COMPREHENSIVE RURAL DEVELOPMENT STRATEGY

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GAUTENG DEPARTMENT O
F AGRICULTURE AND
RURAL DEVELOPMENT

COMPREHENSIVE
RU
RAL DEVELOPMENT
STRATEGY



GAUTENG PROVINCIAL GOVERNMENT

2 June
2010








GAUTENG RURAL DEVELOPMENT STRATEGY 2009
-
201
4

Page
2


Table of C
ontents


DEFINITIONS

................................
................................
................................
..........................

6

CHAPTER ONE: INTRODUCTION

................................
................................
.........................

8

1.0.

Introduction

................................
................................
................................
.......

8

1.1.

Rural D
evelopment

................................
................................
............................

9

1.2.

Definition of Rural Areas

................................
................................
.................
10

1.3.

The Need for Rural Development in Gauteng

................................
.................
11

1.4.

The Overall Objective of the Gauteng Rural Development Strategy

.............
12

1.5.

Dimensions of the Gauteng Rural Dev
elopment Strategy

.............................
13

1.5.1.

Quality Livelihood

................................
................................
................................
.............................

13

1.5.2.

An Enabling and Peoples Empowering Environment

................................
................................
.......

13

1.5.3.

Self
-
Reliance and Self
-
Sustenance

................................
................................
................................
.

14

1.5.4.

Local Economic Development

................................
................................
................................
..........

14

1.5.5.

Trade and International Competitiveness

................................
................................
........................

14

CHAPTER TWO: CONSULTATION PROCESS

................................
................................
.....
16

2.0.

Background

................................
................................
................................
......
16

2.1.

Presentation of the Gauteng Rural Development Strategy

................................
.
16

2.2.

Perspectives of Various Stakeholders

................................
............................
16

2.3.

Summary of Findings on Sustainable Land Reform
and agricultural
productivity

................................
................................
................................
......................
16

2.4.

Summary of Findings on Access to Sufficient Food Security for All

...........
16

2.5.

Summary of Findings on Job Creation linked to Skills Training and
Capacity Building

................................
................................
.............................
17

2.6.

Summary of Findings on Good Governance

................................
..................
17

2.7.

Summary of Findings on Ways to Increase Opportunity and Access to
Basic Services

................................
................................
................................
..
17

2.8.

Summary of Findings

on Reducing Risks and Vulnerability

.........................
17


GAUTENG RURAL DEVELOPMENT STRATEGY 2009
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CHAPTER THREE: THE CURRENT GAUTENG RURAL DEVELOPMENT STATUS

...........
18

3.0.

Background

................................
................................
................................
......
18

3.1.

Susta
inable Land Reform and Agricultural Productivity

................................
......
18

3.2.

Access to Sufficient Food for All

................................
................................
....
20

3.3.

Job Creation Linked to Skills Training and Capacity Building

.....................
22

3.4.

Small, Medium and Micro Enterprises (SMMEs)

................................
............
23

3.5.

Sustainable Utilisation of Natural Resources

................................
................
26

3.6.

Rural Development and Sustainable Livelihoods

................................
................
26

3.6.1.

Education

................................
................................
................................
...........
26

3.6.2.

Health
................................
................................
................................
.................
27

3.6.3.

Water Supply and Sanitation

................................
................................
..............
27

3.6.4.

Infrastructure, Information and Telecommunication

................................
............
28

3.6.4.1.

Road Network Infrastructure

................................
................................
................................
.........

28

3.6.4.2.

Telecommunication and Information Services

................................
................................
............

28

3.6.4.3.

Postal Services

................................
................................
................................
..............................

29

3.6.
4.4.

Energy

................................
................................
................................
................................
.............

29

3.6.4.5.

Information and Communication Technology

................................
................................
.............

30

3.7.

Cross
-
cutting issues

................................
................................
...........................
31

3.
7.1.

HIV/AIDS situation in Gauteng

................................
................................
................................
.........

31

3.7.2.

Gender Bias

................................
................................
................................
................................
.....

33

CHAPTER FO
UR: OVERVIEW OF THE GAUTENG RURAL DEVELOPMENT STRATEGY

34

4.0.

BACKGROUND

................................
................................
................................
.
34

4.1.

Promotion of Sustainable Land Reform in Gauteng

................................
......
34

4.2.

Support of Rural Infrastructure Development, Access to Services and
Sustainable Livelihoods

................................
................................
................................
..
36

4.3.

A
ccess to Sufficient Food Security for all

................................
......................
37

4.4.

Job Creation Linked To Skills Training and Capacity Building

....................
39

4.4.1.

Gauteng Rural Development Strategy Job Creation

................................
...........
40

4.4.2.

The Job Creation Model

................................
................................
.....................
40

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4.4.2.1.

Purpose
................................
................................
................................
................................
............

40

4.4.2.2.

Key Pillars

................................
................................
................................
................................
........

40

4.4.2.3.

Job Creation Principles

................................
................................
................................
....................

41

4.4.2.4.

Overview of the Model

................................
................................
................................
.....................

41

4.4.2.5.

Key Features of the Model

................................
................................
................................
...............

42

4.4.2.6.

Conclusion

................................
................................
................................
................................
.......

43

4.5.

Sustainable Use of Natural Resources and Protection of the Environment

44

CHAPTER FIVE: IMPLEMENTING THE GAUTENG RURAL DEVELOPMENT STRATEGY

46

5.1. Promoti
ng Sustainable Land Reform in Gauteng

................................
.........................
46

5.1.1.

Reforming Policies and Institutions to Encourage Investment

................................
.........................

47

5.1.2.

Supporting

Development of Sustainable Rural Financial Services

................................
..................

47

5.1.3.

Promoting Sustainable Use of Natural Resources

................................
................................
...........

48

5.1.4.

Strategic Priority Areas

................................
................................
................................
....................

48

5.1.4.1.

Agricultural and Livestock Development

................................
................................
..........................

48

5.1.4.2.

Small
-

and Medium
-
Scale Enterprises

................................
................................
.............................

56

5.1.4.3.

Skills Development

................................
................................
................................
..........................

58

5.1.4.4.

Natural Resource Management and Utilisation

................................
................................
................

60

d.

Tourism

................................
................................
................................
................................
............

62

5.2.

Rural Development and Sustainable livelihoods

................................
.................
63

5.2.1.

Strategic Priority Areas

................................
................................
................................
....................

63

5.2.1.1.

Education

................................
................................
................................
................................
.........

63

5.2.1.2.

H
ealth

................................
................................
................................
................................
..............

66

5.2.1.3.

Rural Water Supply and Sanitation

................................
................................
................................
..

68

5.2.1.4.

Housing and Good Shelter

................................
................................
................................
...............

71

5.2.1.5.

Road Network Infrastructure, Information, Communication Technology

................................
..........

72

5.2.1.6.

Telecommunication and Information S
ervices

................................
................................
.................

75

5.2.1.7.

Postal Services

................................
................................
................................
................................

77

5.2.1.8.

Energy

................................
................................
................................
................................
.............

77

a.

Strategic

Interventions

................................
................................
................................
.....................

78

5.3.

REDUCING RISKS AND VULNERABILITY

................................
.......................
79

5.3.1.

