Drakenstein Municipality 2017 - Western Cape Government
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DRAKENSTEIN: AT A GLANCE 1. DEMOGRAPHICS 1 2. EDUCATION 3 3. HEALTH 7 4. POVERTY 12 5. BASIC SERVICE DELIVERY 15 6. SAFETY AND SECURITY 19 7. THE ECONOMY 24 8. INFRASTRUCTURE DEVELOPMENT 28 SOURCES 33
Drakenstein: At a Glance Population Estimates, 2018; Actual households, 2016 273 066 71 686 2016 2016 Matric Pass Rate 86.7% Gini Coefficient 0.59 Learner-Teacher Ratio 36.5 Human Development Index 0.71 Gr 12 Drop-out Rate 26.0% 2016 16 78.3% 0.0 5.5% Percentage change between 2016 and 2017 in number of reported cases per 100 000 -1.4% -2.8% 19.0% 57.9% 1.6% Percentage of households with access to basic services, 2016 99.5% 90.6% 94.5% 98.4% 90.3% 2016 2016 Drought 53 Unemployment Rate Financial Sustainability (Grant dependency) 61 14.9% Stagnating Economic Growth Contribution to GDP, 2015 Finance, insurance, real estate Wholesale and retail trade, Manufacturing and business services catering and accommodation 21.2% 17.7% 16.1%
1 DEMOGRAPHICS Department of Health, 2016 This first chapter of the SEP focusses on the people living in Drakenstein itself. A demographic perspective on a municipality allows to observe not only simple changes in population growth, but also to look at other various developments that influence the social life of every citizen. Demographics allow to emphasise aspects of society like, e.g. gender, race, migration or life expectancy. Decisions made by politicians as well as by the administration affect in almost every case at least one aspect of Demographics. Therefore, a good understanding of this area is crucial for the government’s work. The overview of key demographic factors given in this chapter comprises of the estimates of population size, the distribution of population within age cohorts and furthermore the dependency ratio, which is of high importance for understanding economic activity in the area as well as for planning welfare systems. With this short, but informative overview, the SEP tries to help the municipalities in their budgeting process by delivering precise data as a solid foundation for future decisions. Data source: Department of Social Development, 2017 Contribution to GDP, 2016 1 2017 Socio-economic Profile: Drakenstein Municipality
POPULATION 350 000 300 000 250 000 200 000 150 000 100 000 50 000 0 Breede Valley Drakenstein Langeberg Stellenbosch Witzenberg 2018 179 550 273 066 104 289 176 523 130 607 2019 181 259 275 980 105 159 179 463 132 542 2020 182 941 278 791 106 013 182 372 134 444 2021 184 576 281 498 106 862 185 216 136 295 2022 186 182 284 087 107 708 187 983 138 107 2023 187 723 286 563 108 539 190 680 139 872 According to the estimates of the Department of Social Development, the population of Drakenstein is expected to expand rapidly across the next 5 years. As per above, the population will grow from 273 066 people in 2018 to 286 563 in 2023 which equates to a 1.0 per cent year-on-year growth rate. This rate is relatively lower than that of the District as a whole (1.4 per cent). AGE COHORTS Children: Working Age: Aged: Dependency Year 0 - 14 Years 15 - 65 Years 65 + Ratio 2011 64 293 173 839 13 137 44.5 2018 70 386 185 403 17 278 47.3 2023 72 085 193 185 21 294 48.3 The above table depicts the population composition regarding age cohorts. The total population is broken down into three different groups: Age 0 - 14: children; Age 15 - 65: working age population; Age 65+: seniors. A comparison between the 2018 and 2023 estimates show a sharp increase in the number of people within the working age and aged cohorts whilst the children grouping only increases marginally across the same reference period. The relative small increase in the child cohort attest of potential lower birth-rates which will in future impact upon the working age and over time increase the dependency ratio. A higher dependency ratio means increased pressure on social systems and the delivery of basic services. 2 2017 Socio-economic Profile: Drakenstein Municipality
2 EDUCATION Education and training improves access to employment opportunities and helps to sustain and accelerate overall development. It expands the range of options available from which a person can choose to create opportunities for a fulfilling life. Through indirect positive effects on health and life expectancy, the level of education of a population also influences its welfare. Data source: Western Cape Education Department, 2017 3 2017 Socio-economic Profile: Drakenstein Municipality
LEARNER ENROLMENT 50 000 45 000 40 000 35 000 30 000 25 000 20 000 15 000 10 000 5 000 0 Drakenstein Langeberg Stellenbosch Witzenberg Breede Valley 2014 46 474 17 226 25 274 18 038 32 076 2015 46 988 17 499 26 129 18 181 32 466 2016 47 601 17 838 26 085 18 048 32 558 Learners within the Cape Winelands District are largely concentrated within the Drakenstein region where enrolment figures increased by 2.4 per cent between 2014 and 2016. This growth attests to improved access to education. LEARNER-TEACHER RATIO The learner-teacher ratio in Drakenstein increased significantly from 28.8 in 2014 to 36.3 in 2015, but remained relatively the same between 2015 and 2016 (36.5). The increase between 2014 and 2015 is nonetheless a case of concern as it is commonly assumed that children receive less personalised attention in larger class environments and that high learner-teacher ratios are detrimental to improved educational outcomes. GRADE 12 DROP-OUT RATES A total of 26.0 per cent of students that enrolled in Grade 10 in 2014 dropped out of school by the time they reached Grade 12 in 2016. Although this number is alarmingly high, it is a slight improvement from the 2015 drop-out rate of 27.1 per cent. These high levels of drop-outs are influenced by a wide array of economic factors including unemployment, poverty, indigent households, high levels of households with no income or rely on less than R515 a month and teenage pregnancies. 4 2017 Socio-economic Profile: Drakenstein Municipality
EDUCATIONAL FACILITIES The availability of adequate education facilities such as schools, FET colleges and schools equipped with libraries and media centres could affect academic outcomes positively. 80 70 60 50 40 30 20 10 0 Number of Schools with Libraries Total Number of Schools 2014 48 68 2015 49 68 2016 49 68 There were 68 schools within the greater Drakenstein area in 2014 of which 48 had functional libraries. Although the number of schools have remained unchanged ever since, one additional school was equipped with a library in 2015. The unchanged number of schools does however appear problematic in the face of rising population numbers which will in time also increase the demand for quality education. 100,0% 90,0% 80,0% 70,0% 60,0% 50,0% 40,0% 30,0% 20,0% 10,0% 0,0% Breede Valley Drakenstein Langeberg Stellenbosch Witzenberg 2014 80,4% 67,7% 87,3% 65,0% 84,9% 2015 80,4% 67,7% 87,3% 65,0% 84,9% 2016 77,6% 67,7% 87,3% 64,1% 83,3% The above graph depicts the number of no-fee schools within the various local municipalities of the Cape Winelands District. In Drakenstein, 68.0 per cent of all schools in 2016 were considered to be no-fee schools, which bodes well to improve access to education for people from poorer communities. With the exception of Stellenbosch, Drakenstein does however have the lowest number of no-fee schools in the District. 5 2017 Socio-economic Profile: Drakenstein Municipality
