GTEDAgteda.co.za/images/downloads/Word/StrategicPlan201… · Web viewPartnering Our Legislative...
Transcript of GTEDAgteda.co.za/images/downloads/Word/StrategicPlan201… · Web viewPartnering Our Legislative...
ANNEXURE “A”
GTEDA STRATEGIC PLAN
GREATER TZANEEN
ECONOMIC DEVELOPMENT
AGENCY
(GTEDA)
STRATEGIC PLANFor the fiscal years2016/17 – 2020/21
April 2016
ANNEXURE “A”
GTEDA STRATEGIC PLAN
ABBREVIATIONSTable of Abbreviations
BCP Business Continuity Plan
BSSC Business Support Services Centre
CEO Chief Executive Officer
Greater Tzaneen Greater Tzaneen Municipal Area
GTM Greater Tzaneen Municipality
GTEDA Greater Tzaneen Economic Development Agency
LED Local Economic Development
IDC Industrial Development Corporation
LDP Limpopo Development Plan
LEDA Limpopo Economic Development Agency
REE Renewable Energy Economy
SWOT Strength, Weaknesses, Opportunities and Threats
PDI Previously Disadvantaged Individuals
MOU Memorandum of Understanding
SLA Service Level Agreement
SMME Small, Medium and Micro Enterprise
GTFM Greater Tzaneen Frequency Modulation
TOR Terms of Reference
SEDA Small Enterprise Development Agency
SETA Sector Education Training Authority
SARS South African Revenue Services
CO-OP Co-operatives
GTTA Greater Tzaneen Tourism Association
AGSA Auditor General of South Africa
SDF Spatial Development Framework
CPA Communal Property Associations
EIA Environmental Impact Assessment
HIA Health Impact Assessment
MDDA Media Development and Diversity Agency
KNP Kruger National Park
NDP National Development Plan
IDP Integrated Development Plan
GDP Gross Domestic Product
2
ANNEXURE “A”
GTEDA STRATEGIC PLAN
Table of Contents
ABREVIATIONS.............................................................................................................................2
INTRODUCTORY STATEMENT.................................................................................................................6
FOREWORD BY BOARD CHAIRPERSON...................................................................................................7
OFFICIAL SIGN OFF..................................................................................................................................8
OVERVIEW BY THE CHIEF EXECUTIVE OFFICER.......................................................................................9
1. EXECUTIVE SUMMARY..................................................................................................................10
1.1The big goal............................................................................................................................10
1.2The need................................................................................................................................10
1.3History/key learning...............................................................................................................10
1.4Priorities: GTEDA’s services...................................................................................................11
1.5GTEDA’s strategic direction and results.................................................................................11
1.6Strategic direction and results...............................................................................................12
1.7Organisational performance assessment..............................................................................12
1.8Resourcing plan.....................................................................................................................12
2. STRATEGIC OVERVIEW...................................................................................................................13
2.1Description of strategic planning process..............................................................................13
2.2The essence of GTEDA...........................................................................................................13
2.3. GTEDA services......................................................................................................................13
2.4Vision.....................................................................................................................................14
2.5Mission...................................................................................................................................14
2.6Values....................................................................................................................................14
2.7Our legislative mandate.........................................................................................................15
3. SITUATION ANALYSIS....................................................................................................................15
3.1. The broader economic context.....................................................................................................15
3.2. Performance environment....................................................................................................18
3.2.1. The greater Tzaneen area...........................................................................................18
3.2.2. The greater Tzaneen population.................................................................................19
3.2.3. Employment and income status..................................................................................20
3.2.4. Individual monthly income levels................................................................................20
3
ANNEXURE “A”
GTEDA STRATEGIC PLAN
3.2.5. The economy in general..............................................................................................21
3.3. Organisational environment..................................................................................................22
3.3.1. SWOT analysis.............................................................................................................22
3.3.2. Stakeholder analysis....................................................................................................23
3.4. Governance............................................................................................................................24
3.4.1. The board....................................................................................................................24
3.4.2. Board constitution.......................................................................................................24
3.4.3. Board term...............................................................................................................24
3.4.4. Accountability, roles and functions of the board........................................................24
3.4.5. Board committees.......................................................................................................25
3.5. The organisational structure.................................................................................................26
