economy through the combination of interventions – inclusive of the promotion of skills training for the people on the periphery to be able to gain access to the lucrative and sustainable levels of the economy. Through the Department of Economic Development, the government had therefore been mobilizing communities to consider starting their own enterprises in the form of co-operatives and SMMEs – a potential move to help bridge the gap between first and second economic strands. The efforts took a quantum step four years ago when the Provincial MEC for Finance and Economic Development, Dr Zweli Mkhize urged communities to take co-operatives as potential means and entry points to participate actively in the province’s economy. His approach would include empowering aspiring entrepreneurs with
business skills and hence consideration for financial support had to be preceded by skills training in all forms of business. The move wouldn’t just assist people escape grinding poverty, but as a conduit to develop entrepreneurial acumen required to claim a stake in the advanced first economy. Many people responded positively to this noble call and were currently pursuing business ventures in various sectors of the economy. However, to entrench the government commitment towards the socio-economic empowerment of the citizens, the Department had to ensure that business information and advice was readily available in their respective localities. Having had its head quarters located in one city, the organization has since broadened its service offerings by establishing office outlets in district municipalities, including Durban Metro. Scientifically referred to as One Stop Shop Business Support Centres, they are currently serving as potent avenues for promoting economic growth in the communities – providing a wide range of business support to emerging entrepreneurs as well as established operators seeking direction on expansion opportunities. These centres were a precursor of future expansion of the Depart-
ment’s services in each and every corner of the province to ensure genuine economic growth and decline in the survivalist second economy. With the provision of the Conceptual Framework for KwaZulu-Natal Integrated Business Support Programme, the province is confident that gradually more people would become practical entrepreneurs that contribute to the campaign to combat joblessness while extricating communities from poverty and other social ills. But the emphasis is on sharpening entrepreneurial skills through continuous skills training to emerging business people, especially young people to be able to run profitable and sustainable ventures – capable of standing the test of time in the highly competitive and deregulated global market. Meanwhile the government’s determination to fast-track socio-economic change through a combination of economic permutations, including co-operatives and SMMEs has attracted interest from other social partners, especially in the private sector. It’s envisaged that at least by 2009, each district would have as fully operational office – providing an integrated list of services offered by the Department. Meanwhile most of these outlets are a joint effort with other social partners such as district or local
municipalities and private sector – a demonstration of a vibrant spirit of collectivism in the process of accelerating economic development in the province. Small Enterprise Development Agency (SEDA) is the Department’s key strategic partner and the organizations are presently complementing each rather than duplicating their resources and endeavors. Other participants include Ithala Development Finance Corporation that handles the co-operatives’ funding once prospective applicants have met basic conditions – including proof of business skills training offered mainly at various FETs in the province. With youth being one of designated groupings for empowerment, Umsobomvu Youth Fund are amongst some of our strategic partners as well as other financial institutions such as ABSA and Standard Bank. The Department is confident that the concept of One Stop Shop Business Support Centres will go a long way in helping to develop both the SMMEs and co-operatives so that they partake meaningfully in building the economy of the province as well as eliminating poverty and unemployment.
Finance and Economic Development PROVINCE OF KWAZULU-NATAL
Office of the MEC
KWAZULU-NATAL BUILDING RELATIONS WITH KOREA rade and investment opportunities for KwaZulu-Natal are set to widen as the province has strategically positioned itself to work closely with Korea. This was made clear after the signing of the Memorandum of Understanding between Trade and Investment KZN (TIKZN) and Korean Trade and Investment Promotion Agency (KOTRA) to officially join forces in a bid to foster strong trade and investment links on the 2nd of December, 2008 in Durban. Led by MEC for Finance and Economic Development and Leader of Government Business, Dr Zweli Mkhize, Trade and Investment KZN (TIKZN) has continuously promoted and marketed investment opportunities in KwaZulu-Natal. Speaking after the signing, Dr Mkhize said: “We are looking forward to this agreement between our two countries, and I am sure that it is the start of a vibrant exchange which will see more trade delegations to and from both countries”. This MOU between KOTRA and TIKZN will serve as a catalyst in the marketing of opportunities within KwaZulu-Natal and the world leaders in the maritime industry, the Republic of Korea. TIKZN will be maximising its effort to promote KwaZulu-Natal as the premier investment destination as well as a leader in export trade within the Korean Market. Dr Mkhize said a relationship already exists between South
Africa and Korea at a political level, adding what remains now is a business to business and human relationship. He also said he hopes more people in Korea will become aware of opportunities that exist in KZN. Some of the areas of collaboration envisaged relate to the hosting of incoming missions and the facilitation of business to business interaction. KOTRA will be used as a conduit to marketing and promoting TIKZN’s packaged projects to Korean Companies that would have an interest in these projects His Excellency Ambassador Han Soo Kim was accompanied by the Director General of KOTRA Mr Young Soo Kang, Mr Sung Soo PARK, First Secr e t a r y, K o r e a n Embassy; Mr Yong Gang KIM, Representative of SA, Korea Development Bank; Mr Chang Mok LEE, Representative of SA, Korea Electric Power Corp and Mr Sun Mo HEO, Director, ONSE SA (Pty) Ltd. Ambassador Kim said Korea is a key strategic partner for any country wanting to do business with the Far East.
