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Most of the growth in the next few years will be derived from the planned growth in mining. The extent of Fetakgomo benefiting from this growth depends on the effectiveness in removing the key constraints and the extent to which mine opportunities can successfully be utilised by local or new investors. Local purchase by the mine will increase, leaving more revenue circulating in the local economy. The increase in local supply to the mine will be facilitated, but must be based on competitive market principles and not cause high risk or cost to the mine.
A total of five strategic thrusts will contribute to economic growth: - Leverage Opportunities from Mining Growth
- Remove key Constraints to Economic growth
- Establish Commercial Farming
- Promote Fetakgomo
- Start Tourism initiatives
The selection of intervention options was based on: - Catalytic impact meaningful improvement for many beneficiaries;
- Sustainability of change / impact;
- Quick and visible results (for many citizens to see LED is worth supporting and to build social capital); and
- Implementable initiatives given the local context of:
- Availability of enthusiastic and committed leaders/champions,
- Accessibility of financial resources, and
- Political support and sound leadership.
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| Thrust 1: Leverage Opportunities from Mining Growth | The Angloplats ATOK Mine is planning for growth as follows: - Output to increase by 67%in 2 years and 233% in 5 years,
- Jobs to increase from current 4000, by another 2000 in 2 years and 6000 in 5 years, and
- R 4 billion capital expenditure investment in the mine expansion.
The mining growth is planned and budgeted and therefore certain to take place. This will provide opportunity for many locals for the next 20+ years, according to mine estimates. The only significant risk is the land surface rights disputes. If these cause significant delays, Angloplats may reprioritise investment elsewhere. This risk needs to be addressed. The mine manager identified approximately forty different types of services that the mine requires and which present opportunities for local businesses to supply the mine. Further opportunity will also result from mid- and higher-income employees of the mine choosing to reside in Fetakgomo. Some of the opportunities include: - Domestic workers,
- Utilise transport services,
- Make retail purchases.
- If the property market can be normalised, increased demand for residential accommodation in Fetakgomo can drive property values up, thereby resulting in capital gains for existing property owners. The pre-requisite is that land ownership constraints have been resolved competitively.
The nature of the opportunities are illustrated in the figure below.
Specific targets for the next 2 3 years:
| 1. Establish a business linkage- and supplier competitiveness- development facilitator for Fetakgomo based suppliers. | By June 2007 | | 2. 20 suppliers located in Fetakgomo municipality provide operational services to the mine. | By March 2009, | | 3. 200 mine employees have invested in homes in the Fetakgomo municipality. | By March 2009, |
Five prioritised initiatives (detailed in chapter 8) will initiate to change: - Systematically identify and utilise the opportunities from the Mine
- Upgrade the section of the D4190 Road that links the Fetakgomo town the R47 link to ATOK Mine
- Unblock the Land ownership constraints
- Remove blockages to investment in housing
- Improved support from District and Provincial Levels (to help with above)
Accountability rests with the LED manager. Subsequent priorities will be identified by October 2007. | Thrust 2: Remove Key Constraints to Economic growth | The mining growth is likely to open up a variety of opportunities. However, Fetakgomo must still improve its competitiveness as a location attractive for investors. The following existing comparative advantages may convince locals to live and invest in Fetakgomo: - proximity to ATOK mine,
- an attractive landscape and/or setting for homes,
- low house prices (assuming property rights are resolved) and
- low levels of crime.
Priority objectives for improving locational factors include: - Land ownership that is normalised and property markets that are working,
- Spatial Development that responds to economic potential,
- Infrastructure development that responds to economic priorities,
- Development that is controlled and sustainable, and
- Healthy governance of local government and local development.
The land issue undermines any future LED in the area. The figure below illustrate the throttling effect that the un-competitiveness in landownership, has on all the other sectors. If land cannot be owned, investment is discouraged.
The typical reasoning associated with a property investment decision, is illustrated in the figures below.
Three layers of red tape hinder transactions. Gate keeping throttles transactions.