Problems and Constraints

................................
................................
................................
................

80

5.3.2.

Development Objective

................................
................................
................................
....................

80

5.3.3.

Strategic Interventions

................................
................................
................................
.....................

80

5.4.

Good Governance

................................
................................
..............................
82

5.4.1.

Strategic Priority Areas

................................
................................
................................
....................

82

5.4.1.1.

Decentralisation and Empowerment

................................
................................
................................

82

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5.4.1.2.

Participatory District Planning

................................
................................
................................
..........

84

5.4.1.3.

Participation of NGOs and CBOs

................................
................................
................................
.....

85

5.4.1.4.

Justice, Security and Corruption

................................
................................
................................
......

86

5.4.1.5.

HIV/AIDS
................................
................................
................................
................................
..........

88

CHAPTER SIX: COORDINATION OF THE RURAL DEVELOPMENT STRATEGY
IMPLEMENTATION

................................
................................
................................
......
89

6.0. Background

................................
................................
................................
.................
89

6.1. Institutional Framework for Rural Development

................................
...........................
89

6.2. Rural Development Secretariat
................................
................................
....................
89

CHAPTER SEVEN: MONITORING AND EVALUATION SYSTEMS OF THE GAUTENG
RURAL DEVELOPMENT STRATEGY

................................
................................
..........
91

7.0.

Background

................................
................................
................................
....................
91

7.1.

Monitoring Framework

................................
................................
........................
91

7.2.

Preparation and Review of District Development Plans

................................
......
92

7.3.

The role of Gauteng S
ector Departments

................................
...........................
92

7.4.

The role of the private sector and civil society

................................
....................
92


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DEFINITIONS


Microfinance
:

Microfinance is an economic development approach that involves providing financial services, through
institutions, to low
-
income clients, where the market
fails to provide appropriate services. The services
provided by the Microfinance Institutions (MFIs) include credit saving and insurance services. Many
microfinance institutions also provide social intermediation services such as training and education,
or
ganizational support, health and skills in line with their development objectives.

Micro
-
credit
:

It is a component of microfinance and is the extension of small loans to entrepreneurs, who are too poor
to qualify for traditional bank loans. Especially in d
eveloping countries, micro
-
credit enables very poor
people to engage in self
-
employment projects that generate income, thus allowing them to improve the
standard of living for themselves and their families.

Micro Finance Institutions (MFIs):

A microfinance

institution is an organization, engaged in extending micro credit loans and other financial
services to poor borrowers for income generating and self
-
employment activities. An MFI is usually not a
part of the formal banking industry or government. It is u
sually referred to as a NGO (Non
-
Government
Organi
s
ation).

Empowerment:

Empowerment refers to increasing the spiritual, political, social and economic strength of individuals and
communities. It often involves in developing confidence of the individual in

his/her own capacities. It has
different meanings in different social, cultural and political contexts. It indicates the expression of self
-
strength, control, self
-
power, self
-
reliance, freedom of choice and life of dignity, in accordance with one’s
value
s, capable of fighting for one’s rights, independence, own decision making, free
dom
, awakening,
and capability. Empowerment is relevant at the individual and collective level, and can be economic,
social, or political.

Economic Empowerment:

As a
consequence of economic empowerment, income, savings, employment and self
-
employment
increases
, thus

reducing unemployment and indebtedness. As a result of this, sale of commodities and
land also decreases, resulting in the increase of assets and productiv
e investment.

Social Empowerment:

Social empowerment refers mainly to the literacy rate and social awareness, especially of women who
are
greatly
oppressed in many developing countries.
It
is related to the participation of people in different
community an
d political institutions, mobility and decision
-
making power, access to safe drinking water
and sanitation coverage.
O
ther factors which result
with

the increase in social empowerment are
higher
contraceptive

prevalence rate
s,

access to public and common p
roperty resources, and decrease
d

child
and maternal mortality.

Poverty:

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Poverty is a condition in which a person of
a
community is deprived of the basic essentials and
necessities for a minimum standard of living. Since poverty is understood in many senses
, the basic
essentials may be material resources such as food, safe drinking water and shelter, or they may be social
resources such as access to information, education, health care, social status, political power, or the
opportunity to develop meaningful
connections with other people in society.
It is a
condition of life so
characteri
s
ed by malnutrition, illiteracy, and disease as to be beneath any reasonable definition of human
decency”.

Extreme Poverty/Absolute Poverty:

Extreme poverty is the most severe state of poverty, where people cannot meet their basic needs for
survival, such as food, water, clothing, shelter, sanitation, education and health care. Eradication of
extreme poverty and hunger by 2015 is a Millennium D
evelopment Goal set by UN.


Liquidity:

Liquidity refers to the availability of liquid funds in an economy and the status of
the
condition of a person
or business in terms of
that person’s or business’

ability to convert assets into cash and to
meet
obliga
tions
. It is also an indicator for understanding the capacity of a market in a particular security or
commodity to withstand an unusual amount of buying or selling without affecting the market substantially.

Livelihoods:

L
ivelihoods refer to more than just earning income and wealth: quality of life and of society, security and
dignity might be just as important to those whose livelihoods need
to be
improv
ed
. Livelihood systems
incorporate the present situation, the short
-
te
rm and long
-
term perspective. The objective is not only to
preserve current patterns of consumption, but also to avoid destitution or sacrificing future standards of
living. The risk of livelihood failure determines the vulnerability of a household to inco
me, food, health and
nutritional insecurity.

Rural areas:

The Rural Development Framework, adopted by the Government in 1997, defined rural areas as
“sparsely populated areas in which people farm or depend on natural resources, including villages and
smal
l towns that are dispersed throughout these areas. In addition they include large settlements in the
former homelands, created by apartheid removals, which depend for their survival on migratory labour
and remittances.

Rural Development:

Rural development
is about enabling rural people to take control of their destiny, thereby dealing
effectively with rural poverty through the optimal use and management of natural resources. It is a
participatory process through which rural people learn over time, through t
heir own experiences and
initiatives, how to adapt their indigenous knowledge to their changing world.

Strategy
:

Strategy is the
direction
and
scope

of an organisation over the
long
-
term:

which achieves
advantage

for
the organisation through its configuration of
resources

within a challenging
environment
, to meet the
needs of
markets

and to fulfil
stakeholder

expectations

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CHAPTER O
NE
:

INTRODUCTION


1.0.

Introduction


Despite the immense efforts made, both at provincial

and national levels, a significance proportion of
mankind

continue

to eke out an existence in the most abject conditions of material deprivation.
Millions live constantly under the threat of starvation in less developed countries.


With a total area of 16

548 square kilometres, Gauteng is slightly smaller than the US state of New
Jersey. While it

i
s the country's smallest province, it has the largest population, and by far the highest
population density
-

576 people per square kilometre. A summer
-
rainfall
area, Gauteng has hot
summers and cold winters with frost. Hail is common during summer thunderstorms.

The people of Gauteng have the highest per capita income level in the country. The province blends
cultures, colours and first
-

and third
-
world traditio
ns in a spirited mix, flavoured by a number of
foreign influences. The world's languages can be heard on the streets and in offices, from English to
Mandarin, Swahili, French, German and more.