3.5.1. current challenges.......................................................................................................26
3.5.2. current organisational structure.................................................................................27
4. STRATEGIC MAP.............................................................................................................................28
4.1. GTM strategic map................................................................................................................28
4.2. GTEDA strategic map.............................................................................................................28
5. STRATEGIC FOCUS AREAS, OBJECTIVES AND GOALS....................................................................30
5.1. Strategic focus areas for 2016-2021......................................................................................30
5.1.1. Agriculture and Agribusiness......................................................................................30
5.1.2. Manufacturing............................................................................................................3
5.1.3. Tourism and Heritage conversation............................................................................30
5.1.4. Property development................................................................................................31
5.1.5. Green energy...............................................................................................................31
5.3. Strategic outcome oriented conversation.............................................................................32
5.4. Strategic objectives................................................................................................................35
6. BUSINESS MODEL..........................................................................................................................50
6.1. The customer perspective.....................................................................................................51
6.1.1. Brand
building.............................................................................................................51
6.1.2. Selection and
service...................................................................................................51
6.1.3. Partnership.................................................................................................................
.51
4
ANNEXURE “A”
GTEDA STRATEGIC PLAN
6.1.4. Graceful
exit................................................................................................................51
6.2. Internal perspective...............................................................................................................52
6.2.1. Sustainability and pitfall
avoidance.............................................................................52
6.2.2. Innovative
process......................................................................................................52
6.2.3. Operations management
process...............................................................................52
6.2.4. Regulatory and social
process.....................................................................................52
6.3. Financial perspective........................................................................................................53
6.3.1. Cost
recovery..............................................................................................................53
6.3.2. Return on
investment.................................................................................................53
6.3.3. Regulatory
process......................................................................................................53
6.4. Learning and growth perspective..........................................................................................53
7. RESOURCE CONSIDERATIONS........................................................................................................54
8. GROWTH PLAN...............................................................................................................................55
9. RISK MANAGEMENT......................................................................................................................56
10. CONCLUSION..................................................................................................................................57
TABLE OF FIGURES
FIGURE 1: Greater Tzaneen Area..........................................................................................................18
FIGURE 2: GTM Population...................................................................................................................19
FIGURE3: GTM Employment Status......................................................................................................20
FIGURE4: GTEDA Board Committees....................................................................................................25
FIGURE 5: GTEDA Organisational Structure..........................................................................................27
5
ANNEXURE “A”
GTEDA STRATEGIC PLAN
FIGURE 6: GTM Strategic Map..............................................................................................................28
FIGURE 7: GTEDA Strategic Map...........................................................................................................29
FIGURE 8: GTEDA Business Model........................................................................................................50
INTRODUCTORY STATEMENT
Greater Tzaneen Economic Development Agency (GTEDA) (Pty) Ltd is an entity
of the Greater Tzaneen Municipality that was established following an agreement
between the Industrial Development Corporation (IDC) and Greater Tzaneen
Municipality (GTM) to advance and leverage the development and job creation
potential inherent within the Greater Tzaneen Municipal area. It is wholly owned by
the Municipality.
The strategic plan was revised in August 2015 in response to unfavorable conditions
in the country that affected all sectors of the economy. These conditions directly
impact on the prospects of investments in our economy as in many economies of
developing countries. This situation is a result of the uneven economic recovery of
many economies following the world economic meltdown, unprecedented
demographic shifts and transformations in the labor market.
These international economic factors have contributed to South Africa’s triple
challenge of poverty, inequality and unemployment which has an effect on its social,
political and economic fabric. Greater Tzaneen has its fair share of these afflictions –
like the rest of the country it has to deal with an influx of foreigners, high
unemployment, poverty, community protests etc.
