Drakenstein Municipality 2017 - Western Cape Government

Page created by Brittany Gibbs
 
CONTINUE READING
Drakenstein Municipality 2017 - Western Cape Government
Drakenstein Municipality
                   2017
Drakenstein Municipality 2017 - Western Cape Government
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 Municipality 2017 - Western Cape Government
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%
Drakenstein Municipality 2017 - Western Cape Government
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
Drakenstein Municipality 2017 - Western Cape Government
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
Drakenstein Municipality 2017 - Western Cape Government
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
Drakenstein Municipality 2017 - Western Cape Government
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
Drakenstein Municipality 2017 - Western Cape Government
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
Drakenstein Municipality 2017 - Western Cape Government
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
Drakenstein Municipality 2017 - Western Cape Government
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
You can also read