EDUCATION OUTCOMES Education remains one of the key avenues through which the state is involved in the economy. In preparing individuals for future engagements in the broader market, policy decisions and choices in the sphere of education play a critical role in determining the extent to which future economy and poverty reduction plans can be realised. This section measures the matric pass rates within the Cape Winelands District. 100,00% 90,00% 80,00% 70,00% 60,00% 50,00% 40,00% 30,00% 20,00% 10,00% 0,00% Drakenstein Langeberg Stellenbosch Witzenberg Breede Valley 2014 83,80% 84,20% 87,20% 75,10% 82,10% 2015 86,70% 84,50% 85,60% 72,50% 82,40% 2016 86,70% 85,70% 86,90% 74,50% 84,20% Matric pass rates within Drakenstein increased between 2014 (83.8 per cent) and 2015 (86.7 per cent), but remained unchanged in 2016. Together with Stellenbosch, the Municipality enjoys the highest pass rate in the District. The increase in the pass rate drastically improves access to higher education opportunities which will in time satisfy the increased demand for semi and highly-skilled labour. 6 2017 Socio-economic Profile: Drakenstein Municipality
3 HEALTH Health is another major factor contributing to the general quality of life in Drakenstein. It is therefore for the municipality important to monitor the public health facilities as well as a variety of factors as diseases like HIV or TB and general topics that affect the community, like maternal health. This Socio-economic Profile provides the basic statistics concerning those issues. Since this profile focusses on the public health facilities, private facilities do not appear in it. Data source: Department of Health, 2017 7 2017 Socio-economic Profile: Drakenstein Municipality
HEALTHCARE FACILITIES All citizens’ right to access to healthcare services are directly affected by the number and spread of facilities within their geographical reach. South Africa’s healthcare system is geared in such a way that people have to move from primary, with a referral system, to secondary and tertiary levels. 30 25 20 15 10 5 0 Total Number of Number of Number of number of PHC Clinics - Number of Number of Community ART clinics/ TB clinics/ PHC facilities non-fixed PHC Clinics - regional Day Centres treatment treatment (Fixed clinics, mobiles/ fixed hospitals sites sites CHCs and satelite) CDCs) 2014 3 13 6 13 1 23 16 2015 3 13 6 13 1 28 16 2016 3 13 6 13 1 27 16 In 2016, Drakenstein had a total number of 16 primary healthcare facilities – 13 fixed PHC clinics as well as 3 community day centres. In addition, there are 13 ART and 27 TB treatment sites as well as one regional hospital within the municipal area. With the exception of the number of TB treatment sites that varied, the total number of healthcare facilities remained mostly unchanged since 2014. EMERGENCY MEDICAL SERVICES Access to emergency medical services is critical for rural citizens due to rural distances between towns and health facilities being much greater than in the urban areas. Combined with the relatively lower population per square kilometre in rural areas, ambulance coverage is greater in rural areas in order to maintain adequate coverage for rural communities. The number of ambulances per 10 000 people in Drakenstein increased from 0.2 in 2015 to 0.3 in 2016, remaining constant at 0.3 in 2017. This increase is welcomed as a larger number of operational ambulances can provide a greater coverage of emergency medical services. Drakenstein’s ambulance ratio in 2017 lower than that of the Cape Winelands District (0.5). 8 2017 Socio-economic Profile: Drakenstein Municipality
HIV/AIDS HIV/AIDS management is crucial given its implications for the labour force and the demand for healthcare services. Registered patients Number of new ART HIV Transmission Rate receiving ART patients Area 2014 2015 2016 2014 2015 2016 2014 2015 2016 Drakenstein 5 902 6 578 7 815 1 399 1 515 1 428 1.1 0.9 2.3 Cape Winelands 19 615 23 172 27 162 4 595 5 195 5 097 1.7 1.7 1.5 District There has been a steady rise in the number of registered patients receiving antiretroviral treatment (ART) in Drakenstein since 2014 which attests of improved access to ART medication as well as the success of proactive information campaigns by government to raise awareness as to the availability of ART treatments. The number of new ART patients also notably decreased. It has previously also been mentioned that the number of ART clinics/treatment sites remain unchanged at 13 across the last 3 years which, given the increase in the number of registered patients, could in time result in serious capacity constraints. In addition to improving the quality of life of the patient, antiretroviral treatment to mothers both before and at birth, also decreases the chances that infants will contract HIV from their mothers. Despite the progress made to increase access to ART medication, the HIV transmission rate between mother and child almost more than doubled in Drakenstein from 0.9 per cent 2015 to 2.3 per cent in 2016. The 2016 rate is also considerably higher than that of the District. TUBERCULOSIS 2 200 2 169 2 150 2 125 2 100 2014 2 050 2 020 2015 2 000 2016 1 950 1 900 Number of TB patients The number of tuberculosis (TB) patients within Drakenstein increased from 2 020 patients in 2014 to 2 169 in 2015 which equates to a 7.4 per cent increase. This number slightly decreased to 2 125 in 2016. 9 2017 Socio-economic Profile: Drakenstein Municipality
CHILD HEALTH Cape Winelands Health Indicator Drakenstein District Immunisation 78.3% 79.4% Malnutrition 3.1 3.9 Neonatal mortality rate 0.8 5.2 Low birth weight 14.0% 14.0% The Department of Health strongly advises mothers to protect their children from infectious diseases by getting them vaccinated from birth to when they are 12 years old. Vaccination is free of charge at all health facilities. The Department also runs immunisation campaigns and health workers are sent to nursery schools and crèches to immunise the children. The full immunisation coverage rate for children under the age of one in Drakenstein in 2016 was 78.3 per cent which is relatively on par with the District rate of 79.4 per cent. There were 3.1 malnourished children under five years per 100 000 people in Drakenstein in 2016. This is notably lower than the District rate of 3.9. The Province aims to reduce neonatal deaths to 6 per 1 000 live births by 2019. Both Drakenstein (0.8) and the Cape Winelands District’s (5.2) neonatal mortality rate was in 2016 already lower than the Provincial target. Drakenstein’s rate was however still significantly lower than that of the District. A total of 14.0 per cent of all babies born in Drakenstein in 2017 were considered to be underweight which is on par with the District average. DEFINITIONS Immunisation: The immunisation rate is calculated as the number of children immunised as a percentage of the total number of children less than one year of age. Immunisation protects both adults and children against preventable infectious diseases. Low immunisation rates speak to the need for parents to understand the critical importance of immunisation, as well as the need to encourage parents to have their young children immunised. Malnutrition: Expressed as the number of malnourished children under five years per 100 000 people. Malnutrition (either under- or over-nutrition) refers to the condition whereby an individual does not receive adequate amounts or receives excessive amounts of nutrients. Neonatal mortality rate: Measured as the number of neonates dying before reaching 28 days of age, per 1 000 live births in a given year. The first 28 days of life (neonatal period) represent the most vulnerable time for a child’s survival. The Province’s target for 2019 is 6.0 per 1 000 live births. Low birth weight: Percentage of all babies born in facility that weighed less than 2 500 g. Low birth weight is associated with a range of both short- and long-term consequences. 10 2017 Socio-economic Profile: Drakenstein Municipality
