The constraints to growth in these sectors were investigated to identify points of light intervention which may have substantive pro-poor impact. Land ownership, infrastructure availability and education levels are the major constraints to growth. And support industries are located an hour’s drive away.
The infrastructure backlog to citizens throughout Fetakgomo is not a priority concern of investors or businesses - in Fetakgomo all business needs is one suitable place, close to the mine, which has the services they require. This infrastructure is included in the plans to establish a township with serviced sites. Whereas the Fetakgomo municipal area has a backlog in basic infrastructure when measured from a social service and human development perspective, the basic infrastructural service required for business can be provided where required if it does not already exist.
It is also known that it is the delivery of services such as water, sanitation, electricity and telephones that lay a foundation for poverty reduction primarily because it reduces cost of living to citizens. However, this development work does not fall within the scope of LED which aims to grow the local economy but falls in the domain of Spatial-, Infrastructural- and Social development which also aim to alleviate poverty, and are equally important fields of development with massive budgets and institutional capacity compared to LED. These areas of development however function in a very different way to LED, for good reasons.
Basic education is a longer term issue and after 20 years from now will have a profound impact on LED, if those locals educated, choose to remain in the area. Education development initiatives (as part of social development) have massive funding and institutional capacity, strategies and programmes and the idea of allocating Fetakgomo LED resources to this as a priority, hoping to see results 10 – 20 years later, remains unconvincing. Skills, competencies and capabilities are needed in the shorter term to respond to the current window of opportunity to create jobs. The appropriate response by LED stakeholders to address critical shortages of entrepreneurs, capital and high skills is simply to attract them to Fetakgomo from other areas to respond to the local economic opportunities. These organisations will employ and transfer skills in their process of conducting business from Fetakgomo.
Sekhukhune district LED is pursuing the longer term relevant education and skills agenda in conjunction with the wealthy mining houses. By the time the mines have exhausted their potential the local school leavers should be equipped with a competitive basic education, to qualify for further education in a field where they could find employment.
The feasible and most beneficial points of intervention relating to alleviation of constraints to growth identified are listed below:
Applicable to all Sectors: - Land ownership and availability
- Slow completion of the connecting road from Marble Hall via Fetakgomo D4190 to R37 (Dilokong corridor)
- Key stakeholders do not understand the extent of economic potential linked to mining growth
- Inadequate support from Provincial- and District- levels for economic priorities
Applicable to Mining growth: - Certainty of land availability for mine expansion
- Serviced land for staff housing and industrial premises
- Link road D4190 not tarred
Applicable to Agriculture growth: - Land ownership
- Sustained access to markets
- Ineffective expertise support
- Commercial farming skills
Applicable to Tourism growth: - No accommodation
- Tourism attractions not developed
- Roads to tourist attractions and other tourism destinations not built yet
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