He said Korea has been able to transform its economy from poor to a key global player within 14 years, and that they are keen to share their recipe for success with the rest of the world. The ambassador promised that he will play match maker between KwaZulu-Natal and potential Korean partners.
Main picture: Korean Ambassador to South Africa, Mr. Han Soo Kim and Dr. Zweli Mkhize holding a certificate that represents the signing of the MOU. First from left is Kotra Director General, Mr. Kang and CEO of Trade and Investment KwaZulu-Natal, Mr. Zamo Gwala. Above: Mr. Han Soo Kim (left) and Dr. Zweli Mkhize (right) signing the Memorandum Of Understanding, observing closely are Mr. Kang (behind left) and Mr. Zamo Gwala (behind right). Left: Dr. Zweli Mkhize presents a gift to Mr. Han Soo Kim.
Ibambeni THE MOSES MABHIDA STADIUM access to the stadium precinct.
The Kings Park Sporting Precinct In 2010, Durban’s Kings Park Sporting Precinct, in which the new Moses Mabhida Stadium is located, will be an attractive destination for the city’s visitors. Proximity to the beach will ensure that it is the ideal venue for the 2010 FIFA World Cup™, while its many offerings will provide a central location for relaxation and recreation.
Construction to date of the Moses Mabhida Stadium for the 2010 World Cup, and shall thereafter be used for soccer, rugby, cricket and athletics. urban’s new Moses Mabhida Stadium has been designed as a state-of-the-art, world-class stadium for the 2010 FIFA World Cup™, and as a multi-functional and easy-to-maintain asset for Durban. This is an asset from which every resident and ratepayer will benefit, as the creation of this precinct means that Durban will be one of the few African cities able to host most of the Olympic disciplines within a single sporting precinct. Conveniently situated close to the city centre, and as part of the Kings Park Sporting Precinct, the Moses Mabhida Stadium will also be the ideal venue for hosting recreational and cultural events. With the construction progressing rapidly, the new Moses Mabhida is already becoming a fundamental feature on the city’s landscape and is well on target for FIFA’s final completion date of 31 October 2009.
Quick Facts: • The entire stadium has been designed and built in line with all the latest safety and security requirements. • The stadium infield has been designed and built in accordance with the latest international sporting codes. • It will have the capacity to hold 70 000 spectators during the 2010 FIFA World Cup™ South Africa and 54
000 in legacy mode thereafter. Each seat will be spacious and will have excellent site lines and ease of access is ensured, with 50% of the stadium’s seats accessible from the main entrance level. 150 suites, housing a total of 7500 seats, will cover a range of different hospitality options. The grand centre arch, 106m high, will become a world first tourist attraction, thanks to a high-tech cable car designed to take visitors up to its highest point, where they can disembark and take in breathtaking, panoramic views of the city. This 350m long free-span steel arch weighs 2600 tons. The roof, consisting of Teflon coated glass fibre membranes - 46,000 square metres in total – are attached to the arch by 95mm diameter steel cables. Around the perimeter of the stadium structure is an 880m long steel compression ring that maintains the structure of the roof. On big match days, Walter Gilbert Road will be closed to traffic, creating a safe pedestrian precinct. Durban’s People Mover bus will stop at the stadium, allowing spectators to park at one of the many parking facilities in town and get
to the stadium safely and quickly. • A new Kings Park Railway Station is being developed adjacent to the stadium, allowing visitors direct
The facilities that make up this multi-purpose precinct include:
• The Moses Mabhida Stadium, which will be able to house numerous sporting disciplines, including cricket, rugby, athletics and of course soccer. • Heroes Walk, which will provide stadium access from the city centre, will offer a poignant journey through Durban’s history pages, paying homage to icons of sporting culture and political change • People’s Park will offer residents a central, green public area, filled with lawns, active spaces, promenades
and cycle tracks – the ideal place for people to meet, greet and relax Imbizo Place will lie at the very heart of the proposed precinct, forming a large public meeting place, defined by retail outlets and numerous restaurants A pedestrian link between Masabalala Yengwa Avenue (previously NMR Avenue) and the beach will be created, to offer a safe, enjoyable walk from the beach to the precinct, thanks to the use of special lighting, street furniture and hard and soft landscaping A new Kings Park Railway Station will provide direct rail access to the stadium Restaurants situated on the stadium’s Level 5 will offer stunning beach views and a fine dining experience A hospitality area will be created on Peoples Park during the 2010 FIFA World Cup™ to include a sponsor’s village, exhibition and a broadcasters’ village
The construction of the grand centre arch which will stand at 106m high and will be 350m in lenght and will weight 2600 tons.
