profile: xhariep district municipality...jacobsdal, koffiefontein, luckhoff, oppermansgronde,...

PROFILE: XHARIEP DISTRICT MUNICIPALITY

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PROFILE: XHARIEP DISTRICT MUNICIPALITY 3

CONTENT

1. Executive Summary ............................................................................................ 5

2. Brief Overview .................................................................................................... 7 2.1. Historical Perspective .............................................................................................. 7 2.2. Location .................................................................................................................. 7 2.3. Spatial Integration ................................................................................................... 9

3. Social Development ......................................................................................... 10 3.1. Key Demographics ................................................................................................ 10 3.1.1. Population .......................................................................................................... 10 3.1.2. Gender, Age and Race ....................................................................................... 11 3.1.3. Households ........................................................................................................ 12 3.2. Health Profile ......................................................................................................... 13 3.3. Covid-19 ................................................................................................................ 14 3.4. Poverty Dimensions .............................................................................................. 16 3.4.1. Distribution ......................................................................................................... 16 3.4.2. Inequality ............................................................................................................ 17 3.4.3. Employment/Unemployment............................................................................... 17 3.4.4. Crime ................................................................................................................. 19 3.5. Education and Skills Profile ................................................................................... 20

4. Economic Drivers ............................................................................................ 23 4.1. Economic Drivers .................................................................................................. 23 4.2. Primary Sector ...................................................................................................... 23 4.3. Secondary Sector .................................................................................................. 24 4.4. Tertiary Sector ....................................................................................................... 24 4.5. Tourism ................................................................................................................. 25 4.6. Informal Economy ................................................................................................. 25

5. Service Delivery ............................................................................................... 26 5.1. Water and Sanitation ............................................................................................. 26 5.2. Human Settlements ............................................................................................... 27 5.3. Electricity ............................................................................................................... 27 5.4. Waste Management .............................................................................................. 28 5.5. Transport ............................................................................................................... 29

6. Governance and Management ........................................................................ 29 6.1. Municipal Performance .......................................................................................... 29 6.2. Municipal Capacity ................................................................................................ 30

7. Projects to Diversify and Grow the Economy ............................................... 31 7.1. Spatial Development ............................................................................................. 31 7.2. Environmental forecast .......................................................................................... 32 7.3. Social Development Projects ................................................................................. 33 7.4. Infrastructure Projects ........................................................................................... 33 7.5. Economic Projects................................................................................................. 33 7.5.1. Agri-Park in Springfontein ................................................................................... 34 7.5.2. Tourism Route .................................................................................................... 34

8. Key Recommendations ................................................................................... 36


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1. Executive Summary The Xhariep District Municipality (DC 16) is a Category C municipality

and is situated in the southern part of the Free State. The District is

located in a semi-arid region with a dispersed settlement pattern and is

known as a place of endless space, vast tracts of sheep and cattle

farmland. Xhariep is a typical rural district with 20 small towns and 3

remote towns which boast abundant natural resources such as water

and agricultural land.

Xhariep District Municipality is comprised of three local municipalities: Letsemeng

Local Municipality, Kopanong Local Municipality and Mohokare Local Municipality.

Three national roads the N1 (Gauteng to Cape Town), N6 (Eastern Cape to

Bloemfontein) and N8 (Bloemfontein to Kimberley) pass through this district making

accessible to other parts of the country.

The District has a population of 121 687, which is 4.2 % of the total population of the

Free State Province. The annual population growth rate of 0.1%. The worst negative

growth rate was in 2008, -2.2%. This changed from 2017 when the growth rate

recovered at 0.0%. The District had a total number of 40 234 households with a

population density of 3.3 people per square kilometers. 37.6% households are headed

by women. There are 353 child-headed households and 241 (68.3%) of the child

households are headed by boys.

As at 02 June 2020, 3 250 tests have been conducted in Xhariep, recording 50

confirmed cases, 1 deaths and 1 recoveries. The towns of Bethulile in Kopanong Local

Municipality has recorded the most cases at 47 followed by Petrusburg, Jacobsdal

and Luckhof each recording 1 confirmed case. Petrusburg, Jacobsdal and Luckhof are

located in Letsemeng Local Municipality. Mangaung remains the epicentre of Covid-

19 in the Free State, followed by Xhariep District with 50 cases and Fezile Dabi with

33 confirmed cases. There are three state-owned quarantine facilities in Xhariep with

83 beds combined. The facilities have not been activated as at 29 May 2020.

The economy of Xhariep was driven by the tertiary sector with the community services

sector had the highest contribution at 31.9%. The community services sector had the

highest contribution at 31.9%, followed by trade at 13.5% and transport and finance

both at 9.1%.

The Draft National Spatial Development Framework has identified Kopanong and

Letsemeng Local Municipalities within Xhariep District Municipality, as the Arid-

Innovation Region affected municipalities. The vast distances between the various


towns in the District make all communities dependent on the regional distribution roads

for social as well as economic functioning. Most of these roads are however in a state

of disrepair and especially the routes falling within the corridor areas will have to be

upgraded and maintained.

2. Brief Overview 2.1. Historical Perspective

Xhariep is named after the Gariep Dam, which is the largest dam in

South Africa and is situated at the southern tip of the district. The

District is located in a semi-arid region with a dispersed settlement

pattern and is known as a place of endless space, vast tracts of sheep

and cattle farmland. Xhariep is a typical rural district with 20 small towns

and 3 remote towns which boast abundant natural resources such as

water and agricultural land.

Xhariep is bordered for most of its eastern border by the Maluti and Drakensberg

mountains. Hydrologically, the district is located between the Vaal River to the north

and Orange River to the south, with rivers within the district draining towards these

rivers.