MATERNAL HEALTH Cape Health Indicator Drakenstein Winelands Maternal Mortality Ratio 0.0 0.1 Delivery Rate to Women 5.5% 6.6% under 18 years Termination of Pregnancy Rate 1.2% 0.6% The maternal mortality ratio for both Drakenstein and the Cape Winelands District is essentially zero which attests of improve maternal healthcare interventions such as the upskilling of health professionals, especially nurses, and the implementation of best practices. The delivery rate to women under the age of 18 years in Drakenstein has gradually been on the decrease in the last few years, from 6.7 per cent in 2014, 5.6 in 2015 to 5.5 per cent in 2016. The termination of pregnancy rate in Drakenstein has remained unchanged at 1.2 per cent for the last three years, but is nonetheless almost double that of the District at 0.6 per cent which is quite concerning. DEFINITIONS Maternal health refers to the health of women during pregnancy, childbirth and the postpartum period. Maternal mortality rate: Maternal deaths per 100 000 live births in health facilities. Maternal death is death occurring during pregnancy, childbirth and the puerperium of a woman while pregnant or within 42 days of termination of pregnancy, irrespective of the duration and site of pregnancy and irrespective of the cause of death (obstetric and non-obstetric). Births to teenage mothers: Percentage of babies born to mothers under the age of 18 years. Teenage pregnancy is almost always unplanned; as a result, when young parents are placed in a position to care for their children, life can become particularly tough, especially if they do not have family or social support. Termination of pregnancy: The percentage of terminations as a proportion of the female population aged 15 to 44 years. Government hospitals, designated private doctors and gynaecologists, and non-profit providers offer safe and legal termination of pregnancy. To have a free abortion, the request must be made at a primary healthcare clinic, where the pregnancy will be confirmed, counselling provided, an appointment made, and a referral letter be given to a facility where the procedure can be performed. 11 2017 Socio-economic Profile: Drakenstein Municipality
4 POVERTY This section shows living conditions and economic circumstances of households in the Drakenstein municipal area based on most recent data including Statistics South Africa’s Non-Financial Census of Municipalities 2016 and Quantec. Economic theory suggests that when an economy prospers its households are expected to enjoy a good standard of living. On the contrary, a declining economy tends to lower the standards of living of people. This section uses indicators in terms of GDP per capita, income inequality, human development, as well as indigent households and free basic services to show the current reality of households residing in the Drakenstein municipal area. The deteriorating financial health of households and individuals under the weight of economic pressures, specifically between 2011 and 2015, has resulted in an increase in the poverty levels, according to the Poverty Trends in South Africa report released by Statistics South Africa in 2017. The report cites rising unemployment levels, low commodity prices, higher consumer prices, lower investment levels, household dependency on credit, and policy uncertainty as the key contributors to the economic decline in recent times. These recent findings indicate that the country will have to reduce poverty at a faster rate than previously planned. According to the report the categories of people vulnerable to poverty remained to be African females, children 17 years and younger, people from rural areas, and those with no education. Inflation-adjusted poverty lines show that food poverty increased from R219 in 2006 to R531 per person per month in 2017. The lower-bound poverty line has increased from R370 in 2006 to R758 per person per month in 2017 while the upper-bound poverty line has increased from R575 in 2006 to R1 138 per person per month in 2017. 12 2017 Socio-economic Profile: Drakenstein Municipality
GDPR PER CAPITA An increase in real GDPR per capita, i.e. GDPR per person, is experienced only if the real economic growth rate exceeds the population growth rate. 70 000 60 000 50 000 GDPR per capita 40 000 30 000 20 000 10 000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Drakenstein 48 311 49 636 51 941 54 062 51 820 52 000 52 778 53 304 53 770 54 337 53 866 53 135 Cape Winelands District 43 830 44 634 47 014 49 988 48 374 48 784 49 682 50 241 50 709 51 591 50 838 50 239 Western Cape 54 363 56 550 59 251 60 656 58 845 59 197 60 423 61 095 61 648 61 935 61 794 61 199 Source: Stats SA 2017, own calculations At 53 135 in 2016, the GDP per capita for Drakenstein is above that of the Cape Winelands region as a whole, but considerably lower than the average Provincial rate. A comparison of the Drakenstein and Cape Winelands trend lines does however reveal that the District average has gradually been catching up to the municipal rate which indicates that production is increasing progressively in other municipal areas within the region. INCOME INEQUALITY The National Development Plan has set a target of reducing income inequality in South Africa from a Gini coefficient of 0.7 in 2010 to 0.6 by 2030. 0,62 0,61 0,60 0,59 0,58 0,57 0,56 Drakenstein Cape Winelands Western Cape 2010 2011 2012 2013 2014 2015 2016 Source: Global Insight, 2017 It is concerning to note that income inequality has on average been increasing not only in Drakenstein, but also in the Cape Winelands and the broader Western Cape Province. This indicates that the relative satisfactory growth experienced across these regions has not equally been distributed amongst households or individuals. A contributing factor to this trend in specifically the Cape Winelands District can be the large income disparities observed between farmers and farm workers. A slight improvement in the Gini coefficient for Drakenstein has however been observed between 2015 and 2016. Drakenstein’s Gini coefficient was in 2016 calculated to be 0.59. 13 2017 Socio-economic Profile: Drakenstein Municipality