Finance and Economic Development PROVINCE OF KWAZULU-NATAL
Office of the MEC
DUBE TRADEPORT AND NEW AIRPORT ON TRACK W
ith the year-end fast approaching, construction of the Dube TradePort and International Airport continues apace. The countdown to the first flight in 2010 is well and truly underway! Progress on site to date includes:
Runway: The base course of the runway is complete and the laying of the first course of asphalt has commenced. In addition, duct laying on the primary runway is also underway.
Taxiways: Stabilised layerwork on five of the airport’s eight taxiways is progressing well, while bulk earthworks are currently being completed on the remaining three.
Aprons: The airport provides for a total of four aprons. At present stabilised layerwork is being carried out on two of these aprons, while bulk earthworks are being finalised in the other two areas.
Main Terminal: Arrivals Level – The concrete slab and necessary piling for the airside corridor are complete. Steelwork for the baggage-handling conveyors has now commenced. Added to this is the fact that the fixing of frames for glazing has commenced on the north face of the building at the arrivals level. Departures Level – Work on the concrete slab is nearing completion and preparations have been made for the major final pouring of concrete. In addition, the office level concrete slab is progressing on schedule. The first section of the terminal’s main roof trusses has been erected and the concrete slab for the airside corridor at both arrivals and departures level in being developed.
Multi-Storey Car Park: Work on retaining walls has been completed along with the second level concrete slab. The ramp is currently being constructed and the erection of steel roofing is progressing well.
Cargo Terminal: All concrete for the building structure has been completed. Structural steelwork is nearing completion, while layerwork for
the surface bed slab is progressing. All brickwork, plastering and roof-sheeting is currently being completed. In addition, electrical and plumbing work has commenced in the cargo terminal building.
Control Tower: The tower shaft is fully complete, as is the installation of access stairs. Further, the erection of the steel cab – to be positioned atop the shaft – has also been completed. This structure has now been lifted off the ground to allow for its fitting-out. Strip footings and brickwork has commenced on the control tower building.
tion work has commenced.
Final trimming of the completed platform is being undertaken.
• Crash Fire and Rescue Building – The building frame is almost complete and structural steelwork erection is progressing, along with brickwork and plastering activities; • Maintenance Buildings – The steel framework is complete, while brickwork, plas-
tering and the compacting of layerworks for the surface bed slabs is all progressing well; North Gatehouse – The building structure and frame are being developed at present; Refuse Sorting Buildings – The steel frames, roofing and sorting bays have all been completed; Fuel Farm – The erection of steel tanks is progressing well. The Western tanks are already at full height, while the Eastern tanks are currently being erected; Main Reservoir – With the main structure complete,
work is now being undertaken on the pump station building and reservoir outlet chamber; • Fire Reservoir – Bulk earthworks for road access to the reservoir are being completed along with stormwater pipe culverts; and • Surface-Level Car Park – The base course and kerb installation is being undertaken, while a trial section of asphalt has been laid in the passenger surface-level car park. Bulk earthworks have been completed as regards the staff surface-level car park.
N2 Interchange: Bulk earthworks for the on/off ramps are progressing well and piling for the bridge is underway. Shuttering for the western abutments of the bridge structure is also being carried out. As regards the access road, bulk earthworks have been undertaken and the road is complete to formation level. Work on drainage, including storm-water pipe culvert preparation, is presently underway.
AgriZone: Bulk earthworks for the AgriZone link road are now being developed and ducting for cabling along the link road is being installed.
Trade Zone: Bulk earthworks for the Trade Zone access road have been completed and, in terms of drainage, pipe culverts are already in place and gabion embankment protec-
Above: Construction in progress at the new King Shaka Airport. Below: An artistic impression of what the King Shaka Airport will look like when it is completed.