6
ANNEXURE “A”
GTEDA STRATEGIC PLAN
Adapting to an uncertain emerging environment requires higher levels of education,
economic flexibility, agility, resilience and innovation. Therefore, the revised plan
seeks to recognize these new realities while building off our existing strengths and
testing new approaches and exploring possible new partnerships and collaborations.
As such a GTEDA with a clear vision and strategy is more critical than ever.
FOREWORD BY BOARD CHAIRPERSON
The National Development Plan has as one of the priorities: “Raising employment
through faster economic growth”. It also prices the development of rural economies.
The Greater Tzaneen Economic Development Agency Board is proud to have
developed a strategy that responds to key objectives of that national vision.
This plan also supports and is in complete sync with the objectives of the Limpopo
Development Plan. This means that partnerships with provincial agencies and other
stakeholders in this endeavour is critical.
While Greater Tzaneen area presents an array of opportunities in business,
especially in tourism, manufacturing and agriculture, entrepreneurial activity to tap
into these opportunities to turn them into businesses and thereby create jobs is very
low. Its potential remains largely untapped.
Our plan is further inspired by the vision of our shareholder itself, the Greater
Tzaneen Municipality: “To be the most prosperous economy in the country where
communities are integrated and have access to sustainable basic services .” This
bias on economic development in this vision presents a huge opportunity for GTEDA.
7
ANNEXURE “A”
GTEDA STRATEGIC PLAN
Having honestly analysed our past achievements and challenges, we believe that the
reason for the creation of GTEDA, (Pty) Ltd Company in 2007, remains a noble and
strategic one. We believe that this strategy provides us with a solid framework for
identification of realistic and achievable projects for the five year term of the Board
that, among others, take advantage of the history and cultural heritage of the town. It
also envisages learning from growth and development experiences of other towns
and cities, taking full advantage of the human resources potential of its residents as
well as their dreams so that Tzaneen becomes a key contributor to the growth of the
provincial economy.
_____________________
Matome MawashaBoard Chairman
8
ANNEXURE “A”
GTEDA STRATEGIC PLAN
OFFICIAL SIGN-OFF
It is hereby certified that this Strategic Plan:
Was developed by the Board of the Greater Tzaneen Economic Development
Agency under the guidance of the Chairperson of the Board;
Takes into account all the relevant policies, legislation and other mandates for
which the Greater Tzaneen Economic Development Agency is responsible; and
Accurately reflects the strategic outcome oriented goals and objectives which the
Greater Tzaneen Economic Development Agency will endeavour to achieve over
the period 2016/17 to 2020/21, given the resources made available in the budget
and within the constraints and opportunities of the market conditions.
Ms. MM Rabothata Signature: ________________Acting Accounting Officer (Finance and Administration Officer)
Mr. M.Z Mawasha: ________________On behalf of the Accounting Authority: The GTEDA Board
Acknowledged by: Ms. M. Mmetle Signature: ___________ Executive Authority
9
ANNEXURE “A”
GTEDA STRATEGIC PLAN
OVERVIEW BY THE CHIEF EXECUTIVE OFFICER
Strategic planning is about making choices in the light of scarcity of resources and
a reconnaissance of one’s environment. That is the reason GTEDA has selected
five strategic areas of focus, which are: Agriculture and Agribusiness,
Manufacturing, Tourism and Heritage, Property Development and Green Energy.
We have also adopted four client facing strategic goals that respond to the external
environmental challenges and a strategic goal that is premised on a realization that
a strong organisation needs to be built that would be able to deliver on the other
goals and objectives.
GTEDA employees are ready for the challenges that this plan presents and the
changes that come with it and we look forward to a robust period. We count on the
support and leadership of our new Board to realize the projects that would flow
from this strategy. We believe that in this plan, the agency positions itself to be the
key instrument that drives the economy in the Greater Tzaneen Municipal area.