HUMAN DEVELOPMENT The United Nations uses the Human Development Index (HDI) 1 to assess the relative level of socio-economic development in countries. 0,75 0,70 0,65 0,60 0,55 Drakenstein Cape Winelands Western Cape 2010 2011 2012 2013 2014 2015 2016 Source: Global Insight, 2017 Despite increasing levels of income inequality across the Cape Winelands District, overall human development has gradually been on the increase in Drakenstein, Cape Winelands and the Western Cape as a whole since 2010. Do bear in mind that HDI only considers a select number of indicators (life expectancy, education and standard of living) and does therefore not offer a conclusive reflection of the overall levels of human development. Drakenstein’s HDI was estimated to be 0.71 in 2016. INDIGENT HOUSEHOLDS The constraining macro-economic climate is expected to impact heavily on the various municipal areas of the Western Cape, especially in rural communities where an economic downturn will result in significant job losses across. Rising unemployment figures will subsequently result in a decrease in expendable household income which, coupled with rising inflation rates, will force many families into poverty. Municipal services will ultimately become unaffordable, resulting in these households becoming reliant on free basic services which will in turn strain the already limited resources of a municipality. Area 2014 2015 2016 Drakenstein 10 977 11 211 16 534 Cape Winelands District 33 406 34 704 42 756 Western Cape 404 413 505 585 516 321 Source: Department of Local Government, 2017 The rise in indigent households within Drakenstein has been quite dramatic in recent times. This sudden increase can potentially be linked to job losses within the agricultural sector and the influx of citizens that move from outlying smaller towns to Drakenstein in search of employment opportunities. 1 The HDI is a composite indicator reflecting education levels, health, and income. It is a measure of peoples' ability to live a long and healthy life, to communicate, participate in the community and to have sufficient means to be able to afford a decent living. The HDI is represented by a number between 0 and 1, where 1 indicates a high level of human development and 0 represents no human development. 14 2017 Socio-economic Profile: Drakenstein Municipality
5 BASIC SERVICE DELIVERY The Constitution of the Republic of South Africa states that every citizen has the right to access to adequate housing and that the state must take reasonable legislative and other measures within its available resources to achieve the progressive realisation of this right. Access to housing also includes access to services such as potable water, basic sanitation, safe energy sources and refuse removal services, to ensure that households enjoy a decent standard of living. This section reflects on housing and basic services access levels (Census 2011) and the incremental progress municipalities have made hereto within the last 5 years (Community Survey 2016). 15 2017 Socio-economic Profile: Drakenstein Municipality
HOUSEHOLDS In order to ensure basic service delivery to all, municipal budget allocations should be informed by credible and accurate assumptions regarding the number of households within a municipal area. Access to formal housing and services in Drakenstein is measured against a total number of households of 59 774 in 2011 and 71 686 in 2016 which equates to average annual growth of 3.7 per cent (2 382 households). Drakenstein experienced a higher growth rate in the number of households from 2011 to 2016 relative to the Cape Winelands District. Average Average Area 2011 2016 annual annual growth increase 2011 - 2016 Drakenstein 59 774 71 686 2 382 3.7% Cape Winelands District 198 265 236 006 7 548 3.5% ACCESS TO HOUSING SERVICE STANDARD DEFINITION: Households with access to a formal dwelling. Average Average Total annual annual Area 2011 2016 increase increase growth 2011 - 2016 2011 - 2016 2011 - 2016 Drakenstein 85.1% 90.3% 13 835 2 767 4.9% Cape Winelands District 82.3% 81.0% 27 999 5 600 3.2% The percentage of households with access to a formal dwelling in Drakenstein increased from 85.1 per cent in 2011 to 90.3 per cent in 2016 which indicates that housing delivery within the Municipality takes place at a faster rate than the growth in the total number of households. The number of formal dwellings in Drakenstein increased by 13 835 between 2011 and 2016, at an average annual rate of 4.9 per cent, which translates into approximately 2 767 additional formal dwellings per year over this period. 16 2017 Socio-economic Profile: Drakenstein Municipality
ACCESS TO WATER Given the Western Cape’s current drought situation, great focus is currently placed on water availability and supply. This goes hand in hand with due consideration for water quality. Access to safe potable water is essential to prevent the contraction and spread of diseases and maintaining a healthy life. SERVICE STANDARD DEFINITION: Households with access to piped water inside the dwelling or yard or within 200 metres from the yard. Average Average Total annual annual Area 2011 2016 increase increase growth 2011 - 2016 2011 - 2016 2011 - 2016 Drakenstein 99.4% 99.5% 11 889 2 378 3.7% Cape Winelands District 99.2% 98.6% 36 002 7 200 3.4% In 2011, 99.4 per cent of all households within Drakenstein enjoyed access to piped water. Despite a significant increase in the total number of households since then, the Municipality was in 2016 still able to provide 99.5 per cent of all households with water services. The Municipality was therefore able to provide an additional 11 889 households (average annual increase of 2 378 households, or 3.7 per cent) access to piped water between 2011 and 2016. ACCESS TO SANITATION Access to sanitation promotes health and dignity through the provision of safe disposal and treatment of human waste. Where sanitation systems are inadequate, negative health effects can be extremely serious. The current drought highlights challenges in the use of potable water within the sanitation services process. SERVICE STANDARD DEFINITION: Households with access to a flush or chemical toilet connected to the sewerage system. Average Average Total annual annual Area 2011 2016 increase increase growth 2011 - 2016 2011 - 2016 2011 - 2016 Drakenstein 93.7% 98.4% 14 545 2 909 4.7% Cape Winelands District 91.5% 96.9% 47 232 9 446 4.7% Drakenstein Municipality has since 2011 made significant progress in terms of providing all citizens with access to acceptable standards of sanitation services, to the extent that 98.4 per cent of all households enjoy access to a flush toilet connected to a sewerage system. Closer consideration of the annual service delivery data reveals that the Municipality was between 2011 and 2016 able to provide an additional 2 909 households access to sanitation on an annual basis. Access therefore grew at an average annual rate of 4.7 per cent. 17 2017 Socio-economic Profile: Drakenstein Municipality