Ibambeni NEW SHOPPING MALL SPELLS NEW BEGINNINGS FOR THE PEOPLE OF RICHMOND hursday, the December 4, marked a milestone for the people of Richmond as they converged in the city centre to officially open the biggest Shopping Mall in the area with a total investment of R100 million, giving hope for economic recovery after years of political violence. The event at which the MEC for Finance and Economic Development and Leader of Government Business, Dr Zweli Mkhize delivered the keynote address, was attended by the Mayor of Richmond Municipality, Cllr Ben Ngcongo, Speaker of Richmond Municipality, Dr Andrew Ragavaloo, councillors, local politicians, business people and community members. The construction of the Mall started late in 2006 through an investment by the Magnificent Four, a 75 % BEE company which is under Isolenu Holding Group. This was after Dr Mkhize engaged the business community to invest in Richmond so that the people that had fallen victim to political violence can rebuild their lives. The actual construction of the Mall cost R 55 million and tenants paid R45 million for the fittings the tailor-making of their shops. Speaking at the launch, Dr Mkhize said the launch of the Mall signified the new beginnings for the town that was ravaged by political violence. “This is the beginning of a new
chapter in the lives of the people of Richmond. A chapter where we will see reconciliation, peace, development and hope. This is a chapter that is going to address issues of job creation and development,” he said. During the construction of the Mall which has a square meterage of over 9000, 160 jobs were created and there is hope that more people are still going to be employed as more tenants will be moving in until January 2009. This will minimize the skyrocketing unemployment rate currently sitting at 47 %. About 30 shops, most of whom are national tenants, a mixture of grocery, clothing, food outlets and the Post Office have already moved into the Mall since October this year, curtailing the daily movement of the local people from Richmond to Pietermaritzburg for life necessities. Dr Mkhize said he would like to see Richmond Municipality, Local Business and the community working together to build the town and make it an envy of other towns in this country. The Mayor of Richmond Municipality, Cllr Ben Ngcongo, said that previously people were scared to invest in the area because of violence. “Now that investment has started, we can look forward to seeing people’s dignity being brought back. As a municipality, we are prepared to work with business to develop our area,”
Above: The MEC for Finance and Economic Development, Dr. Zweli Mkhize, and Cllr. Ben Ngcongo with the staff of the new Richmond Spar. Below: Dr. Zweli Mkhize and Richmond Mayor, Cllr. Ben Ngcongo shaking hands in front of the plaque, marking the official opening of the mall.
he said. Dr Mkhize said there is a huge need for more private public partnerships that will help to recre-
ate and improve the economy of many towns in KwaZulu-Natal so that the province can be attractive and ultimately become the
leading economically developed in the country.
GOVERNMENT’S RURAL DEVELOPMENT PLAN TAKING SHAPE overnment’s plan to fight poverty through the empowerment of women, especially in rural areas, is taking shape and paying dividend. One of the trailblazers is the uMlalazi based Inina Craft Agency which provides employment to about 150 women. The agency, which counts in its distribution network countries such as Canada and Sweden, has a projected turn over of R1.2 million this year and has provided improvement in the livelihood of craft producers in the municipal area. The agency was born out of an initiative by the University
of KwaZulu-Natal which started in 2001 to provide development support to craft enterprises in the uMlalazi Municipality. The approach was a structured business mentoring and skills development process focusing on the leadership of these enterprises. Inina Craft Agency which has become a thriving business was established out of this process comprising the leadership of four craft producer groups. Its specific purpose is to market, on a commercial basis, the products of these enterprises and to assist these enterprises in responding to market demand. It is formally registered as a trading cooperative and com-
prises 147 members, all of whom are women and all of whom have benefited economically from their membership. It is a registered exporter, it is registered with SARS and it has a tax clearance certificate. Inina operates from a fully equipped office facility at the training centre. Staff are computer literate and are able communicate by telephone, e-mail, fax and Skype with clients, customers and service providers. The Agency has the support of various partners including the Department of Economic Development, the European Union, Ford Foundation, Fuchs Foundation and the UKZN.