_________________
MM Rabothata
Acting CEO
10
ANNEXURE “A”
GTEDA STRATEGIC PLAN
1. EXECUTIVE SUMMARY1.1. The Big Goal
GTEDA’s mission aims to attract investments into Greater Tzaneen by
promoting a conducive investment climate in innovative and efficient ways; in
order to attract suitable investors and to develop an economy that is inclusive,
sustainable and resilient.
1.2. The Need
We are committed to our shareholder’s aims to transform the Greater
Tzaneen Municipality into a city by 2030; and
To community development and we will facilitate entrepreneurial training
within and around the Greater Tzaneen, particularly amongst the youth and
women.
1.3. History / Key Learning
GTEDA shares its experiences and lessons over the past seven (7) years of operation:
Inability to attract and sustain investors due to lack of investor incentives;
Inability to secure land for development due to land locked and claim
issues, and disputes amongst tribal authority beneficiaries;
Divergent understanding of the role and mode of operation of GTEDA due
to non-engagement of external stakeholders on the strategic plan; and
Inability to sustain the Agency as a going concern due to over reliance on
grant funding by shareholder.
In response, GTEDA’s strategic plan will be presented to key stakeholders for
contribution which will ensure stakeholder buy-in; and
The plan encompasses a business model which addresses GTEDA’s self-
sustainability strategy.
11
ANNEXURE “A”
GTEDA STRATEGIC PLAN
1.4. GTEDA’s Strategic Plan The following objectives for GTEDA over the next five years are the
organization’s response to the important issues identified in the environmental
scan that was completed as part of the strategic planning process. These
objectives provide a roadmap for fulfilling the strategic direction:
Support entrepreneurs in accessing investment capital;
To provide information, advice and support to businesses to ensure growth
and sustainability;
Promote a conducive investment climate in Greater Tzaneen and attract
suitable investors;
To develop effective partnerships with economic development role-players
To acquire and manage assets and other facilities;
To promote entrepreneurship as a career of choice among the youth;
To cultivate entrepreneurship in the broader community;
Develop economic research and analytical capacity of GTEDA; and
To improve organisational skills, systems and processes.
The overall strategic approach that GTEDA is proposing for the period
2016/17 – 2020/21, is focused on Agriculture and Agribusiness,
Manufacturing, Tourism and Heritage Conservation, Property Development
and Green Energy.
1.5. Strategic Direction and Results
The strategic direction and goals included in this plan are GTEDA’s response
to its understanding of what its stakeholder’s value most about the
organization, and current opportunities and challenges.
The five-year period of this strategic plan will be a time of assessing and
deepening GTEDA’s approaches to its work. Concurrently, GTEDA will take
more of a leadership role in exploring actively engaging more stakeholders
with a fresh perspective on its mission, understanding what it does well, and
the environment in which it operates.
12
ANNEXURE “A”
GTEDA STRATEGIC PLAN
As noted above, this strategic plan is intended to be a management tool for
the Agency. It presents a record of the strategic planning process and the
decisions reached by the Board of Directors and staff; which are a reference
guide for strategic planning.
1.6. Organisational Performance Assessment
Performance assessment is vital in ensuring that the highest standards of
excellence is maintained and our performance assessment report is included
in the Annual Report which is publicly distributed to external stakeholders in
order to report on our undertakings. Our performance plan is measurable,
attainable, realistic, time bound with specific, regularly updated key
performance indicators. This is reviewed quarterly by our shareholder (the
municipality) and annually by the Auditor General and Provincial Treasury to
measure progress toward our pre-determined objectives.