The region is filled with impressive museums and magnificent monuments

commemorating the Anglo-Boer War and also the Great Trek of 1938. The town of

Bethulie in Xhariep, was formed in 1901, as a French mission station. The sandstone

architecture in the region is also of significant importance to the country’s history.

2.2. Location

The Xhariep District Municipality (DC 16) is a Category C municipality and is situated

in the southern part of the Free State. It shares its boundaries with Mangaung

Metropolitan Municipality to its north, Eastern Cape to its south and Northern Cape to

its west. To its east, Xhariep shares a border with Lesotho.


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The municipality covers a surface area of 34 250km² and it is the largest district in the

province, making up just more than a third of its geographical area. Xhariep District

Municipality is comprised of three local municipalities: Letsemeng Local Municipality,

Kopanong Local Municipality and Mohokare Local Municipality.

- Letsemeng Local Municipality situated on the central part of the District, and

at 9 828km², Letsemeng is nearly a third of Xhariep’s geographical area.

Koffiefontein is the municipal head office and its economic hub. Letsemeng is

known for diamond-mining activity. The municipality includes the towns of

Jacobsdal, Koffiefontein, Luckhoff, Oppermansgronde, Petrusburg.

- Kopanong Local Municipality is the largest in Xhariep at 15 645km² and has

natural features that include Lake Gariep, Jagersfontein Mine, the Orange River

Ravine, and historical sites including the Anglo-Boer War battlefields. Bethulie,

Edenburg, Fauresmith, Gariep Dam, Jagersfontein, Philippolis, Reddersburg,

Springfontein, Trompsburg, Waterkloof are the towns in the municipality.

- Mohokare Local Municipality is the smallest of three local municipalities at

8 776 km² and is home to the towns of Rouxville, Smithfield and Zastron.

Zastron, shares a border with Lesotho, and is best known for its art rock


spattered across various farms. Mohokare boasts the impressive Maloti

Mountains as a backdrop.

2.3. Spatial Integration

The administrative headquarters for Xhariep are in Trompsburg, which lies 125km

south of Bloemfontein. The District is home to the largest dam in South Africa, Gariep

Dam, which is situated at the southern tip of the District. Three national roads the N1

(Gauteng to Cape Town), N6 (Eastern Cape to Bloemfontein) and N8 (Bloemfontein

to Kimberley) pass through this District making accessible to other parts of the country.

Xhariep is a sparsely populated area with a fair concentration of households or built-

up areas found in the towns of Jacobsdal, Koffiefontein and Oppermans. Springfontein

and Gariep Dam have a moderate concentration and Zastron, Rouxville and Smithfield

have the lowest density. The rural nature of the District (dispersed settlement patterns)

has an impact on infrastructure and maintenance costs.

The vast distances between the various towns in the District make all communities

dependent on the regional distribution roads for social as well as economic functioning.

Most of these roads are however in a state of disrepair and especially the routes falling

within the corridor areas will have to be upgraded and maintained as a matter of

urgency.

THE DISTRICT IS HOME TO THE

LARGEST DAM IN SOUTH AFRICA, GARIEP

DAM, WHICH IS SITUATED AT THE

SOUTHERN TIP OF THE DISTRICT.

Land in Xhariep is either owned by private individuals, government or the local

municipalities. A large portion of the land is privately owned in the District. Xhariep is

a sparsely populated area with a fair concentration of households or built-up areas

found in the towns of Jacobsdal, Koffiefontein and Oppermans.


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3. Social Development 3.1. Key Demographics

3.1.1. Population

With an annual population growth rate of 0.1%, the District has a population of 121

687. This is 4.2 % of the total population of the Free State Province. From 2009 –

2011, Xhariep experienced a sharp increase in the growth rate from -2.1% in 2009 to

-0.9% in 2011. The worst negative growth rate was in 2008, -2.2%. This changed from

2017 when the growth rate recovered at 0.0%.

Xhariep population growth 2009-2019

In 2017, Xhariep had 4.24% of the total share of the provincial population, a declining

trajectory. Kopanong Local Municipality had the largest share of the population with

40% in 2017, down from 41 % in 2008 followed by Letsemeng Local Municipality with

a 32% in the same period. Mohokare’s share was 28%.

Population Share in 2008 and 2017 Source: IHS Markit, Reginal eXplorer, 2019


Significant growth rates were in Letsemeng and Mohokare with growth rates of 0.1%

and 0.4% in 2016, and 0.2% and 0.4% in 2017, respectively. Unlike these two,

Kopanong was unable to recover from the negative growth rate, recording a growth

rate of -0.1 % in 2017.

3.1.2. Gender, Age and Race

The district has a median age of 26 years. By comparing the population pyramid of

the Xhariep District Municipality with the national age structure, the most significant

differences are:

• There is a significant smaller share of young working age people aged 20

to 34 (25.6%) in Xhariep, compared to the national picture (28.0%).

• The area seems to be a migrant sending area, with many people leaving the

area to find work in the bigger cities.

• Fertility in Xhariep is slightly higher compared to South Africa as a whole.

• Spatial policies changed since 1994.

The share of children between the ages of 0-14 years is slightly larger (29.8%) in

Xhariep compared to South Africa (29.1%). Demand for expenditure on schooling as

percentage of total budget within Xhariep District Municipality will therefore be higher

than that of South Africa.

The population structure for Xhariep, 60 742 (49.9%) of the population are males and

60 945 (50.1%) are females. The African population had the largest group at 76%,

followed by the Coloured (14%) and White (10%) population group. 44% of the

population speak the Sesotho language at home, followed by Afrikaans at 38% and

isiXhosa at 12%.