Inina members produce bracelets for the Bracelets of Hope campaign
Finance and Economic Development PROVINCE OF KWAZULU-NATAL
Office of the MEC
KZN YOUTH BENEFITS FROM SKILLS TRAINING PROGRAMME
THE DAWN OF A NEW ERA IN PUBLIC SERVICE BUDGETING
ground-breaking budgeting system which is geared towards eliminating poor planning in government was launched in August, creating a new dawn in public service budgeting in KwaZuluNatal. MEC for Finance and Economic Development and Leader of Government Business, Dr Zweli Mkhize led the launch of the Performance Budgeting System (PBS) which was championed by the Provincial Treasury in 2005 as a transversal system across all the departments in KwaZulu-Natal. “With this system, we are trying to eliminate poor planning which affects service delivery. We want to create an efficient machinery that helps meet our targets in terms of service delivery. To do this, the main thing is proper planning and monitoring. It will also help us to have a budget that addresses challenges faced by the people,” Dr Mkhize said. He said this system links public budgets to service delivery, the resource inputs which are funded by these budget allocations (such as personnel, equipment, vehicles) and the public goods and service delivery (such as roads, primary health care, support to municipalities). He said the system entrenches a systematic decision-making process for deciding how and where government money will be allocated. “By taking this approach, accountability for public resources and good fiscal governance is encouraged,” said Dr
Mkhize adding that Provincial Treasury saw PBS as instrumental in achieving its objective of ensuring optimum financial and fiscal management in the province, by minimizing roll-overs of funds and providing early warning of potential under-expenditure. “With this kind of system, I think the country must wait and watch KwaZulu-Natal perform. Other provinces will have to learn from us. What is a challenge for me is the independence of monitoring. It is important for those that are capturing the data to be independent from those that perform,” Dr Mkhize said. He said the system is going to force everyone to be upgraded so they perform better. To date, government institutions that have gone live on the PBS system are the Office of the Premier, the Legislature, and the departments of Economic Development, Treasury, Transport, Health, and Arts Culture and Tourism. The remaining government departments are at the implementation phase. Chairman of PBS (PTY) Ltd, Dr Iraj Abedian said without proper tools, we cannot define our performance. “This is a tool towards accountability which will work in conjunction with all the legislations that are in place which will encourage good practice,” he said. PBS is a Management Information System which was designed and implemented by a South African company – PBS (Pty) Ltd – exclusively for all levels of government.
said Dr Mkhize. Dr Mkhize said partnering with a well established training institution will enable the youth to be properly equipped to either enhance their chances of employment or start their own small businesses and then be an inspiration to many other young people. This training programme is in line with the one of the mandates of the provincial government- the promotion of youth development which includes the promotion of skills development for the youth in KwaZulu-Natal. Marketing Director Ifihlile Training Academy, Ms. Ria Ledwaba said only 15% of prac-
ticing artisans in the air-conditioning industry have training, and the average age is 52. “When we opened our operation in KwaZulu-Natal, we called for applications and we got a total of 17 000 applicants. Unfortunately we had space for only 300 students,” said Ledwaba. She said training courses offered by Ifihlile are informed by industry needs, to ensure that qualifying students do not sit with certificates they cannot use. Eighteen certificates were handed over to learners who have completed training in construction and air conditioning.
Nomfundo Zungu receiving a certificate in construction from MEC, Dr Zweli Mkhize after completing her training in construction. hree hundred youth have benefited from the youth technical skills training programme in refrigeration, airconditioning and construction that was launched at the end of August, 2008. The training programme launched by the MEC for Finance and Economic Development and Leader of Government Business, Dr Zweli Mkhize was meant to bridge the skills divide and ensure that the youth is offered a chance to be economically active. The beneficiaries, some of whom were awarded their certificates at the launch, vouched to use the skills to make a difference. The 24-year old Nomfundo Zungu of Bonnela, near Cato Manor who was awarded a certificate in construction said with the skills she has obtained, there will be no looking back. “I have Matric, but it is not helping me. But with the skills I have obtained in construction, I
intend to grow and own my own construction company that will compete with other established companies out there,” she said. The Provincial Treasury entered into a partnership with Ifihlile Training Academy in October 2007 to train the youth in air conditioning, refrigeration and construction. This project will see a total of 300 young people trained in batches of 100 at a time, in air-conditioning, refrigeration and construction over a period of two years through Ifihlile Training Academy, the only South African Black owned institution specialising in the air-conditioning and refrigeration. Currently, 286 learners are being trained, of these, 19 have been successfully placed in different companies. Seven (7) who have completed training chose to start their own small businesses which are now contracted to Ifihlile Training Academy. Speaking at the launch, Dr
Mkhize said through this partnership, the KwaZulu-Natal Provincial Government seeks to effectively address poverty reduction, unemployment, job creation as well as socio-economic transformation of the province. He said the government recognises strategic skills shortages as a critical constraint to the planned growth and development of KwaZulu-Natal and South Africa. “I want to agree with the sentiment raised that there is no shortage of jobs in South Africa but a shortage of skills,” he said. Dr Mkhize said there is a need for a public-private intervention to ensure that the country meets its skills needs. “In every community that I go to, the outcry is the same. People want opportunities, so we want to create opportunities for people to get employment or to employ themselves. By doing so, we will be able to leave behind a legacy of a good and stable country,”
IMBALI SCHOOLS RENOVATIONS Above: Dr. Zweli Mkhize & MEC for the Department of Public Works, Ms. Lydia Johnson getting their hands dirty during the hand-over of computers, paint and other donations to Mfundwenhle and Sinamuva Primary Schools in Imbali Pietermaritzburg.
Right: MEC for Finance and Economic Development, Dr. Zweli Mkhize (left) and Station Manager for Ukhozi FM, Mr. Welcome Nzimande (right) presenting Ilyasah Shabazz (Centre, daughter of Human Rights Activist Malcom X) with books and presents for her farewell ceremony after her visit to Durban for the South African Traditional Music Awards.