The province has the most important educational and health cen
tres in the country. Pretoria boasts
the largest residential university in South Africa, the University of Pretoria, and what is believed to be
the largest correspondence university in the world, the University of South Africa, or Unisa.

The substantial im
provements in sporting infrastructure, transport systems, telecommunications and
public facilities would benefit the people of Gauteng long after the world cup was over.


Gauteng
boasts of the Soccer City, Loftus Versfeld and Ellis Park Stadia, will play t
he most crucial role in
hosting the 2010 World Cup. The opening ceremonies and the closing ceremonies as well as a
number of group matches will be hosted in this province. The rebuilding of Soccer City began in early
2007 and is expected to be finished by
October 2009. The new Soccer City stadium will have 94 700
seats, which will be covered by a roof, leaving the soccer pitch open.

Whilst
Gauteng is the smallest province geographically
, it

remains the economic powerhouse of
South Africa and is a nexus of
economic activity, contributing 35.1% to the national Gross Domestic
Product (GDP) for 2007.

However, there remain socio
-
economic challenges within Gauteng such as persistent high levels of
poverty and unemployment. Various policies have been implemented
over the past decade to
address these challenges. Th
is

section

will begin by providing a demographic characterisation of the
Gauteng population by age, gender and population group. This will form the basis for the remainder
of the analysis that includes a review of the Gauteng economy, the Gauteng labour market, acce
ss
to services within Gauteng, as well as economic development.

A demographic profile of the Gauteng population provides necessary data that informs policy
formulation and implementation. Demographic statistics are important for directing policy decisions
.

It

provides an outline of the Gauteng population by age, gender and population group. In addition, this
section provides an analysis of fertility, mortality and Human Immunodeficiency Virus/Acquired
Immune Deficiency Syndrome (HIV/AIDS) rates, together wi
th urbanisation and migration within the
province.

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Development generally means the improvement of people's lifestyles through improved education,
incomes, skills development and employment. Development also means that people should have
decent housing, and

that they should have security within those houses. Development means too,
that people should be able to read and write, and in Africa this is a problem as most people
throughout the continent
are still illiterate, South Africa included. In order to devel
op or have better
lives, people must
receive

a good education. Because illiterate people do not develop as much as
educated people do, it is therefore important that people should get themselves a good education, or
send their children to school to
receive

that education.

When a country invests in education it is a productive investment, because an educated labour force
is a source of productivity. To be educated means nothing if the educated ones do not enjoy good
health, decent housing, psychological sta
bility, cultural upliftment and cultural fulfilment. One can add
that to be educated also means nothing if that education cannot
secure

one a good job
, food,
, good
health
care
, a
n adequate

house, educat
ion for
one's children and
a decent

living standard
. In other
words, development must improve all these aspects of people's lives.

This
s
trategy sets out that the provision of adequate financial assets, technology package and health
care
strongly contribute
s

to
the
poverty eradication process. The strategy

also argues how rural

areas

are marginalised
,
their inhabitants
have insufficient income and
inadequate infrastructure
.

1.1.

Rural Development


The increasing disillusionment with
the
modernisation approach (emphasizing achievement of
economic objectives and
scant attention to the social dynamics of change) to Third World
development in the 1960s and the early 1970s, have changed the concerns of development
economists in the mid
-
1970s, to rural development. M
odernisation approaches tended to lead to
increasin
g inequality in a country in general and in the rural sector in particular and contributed to
increasing mass poverty in many societies in the Third World.

There has been a speedy acceptance of the concept ‘rural development’ over the past few decades.
It

wa
s enshrined as a policy aim in many developing countries’ national plans during the 1980s.
Indeed it bec
a
me one of the key phrases in policy making in the 1990s. Yet among those engaged in
the subject, there appears to be little consensus

on what the
ph
rase “
rural development


includes.
One can trace literally dozens of different uses of ‘rural development’. These different uses or
interpretation
s

simply reflect functional differences or policy approaches
,

particularly concerning the
achievability of rur
al development. Thus they relate to key issues and policy initiatives. In order to
provide a broad and well
-
defined concept of rural development, it is necessary to analyse these
interpretation
s

of rural development.


The essence of rural development lies
in creating the capacity of the people, especially the rural
poor, for sustained self
-
development. More especially, the objectives of rural development are as
follows:

(a)

Increase in production and productivity;

(b)

Equity

(i)

in access to opportunities to earn
income,

(ii)

in access to public services,

(iii)

in access to productive inputs

(c)

Gainful employment

(d)

People’s participation in
the
development process

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(e)

Ecological balance, i.e. proper management of physical resources such as land, water, etc.


Rural development is a mul
ti
-
dimensional process, and much broader than poverty alleviation. It is
implemented through socio
-
economic programmes and transfers. A successful strategy will make it
possible. Rural development needs changing environments


enabling poor people to earn
more,
invest in themselves and their communities in order to reach their key goals, and maintain the
necessary infrastructure.

Rural development is regarded as a backbone of development. As a global phenomenon,
increasing
ly

developing countries are discove
ring that, if rural communities are properly empowered,
they can and may manage their own local development efforts. However
,

the existence of rural
poverty provides major challenges to government and the developmental agencies in many
developing societies
.

As the strategy will demonstrate, rural areas throughout the world tend to have similar characteristics.
Their populations are spatially dispersed, and under such conditions they cannot have access to
many services. In such areas, agriculture is often th
e dominant activity and often opportunities for
resource mobilisation are limited. Such characteristics mean that people living in rural areas face a
set of factors that pose challenges to development.

When the intended benefits in rural development do no
t reach the rural poor, either one or two or both
the following assumptions seem to be correct:

(a)

The poor have not been able to understand adequately the process of rural development
mainly because they have no meaningful participatory role in the developme
nt process
;

(b)

The process of administrative organisation, including building viable institutional linkages
and managing complementarities between multiple delivery channels have not been
tackled adequately
; and/or


(c)

The
proposed solutions were not contextuali
zed development solutions. Solutions were
“armchair developmental solutions” which do not deal with rural dynamics. The solutions
attempt to urbanise rather than take rural areas on ‘baby steps’ (relevant development
path) to sustainable development.


As a

whole
,

rural development is understood to be multi
-
dimensional, encompassing improved
provision of services, enhanced opportunities for income generation, improved physical
infrastructure, social cohesion and physical security within rural communities. Ru
ral development
places emphasis on facilitating change in rural environments to enable poor people to earn more,
invest in themselves and their communities, contribute towards maintenance of the infrastructure key
to their livelihoods, in short to identify

opportunities and act on them.


1.2.

Definition of Rural Areas


A rural area is
difficult

to define precisely, highly heterogeneous and resistant to generalisation. Rural
areas are places in which human settlement and infrastructure are limited and resulting p
hysical
landscape is primarily agriculture.

The term rural development is ambiguous and used in different ways. There is no exact definition of
a rural area but rural areas are clearly recognisable. Rural areas constitute spaces where human
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11


settlement and
infrastructure occupy only small patches of the landscape, most of which is
dominated by fields and pastures, woods and forest, water, mountain and desert.