ACCESS TO ELECTRICITY Energy is essential for human life and households generally apply electricity for cooking, heating and lighting purposes. Energy sources also have usage risks; for example, health and safety risks especially in the use of paraffin and open flame usage. SERVICE STANDARD DEFINITION: Households with access to electricity as the primary source of lighting. Average Average Total annual annual Area 2011 2016 increase increase growth 2011 - 2016 2011 - 2016 2011 - 2016 Drakenstein 95.0% 94.5% 10 936 2 187 3.6% Cape Winelands District 92.8% 92.6% 34 507 6 901 3.5% The total number of households in Drakenstein grew by 11 912 between 2011 and 2016 whilst the total number of households receiving access to electricity only increasing by 10 936 households. Household growth is therefore outstripping the provision of electricity services, evident from the fact that 94.5 per cent of all households had access in 2016, compared to 95.0 per cent in 2011. ACCESS TO REFUSE REMOVAL Refuse removal is an essential service that ensures that health related problems are kept at bay. A lack of or inadequate service is likely to result in illegal dumping. There are growing concerns around the land and environmental limitations in the creation and lifespan of landfill sites. This would benefit greatly from the ‘reduce – reuse – recycle’ approach, that encourages non-wasteful consumption practices (reduce), the reuse of products where possible (reuse) and the recycling of the product where its use in current form has been exhausted (recycle). SERVICE STANDARD DEFINITION: Households who have solid waste removed by local authorities at least weekly. Average Average Total annual annual Area 2011 2016 increase increase growth 2011 – 2016 2011 - 2016 2011 - 2016 Drakenstein 86.1% 90.6% 13 436 2 687 4.7% Cape Winelands District 79.9% 81.8% 34 548 6 910 4.0% The Municipality has made great strides to extend refuse removal services to all households i.e. access to waste removal services at least once a week improved from 86.1 per cent in 2011 to 90.6 per cent in 2016. The current refuse removal services backlog can arguably be attributed to outlining farms areas that does not fall within the ambit of responsibility of the Municipality or areas that are geographically difficult to reach. 18 2017 Socio-economic Profile: Drakenstein Municipality
6 SAFETY AND SECURITY The Constitution upholds the notion that everybody has the right to freedom and security of the person. The safety of persons and property is therefore vitally important to the physical and emotional well-being of people and business. Without the respect of person and property, it would be impossible for people to live peacefully, without fear of attack and for businesses to flourish. The extent of crime in South Africa does however not only have a significant impact on the livelihood of citizens, but also affects the general economy. Crime hampers growth and discourages investment and capital accumulation. If not addressed with seriousness, it has the potential to derail both social and economic prosperity. People’s general impressions, as well as official statistics on safety and crime issues, mould perceptions of areas as living spaces or place in which to establish businesses. The discussion in this section that follows is limited to the reported contact and property-related crime such as murder and sexual crimes, as well as crime heavily dependent on police action for detecting drug-related crimes and driving under the influence of alcohol/drugs. Note: Percentage change calculation will differ from the actuals reflected due to rounding down to per 100 000 population. Data source: The data depicted in the following section was sourced from the 2017 Crime Statistics released by the South African Police Service (SAPS) in October 2017. Incidences of crime per 100 000 were calculated using actual crime and estimated population figures provided by SAPS. Also note that although the crime data contained in the following section is for ease of reference depicted as a single calendar year, it is in actual fact referring to criminal activity within a financial year i.e. incidences of murder for 2016 is referring to occurrences within the period April 2016 to March 2017. The information relating to fatal crashes and crash fatalities were sourced from the Department of Transport and Public Works. 19 2017 Socio-economic Profile: Drakenstein Municipality
MURDER Area 2015 2016 % Change Drakenstein 30 47 57.9 (per 100 000) Cape Winelands District 33 41 23.0 (per 100 000) Definition: Murder is a social contact crime resulting in the loss of life of the victim, but excludes cases where the loss of life occurred as a result of a response to a crime, for example self-defence. It is extremely concerning to note that the number of murders per 100 000 population in Drakenstein increased by 57.9 per cent between 2016 (30) and 2017 (47) meaning that statistically speaking 47 out of every 100 000 people in Drakenstein will succumb to murder in 2017. This is the highest number of recorded murder incidences amongst all other local municipalities in the Cape Winelands. Although significantly lower than Drakenstein’s rate, the number of murders across the District also increased at an alarming 23.0 per cent from 33 incidences per 100 000 people in 2016 to 41 in 2017. SEXUAL OFFENCES Area 2016 2017 % Change Drakenstein 124 126 1.6 (per 100 000) Cape Winelands District 117 111 -5.6 (per 100 000) Definition: Sexual offences includes rape (updated to the new definition of rape to provide for the inclusion of male rape), sex work, pornography, public indecency and human trafficking. The rate of sexual violence in South Africa is amongst the highest in the world. In addition, a number of sexual offence incidences often go unreported (as in the case of rape). Incidences of sexual offences increased slightly from 124 reported cases per 100 000 people in 2016 to 126 in 2017 (1.6 per cent increase). In contrast, reported incidences across the District as a whole decreased notably by 5.6 per cent from 117 cases in 2016 to 111 in 2017. 20 2017 Socio-economic Profile: Drakenstein Municipality
DRUG-RELATED CRIMES Area 2016 2017 % Change Drakenstein 1 195 1 422 19.0 (per 100 000) Cape Winelands District 1 395 1 624 16.5 (per 100 000) Definition: Drug-related crimes refers to the situation where the perpetrator is found to be in possession of, under the influence of, or selling illegal drugs. This is a crime detected through police activity rather than reports by members of the public. An increase in crimes of this nature may therefore reflect an increase in police. Drug-related crimes have a negative impact on human development by degrading the quality of life as it infiltrates all aspects of society including families, health, the work environment and the economy. Drug-related crimes within the Drakenstein areas increased from 1 195 incidences per 100 000 people in 2016 to 1 422 in 2017, an increase of 19.0 per cent. The Cape Winelands District trend is also on an upwards trajectory, with drug-related crimes increasing by 16.5 per cent from 1 395 incidences in 2016 to 1 624 in 2017. DRIVING UNDER THE INFLUENCE Area 2016 2017 % Change Drakenstein 71 69 -2.8 (per 100 000) Cape Winelands District 105 106 0.5 (per 100 000) Definition: DUI refers to a situation where the driver of a vehicle is found to be over the legal blood alcohol limit. This is a crime detected through police activity rather than reports by members of the public. Despite concerted efforts by government our roads are still considered amongst the most dangerous in the world. Reckless driving and alcohol consumption remain the top reason for road accidents. The number of cases of driving under the influence of alcohol or drugs per 100 000 people in Drakenstein decreased by 2.8 per cent from 71 occurrences in 2016 to 69 in 2017. This decrease can potentially be attributed to more visible policing efforts as well as the roll-out of awareness campaigns. The number of DUI cases across the District remained relatively unchanged between 2016 and 2017. 21 2017 Socio-economic Profile: Drakenstein Municipality