Finance and Economic Development PROVINCE OF KWAZULU-NATAL
Office of the MEC
JOZINI-BASED WOMEN FARMERS MAKE KWAZULU-NATAL PROUD Jozini-based group of 42 women farmers, without sufficient resources to make it in the highly competitive agricultural industry, have made KwaZulu-Natal proud by being crowned Top Female Farmers of the year, in the 2008 Land Bank-sponsored annual national competitions. Jabulani Vegetable Association who are small scale farmers, beat contestants from across the country in both provincial and national competitions and crowned twice in one year as Top Female Farmers. Entering the competitions for the first time, they were crowned Top Performers in the Household Category in Newcastle in July and repeated the same feat in the national competitions in August where they walked away with the crown of the Annual Female Farmers of the Year, 2008. MEC for Finance and Economic Development and Leader of Government Business, Dr Zweli Mkhize had a heart to heart conversation with these confidence-oozing women farmers with a view to encouraging more achievements from other cooperatives in KwaZulu-Natal. Responding to their request for assistance in securing more land to farm, Dr Mkhize, who was impressed to hear that the Association already provides vegetables to national chain stores, said government should be able to assist them within the next six
months. “In you, we have teachers who will teach other cooperatives how things should be done. What impresses me the most is that you are a cooperative of 42 people, and at best, cooperatives of five people fail to reach consensus and start fighting,” said Dr Mkhize. He also praised the members for their dedication to start working without having to wait for hand-outs or government support. Dr Mkhize said government is working on plans to revive all cooperatives in the province, even the ones that faltered. “We are working with the University of Zululand and experts from Kenya, who are going to teach cooperatives especially in the area of saving. A cooperative will only survive by saving and not through debt,” said Dr Mkhize. Dr Mkhize also said a new way of dealing with cooperatives when it comes to financial institutions will have to be devised. “When you take a loan from the bank, the expectation is that you have to start repaying that money before your crop has even grown. This has been one big challenge facing small business and cooperatives,” he said. Like most rurally-based small scale farmers, the association has numerous challenges. According to Mrs Busisiwe Mngomezulu, Chairwoman of the Association,
they don’t have enough plots as they have to divide the 8 hectors among all members so that each person can get a plot. “There are many things that we still need for us to grow in what we do. We don’t have tools such as tractors, fence, and transport to be able to sell our prod-
ucts else where,” she said. “We are already thinking about graduating from being small producers to being exporters of vegetables and compete with big business. We are dreaming of having our own farms so that we will be able to produce anything we want,” she said.
This association is in the process of registering as a cooperative and they see this as a step to positioning themselves properly to be able to get all the necessary help they need.
The MEC for Finance and Economic Development, Dr. Zweli Mkhize sharing a joyful moment with the memebers of Jabulani Vegetable Association. The Farmers have been crowned Provincial and National Top Female Farmers of the Year for 2008 in the Household Category.
Ibambeni EMPOWERING RURAL COMMUNITIES
EDITORIAL MESSAGE We would like to welcome you to the second issue of Ibambeni, and we invite you to immerse yourself in it so you can find more information about the programmes of the department that may be of assistance to you. Festive season is a critical period in everyone’s life. It is time for families and rest. But more importantly, it is a period for everyone to be exemplary by not indulging too much in alcoholic beverages, drugs and avoid
behaviour that is unbecoming. More than that, it is time to recharge so that we can resume the new year with renewed vigour, spirit and optimism. During this festive season, let us make a difference to those that may not see or have reason to celebrate because of poverty, sickness, homelessness or any other reason. May you all have a blessed festive season and a prosperous new year.