Specific targets for the next 2 3 years: | 1. Raise awareness of local leaders and communities of the poverty consequence of current land ownership system. | 80% of Magoshi | | 2. Ensure the D4190 road is upgraded by March 2008. | | | 3. Normalise land ownership to compete with other areas for investment. | by March 2008 | | 4. Ensure that the speed of land transactions is competitive (target less than 2 months) | by March 2009. | | 5. Township proclamation finalised and 300 (?) serviced housing plots and 30 serviced business plots available | by March 2008. |
Four prioritised initiatives (detailed in chapter 8) will initiate change: - Unblock the Land Constraint
- Upgrade D4190 road to Mine
- Remove blockages to Investment in Housing
- Improved support from District and Provincial Levels
Accountability for this thrust is shared by the Mayor, Municipal Manager and the IDPManager. Subsequent priorities will be identified by October 2007. | | Thrust 3: Establish Commercial Farming | In terms of pro poor growth in the context of low levels of education, agriculture offers an option of employment for persons with existing farming skills. Currently, the irrigated and fertile land available is not utilised effectively by the current subsistence farming initiatives, to contribute significantly to the local economy and employment. The expertise, scale and efficiencies of commercial level farming is likely to lead to higher yields, better margins, self-sustainability and growth in employment.
The challenge is to establish the right conditions or incentives to attract and retain commercial farming expertise, and investment to work with emerging farmers in a way that benefits everyone. Mentorship schemes have been tried with varying results the challenge always being sustainability. What Fetakgomo does have in abundance is land, currently of little value. This land could be utilised as a draw card to attract competent commercial farm managers who have worked for 20 odd years to make someone elses farm a success. The prospect of owning his/her own farm and accessing some state support through the Department of Agriculture may be enough to work with a group of emerging farmers to all simultaneously establish a number of adjacent commercial farms, geared at supplying the local mines or other markets.
At least one Kgoshi with irrigated land is willing to test the concept and the Department of Agriculture has indicated willingness to support the initiatives by providing and improving the infra-structure.
Specific targets for the next 2 5 years: | 1. Establish a commercial farming pilot initiative with sustained commercial level expertise, to support 8 emerging farmers. | by March 2008. | | 2. Gain commitment from the mines to purchase target amounts of agricultural goods from the Fetakgomo municipality | by September 2007. | | 3. At least 4 of the emerging farmers and the farmer/coach succeed in establishing their commercial farms, each employ > 10 persons | by March 2012. |
Five prioritised initiatives (detailed in chapter 8) will initiate to change: - Unblock the Land Constraint
- Establish Commercial Farming level Support for Emerging Farmers
- Partnership with commercial farmers e.g. Marble Hall
- Improved support from District and other spheres of government
- Systematically identify and utilise the opportunities from Mine
Accountability rests with the LED Manager. Subsequent priorities will be identified by October 2007. | | Thrust 4: Promote Fetakgomo | Fetakgomo is literally not on the map. Even locals disagree about what the town is called. Only recently have two signs been erected, otherwise road signs do not refer to Fetakgomo. Essentially, Fetakgomo does not have an identity, it is not known and is really difficult to locate and therefore to do business with.
To reverse this situation, Fetakgomo aims to become: | 1. A well branded municipality with high awareness and affinity | by March 2009. |
Two initiatives (detailed in chapter 8) will initiate change: - Promote Fetakgomo.
- Make Fetakgomo easier to find.
- Improved support from District and Provincial Levels.
Accountability rests with the Municipal manager. Subsequent priorities will be identified by October 2007. | | Thrust 5: Start Tourism | Tourism is one sector where competitive advantage can be developed and maintained with the long term goal of reducing dependency on the mining sector. The short term demand for accommodation whilst the mining expansion takes place, presents an opportunity to establish sustainable accommodation and facilities. Visitors to mines and the public sector have nowhere to stay and have to commute for more than an hour from Polokwane and Burgersfort. A present there is no suitable accommodation in Fetakgomo yet.
The site at Potlake Game Reserve offers potential for establishing accommodation for the short term and longer term objectives.
The specific targets for the next 2 3 years: | 1. Establish accommodation and conference facilities at Potlake nature reserve | by March 2008 | | 2. Build a tarred road from R37 to Sekhukhune cultural village | by March 2008 |
Four initiatives (detailed in chapter 8) will initiate change: - Establish accommodation and conference facilities at Potlake nature reserve
- Build a road from R37 to Sekhukhune cultural village
- Make Fetakgomo easier to find (on maps, website and road signage)
- Improved support from District and Provincial levels
Champion: LED Manager |
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