Rural people usually live in farmsteads or settlements of 5
-
10 000 persons, but national distinctio
n
between rural and urban areas
is
arbitrary and varie
s
. The majority of rural poor live in areas that are
resource poor, highly heterogeneous, and risk prone.

The worst poverty is often located in peri
-
urban and rural areas. There the poor are isolated i
n every
sense. They have meagre holdings or access to land, little or no capital and few opportunities for off
-
farm employment. Extension services are few and far between and research aimed at their needs is
sparse.

Rural areas always lose their best young

workers and they become holding grounds for the very
young and very old. In order to achieve rural development
,

the linkage between rural and
near
by
small towns and urban centres is crucial.

Rural areas throughout the world tend to have similar characteristics. Their popularity is spatially
dispersed, and
in
such conditions they cannot have access to many services. In such areas,
agriculture is
the
dominant activity, and often other opportunit
ies for resource mobilisation are limited.
Such people face a set of factors that pose challenges to development. Rural areas in most
developing countries are often politically marginalised, leaving little opportunity for the rural poor to
influence govern
ment policy.
The features of rural areas are not in the entirety negative
. Rural areas
are bastions of traditions, have better quality environment and relatively safer than urban
conurbations.
These are some of the features of rural areas:

(a)

Rural housing is

often substandard or non
-
existen
t

(b)

Many people
born in rural areas
are migrants who work in urban areas

(c)

Population is often mobile in search of better living conditions and jobs


For operationalisation of the Gauteng Rural Development Strategy, rural areas

include informal
settlements, peri
-
urban townships, villages and small towns

and
nearby urban centres

such as
Hekpoort in the Mogale City Municipality, Devon in the Lesedi Local Municipality and Sekhulumi in
the Metsweding District Municipality.


1.3.

The Need

for Rural Development in Gauteng


The importance of rural development in a
province
like
Gauteng
, which is
not
predominately rural,
cannot be over
-
emphasised.
In South Africa, t
here are more than 70 per cent of inhabitants living in
rural areas whereas 15
.7 per cent

live

in urban areas. Unless concrete and time
-
bound programmes
are formulated and executed to deal directly with the problems of rural poverty, the outflow of the rural
poor is likely to grow, creating more slums and posing more problems for ur
ban development.

As indicated above, rural development was for quite
a
long time equated
merely
with agricultural

growth. The rationale behind this was that the benefits of growth would trickle down to the poorer
communities. In other words
,

growth in agricultural produc
tion

would itself take care of
the
distributional aspect. However
,

the “trickling down” did not actually take place.

There are seven main reasons for the formulation of the Rural Development Strategy.

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(a)

First, past government polices and strategies failed to build up the necessary capacity that
was needed to bring about sustainable development in rural areas. The implementation of the
various rural development strategies depended almost wholly on the gove
rnment.

(b)

Second, the formulation of the rural development strategy relates to the fundamental
structural reforms that have taken place during the last fifteen years or so. The broad
objective of these reforms has been to ensure macroeconomic stability and
improve market
efficiency. In addition, the public sector has, by and large, been reformed. For
macroeconomic achievements to have significant impact on rural development
,

fundamental
strategic changes are needed in the rural economy.

(c)

Third, the formulati
on of the rural development strategy arises from the unsatisfactory
performance of

the agricultural sector, the economic base of the rural areas. The
performance of most food crops has remained poor, mainly due to extreme rainfall patterns
and low technolo
gy used. As a result the food security situation has remained one of the
major problems in the rural areas. There is need to increase agricultural productivity by
improving markets, private sector investment, physical infrastructure, human capital, and
dem
and

driven research and extension services. Although there have been various efforts to
promote appropriate technology, the use of science and technology in agriculture is still very
limited.

(d)

Fourth, is the absence of a
n integrated and c
omprehensive
R
ural
D
evelopment
St
rategy.
There are various separate sectoral strategies that address rural development issues. There
is a need to strengthen the linkages between these sector strategies, improve coordination,
and set implementation priorities.

(e)

Fifth, Gauteng
has proclaimed
its

long
-
term development perspective known as “The
Gauteng Development Vision 2055”. Accordingly, improved technological capacity, high
productivity, modern and efficient social and economic infrastructure and, above all, highly
skilled man
power, with initiative and creativity, will be the driving forces of Gauteng society.
There is, thus, the need for a rolling rural development strategy, which translates the vision
into a medium
-
term implementable programme.

(f)

Sixth, there is a need to empha
size economic diversification in the rural areas. Even though
agriculture is the backbone of the rural economy, diversification of opportunities for earning
income in the rural areas is crucial for rural development. This is particularly important for
addr
essing the issue of youth unemployment in the rural areas and for reducing household
vulnerability to risk

associated with climatic and environmental change and fluctuating market
prices o
f

agricultural products. This has not been given sufficient emphasis

in past strategy
documents.

(g)

Lastly, there is a need to recognise the inter
-
relationship
s

between the rural economy and the
urban markets. The
Gauteng
Rural
D
evelopment Strategy shows the need for developing
stronger linkages with the urban economy. One ke
y area of focus is improved access to
urban markets and forging stronger networks to facilitate access to financing and skilled
capacity. A second key area is ensuring that the rural economy is linked to the new engines
of economic growth, particularly tou
rism.

For example, rural areas have, with the advent of
urbanisation and instances of failed ‘capitalism’ served as safe heavens for the retrenches.


1.4.

The Overall Objective of the Gauteng Rural Development Strategy


The overall objective of the Gauteng Rura
l Development Strategy is to provide a strategic framework
that will facilitate the co
-
coordinated implementation of sector policies and strategies concerned with
the development of rural communities. In particular, the Rural Development Strategy will supp
ort the
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implementation of poverty alleviations mechanisms and create a development environment that will
contribute to enabling rural communities and households
to
achiev
e

sustainable livelihoods. In this
respect
,

the Gauteng Rural Development Strategy will identify short
-

and medium
-
term priorities that
will support the goal of sustainable livelihoods, and contribute to the long
-
term goal, outlined in Vision
2055, of sustained economic growth.

The Gauteng Rural De
velopment Strategy defines:

(a)

The

institutional framework for co
-
coordinating and linking sector specific strategies and
programmes.

(b)

The roles of national government, local authorities, the private sector
, development
institutions, research institutions

and
civil society in the implementation and monitoring of
rural development programmes.

(c)

The key linkages between sector specific strategies and programmes, and describe
s

how
those linkages will be strengthened.

(d)

The gaps in current policies and strategies, inc
luding implementation constraints, and
outline
s

strategic actions for responding to those gaps.

(e)

The criteria for addressing geographical inequalities
, that is gender and age
-
related
inequalities
.

(f)

The coordination mechanisms.

(g)

The criteria for monitoring and

evaluating the implementation of the Gauteng Rural
Development Strategy.


1.5.

Dimensions of the Gauteng Rural Development Strategy


The realisation of rural development in the context of the country’s development vision largely
depends on the pace of growth in the agricultural sector, the adoption of a positive mindset by the
rural society, and a re
-
focusing of the institutional framew
ork
i
n the rural areas. In this context,
attention should be towards attaining the following:

1.5.1.