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Population structure for the district

3.1.3. Households

The District had a total number of 40 234 households with a population density of 3.3

people per square kilometers. This is an increase from 44 768 households in 2016.

83.2% lived in formal dwellings. 10.1% of these households are in informal dwellings.

3.8% of the households live in back yard dwellings, which is slightly lower than the

provincial average of 5.9%. 1% are living in a townhouse which is slightly higher than

the South Africa and provincial average.

Approximately 57.8% of the households within Xhariep live in fully paid off properties

or properties that are in the process of being ‘fully paid off’. About 15.6% of the

households live in properties rented from private individuals and 12.6% of households

are occupying rent-free dwellings.

6,0% 4,0% 2,0% 0,0% 2,0% 4,0% 6,0%

00-04

05-09

10-14

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

65-69

70-74

75+

Population structure, Total, 2019DC16 Xhariep vs. National

DC16 Xhariep

South Africa

Male Female


37.6% households are headed by women. There are 353 child headed households

and 241 (68.3%) of the child households are headed by boys. 16.4% of the Child-

headed households are in an informal dwellings (shacks) and 71% live in a house.

3.2. Health Profile

HIV/AIDS is the leading cause of death for the 25-64 age group. There are 80 812

people who have tested positive for HIV in the District. Interpersonal violence (18.8%)

and HIV/AIDS (16.4%) are the leading causes of death in the 15-24 age group.

Between 2008 and 2012, the HIV cases dropped from 13 784 to 13 229 individuals,

before they started to increase again from 13 315 in 2012 to 13 777 in 2017. Like

elsewhere in the province, AIDS related deaths fell from 800 in 2008 to 271 in 2017.

Falling AIDS mortality can be credited to the rollout of the antiretroviral therapy,

prevention of mother-to-child transmission, the distribution of condoms and medical

male circumcision. Despite these attainments, the increasing trend of HIV infections

remains a concern in Xhariep.

The top two leading causes of death for children below the age of 5 is diarrhoeal

diseases (22.0%) and lower respiratory infections (18.8%). For the 5-14 age group,

drowning (19.3%) and road injuries (12.7%) are the leading causes of death. For the

elderly, cerebrovascular disease, such as strokes (17.3%) followed by ischaemic heart

disease (13.3%).


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In terms of maternal conditions, indirect maternal conditions (58.8%) and hypertension

(41.2%) account for the leading causes of death for women in the 15-49 age category.

Teenage pregnancy stands at 7.3%, immunization rate stands at 88.2% and Maternal

Mortality Ratio (per 100 000 live births) is 97.2.

In terms of health facilities, there is total of 17 primary healthcare (PHC) facilities.

Healthcare services in Xhariep are mainly provided by clinics and mobile clinic. There

are 23 fixed clinics and 18 weekly mobile clinics offered in three municipalities.

“HIV/AIDS IS THE LEADING CAUSE

OF DEATH FOR THE 25-64 AGE GROUP”

Hospitals in Xhariep are located at the towns of Jagersfontein – Diamond Hospital,

Zastron – Embekweni Hospital and Smithfield – Stoffel Coetzee District Hospital. The

new Trompsburg District Hospital has been completed and will offer sections including

the maternity and paediatric wards as well as emergency medical service.

3.3. Covid-19

The first case of Covid-19, case Zero, was discovered in South Africa on the 5th of

March 2020, in KwaZulu-Natal. In the early stages of the Covid-19 pandemic in South

Africa, Mangaung Metropolitan Municipality in the Free State was a hotspot for Covid-

19. Mangaung remains the epicentre of Covid-19 in the Free State, followed by

Xhariep District with 50 cases and Fezile Dabi with 33 confirmed cases.

As at 02 June 2020, 3 250 tests have been conducted in Xhariep, recording 50

confirmed cases, 1 deaths and 1 recoveries. The towns of Bethulile in Kopanong Local

Municipality has recorded the most cases at 47 followed by Petrusburg, Jacobsdal

and Luckhof each recording 1 confirmed case. Petrusburg, Jacobsdal and Luckhof are

located in Letsemeng Local Municipality.

The Council for Scientific and Industrial Research (CSIR) in collaboration with Albert

Luthuli Centre for Responsible leadership have developed a set of COVID-19

Vulnerability Indicators using available data and knowledge. It identifies vulnerabilities

present in communities and identifying areas in need of targeted coordinated


interventions and early response. The purpose of the indicators is intended to support

the early prevention/mitigation and preparedness phase of the disaster management

cycle and informing disaster management decision making. It is not based on

epidemiological modelling but a response to highlighting intervention areas due to

underlying situation. The composition of the index follows two main factors, namely:

transmission potential and health susceptibility.

Transmission potential areas identify areas that prevent social distancing to be

practiced and where limitations of practicing good basic hygiene. The health

susceptibility index denotes areas where large number of people are potential more

susceptible to being adversely affected by COVID-10 due to factors such as age and

underlying health conditions. The Xhariep District vulnerability profile is presented

below. The map shows low vulnerability areas (blue dotted areas) versus areas with

higher vulnerability (red dotted areas)

The area shows low vulenrability as it is sparsely populated but for the Jacobsdal area

which shows extreme vulnerability. Areas of higher density and economic activity also

show vulnerability these include Zastron, Rouxville, Edenburg and Bethulie and


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Jagersfontein. Area specific live GIS vunerability maps are available curtosy of CSIR

at:

https://pta-gis-2-web1.csir.co.za/portal2/apps/opsdashboard/#/390a74fb10844c7a85396e60555a866d

There are three state-owned quarantine facilities in Xhariep with 83 beds combined.

