Ms Mosa Molapo: Deputy Director-General

1 March 2005

CONTENTS

1 Branch Introduction

2 Key Objectives & Principles

3 Broad progress in 2004/05

4.Progress against key interventions

5 Challenges

6.Priorities for 2005/06

7.Key interventions in Rural and Urban Nodes: 2005/06

8.Budget 2005/06

Central Karoo, Umkanyakude, Ugu, Zululand, Inanda, Ukhahlamba, East Griqualand, Kei District, Oliver Tambo, Chris Hani, Greater Sekhukhune and Eastern District.

Urban Nodes

• Alexandra

NORTHERN CAPE

• Galeshewe

KWAZULU NATAL

• Inanda & KwaMashu

EASTERN CAPE

• Mdantsane
• Motherwell

WESRERN CAPE

• Khayelitsha & Mitchells Plain

Context for ISRDP & URP in 2005/06

• ISRDP/URP Intent: Maximization of expenditure & investment impact of all 3 spheres of government in the 21 nodes.
• SoNA May 21st 2004: located the 21 Urban & Rural Nodes at the apex of addressing the 2nd economy challenges.

• Eradication of poverty & underdevelopment manifest in 2nd
• Economy and improvement of the people's quality of life
• Addressing racial & gender inequalities and empowering
• youth, children, the elderly & disabled
• Strengthening the systems of local & traditional government
• Consolidation of the practice of creating partnerships with civil society organs

• SoNA February 11^th 2005: Early warning that there is a capacity & implementation challenge in respect of ISRDPIURP.

2. Key Programme Objectives

· To eradicate poverty and under-development:

• Asset Poverty - land, housing, infrastructure
• Income Poverty - unemployment, low wage
• Social Capital Poverty - social services
• Human Capital Poverty - illiteracy, inumeracy, low skills
• Relative Poverty – social & excusion discrimination, inequality i.r.o race/gender/age

· To implement government's vision of "developmental local government" and the "developmental state".

· To pilot integrated planning & budgeting across the 3 spheres.

· To ensure sustainable development:

• Local Economic Development
• Small Enterprise Development
• Social Cohesion & Moral Regeneration
• Human Capital Development

Principles

· Shared Decision-making (IGR) Poverty Targeting

· Demand-driven Development

• People Empowerment
• Community Participation
• Local Resource Mobilization
• Local Innovation & Creativity

· Partnerships

3 Progress in 2004/05

· All nodes have reviewed their current IDPs. IDP hearings are in process. All urban nodes have business plans and or strategy documents in place to guide the implementation of the programme.

· New national political champions confirmed - reporting system and expectations formalised but poor take up.

· Process of confirming provincial political champions underway.

· Technical champions in place across the 3 spheres.

· Guidelines developed for how national & provincial Departments should participate in ISRDP & URP.

· Nodal anchor projects are showing steady progress -attempts underway to track all government interventions in the nodes, not just anchor projects.

· Nodal anchor projects are showing balance between the economic and social content.

· Baseline statistics, based on the 2001 census, available for the urban nodes.

· Draft financing protocol submitted and further work underway.

· All relevant national departments audited to determine their investment in the nodes. Work has also commenced with SOE's.

Progress against key interventions.2004/05

• CDW CDW learnership still underway.

• Skills development programmes: Dept of Labour has signed an MOU with Alexandra to the value+ R23 million over a three year period. All urban nodes currently undertaking skills audits with a view to entering similar MOUs. In rural nodes 750 learner contractors trained in 2004 & SETA-FET (Further Education & Training) recruited 100 entrepreneur learnerships 2004 linked to EPWP.

• EPWP: Was launched in all provinces with a focus on the nodes (Galeshewe, Khayelitsha and Mitchell's Plain). Flagship EPWP projects being undertaken in all nodes.

• Social cohesion and Moral regeneration: Social Cohesion paper developed by HSRC, project development currently being formulated. All urban nodes have crime prevention strategies in place, the challenge is still with the implementation of these.

• M&E - Draft M&E Framework in place

• Nodal baselines in place
• Nodal profiles finalized
• Development of best practice book underway

• Communication - Communication plans for the nodes are in place and are being operationalized in conjunction with dplg. Regular newsletters produced at nodal and national levels.

• ICT - All nodes are being successfully prioritized for ICT infrastructure, such as cyber labs, public information terminals and community radio stations. Youth CT project provide IT skills to nodes in rural areas- 40 youth. 3318 ICT learnerships were implemented in the nodes.

Progress on URP resource targeting

• In 2004/2005 R2.2 bn was allocated to the six municipalities with URP nodes, compared to R1.6 bn in 2003/04. This "increase" is a reflection of a policy decision to increase resources to local government.

• Of this, R 1 .3bn was the Equitable Share.

• Of this R1.3bn, R80 million was earmarked as a special allocation for the nodal programmes, to build local capacity and implement projects.

• Various programmes have prioritized the nodes, i.e MIG +-R741 million to the 6 cities with urban nodes.

• Of the MIG, at least R1 l4million is directly allocated to the nodes.

Beneficiaries (URP) 2004

Source: Nodal Annual Progress Reports 2004

Key: HH - Households

• In 2003/4 - 2004/05, LED funding to the nodes amounted to R26 million.
• The Municipal Infrastructure Grant (MIG) allocation to the nodes was R1.3 billion.
• The total allocation to the nodes through equitable share and conditional grants amounted to R3.6 billion.
• Of the above amount, R1 .9 billion was Equitable Share.

Beneficiaries (ISRDP) 2004

• Women : 6260
• Youth : 874
• Disabled : 4196

· Not specified: 11330

Total Jobs Created: 10661

• Women: Temp-713 Permanent -15 Not specified - 366
• Youth: Temp-121 Permanent - 0 Not specified -1005
• Disabled: Temp - 53 Permanent - 0 Not specified - 3
• Not spec: Temp - 5866 Permanent - 779 Not specified - 1740

Source: Nodal Annual Reports 2004

4 Challenges

• Predictability in resource allocation challenge. The principles of the protocol speak directly to this; remains a financing protocol speak directly to this
• Inadequate project mgt & implementation capacity and capability at nodal level - project consolidate seeks to address this; and
• Integrated planning between & across spheres of government; the IGR Framework Bill will begin to address this.

5 Priorities for 2005/6

1. To institutionalize existing alignment approaches across the 3 spheres to strengthen coordination on ISRDP & URP.

2. To enhance nodal capacity & integrate programmes into "Project consolidate".

3. To maintain current ISRDP & URP initiatives and tailor them towards addressing the challenges of the 2^nd Economy.

4. To finalize and operationalize the nodal financing protocol.

5. To align lOPs, PGDSs & NSDP and embed ISRDP & URP within these instruments.

6. To communicate & market ISRDP & URP across the 3 spheres.

7. To coordinate Monitoring & Evaluation of ISRDP & URP across the 3 spheres.

6. Key interventions in Rural and Urban Nodes: 2005/06