Quality Livelihood

For rural dwellers, high quality livelihood will mean having access to affordable basic needs. This
includes access to sufficient and adequate
food, preventive and curative health care; shelter and
clothing; education and training; and
,

safe water. They also need access to irrigation, energy,
information, transportation and communication.

1.5.2.

An Enabling and Peoples Empowering Environment

Any initiat
ive towards reali
s
ing human development and reducing poverty in a more consistent and
sustainable manner should involve the people concerned. This implies that the stakeholders,
communities, individuals, households, firms, organisation
s

and associations, are best positioned to
know their social, political and economic problems and needs, as well as their environmental, cultural
and spiritual aspirations. The Gauteng Rural Development Strategy provides an enabling
environment and effectiv
e institutional framework that puts people at the centre of their development.
People should be empowered to guide the development process and influence it towards the
direction and speed they perceive it to be in tandem with their future development aspir
ations.

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1.5.3.

Self
-
Reliance and Self
-
Sustenance

The role of community and individual initiatives is of paramount importance and is given due
recognition in the strategy. This goes beyond providing and supporting enabling and facilitating
institutional structures

and processes necessary to facilitate implementation. It

also requires
deliberate efforts towards changing the people’s mindset. The Rural Development Strategy provides
a framework for stimulating private sector growth and development by streamlining proc
edures and
rationalising taxes and fees connected with doing business in rural areas.

1.5.4.

Local Economic Development

Local
e
conomic
d
evelopment is the process by which public, business and non
-
governmental sector
partners work collectively to create better con
ditions for economic growth and employment
generation. The aim is to improve quality of life for all
.

Sustainable and effective local economic development must
contribute to the delivery of the
Government's strategy of poverty alleviation by helping farmers, foresters and others living in the local
economic areas to respond better to consumer requirements and become more competitive, diverse,
flexible and environ
mentally responsible. Such interventions must also provide help to local economic
businesses and communities which need to adapt and grow.

Proposed strategies must provide a framework for the operation of separate but integrated schemes
which provide new
opportunities to protect and improve the countryside, to develop sustainable
enterprises and to help Local Economic communities to thrive.
Specifically, local economic
development interventions must offer:

i.

A clear and well
-
founded grounding in the present
global economic trends based on
mainstream economic principles

ii.

Facts and indices that describe and benchmark the major drivers of the economy

iii.

Insights into how these economic drivers interact to affect daily lives and professional
responsibilities,

iv.

Access
to information on lessons to be learnt from people engaged in similar activities
elsewhere


1.5.5.

Trade and International Competitiveness

Globalisation has profoundly altered the direction and patterns of world production and trade. The
introduction of new
technology
,

especially in the fields of information, biotechnology, material
sciences and renewable energies
,

has played an important role in shifting competitive advantages
across nations and regions. This in turn, has restructured international trade and

investment patterns
,

sometimes contrary
to

the traditional determining factors
,

such as availability of raw materials,
proximity to markets, sources of cheap labour and climate. The impact of these changes has taken
various forms. Two are of much relevanc
e to the Rural Development Strategy. Firstly, technological
innovations in developed countries have eroded Gauteng’s competitive advantage of commodities in
international trade. Secondly, the new technologies have increased technological options available
for
production, widening the alternatives available to meet consumer needs and reduce the costs of
moving goods and services across countries. In some cases, this has been associated either with
reduction in use of materials or allowed use of alternative m
aterials, therefore, reducing world
demand for primary commodities.

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For Gauteng these global changes mean that there is a need to transform and to diversify rural
production towards the prevailing patterns of demand in the world trade. The Gauteng Rural
De
velopment Strategy focuses on strengthening capacities to investigate and identify investment
potentials in a more liberalized and competitive economic environment. The strategy outlines legal,
regulatory and administrative measures necessary to stimulate
growth and safeguard property rights.

In conclusion, Gauteng continues to strengthen its role as the driver of the South African economy,
contributing the largest share to national GDP and serving as an economic hub that attracts a large
share of the natio
nal labour force seeking economic opportunities. Overall, access to services and
development levels within Gauteng have improved but
much
work remains
to be done
in order to
ensure a better quality of life for all in Gauteng. Although the poverty rate has
declined within
Gauteng
,

it is important to note that initiatives to tackle the problem of structural unemployment and
skills mismatches are imperative to the eradication of poverty in the long term.


















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CHAPTER TWO
:
CONSULTATION PROCESS


2.0.


Background


2.1.

Presentation of the Gauteng Rural Development Strategy

Th
e

process of formulating the strategy began with the preparation of the Inception Report. The Inception
Report was presented to the Portfolio Committee on Agriculture and Rural Development for review before
the final draft was submitted to the Executive Cou
ncil. The Inception Report was followed by the
preparation of the draft strategy.

Consultative workshops on the R
ural Development Strategy

were organi
s
ed with stakeholders. Guided
interviews, informal discussions and consultations with various individuals

and/or stakeholders at all
levels and in both rural and urban areas were conducted.


2.2.


Perspectives of
V
arious Stakeholders


In some of the consultation workshops stakeholders raised a number of issues. The major issues can be
categorised under four themes
:



Promotion of Sustainable Land Reform in Gauteng;



Support of Rural Infrastructure Development, Access to Services and
S
ustainable
Livelihoods
;



Access to Sufficient Food Security for
A
ll
;



Job

Creation linked t
o

Skills Training and Capacity Building
;



Sustainable Use of Natural Resources and
P
rotection of the Environment
;



Good Governance;



Reducing risks and vulnerability


2.3.

Summary of Findings on S
ustainable Land Reform and agricultural productivity

It was clearly noted that poverty in rural areas can only be reduced through increased income growth, and
that rural incomes can only grow by improving productivity of smallholders, and non
-
farm enterprises.
Findings from all the consultative workshops sho
w that success
in

this mission cannot be realised without
targeting rural
-
based productive activities and other related policy variables. These activities and policy
variables include

promotion of sustainable land reform and a
gricultural
p
roductivity
.

2.4.

Summary of Findings on Access to Sufficient Food Security for All

It was noted that f
ood security is a condition in which all community residents obtain a safe, culturally
appropriate, nutritionally sound diet through an economically and environmentally su
stainable food
system that promotes community self
-
reliance and social justice.


At a basic level, food security is about making healthy food accessible to all, including low
-
income people.
It’s about making nutritious and culturally appropriate food acces
sible, not just any food. It is about
promoting social justice and more equitable access to resources, and building and revitalising local
communities and economies. It’s about supporting local, regional, family
-
scale, and sustainable farmers
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and businesse
s. It’s about empowering diverse people to work together to create positive changes in the
food system and their communities and much more.


2.5.

Summary of Findings on Job Creation linked to Skills Training and Capacity Building


It was noted that participatio
n in further education and training is restricted by high cost of training and
lack sponsorship for trainees
for gaining access to further training centres. Lack of awareness from
prospective trainees on the available training opportunities in further educ
ation training was considered as
a constraint.



2.6.

Summary of Findings on Good Governance

Poor leadership and administration was mentioned as a hindrance to rural development. Various
problems related to good governance were raised. They included absence of

the rule of law, and
irresponsible leaders, including lack of accountability and transparency. For example, inadequate
participation by community members in the decision
-
making process and the deterioration of peace and
security in the rural areas were at
tributed to the problem of poor governance.