1.7. Resourcing the Plan
We expect the main themes of the Plan, and the bold but feasible results it
illustrates, will necessitate cumulative additional resources of about 28%–31%
above our committed grant funding over the five year term of the Plan. The
Greater Tzaneen Municipality (GTM) support for GTEDA activities is central
and will always be essential to sustaining our mission, however due budget
shortfall of approximately 28% we anticipate that more than a quarter of the
new budget required for the 2016/17 Financial Year Plan will come from
Return On Investments attracted/ fees earned on investment facilitation role or
other sources of revenue.
GTEDA will become a more entrepreneurial organization, and we envision
facilitating funding for new initiatives through a variety of sources. These
include emerging and established entrepreneurs, new revenue-generating
ideas through our very own Ideas Hub, and SMME support through incubation
programmes.
13
ANNEXURE “A”
GTEDA STRATEGIC PLAN
2. STRATEGIC OVERVIEW 2.1. Description of the Strategic Planning Process
The GTEDA Board of Directors meets annually to review and revise the
organization’s strategic priorities within its budget processes to ensure that all
activities undertaken are within the plan and must come with an identified
revenue stream.
A session was held to revise the Strategic Plan in August 2015 and covered a
wide range of issues including the organisation’s vision and mission, values,
strategies and objectives and indicative business plan - focusing attention on
important issues facing GTEDA and exploring ways to resolve them. The aim
was to answer questions around where the organisation was (mandate and
key projects) as well as defining what GTEDA should aim to achieve
(objectives) and how to get there.
The process was consolidated by the GTEDA Board on advice by the Projects
and Investments Committee led by the Chairperson of the Board.
2.2. The Essence of GTEDA
GTEDA is the entry point for potential investors. We are a catalyst. We
connect people who have a passion for growth; we care for ideas that will
empower our community. We are partners in striving to make the unavailable
available.
2.2.1. GTEDA Services
Market Greater Tzaneen potential and investment opportunities;
Create a positive investment climate;
Provide business support services;
Create networking platforms;
Conduct and facilitate project funding;
Facilitate access to available business premises and land;
Coordination of economic development; and
Fully investigate available resources.
14
ANNEXURE “A”
GTEDA STRATEGIC PLAN
The Greater Tzaneen Municipality created GTEDA under the Municipal
Systems Act. It created GTEDA as a private company governed by the
Companies Act, Act 71 of 2008. The business and affairs of GTEDA being a
private company is therefore, as required by Section 66 of the Companies Act
managed by or under the direction of its board. The Board has the authority to
exercise all of the powers and perform any of the functions of the company.
Specifically the Agency (GTEDA) is best positioned to:
Maintain a high level of reputation, visibility and credibility;
Increase the pace of economic development with less red tape; and
Take risks in the private sphere.
2.2.2. Vision
To be a self-financing Agency that leads in developing an inclusive,
thriving and sustainable economy for the people of Greater Tzaneen.
2.2.3. Mission
We strive to attract investments into Greater Tzaneen, facilitate in
innovative and efficient ways, development of an economy that is inclusive,
sustainable and resilient. We believe in the potential of our people to drive
their own development.
2.2.4. Values
We subscribe to a set of values that guide our actions at all levels, are
integrated into our way of working and we should be judged by. These are:
Integrity
Empowerment
Transparency and accountability
Innovation and excellence
15
ANNEXURE “A”
GTEDA STRATEGIC PLAN
Partnering
2.2.5. Our Legislative Mandate
GTEDA is Proprietary Limited Company, a legal entity with limited liability
incorporated in terms of the Companies Act, 2008 (Act No. 71 of 2008) as
amended.
The Agency derives its legislative mandate from chapter10 of the
Municipal Finance Management Act, 2006 (Act No. 53 of 2006) and its
regulations - read with Chapter 8A of the Municipal Systems Act, 2000 (Act
No. 32 of 2000) as amended, and the applicable regulations.
3. SITUATIONAL ANALYSIS3.1. The Broader Economic Context
GTEDA, being an agency of the Municipality is enjoined by the constitutionally
defined objects of local government which are, among others, the provision of
democratic and accountable government for local communities, promotion of
social and economic development, promotion of a safe and healthy
environment and encouraging the involvement of communities and community
organizations. GTEDA must work with the parent municipality and the district
municipality towards these objectives.