RESIDENTIAL BURGLARIES Area 2016 2017 % Change Drakenstein 700 691 -1.4 (per 100 000) Cape Winelands District 763 750 -1.8 (per 100 000) Definition: Residential burglary is defined as the unlawful entry of a residential structure with the intent to commit a crime, usually a theft. Given its regular occurrence and the psychological impact on victims, residential burglaries are an obstinate concern in South Africa. It is therefore relieving to note that incidences of residential burglaries per 100 000 decreased in both Drakenstein (-1.4 per cent) and the District (-1.8 per cent) as a whole between 2016 and 2017. FATAL CRASHES Area 2015 2016 % Change Drakenstein 39 53 35.9 Cape Winelands District 189 218 15.3 Definition: A crash occurrence that caused immediate death to a road user i.e. death upon impact, flung from the wreckage, burnt to death, etc. Above graphic indicates that in 2015 there were a total of 39 fatal crashes involving motor vehicles, motorcycles, cyclists and pedestrians within the jurisdiction of the Drakenstein Municipality. This number increased exponentially by 35.9 per cent to 53 in 2016. The number of fatal crashes in the broader Cape Winelands District increased by 15.3 per cent from 189 crashes in 2015 to 218 in 2016. 22 2017 Socio-economic Profile: Drakenstein Municipality
ROAD USER FATALITIES Area 2016 2017 % Change Drakenstein 44 61 38.6 Cape Winelands District 226 290 28.3 Definition: The type of road user that died in or during a crash i.e. driver, cyclist, passengers, pedestrians. According to a recent study, the majority of road fatalities in Africa fall within the working age cohort - between the ages of 15 - 44 years - whilst three out of four fatalities were found to be male (Peden et al., 2013). The untimely death of these primary breadwinners therefore impacts directly upon not only the livelihood of family structures, but deprive society of active economic participants that contribute towards growth and development. The socio-economic impact of such road fatalities has proven to be particularly devastating in South Africa where the majority of road users hail from poor and vulnerable communities. The previous section specified that a total of 53 fatal crashes occurred within the Drakenstein region in 2016. This gave rise to a total of 61 road users succumbing in those crashes. This is 17 more deaths than the 44 recorded in 2015 which equates to a 38.6 per cent increase in road user fatalities. Additional, lower-level information regarding the time, location, gender, ages of above specified crashes are available from the Department of Transport and Public Works upon request. 23 2017 Socio-economic Profile: Drakenstein Municipality
7 THE ECONOMY Economic growth at the municipal level is essential for the attainment of economic development, the reduction of poverty and improved accessibility. Fostering this growth requires an in-depth understanding of the economic landscape within which each respective municipality operates. Most municipalities within the Western Cape are currently experiencing hydrological drought conditions where the severe weather is affecting groundwater levels in natural springs, streams, reservoirs and dams to the extent that potable water has reached alarmingly low levels. An overview of the current economic reality facing the municipalities of the Western Cape would therefore not be complete without elaborating on the manner in which the drought impacts upon the short and medium term financial and economic sustainability of local authorities. 24 2017 Socio-economic Profile: Drakenstein Municipality
ECONOMIC SECTOR PERFORMANCE It is evident that Drakenstein’s economy is mostly characterised by tertiary sector activities which collectively contributed 66.8 per cent to the total GDPR. Contrary to the perception that the Cape Winelands area is driven by agricultural activities, the local economy is therefore mostly urban in nature. This sector has historically performed particularly well, experiencing average annual growth of 4.0 per cent between the period 2005 and 2015. Growth did however subdue in the last 5 years (3.6 per cent between 2010 and 2015) to such an extent that the sector is expected to only grow by 2.0 per cent in 2016. Drakenstein GDPR performance per sector, 2005 – 2016 Contribution R million Trend Real GDPR growth (%) to GDPR (%) value Sector 2015 2015 2005 - 2015 2010 - 2015 2011 2012 2013 2014 2015 2016e Primary Sector 6.6 1 225.6 2.5 2.1 0.8 1.7 2.8 8.2 -2.8 -8.7 Agriculture, forestry 6.4 1 181.9 2.6 2.1 0.8 1.7 2.8 8.2 -2.8 -8.7 and fishing Mining and quarrying 0.2 43.7 -0.4 2.1 2.7 1.0 2.9 6.9 -3.0 -6.4 Secondary Sector 26.6 4 940.1 0.1 -0.2 -0.4 0.3 0.1 -0.1 -0.7 -1.1 Manufacturing 16.0 2 971.4 -1.7 -1.9 -1.3 -1.4 -2.3 -2.2 -2.1 -2.6 Electricity, gas and 2.6 484.5 2.0 1.9 4.4 2.9 2.1 1.0 -0.9 -1.7 water Construction 8.0 1 484.2 7.4 4.5 1.3 5.0 7.0 6.0 3.2 3.1 Tertiary Sector 66.8 12 390.7 4.0 3.6 4.9 3.9 3.6 2.9 2.5 2.0 Wholesale and retail 17.7 3 277.1 4.1 4.0 5.6 5.2 3.6 2.9 2.7 2.4 trade, catering and accommodation Transport, storage 8.9 1 657.7 2.2 2.3 3.6 2.3 2.5 3.1 0.0 0.0 and communication Finance, insurance, 21.2 3 940.2 5.1 4.0 5.0 4.1 3.7 3.2 4.3 2.8 real estate and business services General government 10.6 1 966.3 3.1 2.9 5.2 2.7 3.9 2.5 0.3 0.9 Community, social 8.4 1 549.5 3.9 3.6 4.5 4.2 4.0 2.7 2.3 1.6 and personal services Total Drakenstein 100 18 556.3 2.8 2.5 3.2 2.8 2.6 2.6 1.3 0.4 Source: Quantec Research, 2017 (e denotes estimate) The finance, insurance, real estate and business services (21.2 per cent), wholesale and retail trade, catering and accommodation (17.7 per cent) and the manufacturing (16.0 per cent) subsectors are the largest contributors to the local economy, collectively contributing R10.2 billion to Drakenstein’s GDPR in 2015. The finance, insurance, real estate and business services subsector has been growing at an aggressive pace, maintaining average annual growth of 5.1 per cent between 2005 – 2015. Although growth slowed to 4.0 per cent in the last 5 years (2010 – 2015), the subsector has still been able to outperform the local economy as a whole across the same period (2.5 per cent). The strength of this subsector is further illustrated by the estimate that it will grow at 2.8 per cent in 2016, whereas the overall local economy is only expected to grow at 0.4 per cent. Wholesale and retail trade, catering and accommodation is arguably the most consistent performing subsector in Drakenstein, maintaining 4.1 per cent growth between 2005 and 2010 and 4.0 per cent for the period 2010 – 2015. 25 2017 Socio-economic Profile: Drakenstein Municipality
