Download 1-04_HLONI

Presented by:
“Me Hloni” Maboe - Phike, Municipal Manager for Masilonyana Local Municipality
ABOUT THE MUNICIPALITY
A peri-urban, level 3 municipality situated
in the Free State.
We fall under Lejweleputswa District
municipality.
Head Office is in Theunissen and there are
four other towns in the area, Brandfort, Winburg,
Verkeerdevlei and Soutpan.
We have 371 employees in the municipality
SOCIO-ECONOMIC PROFILE
67% of young population (that is people younger
than 35), must enter labour market.
There is an unemployment rate of 26-28% and
economically-not- active 38%
Low skilled workers (56%)
 elementary occupations (33%)
with only 20% white collar workers.
SOCIO-ECONOMIC PROFILE
Mining dominates GDP at (24%)
Agriculture (17%)
Community Services (13%)
Manufacturing/retail are small contributors who
need a new injection and focus
Low household incomes.
SOCIO-ECONOMIC PROFILE
In the District the average household income is
R1824 while in Masilonyana Local Municipality the
average income is at (R 1371)
There is low schooling levels among community
members.
Conclusion: There is a dire need for job creation
and sustainable projects and proper accredited
training.
BROAD OBJECTIVES – TO DEAL WITH ECONOMIC CHALLENGES
 Aggressive Local Economic Development strategy
and procurement policy to address the challenges of
the community.
Human development critical – given challenges of
illiteracy.
 Create sustainable jobs for our people
 Working in collaboration with the mines,
agricultural sector and other established local
businesses
BROAD OBJECTIVES – TO DEAL WITH ECONOMIC CHALLENGES
 To establish and support cooperatives to convert
second economy businesses in Masilonyana radius
into the first economy businesses.
To focus on agro-processing and exports of
agricultural products.
To also attract both national and international
investors to the municipality
To establish an organization with the capacity of
national expansion.
KEY STAKEHOLDERS – to work with for economic development
Private
sector/
Mines
Communi
ty/People
Government/Munici
pality
SECTORS TO DRIVE GROWTH
Financial
Sector
Retail Business
Sector
Mining Sector
CORE
SECTORS
Safety &
Security
General
Cleaning
Services Sector
Building
Maintenance &
Manufacturing
Sector
CONSTRUCTION SECTOR - FACILITATE PARTNERSHIPS
 Bucket eradication program presented
opportunity
None of local companies had the necessary cidb
level of grading.
A strategy was then developed to link local
constructors with main Constructor.
Key elements of the strategy were to ensure that
local companies participate fully in the projects.
CONSTRUCTION SECTOR - FACILITATE PARTNERSHIPS
Set up Masilonyana Business Forum
Municipal officials to not get involved with this
process
This process must not interfere with the legal
tendering processes.
Benefits of this process resulted in local
contractors moving to better CIDB grades.
 We are working on replicating this in our other
projects like R30/R34 and N1 roads construction.
CONSTRUCTION SECTOR - FACILITATE PARTNERSHIPS
 The strategy was to ensure that any tender
awarded allocates 30-50% of the project value to
local contractors.
Challenges arose as to the criteria of matching
companies.
A transparent, fair, clean and participatory
processes were established and followed.
The sharing of the procurement spend must be
across various towns within the municipal area.
SOME COMPANIES THAT BENEFITED FROM OUR EFFORTS
Naledi Construction – Situated in
Theunissen/Masilo.
Have completed an R8m bucket eradication
project in Theunissen/Masilo.
Scope was as follows: Construction of 762 toilets
with connections and 7.7 km of pipeline.
SOME COMPANIES THAT BENEFITED FROM OUR EFFORTS
Zigana Mbele construction situated in
Brandfort/Majwemasweu.
They have completed a R5.2m bucket eradication
project in Brandfort/Majwemasweu successfully.
Scope of work was as follows: construction of 1050
toilets with connections.
Numerous joint ventures and sub contractors also
benefitted from this process.
Skills training and transfer needs to be improved
BEYOND PROCUREMENT – MINE COMPANIES
Partnerships with mining companies to develop
the local economy.
We work with mines in our jurisdiction towards
achieving the above (Honouring mining charter).
They are Beatrix, Harmony and Star Diamond as
well as new mines in establishment phase in our
jurisdiction.
Eg.: They are all committed to building a Business
Development Centre for the municipality with
other government departments .
CONCLUSION
We should continue to strife to uncover new areas
where communities should be empowered to
explore and benefit from the economies across our
country and beyond.
As Masilonyana Municipality motto dictates:
“Together we’ll Succeed”
!!!RE A LEBOGA!!!