The facilities have not been activated as at 29 May 2020.

Table 1: List of quarantine sites in the district

TOWN POTENTIAL SITE/ BUILDING

NAME

STATE-OWNED

OR PRIVATE

NO OF BEDS

AVAILABLE

ACTIVATED

SITE

Trompsburg Trompsburg Hospital/Albert

Nzula Hospital

State-Owned

17

Pending

Buthini Tussen die Reviere NR and

Resort

State-Owned

27

Pending

Gariep Dam Nature

Reserve

Gariep Dam, A forever Resort State-Owned 39 Pending

3.4. Poverty Dimensions

3.4.1. Distribution

Using the lower poverty line, there are 41.9% of the population whom are living in

poverty. This is lower than the Free State which is at 44%. Mangaung Metro recorded

the lowest at 36.6% followed Xhariep (41.9%), Fezile Dabi District Municipality

(43.0%), Lejweleputswa District Municipality (45.9%) and Thabo Mofutsanyane

District Municipality (52.1%).

Lower poverty line stats for the Free State Province, 2018 Source: IHS Markit Regional eXplorer version 1750

In terms of the percentage of people living in poverty in the province, 59% were in

Xhariep. Mohokare Local Municipality had the highest poverty rate at (47.1%) followed

by Letsemeng (43.5%) and Kopanong (36.8%).

https://pta-gis-2-web1.csir.co.za/portal2/apps/opsdashboard/#/390a74fb10844c7a85396e60555a866d


3.4.2. Inequality

The Human Development Index (HDI) measures life expectancy at birth, education

using average years of schooling and gross national income per capita. HDI varies

between zero and one, with zero being the lowest level of development and one the

highest level. The HDI of Xhariep is 0.59. The highest levels of index was in Kopanong,

which rose from 0.50 index in 2008 to 0.61 in 2017. Mohokare and Letsemeng have

registered an index of 0.47 in 2008 and 0.59, and 0.58 index, respectively.

The gini-coefficient is a summary statistic of income inequality. If the gini-coefficient is

equal to zero, income distribution denotes equal income distribution. Meaning, there

is no variance between the high and low-income earners within the population. If the

gini-coefficient equals one, income is completely inequitable.

In terms of the gini-coefficient for each of the district municipalities in the Free State,

Mangaung had the highest gini-coefficient, with an index value of 0.62. Xhariep had

the lowest index of 0.59, but it had unequal income distribution.

According to Census 2011, the average annual household income is R29 400, with

11% having no income. In 2017, it was estimated that 14.47% of all the households in

the Xhariep District Municipality, were living on R30 000 or less per annum. In

comparison with 2007's 41.85%, the number is more than half.

Annual household income for the district

In relation to household goods, 83% of households have access to a cell phone and

81% to a television. Only about 23% of households have access to a car. 15% of the

households had access to a computer.

3.4.3. Employment/Unemployment

The working age population in Xhariep in 2019 was 76 339, decreasing at an average

annual rate of -0.56% since 2009. For the same period the working age population for


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Free State province increased at 0.39% annually, while that of South Africa increased

at 1.62% annually.

The figure below combines all the facets of the labour force in the Xhariep District

Municipality into one compact view. The chart is divided into "place of residence" on

the left, which is measured from the population side, and "place of work" on the right,

which is measured from the business side.

FORMAL JOBS MAKE UP 46.8%

OF ALL JOBS IN THE XHARIEP

DISTRICT MUNICIPALITY.

Labour glimpse for the district


Reading the chart from the left-most bar, breaking down the total population of the

Xhariep District Municipality (121 689) into working age and non-working age, the

number of people that are of working age is about 76 339 (15-64 age groups). Out of

the working age group, 61.8% are participating in the labour force, 47 200 residents of

the District Municipality forms currently part of the economically active population

(EAP). Comparing this with the non-economically active population (NEAP) of the

District Municipality: fulltime students at tertiary institutions, disabled people, and

those choosing not to work, sum to 29 100 people. Out of the economically active

population, there are 16 700 that are unemployed, or when expressed as a

percentage, an unemployment rate of 35.3%.

Formal jobs make up 46.8% of all jobs in the Xhariep District Municipality. In Xhariep,

the economic sectors that has the largest number of employees is the mining sector

at 24.8%. The community service sector with 15.2% employs the second highest

number of people relative to the rest of the sectors. The electricity sector with (0.4%)

is the sector that employs the least number of people in Xhariep, followed by the

transport sector with (2.1%) people employed.

The number of people employed by the informal sector is 8 508. In the informal sector,

the trade sector employs the highest number of people at 3 672 (43.1%) and the

manufacturing sector employs the least at 456 (5.3%).

In 2019, there were a total number of 16 700 people unemployed in Xhariep, which is

an increase of 5 660 from 11 000 in 2009. The total number of unemployed people

within Xhariep constitutes 4.04% of the total number of unemployed people in Free

State Province. The Xhariep District Municipality experienced an average annual

increase of 4.23% in the number of unemployed people, which is worse than that of

the Free State Province which had an average annual increase in unemployment of

4.23%.

3.4.4. Crime

Xhariep has 19 police stations servicing the community in the District. Serious crimes

reported by the community were the most prevalent in Xhariep, with the number rising

from 3 439 in 2017/2018 to 3 654 the next financial year. The nature of many of these

crimes involved arson at 10, malicious damage to property 181, burglary at non-

residential premises 284, burglary at residential premises 561, theft of motor vehicle

or motorcycle 32, theft out of or from motor vehicle 58 and stock theft 580.

There were 1 515 property related crimes, 24 cases of shoplifting, 397 incidents of all

theft not mentioned elsewhere and commercial crimes instances were 104. This made


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the category of other serious crimes to be 525, an increase of 8.2% for the 2018/19

financial year.