It is concerning to note that the manufacturing sector, which contributes so significantly to the local economy (16.0 per cent in 2015), has on average been experiencing growth of -1.7 per cent between 2005 and 2015 and that this contracted growth intensified in recent times to -1.9 per cent for the period 2010 – 2015. The construction sector has also achieved above average growth over the last five years compared to other sectors in the Drakenstein municipal area, growing at an average annual rate of 4.5 per cent per annum, indicating continued investment in this economy, even though growth is also decreasing as in other sectors. The high growth rates in 2012, 2013 and 2014 coincides with roadworks and construction activities at social facilities undertaken by the Municipality. Despite relatively modest contribution to GDPR in 2015 (6.4 per cent) the agriculture, forestry and fishing subsector is still of particular significance to the local economy. This subsector’s anticipated decline in 2016 (-8.7 per cent growth) will therefore, together with the manufacturing sector (-2.6 per cent in 2016) contribute to the Municipality’s overall weakened GDPR growth of 0.4 per cent in 2016. LABOUR Whilst the Drakenstein municipal area employed 28.4 per cent of the Cape Winelands’ total labour force in 2015, it also had the highest levels of unemployment (14.4 per cent). The level of unemployment is to a certain extent to be expected, considering the Municipality’s large population size. Below table reflects the Municipality’s employment growth trends within each economic sector contributing to the local economy. Drakenstein employment growth per sector Contribution to employment Number Trend Employment (net change) (%) of jobs Sector 2015 2015 2005 - 2015 2010 - 2015 2011 2012 2013 2014 2015 2016e Primary Sector 15.1 16 206 -4 402 3 529 -539 781 667 -857 3 477 -181 Agriculture, forestry 15.1 16 133 -4 366 3 554 -538 780 695 -857 3 474 -181 and fishing Mining and quarrying 0.1 73 -36 -25 -1 1 -28 - 3 - Secondary Sector 17.2 18 474 -693 682 133 -64 362 103 148 143 Manufacturing 8.6 9 263 -3 204 -1 100 -255 -486 119 -397 -81 -240 Electricity, gas and 0.3 329 123 71 16 12 7 13 23 11 water Construction 8.3 8 882 2 388 1 711 372 410 236 487 206 372 Tertiary Sector 67.6 72 434 22 332 11 843 1 978 2 136 2 756 2 414 2 559 1 062 Wholesale and retail 22.6 24 158 7 849 4 107 806 894 733 749 925 407 trade, catering and accommodation Transport, storage 4.3 4 649 1 893 945 76 246 274 -10 359 -298 and communication Finance, insurance, 14.5 15 535 3 914 2 032 374 271 439 269 679 351 real estate and business services General government 11.1 11 916 3 091 1 258 502 210 174 668 -296 233 Community, social 15.1 16 176 5 585 3 501 220 515 1 136 738 892 369 and personal services Total Drakenstein 100 107 114 17 237 16 054 1 572 2 853 3 785 1 660 6 184 1 024 Source: Quantec Research, 2017 (e denotes estimate) 26 2017 Socio-economic Profile: Drakenstein Municipality
Employment in this municipal area is dependent on a diverse range of sectors which is reflective of the more urban nature of some of the towns in the area which all contribute goods and services to other industries within the region. In 2015, the Drakenstein municipal area employed a total of 107 114 people, the majority of which (67.6 per cent; 72 434) were concentrated within the tertiary sector. The wholesale and retail trade, catering and accommodation (22.6 per cent); community, social and personal services (15.1 per cent) and the finance, insurance, real estate and business services (14.5 per cent) subsectors contributed the most to employment within the Municipality. The agriculture, forestry and fishing (15.1 per cent; 16 133) subsector, which forms part of the primary sector, is also a large employer within the municipal area. Although employment opportunities within this subsector decreased by 4 366 for the period 2005 – 2015, job-creation accelerated in recent years, evident from the 3 554 additional jobs created for the period 2010 - 2015. The wine grape harvesting season in 2015 started earlier than normal due to warmer weather in August and September, which put cellars under pressure to manage the larger intakes over a shorter period, which could have contributed to additional seasonal employment in the area (VinPro, 2016). However, with the decline in GDPR growth, it can be expected that job creation will grow at slower rates and eventually sectors will shed jobs as in the recession. Employment changes within this subsector testifies to its volatile nature and its dependency on factors spanning beyond poor weather conditions, such as consumer demand, exchange rates and commodity prices. Unemployment Rates for the Western Cape (%) Area 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e Drakenstein 12.9 12.2 12.3 12.2 12.8 12.9 13.1 13.7 13.6 14.0 14.4 14.9 Cape Winelands 9.6 9.0 9.2 9.2 9.8 9.8 10.1 10.7 10.6 10.9 11.2 11.6 District Western Cape 16.5 15.8 15.7 15.3 15.8 16.1 16.4 17.0 16.7 17.2 17.8 18.7 Source: Quantec Research, 2017 (e denotes estimate) As mentioned previously, Drakenstein has the highest unemployment rate amongst all local municipalities within the Cape Winelands District. Above table indicates that this rate has gradually been increasing since 2015 and although the rate is still below that of the Western Cape, it is higher than the District average. 27 2017 Socio-economic Profile: Drakenstein Municipality
8 INFRASTRUCTURE DEVELOPMENT Economic theory and empirical work suggest that public investment in infrastructure will boost economic growth by stimulating related private sector investments – the so-called “crowding- in effect” – as well as providing a solid foundation for social development (Swilling, 2006). In South Africa the importance of infrastructure has not only been emphasised at national level but also at regional level. The Western Cape Government’s main infrastructure budgets and investment, both in social and economic infrastructure over the 2017 MTEF, includes spending by provincial government departments and public entities; as well as spending on public private partnerships. In the Western Cape, the region needs efficient transport systems, water and sanitation, telecommunications and power supplies in order to influence the standard of living of their populations and regional economic growth. There is, thus, a pressing need to determine whether government’s strategy on infrastructure investment will yield the desired economic growth benefits at micro (i.e. project or sector level) or at national or macro level. 28 2017 Socio-economic Profile: Drakenstein Municipality