SEDA KZN CONTACT DETAILS “Sisonke Express“ which is aimed at both domestic and international travellers, will take the passengers on a great expedition of the fascinating area. h e K w a Z u l u - N a t a l a wealth of historical sites. The lating job creation. Department of Economic provincial government is thereThe above projects are just Development and its fore determined to integrate part of a rising figure of govsocial partners in both govern- this project with other ongoing ernment sponsored development and private sector are mak- economic undertakings like the ment commitments expected to ing visible difference in the socio- weaving studio, eatery and a his- energize the district’s economy economic profile of the vastly torical gallery at Centocow. The to combat poverty while prorural District of Sisonke on the rail project will have a butterfly moting real social equity in the south west of the province. Sev- effect resulting in the creation or local communities. This month eral development projects were expansion of other enterprises, was therefore targeted for the being implemented and other especially in the hospitality and official launch of some Kwawere in the pipeline for consider- agricultural sectors. Other towns Zulu-Natal government funded ation – bringing hope to this pov- such as Creighton, Deepdale and projects in the Sisonke district erty stricken area as job oppor- Underberg are positioning them- – with all MECs in the Provincial tunities were being created from selves for the establishment of Economic Cluster descending diverse sectors that included allied businesses like restaurants to the area to deliver projects to agribusiness, tourism and small and overnight apartments. the locals. Around fifty project scale manufacturing. Other projects being financed worth an estimated R240 milThrough the multi-million by the Department include the lion would be a catalyst for the rand Gijima KZN Local Economic establishment of a nature reserve growth of the local economy. As Development Programme, co- at Ntsikeni within the uMzim- indicated earlier the luxury steam funded with the European Union, khulu local municipality. This train venture will certainly attract the Department has been instru- would have two lodges and pic- more tourists to the area – mainly mental in the establishment nic sites that would all be fully boarding it from Pietermaritzburg of the tourism driven Sisonke operational at least ahead of the before it meanders through sevSteam Train to provide rail tours world cup tournament in two eral towns in the district. to some of the most attractive years time. The Department of The visit was led by MEC for locations in the province. Seven Arts, Culture and Tourism is one Finance and Economic Develrail passenger coaches had been of the key partners in this initia- opment, Dr Zweli Mkhize who refurbished to ferry tourists along tive and DED has since made R2, reminded the communities about the old rail network and infra- 8 million available for the project the current global economic structure that is being revamped to be complemented by a cultural hardships – saying people could to connect the local municipali- village with restaurants and cha- overcome the situation by seizties such as Ingwe, Greater Koks- lets. Around R7 million has been ing business opportunities cretad, KwaSani and uMzimkhulu. put aside for the establishment ated by government. He acknowlTo be dubbed Sisonke Express, of this business venture. Sev- edged that the area was rich in the train is being marketed to eral activities would form part of agriculture and locals should both domestic and international the facility’s business and these produce as much food to relieve travelers who are keen to get include horse trails, research on the country from imports. Mkhize an experience of this fascinat- local history and hosting of cul- indicated that the current coning area, characterized by breath tural events. The surrounding struction of the Dube Trade Port taking green topography that fea- land would be used for crop and on the north of Durban was offertures the rugged mountains of fruit production to contribute to ing many opportunities for local the southern Drakensberg and the local economy whilst stimu- producers to export fresh produce to the global market. Over the past four years Dr Mkhize EDITORIAL TEAM has mobilized poor communities to get actively involved in Editor and Writer Manager the economy through establishCorporate Communications Musa Cebisa Zodumo Mbuli ing co-operatives in diverse secTel: 033 846 6986 / Fax: 033 846 6801/2 Email: email@example.com tors. To ensure sustainability of Layout and Design these budding enterprises, proContributions MediaCom SA spective co-operatives had to Regi Khumalo, Joanne Winter, Tel: 033 394 0043/4 / Fax: 033 394 0046 undergo rigorous training in all Andile Khoza, Boyce Mntambo, Email: firstname.lastname@example.org Vuyo Mvoko, Perusha Naicker, Khanyi Zungu Website: www.mediacomsa.co.za aspects of running a business before being considered for govOffice of the MEC for Finance and Economic Development 330 Langalibalele Street, Pietermaritzburg, 3201 ernment funding.