While robbery at residential premises decreased by -15.8%, robbery at non-residential

premises increased by 8.1%. TRIO crimes increased by 7%, and no incidents of truck

jacking, bank robber and robbery of cash-in-transit were reported.

Cases of driving under the influence of alcohol or drugs were 93 and 11 sexual

offences were reported in Xhariep District Municipality.

“WHILE ROBBERY AT RESIDENTIAL

PREMISES DECREASED BY -15.8%,

ROBBERY AT NON-RESIDENTIAL

PREMISES INCREASED BY 8.1%”

3.5. Education and Skills Profile

Education in the district remains a challenge. In Xhariep District Municipality of the

population aged 20 years and older, 11.4% (7 688) of the population are without any

education. In total, the number of people with ‘matric only’ was at 17 357 (25.76%)

which is a share of 3.20% of the province's total number of people that has obtained

a matric. The number of people with 'matric and a certificate/diploma' (2 341) is at

3.47%, while the number of people with a 'matric and a Bachelor's' degree (2 313) is

at 3.43%. Only 1.01% of the population have a postgraduate qualification.


Education levels in the district Source: Community Survey 2016

The Education Management Information System (EMIS) reflects that there are 32 171

learners and a total of 1175 educators. There are 70 public schools in Xhariep with no

private/independent schools.

The Xhariep District was the only District in the province without a college of its

own. The Motheo Technical Vocational Education and Training (TVET) College has a

satellite campus in Zastron, Mohokare Local Municipality. The main campus for

Motheo TVET College is in Mangaung Metropolitan Municipality.

The Zastron Satellite campus offers N4 - N6 Programmes in Business Management,

Human Resources Management, Marketing Management and Educare.


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4. Economic Drivers 4.1. Economic Drivers

The Xhariep District Municipality had a total GDP of R 7.86 billion and in terms of total

contribution towards Free State Province the Xhariep District Municipality ranked

lowest relative to all the regional economies to total Free State Province GDP. This

ranking in terms of size compared to other regions of Xhariep remained the same

since 2007.

In terms of the GDP share, it was larger in 2017 at 3.4% compared to 3.2% in 2007.

For the period 2007 to 2017, the average annual growth rate of 2.2% of Xhariep was

the second relative to its peers in terms of growth in constant 2010 prices.

The District is very rural, poorly resourced and naturally very dry to sustain intensive

agriculture. The economy of Xhariep was driven by the tertiary sector with the

community services sector had the highest contribution at 31.9%.

4.2. Primary Sector

Agriculture contributed 15.1% in 2019. The agricultural sector’s share of the District

dropped from 18.1% in 2008 to 16.4% in 2017. The District comprises of extensive

agriculture at 74 %, that is used for livestock farming, especially sheep and cattle to

produce wool and meat. Intensive agriculture in the Xhariep District makes up 21% of

the main land uses. Agriculture and livestock farming is spread throughout the District.

Game, sheep and ostrich farming dominates the agricultural landscape. Trompsburg

has the second-biggest sheep-shearing barn in the country and grapes are produced

in Jacobsdal.

- Letsemeng Local Municipality has a high to moderate potential for

vegetables including garlic, squash pumkin, watermelon, wheat, canola, potato

and spanspek.

- Kopanong Local Municipality has no high potential crops while, wheat,

canola, and potatoes, pears ,almonds, pecan nut as the moderate potential

crops. In the municipality, the basic agricultural products are exported from the

area for processing and re-imported into the area as consumer products.

- Mohokare Local Municipality has a high potential for Forage sorghums and

a moderate potential for sunflower, grain sorghum, wheat and vegetables such

as garlic.


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Agricultural sector has the most potential to create linkages with the local economy

and value chains.

Mining has traditionally been one of the economic backbones of Xhariep District

Municipality (11.3% GVA contribution). However, its significance to the district

economy has been declining with its share in the district fell from 15.5% in 2008.

The diamond industry is large in the District with Jagersfontein Mine producing some

of the world’s largest diamonds. Other minerals in the district include titanium, iron and

potash. The mining sector has a potential for value chain enhancement, particularly

small scale mining, including artisanal mining.

“MINING HAS A GVA CONTRIBUTION

11.3%, AND THE DIAMOND INDUSTRY IS

LARGE IN THE DISTRICT WITH JAGERSFONTEIN

MINE PRODUCING SOME OF THE WORLD’S

LARGEST DIAMONDS”

4.3. Secondary Sector

The Local Economic Development Strategy for the District, notes that there is a

potential to expand existing industries and developing new niche industries which will

benefit the manufacturing sector but also promote local exports. The District has

different industries, producing various products including shoes at a shoe

manufacturing factory, and game meat industry such as biltong hunting throughout the

District. There is also water harvesting by Water Affairs to generate hydroelectricity.

The Xhariep region has the second best solar-radiation index after Upington in the

Northern Cape. This presents the opportunity for the establishment of the solar park.

The National Development Plan schema for spatial targeting identifies Xhariep as a

green economic zone with solar power potential.

4.4. Tertiary Sector

The economy of Xhariep was driven by the tertiary sector. The community services

sector had the highest contribution at 31.9%, followed by trade at 13.5% and transport

and finance both at 9.1%.


The community sector, which includes the government services, is generally a large

contributor towards GVA in smaller and more rural local municipalities. When looking

at the Local Municipalities in the District Municipality, Kopanong Local Municipality

Kopanong Local Municipality contributed R 3.02 billion (42.12%) to the GVA of the

Xhariep District Municipality, making it the largest contributor to the overall GVA of the

District.