2.7.

Summary of Findings on Ways to Increase Opportunity and Access to Basic Services

To achieve the objectives of shared growth
,

stakeholders stressed that there is an urgent need to improve
the rural population’s ac
cess to basic services. For example, it was repeatedly emphasized that
improvements in basic services, such as education, health, safe and clean water, rural electrification and
transport, are necessary if development in the rural areas is the primary obje
ctive of this country.

2.8.

Summary of
F
indings on
R
educing Risks and Vulnerability

Among the vulnerable groups are the very poor and people with disabilities. The rural poor are particularly
vulnerable to adverse shocks caused by climatic changes and changes i
n agricultural technologies.
During the workshops, unavailability of services were listed under ‘threats’ as their occurrence is
completely outside the control of the rural communities.

In conclusion
,

several issues were emphasized during consultative work
shops.

(a)

First, the question of evaluation of past policies and strategies to establish their strengths and
weaknesses. One of the factors for the failure of previous initiatives has been the ineffective
monitoring and co
-
ordination mechanism. Thus, for the

effective strategy, there is a need to
clearly clarify on the framework for monitoring, co
-
ordination and evaluation mechanism.

(b)

Second, the strategy needs to take into consideration the geographical differences and/or
inequalities of the province rather
than proposing blanket solutions for all regions and/or areas.

(c)

Third, the need to strengthen the capacity of local governments from communities to the district
level.








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CHAPTER THREE
:
THE CURRENT GAUTENG RURAL DEVELOPMENT STATUS


3.0.

B
ackground

In the
fifteen years since the democratic elections, the rural areas have been partially at the centre of the
nation’s development strategies. Through various approaches
,

ranging from support grants

to

a reformed
system of local governance approach to school feed
ing schemes
,
considerable energy and resources
have been invested in developing rural areas. These efforts and approaches have met with varying
success. Whilst, for example, local
g
overnment structures are in place and functioning, their ability to
provide

basic services has in many instances been eroded. Basic infrastructure, such as water supply
systems, roads, and health facilities, has often fallen into disrepair. This has impacted negatively on
productive activities. The combination of poor infrastruct
ure, inadequate support services, an over
-
centralisation of public services and production activities, and over
-
regulation of private sector initiatives
have led to over
-
dependence on the state. This has acted as a disincentive to individual initiative.
M
a
ny
rural areas have been in decline. The success of the Rural Development Strategy is, in part, dependent
on a realistic assessment of the current status of development in rural areas. This
c
hapter provides an
analysis of the current situation in order to
provide a background to the specific strategies outlined in
Chapter 5.


3.1.

Sustainable Land Reform and
Agricultur
al Productivity


The past few years have given some disturbing indications of the government’s intentions in this regard,
from the narrowing

of the redistribution program


the main vehicle for reversing the racially skewed
landscape inherited

from apartheid

to the targeted creation of a small African commercial farmer

elite,
which overlooks the large population of poor landless Africans, and t
he

laissez
-
faire attitude toward the
growing demands of landless people and their

civil society allies for a land summit to address the
country’s land crisis.



Land reform is critical not only in terms of providing historical redress for

centuries of colo
nial settler
dispossession, but also in terms of resolving the

national democratic revolution in South Africa. This is the
case because it is

through land reform that social and economic relations

-

embodied in property

relations

-

in rural areas are to be

transformed. This is a central aspect

of the national democratic struggle to
transform the colonial class formation

in South Africa that has combined capitalist development with
national

oppression.

Gauteng’s agricultural sector is geared to provide the cities and towns of the province with daily fresh
produce. A large area of the province falls within the so
-
called Maize Triangle. The
Ekurhuleni
Metropolitan Municipality and the D
istricts of
Metswedi
ng, West Rand and Sedibeng
hold important
agricultural land, where ground
-
nuts, sunflowers, cotton and sorghum are produced.

Food, food processing and beverages make up around R9.9
-
billion of the province's economy, with half of
South Africa's agri
-
process
ing companies operating in Gauteng. New and competitive niche products
under development include organic food, essential oils, packaging, floriculture, medicinal plants, natural
remedies and health foods.

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Gauteng’s rates of poverty highlight the crucial im
portance of the rural sector for the province’s economic
future. The agriculture and livestock sector are presented as the primary engine of growth, though the
strategy also stresses the importance of finding other new growth engines
.

Seemingly t
here
is

in
creased awareness in rural development policies of agriculture’s importance as the
pillar for rural development. But is it naïve to assume that growth,
per se
, even when sought in the rural
economy would be pro
-
poor. Growth in the agricultural sector does
have a greater impact upon poverty
reduction than growth in other sectors. Moreover, agricultural growth spills over to other activities in the
rural economy. But the impact of agricultural growth on poverty reduction depends upon the extent to
which the p
oor participate in this growth.

Participation of poor rural households in agricultural growth could differ greatly depending upon the local
context. Poor rural households can identify several policies that may improve the pro
-
poor character of
agricultural

growth, all relating to improving the institutional environment of smaller and poorer producers
(i.e. access to markets, technology, risk
-
coping mechanisms
)
. What need
s

to be highlighted here is the
importance of small
-
scale agriculture, with its potentia
l to create a win
-
win outcome for economic growth
and poverty reduction.

Solving rural problems requires establishing and prioritising goals and programmes within goals. Explicit
goals are needed to guide implementation and to provide standards by which pr
ogramme performance
can be measured. Six strategic areas with problems sufficiently pervasive to justify an appropriate
provincial role are:

a.

Income and employment policy;

b.

Education and retraining;

c.

Eliminating rural poverty;

d.

U
sing

and protecting natural

resources;

e.

Improving rural health delivery systems; and
,

f.

Financing rural services.

The Gauteng Agricultural Development Strategy has discussed extensively the performance of the
agricultural sector. The agricultural sector has generally maintained a ste
ady growth rate of between 0.2
to 2.5 percent per annum over the last half decade. Nevertheless, this growth is considered inadequate
for poverty reduction
, particularly

in rural areas.

T
he agriculture sector has
focused mainly

on producing more food to e
nhance food security and reduce
poverty, with the ultimate goal of self
-
sufficien
cy

in basic food requirements. The constraints and
obstacles hindering the development of the sector include:

(a)

Competing land uses
,

which has affected high potential agricultur
al land;

(b)

Inadequate access to and/or delayed delivery of inputs and lack of timely advice;

(c)

Poor transfer of knowledge from researchers to farmers, inadequate access to extension services
and over
-
centralisation of the management of extension services;

(d)

Dec
line in the use of improved farm input packages, particularly improved seed, fertilizers and
agro
-
chemicals;

(e)

Very poor infrastructure and lack of comprehensive market information;

(f)

Inadequate credit for agricultural production and marketing;

(g)

Weak management

of co
-
operatives and members’ loss of confidence;

(h)

Slow implementation of the Land Reform process;

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(i)

Dominance of low technology, with the majority of smallholder farmers relying on the hand hoe;
and

(j)

Dependence on rain, thus subjecting agriculture to the whi
ms of nature.