Tel: 033 846 6800 / Fax: 033 846 6801/2
SEDA KZN – PROVINCIAL OFFICE Tel: 031 277 9500 Fax: 031 277 9510 Ground Floor, Kuehne & Nagel House, 381 King Dinuzulu (Berea) Road, Durban 4001
SEDA KZN – UMGUNGUNDLOVU BRANCH Branch Manager – Mr Bisson Girran Tel: (033) 264 3100 Fax: (033) 345 0574 204 Peter Kerchhoff Street, Pietermaritzburg, 3201
SEDA KZN – UTHUNGULU BRANCH Branch Manager – Mr Cedric Mnguni Tel: (035) 797 3711 Fax: (035) 797 4346 ZCBF Community Park, Gate 5, South Central Arterial, Richards Bay, 3900
SEDA KZN – UGU BRANCH Branch Manager – Mrs Nokwanda Cekwana (Acting) Tel: (039) 688 1560 Fax: (039) 684 0271 46 Bisset Street, Port Shepstone
SEDA KZN – SISONKE BRANCH Branch Manager – Mrs Nomfundo Dlatu Tel: (039) 727 1428 Fax: (039) 727 1194 109 Main Street, Kokstad, 4700
SEDA KZN – UTHUKELA BRANCH Branch Manager – Mr Reggie Mpanza Tel: (036) 631 3325 Fax: (036) 631 3553 33a Diamana Road, Ladysmith, 3370
SEDA KZN – AMAJUBA BRANCH Branch Manager – Mr Thembinkosi Simelane Tel: (034) 312 9096 Fax: (034) 315 2768 33 Voortrekker Street, Newcastle, 2940
SEDA KZN – ETHEKWINI BRANCH Branch Manager – Mr Protus Madlala Tel: (031) 277 9500
ITHALA BUSINESS CENTRES Thabisile Mthenjane - Ulundi - 035 870 0361 Sipho Nhleko - Jozini - 035 572 1567 Sbusiso Chiliza - Treasury PMB - 033 897 4548 Jabu Madonsela - Umgeni - 031 309 1073 Lungile Ngema - Newcastle - 034 312 2920 Lucus Mbatha - Ladysmith - 036 637 8410 Lwazi Nhlapho - Langalibalele St PMB - 033 345 8351 Mgcini Mbele - Portshepstone - 039 682 3254
Finance and Economic Development PROVINCE OF KWAZULU-NATAL
Office of the MEC
WORLD CLASS SPORTING ACADEMY AT WILLOWFOUNTAIN, PIETERMARITZBURG
From left to right: School Principal, Mr. Eric Kwanini, School Teacher, Mr. Mduduzi Madlala, National Lottery Distribution Fund representative, Mr. Aleck Skhosana, Dr. May Mashego and MEC for Finance and Economic Development, Dr. Zweli Mkhize during the handover of the R500 000 cheque to Ikusaselihle Sports Academy. housands of sport-loving youth in KwaZulu-Natal stand to benefit from the soon-to-be constructed worldclass academy in the peri-urban Willowfountain, outside Pietermaritzburg. The construction, due to start before the end of this year, 2008 was made possible with the donation of R500 000 by the National Lottery Distribution Fund, which will contribute towards the first phase of the construction at Ikusaselihle High School. MEC for Finance and Economic Development and Chairman of the 2010 Soccer World Cup Political Oversight Committee, Dr Zweli Mkhize was invited at the official handing-over of the sponsorship which was accompanied by the sod-turning ceremony. The event was also attended by members of the community and business leaders who pledged more physical and monetary support for the school. The sponsorship is for the building of an academy for sporting excellence in this peri-urban community in the form of a multipurpose centre, catering for various sporting codes. The planned academy is going to benefit not only pupils of Ikusaselihle High School, but all
talented youth from the province and outside with the intention of developing sporting talent that will help brighten their future. School principal, Eric Nkwanini said construction is to begin this month, adding that there has been support from various other sponsors for the programme. Addressing delegates, Dr Mkhize, who is also the chairman of the 2010 Political Oversight Committee, said the building of the Academy will help many young people realize their sporting talent and use it to better their lives. “The aim is to ensure that young people who will get trained here will be ready for the international stage. You are going to get many more young people waiting in line wanting to get into the academy,” said Dr Mkhize. Dr Mkhize said sport is very important in terms of building national pride and in making people forget the fights of the past. “We want to see this centre guide young people away from the life of crime and drugs,” said Dr Mkhize. Dr Mkhize said he was also very pleased with the progress made by the school, recounting the situation he found the school under when he returned from
exile in the 90s. “There was this big confrontation between some learners and teacher. The learners on one side are saying ‘pass one pass all, with the teachers saying ‘no, it doesn’t work that way’,” said Dr Mkhize. He said the whole community was under a cloud of violence, and the school had a population of 360 learners. But when the community came together to solve the problems, the learner number quickly grew to 750, and is currently over 1000. Dr Mkhize said there is a lot of talent that needs to be unearthed and used for the benefit of the province and country as a whole. The Academy will offer sporting codes such as soccer, volleyball, netball and basket ball. National Lottery Distribution Fund representative, Aleck Skhosana said the Lotto is willing to continue helping, provided the money is used correctly and is accounted for. Wearing the cap of the KZN Sports Academy, Skhosana pledged 2 soccer kits and 44 balls for the school’s Under 14 team. Other pledges came from Gama Classic Funeral, which promised R10 000 in computers
and the establishment and maintenance of the school’s own website; school fees and uniforms for ten learners, and assistance for the school’s gospel choir from Themba Njilo’s Induduzo Funeral
Service. Dr Mkhize’s wife, Dr May Mashego, also pledged a R10 000 donation to the school.
Director of Sports Section in the Department of Education, Miss Nomusa Muthwa, MEC for Finance and Economic Development, Dr. Zweli Mkhize, his wife Dr. May Mashego, School Principal, Mr. Eric Kwanini, Development coach at Mamelodi Sundowns, Mr. Simon Ngomane and School Teacher, Mr. Mduduzi Madlala during the sod-turning ceremony.