In terms of transport, the transport infrastructure in Xhariep includes roads, rail and

small airfields. Some of the national routes pass through are the N1 (Johannesburg

and Cape Town via Trompsburg) and the N6 (Gauteng and the Eastern Cape via

Aliwal North) and serves as important corridors and gives the district a competitive

advantage. The Local Economic Development Strategy notes there is a potential to

strengthen the transport linkages.

4.5. Tourism

The tourism sector has a potential in Xhariep District Municipality given its natural and

historical features. Tourism’s contribution to GDP of Xhariep rose from 12.6% to 15.5%

between 2008 and 2017, an indication of the importance of the sector in the economy

of Xhariep. The biggest contributor was Kopanong Local Municipality with 24.1% in

2017. Not surprisingly, this is where the Gariep Dam is located. Letsemeng Local

Municipality was the lowest contributor at 7.1% in 2017.

The largest proportion of tourists in Xhariep were those visiting friends and relatives

at 65 418 in 2017. Leisure or holiday tourists’ number soared from 29 160 in 2008 to

45 101 in 2017. As for individuals visiting for business purpose, they increased from

12 559 in 2008 to 20 937 in 2017.

There are opportunities for the development of the Big Hole as a tourist attraction area

in Jaggersfontein Mine. Other opportunities include the expansion of leisure and water

sports tourism in the Gariep Dam and Tussen die Riviere and Mynhardt game

reserves. The development of an airstrip for small charter flights between Gariep Dam

and Bloemfontein would also enhance tourism potential in the District Municipality.

4.6. Informal Economy

Within the District the informal sector provides work for approximately 8 508 people.

The significance of the informal sector within the regional and local economy should

never be under estimated. In terms of the informal sector Kopanong and Letsemeng


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Local Municipalities provide for the most employment. Mohokare is almost on the

same value.

5. Service Delivery 5.1. Water and Sanitation

The 2016 Community Survey, reveals that 92.7% of households were reported to have

access to safe drinking water. 85.7% were getting water from a regional or local

service provider.

Household access to water

By 2018, Xhariep District Municipality had a total number of 16 932 (42,1%)

households with piped water inside the dwelling, a total of 20 615 (51.2%) households

had piped water inside the yard and a total number of 534 (0.01%) households had

no formal piped water.

The municipality within Xhariep District Municipality with the highest number of

households with piped water inside the dwelling is Kopanong Local Municipality with

6 940 (41.01%) of the households. The region with the lowest number of households

with piped water inside the dwelling is Mohokare Local Municipality with a total of 3

790 (22.40%) of the total households.

In terms of sanitation, by 2018 Xhariep District Municipality had a total number of 33

457 flush toilets (83.1% of total households), 1 758 Ventilation Improved Pit (VIP)

(0.04% of total households) and 1 209 (0.03%) of total households’ pit toilets. The

municipality within Xhariep with the highest number of flush toilets is Kopanong Local

Municipality with 14 300 (42.65%) of the flush toilets within Xhariep. The municipality

with the lowest number of flush toilets is Mohokare Local Municipality with a total of 9

180 (27.43%) of the total flush toilets within Xhariep District Municipality.


5.2. Human Settlements

With 44 768 households, 83% reside in a house, 10% in an informal dwelling (shack),

4% in a flat in a backyard and only 1% in a townhouse.

Kopanong Local Municipality had the highest number of very formal dwelling units with

5 360 (39.04%) of the total very formal dwelling units within Xhariep District

Municipality. the region with the lowest number of very formal dwelling units is the

Mohokare Local Municipality with a total of 3 030 (22.08%) of the total very formal

dwelling units within Xhariep District Municipality.

The shortage of lower income housing has been identified as a spatial issues identified

in Mohokare Local Municipality.

5.3. Electricity

In 2016 all the municipalities in the district achieved access to electricity of above

93.3%. By 2018, Xhariep District Municipality had a total number of 1 649 (4%)

households with electricity for lighting only, a total of 35 568 (91%) households had

electricity for lighting and other purposes and a total number of 1 891 (5%) households

did not use electricity.

The municipality in Xhariep with the highest number of households with electricity for

lighting and other purposes is Kopanong Local Municipality at 14 700 (41.35%). The


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municipality with the lowest number of households with electricity for lighting and other

purposes is Mohokare Local Municipality with a total of 9 380 (26.38%).

When looking at the number of households with no electrical connection over time, it

can be seen that in 2008 the households without an electrical connection in Xhariep

District Municipality was 3 760, this decreased annually at -6.64% per annum to 1 890

in 2018.

5.4. Waste Management

In 2016, 30 321 households had access to weekly refuse removal.

Household access to waste management

In 2018, Xhariep District Municipality had a total number of 28 093 (71.8%) households

which had their refuse removed weekly by the authority, a total of 1 173 (0.3%)

households had their refuse removed less often than weekly by the authority and a

total number of 6 863 (17.5%) households which had to remove their refuse personally

(own dump).

The municipality within Xhariep with the highest number of households where the

refuse is removed weekly by the authority is Kopanong Local Municipality with 12 300

(43.85%) of the households where the refuse is removed weekly by the authority. The

region with the lowest number of households where the refuse is removed weekly by

the authority is Mohokare Local Municipality with a total of 7 750 (27.59%) households

where the refuse is removed weekly by the authority within the District Municipality.

When looking at the number of households with no formal refuse removal, it can be

seen that in 2008 the households with no formal refuse removal was 9 680, this

increased annually at 0.16% per annum to 9 840 in 2018.


5.5. Transport

The three national roads (N1, N6, and N8), provides Xhariep district municipality with

a high connectivity to other Free State districts, and provinces within South Africa. The

national roads are upgraded and maintained by SANRAL.