To tackle these constraints and to strengthen efforts
to improve
food security
,

the Gauteng Provincial
Government has introduced several measures. It has also made various administrative structural
changes to support farmers, especially emerging farmers. Targeted communities have been supported
through backyard food gardens, communit
y food gardens, food banks and several other measures. To
support its overall approach the Gauteng Provincial Government has adopted the following strategies:

(a)

Improved agricultural production incentives
that encourage
the production of non
-
traditional
expo
rt crops.

(b)

Support to research and extension to improve its effectiveness, and to promote private sector
participation in production, processing, storage, input supply and marketing.

(c)

Improv
ed

rural infrastructure.

(d)

Reduc
ed

post harvest losses.

(e)

Introduction
of an Early Warming and Crop Monitoring System to more regularly and
systematically assess the national food situation.


3.2.

Access to Sufficient Food for All

Food security is a flexible concept as reflected in the many attempts at definition in research and p
olicy
usage. Even a decade ago, there were about 200 definitions in published writings. Whenever the concept
is introduced in the title of a study or its objectives, it is necessary to look closely to establish the explicit
or implied definitio
n.

The conti
nuing evolution of food security as an operational concept in public policy has reflected the wider
recognition of the complexities of the technical and policy issues involved. The most recent careful
redefinition of food security is that negotiated in the

process of international consultation leading to the
World Food Summit (WFS) in November 1996. The contrasting definitions of food security adopted in
1974 and 1996, along with those in official FAO and World Bank documents of the mid
-
1980s, are set out
b
elow with each substantive change in definition underlined. A comparison of these definitions highlights
the considerable reconstruction of official thinking on food security that has occurred over 25 years.
These statements also provide signposts to the p
olicy analyses, which have re
-
shaped our understanding
of food security as a problem of international and national responsibility.

Food security as a concept originated only in the mid
-
1970s, in the discussions of international food
problems at a time of g
lobal food crisis. The initial focus of attention was primarily on food supply
problems
-

of assuring the availability and to some degree the price stability of basic foodstuffs at the
international and national level. That supply
-
side, international and i
nstitutional set of concerns reflected
the changing organization of the global food economy that had precipitated the crisis. A process of
international negotiation followed, leading to the World Food Conference of 1974, and a new set of
institutional arra
ngements covering information, resources for promoting food security and forums for
dialogue on policy issues.

The issues of famine, hunger and food crisis were also being extensively examined, following the events
of the mid 1970s. The outcome was a redef
inition of food security, which recognized that the behaviour of
potentially vulnerable and affected people was a critical aspect.

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The term “‘food security”’ refers to the ability of a community, family or individual to be able to eat
sufficiently, in term
s of both quantity and quality, as prescribed by international standards of calorie,
protein and vitamin intake. Whilst this may seem straightforward enough, the term comprises three inter
-
related components
(availability, access and quality)
, all of which

must be
simultaneously

achieved.

Food needs to be available in order to be accessed, in the granary, the kitchen, the local store or market.
In general, sufficient food (of sufficient quality) does exist in Gauteng, year on year, despite the
constraints i
mposed by the current political situation.

Yet, availability alone is not necessarily enough to provide food security, for sufficient
access

to available
food is often denied. This may come about as a result of economic constraints (poverty), and therefore

the inability of an individual to purchase the food necessary (if not receiving entitlements through
humanitarian aid). In a related way, access may also be denied due to physical constraints, such as the
separation barrier. As a result, people may be una
ble to access the resources (land, irrigation water, jobs)
whereby they can grow or buy enough food.

Indeed, the symptoms of food insecurity are very much in evidence, at the levels of community, family
and individuals. Not only is there an immediate physi
cal and social cost of incipient hunger and
malnutrition, but also detrimental long
-
term economics. An ill
-
fed population incurs enormous costs in
terms of irreversible loss of cognitive function in children, vulnerability to disease and the cost of this t
o
the health service and productive sectors, a discouraged and unemployed youth, and so on.

Causality is bidirectional


the food
-
insecure get sick, and the sick get food
-
insecure as they have not the
energy to work, or look for work, to relieve that food
-

insecurity. A nation’s human health is a strong
predictor of the health of its economy. It follows that there is a
huge macro
-
economic cost in the region to
taking no action to relieve food insecurity in a sustainable manner


we cannot afford to do noth
ing
.

In the past, humanitarian aid was heavily relied on as a solution to the food insecurity problem. However,
humanitarian aid in any country has proved to be not well
-
coordinated amongst the various players, and
based on imperfect knowledge of who most needs

the food.

This has resulted in some deserving cases receiving none, whilst other families receive it from more than
one source (though even this does not assure that
sufficient

food is provided for their needs). The
combined humanitarian aid efforts have

undoubtedly saved lives, yet they are not sustainable in the
medium or long term.

Also, there is no “‘development”’ component to humanitarian aid. At best it is a stop
-
gap measure, whilst
at worst it can create dependency and undermine the will of people

to become independent of food aid.
The ideal should surely be for humanitarian aid to be phased out, in favour of development initiatives that
create wealth, enabling people to buy (access) the food which is available. Indeed, many international
agencies
are actively involved in funding development projects, which go some way to relieving poverty
and providing a food
-
secure future, through strengthening the country’s physical and social assets.

The Gauteng Provincial Government has prepared an Integrated
Food Security Strategy to:

(a)

to provide the framework for a sustainable and coordinated “‘solution”’ to food insecurity in
Gauteng, replacing the hitherto ad
-
hoc approach, promoting synergies and avoiding wasteful
duplication, and for components to be
outcome
-
oriented rather than activity
-
oriented

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(b)

to serve as the vehicle for implementing Gauteng’s food security policy, whereby all its citizens
would be food
-
secure;

(c)

to provide a management tool for Government, enabling it to have a clear vision of what a
nd how
it intends to prioritize, and to oversee and coordinate the implementation of food security policy,
not least through commanding the development agenda rather than merely responding to
priorities;

(d)

to facilitate related multi
-
sectoral planning and i
mplementation at Provincial and Municipality level,
and provide a mandate against which potential projects can be assessed as “‘bankable,”’, and
worthy of funding;

(e)

to encourage a development agenda, with a preventative rather than curative orientation,
tog
ether with a better
-
coordinated safety net of food security
-
related relief efforts.

The predicted outcomes of the strategy can be summarised as follows:



Strengthened national capability to effectively resource, coordinate, manage and monitor food
-

securit
y implementation;



Sustainable institutional mechanisms installed and operative, to facilitate this implementation;



Social and technical causes of food inse
curity progressively removed;



Citizenry empowered to be less vulnerable to food insecurity, and to r
emai
n so;



Community, household and individual commitment expressed through their own efforts during
Strategy implementation, to which value is added through close cooperation with local
government, NGOs and the
private sector
;



A flexible user
-
friendly Str
ategy operational, menu
-

and demand
-
driven, enabling communities,
Gauteng a
nd
other stakeholders

to buy
-
in according to interest and comparative advantage;



Close collaboration, networking and complementarity promoted between stakeholders in
Gauteng
;



All ca
tegories of citizens receiving equitable consideration under the Strategy, especially the most
disadvantaged, irrespective of political affiliation;



C
ollective and focused “‘action”’ over “‘rhetoric”’ fostered;



I
nterventions selected by citizens and suppor
ted by
government
.