The National Development Plan provides the anchor upon which these
constitutional imperatives can be pursued. The National Development Plan
asserts that South Africa can create 11 million jobs by 2030 by among others
directing and promoting investment in labour-intensive areas, raising
competitiveness and export earnings. Some of the more specific objectives in
the plan that GTEDA has and real opportunities are stated as follows:
Increasing exports, focusing on those areas where South Africa already
has endowments and competitive advantage, such as mining,
construction, mid-skill manufacturing, agriculture and agro-processing and
tourism.
16
ANNEXURE “A”
GTEDA STRATEGIC PLAN
A larger, more effective innovation system closely aligned with firms
that operate in sectors consistent with the growth strategy. Support for
small businesses through better coordination of relevant agencies,
development finance institutions, and public and private incubators.
A higher rate of investment, with public sector investment crowding in
private investment. This will depend on partnerships with the private
sector, policy certainty and building confidence in the long-term growth of
the economy.
On the other hand the New Growth Path proposes measures to tackle
unemployment, inequality and poverty. It asserts that the measures, taken
together, constitute a key means to address the income inequalities in our
society and can grow employment by five million jobs by 2020 and
unemployment could drop by 10 percentage points from 25% currently to
around 15%. It identifies jobs drivers and the following are more relevant to
GTEDA:
Targeting more labour-absorbing activities across the main economic
sectors – the agricultural and mining value chains, manufacturing and services;
Taking advantage of new opportunities in the knowledge and green economy;
Leveraging social capital in the social economy and the public services;
and
Fostering rural development and regional integration.
GTEDA must also align its plans with the interventions in the Limpopo Development Plan. It defines development as defined as broad-based
improvements in the standard and quality of living of people. The Plan locates
its prioritisation within the Medium-Term Strategic Framework (MTSF) for 2015-19 which is the action plan for the NDP and the New Growth Path for
this first five-year implementation period. The specific advantage of the
17
ANNEXURE “A”
GTEDA STRATEGIC PLAN
Limpopo Development Plan for GTEDA is that Greater Tzaneen is identified
therein as a nodal or growth point where resources could be co-ordinated and
directed in response to identified development opportunities.
In the APPROVED 2014/15 Integrated Development Plan of Greater Tzaneen
the following strategic objectives and performance indicators can be found.
These are critical to GTEDA’s developing of its own strategy:
Strategic Objective: Increased investment in the GTM economy
Performance Indicators:
# of jobs created through agricultural value chain;
# of SMME's capacitated through GTEDA;
# of jobs created by GTEDA; and
# of committed investors attracted through GTEDA.
It is also an objective of GTM to promote the municipality in South Africa and
internationally to ensure economic growth
3.2. Performance Environment
3.2.1. The Greater Tzaneen Area
18
ANNEXURE “A”
GTEDA STRATEGIC PLAN
Figure 1: Greater Tzaneen Area
The Greater Tzaneen Municipality comprises a land area of approximately 3 240km²
and extends from Haenertsburg in the west, to Rubbervale in the east, south of
Modjadjiskloof in the north and to Trichardtsdal in the south. The municipal boundary
forms an irregular, inverted T-shape, which results in certain developmental
implications, and more specifically the distance to markets, difficulties in respect of
service provision and constraints in implementing development vision and strategies.
The municipality is comprised of the proclaimed towns of Tzaneen, Nkowankowa,
Lenyenye, Letsitele and Haenertsburg with several residential townships surrounding
the Ebenezer Dam. In addition there are 125 rural villages, concentrated mainly in
the southeast, and northeast of the area. (See Map 1) The municipal area is further
characterized by:
19
ANNEXURE “A”
GTEDA STRATEGIC PLAN
Extensive and intensive farming activities (commercial timber, cash crops,
tropical and citrus fruit production);
Mountainous, inaccessible terrain in the west and south, and even
topography (gentle slopes) to the north and east;
Areas with exceptional natural beauty, with considerable untapped tourism
potential.