Xhariep District also has an airfield located at Gariep Dam town and is regarded as

one of the best small airfields in the country. Currently, the airfield mostly handles

occasional Ecotourism traffic and is an ideal refuelling point.

The District has established railway connections which include the inter-provincial rail

freight arterial line. The main line from Springfontein to Bloemfontein via Trompsburg

and Edenburg is another major rail freight arterial line servicing the District.

The border posts with the Kingdom of Lesotho are an important part of the

infrastructure available in Xhariep. There are border points at Zastron (Makhaleng

Bridge) and Sepapu’s Gate. The border post infrastructure contribute to a potential

corridor linkage of people and goods between Xhariep and Lesotho.

“BORDER POSTS WITH THE KINGDOM OF

LESOTHO ARE AN IMPORTANT PART OF THE

INFRASTRUCTURE AVAILABLE IN XHARIEP”

6. Governance and Management 6.1 Municipal Performance

• For three consecutive years, the Xhariep received unqualified audit outcomes.

The trend has remained unchanged. There was some improvements in

Letsemeng Local Municipality, which moved from a disclaimer in the 2016/2017

financial year to a qualified audit opinion the following year.

Generally, all three municipalities have received either unqualified or disclaimed

throughout the three-year period, signalling poor management of funds.

Auditee Audit Outcomes

Movement


30

2015/16 2016/17 2017/18 Xhariep Unqualified Unqualified Unqualified Unchanged Letsemeng Qualified audit Disclaimer of an

audit Qualified

audit Improvement

Kopanong Unqualified Qualified audit Qualified audit

Mohokare Unqualified Disclaimer Qualified audit

Unchanged

Audit Outcomes 2015-2017 Source: Department of Cooperative Governance, Free State, 2019

The Auditor-General stated concerns since the sustainability of the improved audit

outcome is questionable as no progress has been made in addressing the findings of

the previous year in the key risk areas, except in the area relating to performance

reporting.

The financial statements submitted were of poor quality and material corrections were

made based on misstatements identified, which resulted in the improved audit

outcomes.

6.2. Municipal Capacity

The existence of an efficient, effective and accountable local government in predicated

on institutional stability indicative of a capable and developmental state. This included

the filling of vacant positions with qualified individuals to set in motion quality service

delivery provision. In the period between July 2018 and June 2019, all municipalities

in the District reported to the Department of Cooperative Governance that the positions

of municipal managers were filled.

Xhariep Number of times reported on MM positions

Number of times indicated MM filled

Number of times indicated MM vacant

Kopanong 6 6 0

Letsemeng 6 6 0

Mohokare 12 12 0

Xhariep 7 7 0 Total 31 31 0

District Municipal capacity Source: Xhariep Performance Report, 2018/2019

In the same period between July 2018 and June 2019, the report was slightly different

regarding the filling of the positions of the CFOs in some municipalities in Xhariep.

As for the section 56 management layer positions that report directly to the Municipal

Managers, there were also variations in municipalities in the Xhariep District

Municipality.


Xhariep Number of times reported

on Section 56 positions

Number of times Section

56 positions filled

% of Section 56

positions filled

Kopanong 6 24 12

Letsemeng 6 16 100

Mohokare 12 48 14

Xhariep 7 26 20

Total 31 114 62

District Management Positions Status Source: Xhariep Performance Report, 2018/2019

Letsemeng Local Municipality reported 100% occupancy rate and Xhariep District

Municipalities indicated 62% during the July 2018 and June 2019 reporting period.

Refer to the table below.

Xhariep Number of times reported on CFO position

Number of times CFO filled

Number of times indicated CFO vacant

Kopanong 6 2 3

Letsemeng 6 6 0

Mohokare 12 6 6

Xhariep 7 0 7

Total 31 13 21

District CFO position status Source: Xhariep Performance Report, 2018/2019

Reports reveal that Xhariep District Municipality stated that in the seven months period

from July 2018 to June 2019 that it reported, the position of a CFO was vacant. In the

twelve reporting times that Mohokare reported, it specified that a period of six months,

the position of the CFOs was vacant in the Local Municipality.

“THE EXISTENCE OF AN EFFICIENT, EFFECTIVE AND

ACCOUNTABLE LOCAL GOVERNMENT IN PREDICATED

ON INSTITUTIONAL STABILITY INDICATIVE OF A

CAPABLE AND DEVELOPMENTAL STATE”

7. Projects to Diversify and Grow the Economy 7.1. Spatial Development

According to the, Draft National Spatial Development Framework, the Arid-Innovation

comprises the arid and sparsely populated western and southwestern central parts of

the country and is set to be significantly affected by future climate change trends.


32

Due to current challenges and increasing climatic pressures, this region requires a

range of targeted interventions to ensure the future well-being of its inhabitants, the

health of its economy and the sustainable use of its natural resources.

Source: Draft National Spatial Development Framework

It is also important to harness the nationally significant opportunities of this region,

including its niche agricultural activities and fisheries, mineral deposits, potential for

alternative energy generation and contribution to the international scientific community

through SKA.

7.2. Environmental forecast

Xhariep is bordered for most of its eastern border by the Maluti and Drakensberg

mountains. Hydrologically, the district is located between the Vaal River to the north

and Orange River to the south, with rivers within the district draining towards these

rivers.

Altitudes in the district vary from 2 060 meter above mean sea level (mamsl) at

Bakenkop in the north-eastern quadrant to 1 100 mamsl in west. The morphology of

the area encompassing Koffiefontein and Petrusburg can broadly be described as


plains with medium relief. There is also large portion of agricultural land that is suitable

for livestock production. The Department of Rural Development and Land Reform

have acquired many farms for livestock.