PROVINCIAL INFRASTRUCTURE SPEND Empirical evidence at a National level has shown that investment in economic infrastructure has a positive impact on economic growth. This growth however depends crucially on provincial and municipal performance. All municipalities are tasked with basic service delivery objectives in order to stimulate local economic development. Population growth and deteriorating infrastructure has continued to place strain on infrastructure budgets. The objective of this section is to determine if there is a relationship between infrastructure investment and growth in the Cape Winelands and to show the success the region has had in providing infrastructure. West Coast R731.5 million Overberg 9% Across districts R416.0 million R2.6 billion 5% 30% Eden R1 billion 12% Cape Winelands City of Cape Town R1.3 billion R2.4 billion Central Karoo 15% 28% R127.7 million 1% Source: Provincial Treasury, 2017 In fulfilment of Provincial Strategic Goal 1 (PSG 1: Grow the economy and create jobs), the Western Cape Government has dedicated R28.0 billion towards infrastructure development across the 2017 Medium Term Expenditure Framework (MTEF). This amount will be spent on new assets, replacements assets maintenance and repairs, upgrades and additions, rehabilitation, renovation as well as the refurbishment of existing assets (Western Cape Estimates of Provincial Revenue and Expenditure, 2017). Of this total, an amount of R26.1 billion has been set aside for physical infrastructure developments whilst R231.0 million and R1.7 billion will respectively be channelled towards broadband connectivity and public private partnerships. The total Provincial Infrastructure budget for 2017/18 amounts to R8.6 billion which will be split amongst the various municipal districts by taking into consideration a wide array of socio-economic variables, most notably anticipated population growth trends as well as estimated economic growth potential, the latter being influenced largely by the 2014 Growth Potential Study of Towns (Donaldson et al, 2014). The City of Cape Town assumes the majority of the Western Cape’s infrastructure allocations with an estimated infrastructure spend of R2.4 billion (28 per cent of the total Provincial allocation). The Cape Winelands region is another notable receiver of Infrastructure funding with approximately R1.3 billion (15.0 per cent of the Provincial allocation). 29 2017 Socio-economic Profile: Drakenstein Municipality
Provincial Infrastructure Allocations: Cape Winelands There have been varying levels of infrastructure investments and development across the 131 towns outside the Cape Town Metropolitan areas. Some towns have solid development potential while others are declining. A number of growth factors have contributed to this decline (Donaldson et al 2010). Amongst these factors is a deteriorating infrastructure. Municipal infrastructure consists mainly of bulk treatment plants, pump networks, pump stations treatment works, reservoirs and distribution pipelines, electricity transmission and distribution infrastructure. In some municipalities infrastructure remains under threat and requires increasingly more astute management whilst other municipalities have invested significantly in infrastructure provision and experience high growth rates. Vote Cape Winelands Witzenberg Drakenstein Stellenbosch Breede Valley Langeberg R’000 District CapeNature - - - - - - Education - 23 617 5 000 15 000 21 413 25 000 Health - 38 132 5 269 21 181 6 637 Human Settlements - 38 960 79 764 7 767 100 200 32 150 Public Works 11 258 - - - - - Social Development 92 - - - - - Roads 181 863 72 000 86 000 91 492 81 300 331 400 Total 193 213 172 709 176 033 135 440 209 550 388 550 Source: Provincial Treasury, 2017 It is clear that the WCG’s infrastructure spend within the Cape Winelands District will in 2017/18 be concentrated within the Langeberg area largely as a result of the major road upgrade projects currently underway between Ashton and Montagu. A total of R388.6 million will in 2017/18 be spent by the Provincial Government on infrastructure projects within the Langeberg area. Provincial Government infrastructure spend in Drakenstein will in 2017/18 amount to R176.0 million, the majority of which (R86.0 million) will also be directed towards road projects (economic infrastructure). Projects to be funded through this allocation include the reseal and rehabilitation of the Hermon-Gouda road (R25.0 million in 2019/20) as well as the reseal of the Paarl-Malmesbury road (R45.0 million in 2017/18). The following table lists the Top 10 2017/18 capital projects (in terms of value) that contribute to Drakenstein’s total infrastructure allocation. 30 2017 Socio-economic Profile: Drakenstein Municipality
R’000 Sector Project description 2017/18 2018/19 2019/20 Transport C1084 PRMG Paarl-Malmesbury reseal 45 000 28 000 2 000 Transport C850 Sandringham Road 38 000 1 000 - Human Settlements 3207-xx03 - Paarl Vlakkeland Phase 1 TRA 32 978 39 300 - (512 units) IRDP Human Settlements 3207-01 - Paarl Vlakkeland Phase 1 25 000 23 600 4 990 (1 047 services) IRDP Human Settlements 3207-xx - Paarl Vlakkeland (Bulk Infrastructure) IRDP 7 700 10 000 - Human Settlements 3228-01 - Paarl Kingston (122 units) IRDP4 6 000 - - Education Dal Josafat PS 5 000 15 000 25 000 Human Settlements 3068-xx - Paarl Dal Josafat Erf 16161 (1 200 units) 4 000 5 000 5 000 FLISP Health CI810098: Wellington - Wellington CDC - Pharmacy 3 808 500 - Additions and Alterations Transport C1048 Paarl-Wellington reseal 2 000 - - Source: Provincial Treasury, 2017 Although the two single largest provincial infrastructure allocations were made towards road transport, the majority of the Top 10 projects relate to human settlements. The allocations compliment the Municipality’s proactive efforts to invest in economic infrastructure and housing to create integrated communities that geographically all enjoy equal access to economic opportunities within central business nodes. MUNICIPAL INFRASTRUCTURE SPEND National and Provincial Transfers The sources of infrastructure funding at municipal level mostly emanate from either National or Provincial Government in the form of grants. Municipalities can however also fund infrastructure projects through internal (own) revenue sources or from municipal own revenue. The National Government recognises that infrastructure investment is the cornerstone to economic and social upliftment. To this end in 2004 the Government introduced a Municipal Infrastructure Grant to complement their capital budgets. Of the capital expenditure budget allocated to municipalities within the Cape Winelands a large percentage of it goes to Economic and Environmental Services and Trading Services (economic infrastructure) whilst the remainder goes to Governance and Administration and Community and Public Safety. The combination of dedicated provincial and municipal infrastructure spend will truly set the Municipality and ultimately the Province on a higher growth path and improved socio-economic environment. The following table contains the total capital transfers and grants received by the Drakenstein Municipality from National and Provincial Government in 2017/18. The information depicted below was obtained from the budget schedules within the Municipality’s 2017/18 approved budget. The names of specific grants may therefore differ from their official wording. 31 2017 Socio-economic Profile: Drakenstein Municipality
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