Tzaneen’s location places it on the route between the provincial capital,
Polokwane, and certain of the entrance gates to the extremely popular Kruger
National Park (KNP). Tzaneen is therefore an ideal stop-over for tourists en
route to the KNP or to the myriad game reserves adjacent to the KNP.
Tzaneen is also situated on the tourist route, Route 71.
3.2.2. The Greater Tzaneen Population
According to the South African Statistics Census 2011, the Greater Tzaneen
Municipality has increased its population from 375 588 to 390, 095 (an
increase of 14 504), which is the largest municipality in terms of population
contribution (36%) in the Mopani District.
This population consists of 181 558 males (Census 2001, 171 119) and 208 536 females (Census 2001, 204 469). Females still outnumber males as they
make up 53% of the population (down from 54% during Census 2001). Young
people between the ages of 14 – 35 constitute 40% (156 900) of the total
population of the municipality.
Figure 2: GTM Population
20
ANNEXURE “A”
GTEDA STRATEGIC PLAN
3.2.3. Employment and Income Status
According to the Stats SA Census 2011 there are 27 051 people that are
economically active (employed or unemployed but looking for work), and of
these; 36, 7% are unemployed. Of the 11 948 economically active youth (15–
34 years) in the area, 48, 5% are unemployed.
The majority of people in households in the Greater Tzaneen Municipal area
are unemployed, discouraged work-seekers and those who are not
economically active. All effort at GTEDA should be informed by the need to
change this statistic.
Figure 3: GTM Employment status (Source: Stats SA Census 2011)
3.2.4. Individual Monthly Income levels
Hundred and Sixty Thousand, two hundred and fifty six (160 256) people, who
make up 41% of the total population in the municipality, do not have any
source of income; 45% earn incomes below the minimum living levels, that is
R 9,600 per annum or lower than R 1,600.00 as defined by Statistics South
Africa. Only 0.2% of individuals earn above R50, 000 per annum.
Out of 108 926 households in the Greater Tzaneen area, 14 573 households,
4% of the total households do not have any source of income. The majority of
employed households (about 10%) earn between R 9 601 – R 19 600. It is
21
ANNEXURE “A”
GTEDA STRATEGIC PLAN
also worth noting that only 0.5% of households earns above R1, 000, 000 per
annum within our municipality.
GTEDA must therefore aim at interventions with good earning potential for as
many individuals and households in the area as possible. The empowerment
of young people and women in particular becomes a critical tactic in this
regard.
3.2.5. The Economy in General
The Greater Tzaneen Municipality area has a dualistic economy with a highly
developed commercial sector existing next to an informal subsistence sector,
according to the Greater Tzaneen Municipality SDF (2009). The commercial
sector has established itself largely in accordance with the spatial location of
the production sector. Due to the nature of the informal sector, very little
accurate information is readily available on the level of the various activities
According to the Greater Tzaneen Municipality adopted 2014/15 IDP,
agriculture in Tzaneen contributes most of the district’s GDP at 43%. It
accounts for more of the employment at 40% followed by Letaba at 25%. This
is a clear competitive advantage that is followed by manufacturing which
contributes 38%, 3% of the local municipality to the district. All in all, the IDP
identifies agriculture, tourism, and Agro-Processing as the sectors with the
most potential.