7.3. Social Development Projects

Project Name

Project Type (Description)

Sector Project Status

Estimated number of beneficiaries of the project

Financial Year Local Municip

ality

Total Proje

ct Cost

Actual Expenditure 2019/2

0

Start Date

Finish Date

Free State Department of Small Business Development, Tourism and Environmental Affairs (DESTEA)

Gariep Nature

Reserve

Construction of swimming pools,

children’s play and day visitors areas,

and a hall

Infrastructure

Planning phase

30 04/01/2018

31/03/2020

Gariep 5498 0

Gariep Nature

Reserve

Upgrade of chalets and

caravan park

Infrastructure

Planning phase

20 04/01/2018

31/03/2019

Gariep 1500 0

Staff housing

all Resorts

and Reserves

Upgrade and construction of staff housing

Infrastructure

Planning phase

20 04/01/2018

31/03/2020

All districts

21227 0

7.4. Infrastructure Projects

The main source of water in Kopanong Local Municipality are the Bloemwater

pipelines that also service most of the towns except Jagersfontein and Fauresmith,

which get water from the mineshafts in Jagersfontein. Water from the mineshafts is of

poor quality and needs to be purified.

The pipeline between Fauresmith and Jagersfontein is also very old and leakages

occur regularly. Reddersburg and Edenburg also access water from the Bloemwater

pipelines, supplemented with boreholes during dry seasons. The water pumps at

these two towns are in poor condition. Bethulie’s pump station is too small and its

capacity will need to be increased.

7.5. Economic Projects

Large portions of Xhariep are classified as Ecological Support Areas followed by

critical biodiversity areas and protected areas. Any development in these areas should

take cognizance of the biodiversity pockets. Xhariep is mainly agricultural. Based on

the Free State Landcover (2009) data, 45 223 hectares of land was irrigated.


34

Agro-processing and tourism are reflected in the municipal Local Economic

Development strategy as being amongst the key performance areas.

7.5.1. Agri-Park in Springfontein

The Integrated Development Plan notes that there is also a trend to re-invigorate

agriculture through investments in processing and development of value chains which

also includes agri-parks. An increasingly important element of economic development

strategy for many rural communities is creating new value from the appeal of

landscapes, rural environments and local cultural heritage.

Xhariep District Municipality has identified the Agri-Park in Springfontein, as a catalyst

project for district agricultural development. The planned agri-park in Springfontein is

likely to trigger activities in diverse agricultural production and distribution value

chains. Commodities considered for development within the Xhariep District

Municipality Agri-Park include those of:

1. Ostrich;

2. Pecan and Walnuts; and

3. Potatoes

A number of projects are already established for these commodities, both

commercially and also as government projects. As such, it provides for an ideal

situation for further diversification and development.

Xhariep has been identified as a fish farming hub. Implementation of 39 fish tanks at

the Xhariep Fish Hatchery for the production of fingerlings in the three towns of

Springfontein, Koffiefontein and Bethulie are in progress (13 fish tanks per ton).

The Department of Agriculture, Forestry and Fisheries in 2012 estimated that the Free

State contained approximately 3% of all the aquafarms in the country. Fish processing

take place in Mohokare – Zastron area. The Farmer Production Support Unit is in the

vicinity of the Fish Processing plant. Fish production is around the Gariep Dam.

7.5.2. Tourism Route

The three national roads (N1, N6, and N8), the exquisite natural beauty position

Xhariep district municipality as an ideal tourism attraction. The Provincial Spatial

Development Framework (PSDF) highlighted three prominent tourism routes

including,


• The "Diamond and Wine" tourist route which goes past the diamond mines

of Jagersfontein and Koffiefontein, and stops at the Landzicht Wine Cellars

for a taste of superb wine. Many use Xhariep simply as a stopover to refresh

and break a long journey.

• The Xhariep Dam Route which includes the towns of Smithfield, Bethulie

and Xhariep dam

• The Maluti route which originates in the north and includes the towns of

Wepener, Van Stadensrus, Zastron and Rouxville, and

• The deep open mines at Jagersfontein and Koffiefontein and the "Mining

Village" at Jagersfontein which are big attractions among tourists.

Smaller segments of the Tourism sector are evident in localised accommodation

establishments, holiday farms and game farms. The climate and physical

characteristics of the Xhariep makes it suitable for game farming. Game farms were

identified in Petrusburg, Luckhoff, Phillipolis and Bethulile


36

8. Key Recommendations • Xhariep District Municipality is less diversified in terms of its economic activity

spread. A diverse economy is more likely it is to create employment

opportunities across all skill levels.

• In an attempt to pursue economic growth and alleviate of unemployment there

needs to be industries that are growing fast and create jobs in particular the

lower skilled categories. Unfortunately, in practice many industries that are

growing fast are not those that create many employment opportunities for

unskilled labourers (and alleviate unemployment).

• The issues raised by the Auditor-General require urgent attention to ensure

effective financial management. The Auditor-General stated concerns since the

sustainability of the improved audit outcome is questionable as no progress has

been made in addressing the findings of the previous year in the key risk areas,

except in the area relating to performance reporting.

• The existing and potential agricultural landscapes should be consolidated and

protected; and sustainable agricultural development and food security should

be facilitated. The ecosystems must be stabilised and managed to restore their

ecological functionality.

• Xhariep experiences rural out-migration, loss of skills, and absence of clear-cut

investment opportunities. Strengthen rural to rural linkages through the support

of rural development, innovation and enterprise development. Infrastructure

investment and access to services is critical for the realisation of this.

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