3.3.

Job Creation Linked to Skills Training and Capacity Building


At the beginning of the new century, youth employment problems continue to pervade both developed
and developing countries, with disproportionately large number of young women and men exposed to
unemployment or else limited to precarious or short term work
. As a result, many drop out of the
workforce or fail to enter it successfully in the first place and become inactive.


Socially disadvantaged youth are particularly affected, thereby perpetuating a vicious circle of poverty and
social exclusion. In developing countries, where the vast majority of young people live and where very
few can afford to be openly unemployed, the
employment problem is more one of underemployment and
low pay and low quality jobs in the typically large informal sector. Consequently, the promotion of
productive employment for young women and men is high on the decent work agenda of
international and
l
ocal organisations
. Its efforts in this field are guided by the recognition that effective policies and
programmes are needed to improve their living standards and to facilitate their full integration into society.



Youth enterprise promotion in rural env
ironments is often connected to the development plans and
activities of rural communities. Many rural communities are beginning to realise that their future depends
GAUTENG RURAL DEVELOPMENT STRATEGY 2009
-
201
4

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23


on the opportunities that exist for their young women and men. Unless jobs are available, m
any young
people will be forced to migrate to urban environments to find employment. Thus, youth enterprise is as
an important means of developing a sustainable rural community. In addition to the usual programme
supports young people require to start and
manage their own business, many rural communities are
concerned with their access to resources. Thus, rural enterprise support programmes often attempt to link
and inform residents to broader support services. This may be done through one
-
stop information
and
support centres, information technology centres

(incubation centres)

or a community
-
based facilitator who
is available to work with
the unemployed, especially
young people to develop their enterprise ideas. The
objective
s

of the one
-
stop information an
d support centres
, information technology centres or community
based facilitator are three
-
fold:


(a)

To formulate a set of recommendations on
unemployed and
youth employment

in Gauteng;

(b)

To disseminate information on good practices and lessons learned from specific past or
ongoing youth employment policies and programmes; and

(c)

To identify for implementation a series of youth employment initiatives.


3.4.

Small, Medium and Micro Enterprises (SMM
Es)


The economic reforms being implemented by the Government of Gauteng give the private sector a
leading role in driving economic growth. Thus, the promotion of income generating activities, development
of a diverse and strong small
-
medium and micro

ente
rprise
s

sector, and diversifying the skill base through
vocational training
are

integral parts of the private sector development strategy. The issues of rural
poverty, high unemployment and migration to urban areas have direct relevance to this economic
s
trategy. Similarly, diversifying the structure of the economy to reduce dependency on the agriculture
sector is a major goal of the Rural Development Strategy. There is a close link between economic growth,
employment and poverty reduction.

Under normal c
ircumstances, economic growth should raise savings and increase investment that in turn
creates opportunities for employment. Improved opportunities for employment should enable the
unemployed and the underemployed to earn more incomes and pull them out of

poverty. However,
despite substantial achievements from the macro
-
economic reforms
,

the magnitude of the employment
problem is still large. Approximately 400,000 of these are school leavers. Youth, aged between 15 and
24, account for 60% of the unemployed
. Approximately 400,000 youth complete primary education each
year, but only 10
-

15% get the opportunity to continue to the secondary education level. Only 10,000
you
ng people

secure places in higher institutions. Th
e reaming

85
-
90% of primary school leav
ers
constitute
s

a very valuable
and
productive age group.

Women are also acutely affected by their limited access to non
-
farm employment opportunities. Female
-
headed households are generally poorer and in the lowest income categories. It is important to
emphasise the need to ensure the full participation of women in poverty eradication initiatives.
Employment opportunities in the formal sector are restricted. Ra
tionalisation of the public service and
privatisation of the parastatal sector has further reduced job opportunities. The informal sector, however,
provides substantial opportunities for employment and self
-
employment.

Unemployment remains one of Gauteng’
s most pressing challenges and acts as a constraint to economic
growth. Although great strides have been made in addressing unemployment, much effort is required to
transform the structure of the provincial labour market, in order to rectify the current sk
ills shortages that
are experienced within Gauteng and South Africa as a whole. This section analyses the structure and
performance of the provincial labour market by assessing employment and unemployment in Gauteng.
GAUTENG RURAL DEVELOPMENT STRATEGY 2009
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24


Employment is analysed from a demograph
ic perspective by looking at gender and population group
composition. In addition to this, employment is also analysed at sectoral level, by occupation and skill
level. Unemployment is also analysed from a demographic perspective together with an analysis
of
discouraged work seekers by provinces.

In the second quarter of 2008, 1.1 million people in Gauteng were unemployed
;
thus, the narrow
unemployment rate stood at 21.8%.

Skill development is an integral part of developing a diversified rural economy. The
availability of skilled
human resources has not kept pace with industrial growth.
A
policy
is needed that
emphasis
es the

link
between education and work and facilitat
ing

the growth of the culture of education for job
-
creation and
self
-
employment.

In this
regard, there is a need to reorient
Further Education and Training (FET)
, by relating it more closely
to the market conditions. In this respect steps will be taken to:



Widen the apprenticeship modular training scheme.



Link vocational guidance and counselli
ng more closely with FET and clients.



Carry out community training
-
needs surveys and develop appropriate training packages for
community development.



Promote in
-
service and on
-
the
-
job training in the public and private sectors.


There is a supportive
policy environment for the promotion of income
-
generating activities in the province
and the development of the SMMEs sector
.

The critical goals of Gauteng’s 2005
Employment,
Growth and Development Strategy
(
GEGDS
)
are
sustainable economic growth, meeting

the socio
-
economic development needs of the citizens, job
creation, and the reduction of unemployment and poverty. The Provincial Government asserts that
SMMEs can alleviate poverty, create jobs, and empower marginalised members of society. Hence,
SMME s
upport is identified as a primary mechanism for the achievement of the
GEGDS
’s objectives.


The
s
trategy encourages the Provincial Government to develop relationships with SMMEs, to provide
them with financial and non
-
financial support, and to encourage partnerships and networking with other
businesses to create opportunities for SMMEs. Additionally,

the
s
trategy mandates the establishment of
an SMME Agency. This
a
gency will facilitate the support of SMMEs and give impetus to the development
of SMMEs in Gauteng. In addition, it will address the shortage of data, improve procurement benefits
flowing
to SMMEs, identify Gauteng’s most successful SMMEs, and assess the need for legislation to
regulate SMME support by all sectors of society.

The Gauteng Enterprise Propeller Act of 2005 created the Gauteng Enterprise Propeller (GEP). The
GEP is tasked with

promoti
ng

and develop
ing

small enterprises in Gauteng in order to encourage equity,
economic growth and job creation. In addition, it is meant to serve as a one
-
stop support for
entrepreneurs in the province.

The Gauteng Enterprise Propeller Act gave

rise to the GEP General Fund, which offers loans for the start
up and expansion of small businesses and co
-
operatives, as well as the acquisition of assets and working
capital. Also, this legislation created the GEP Joint Fund
,

which provides guarantee s
chemes to enable
SMMEs and co
-
operatives to access loan funding from private sector financial institutions.