It identifies among the challenges and constraints for local economic development:
Uncoordinated planning for IDP implementation;
Lack of coordinated marketing strategy for the entire Municipal area;
Delayed restitution processes;
Lack of coordination of the value chain;
Uncoordinated tourism structure which is representative of the entire
Municipality;
Business and trade needs to be diversified for retention and sustainability
purposes;
22
ANNEXURE “A”
GTEDA STRATEGIC PLAN
Lack of incentives for private sector driven development;
Informal sector shows substantial growth which needs to be part of the
organized/Formal business 24.7 Opportunities for LED; and
The following are collective economic forces that can generate sufficient
economic energy to create a series of sustainable development
opportunities or projects a. Sub-tropical fruit and nut cluster development
b. Agriculture value-chain development c. Tourism development and
promotion d. Business diversification and trade development
3.3. Organisational Environment
3.3.1. SWOT Analysis
Organisational Analysis (External)
Various stakeholders’ were engaged to participate in the analysis of GTEDA’s
internal strengths, weaknesses and external opportunities and threats by way
of a SWOT Analysis Tool and identified the following:
Strengths Weaknesses
23
ANNEXURE “A”
GTEDA STRATEGIC PLAN
Internal A fully fledged and active Board Internal policies are in place Keen personnel Prudent financial management
(Unqualified audit opinion)
Internal An organisational structure inconsistent with the
core business and some support services Poor human resources capacity to deliver on the
core business - vacancies in key positions Limited financial resources Inadequate office space/accommodation Poor asset base Poor ITC systems and inadequate support
Opportunities Threats External
Grow the GTEDA brand Grow asset base Potential partnerships with IDC, SEDA,
NDA Go Green- alternative energy ( Solar) A huge natural and cultural resource
base that can be exploited in Tourism, Agriculture, Heritage etc.
Council support Potential partnerships with private
venture capitalists and donors
External Identification /assignment of unsustainable
projects. Poor communication from key stakeholders Insufficient funding/ lack of funding (resources). Misunderstanding of the character and role of the
Agency Unwillingness of some relevant stakeholders to
buy in on development initiatives. Delays in land restitution processes. Informal relationships with key stakeholders Inflation Competition from other agencies and
municipalities. Unstable environmental, Social, political and
economic conditions.
3.3.2. Stakeholder Analysis
The very existence and the success of GTEDA depends on a number of stakeholders
who have some expectations and influence over the entity. The entity strives to
understand, manage or meet the expectations of the stakeholders in its operations.
The stakeholders and their degree of influence over the entity are given in the table
below:
Stakeholder
Role Interest Degree of
Area of Influence
Expectations
24
ANNEXURE “A”
GTEDA STRATEGIC PLAN
InfluenceGTM Sole Funder High High Ownership and
Funding- viability
Monthly, Quarterly and
Annual Performance
reports
Community and Civil Society
Beneficiary High High Public participation
and buy-in
Annual meetings
through IDP Public
participation processes
Funders Potential
Funder
High High Funding- viability Monthly engagements
Investors Potential
Investor
High High Economic
development
Monthly engagements
Business Strategic
Partner
High High Economic
development
Quarterly engagements
Media Strategic
Partner
High High Marketing and
communication
Monthly newsletters or
publications
Government Agencies
Strategic
Partner
High High Capacity and
strategic
partnerships
Monthly engagements
Sector Departments
Strategic
Partner
High Medium Service delivery and
strategic
partnerships
Quarterly engagements
Organised Business
Strategic
Partner
High Medium Strategic
partnerships for
economic
development and
viability
Quarterly engagements
Academic Institutions
Strategic
Partner
Medium Medium Research
capabilities and
human development
Quarterly / Regular engagements
3.4. GOVERNANCE
3.4.1. The Board
25
ANNEXURE “A”
GTEDA STRATEGIC PLAN
Together with the Parent Municipality GTEDA continues to comply with the
requirements of a responsible and accountable Board as recommended in
Chapter 2 of the King III Report.
3.4.2. Board Constitution For a period of about three years, GTEDA operated without a full Board
Component; and In the previous financial year when the Board comprised
only four Board Members compared to the initial Membership of ten,
together with the Shareholder a commitment was made to review the skills
shortage as there was a realisation that there is a serious need to further
improve on the economic development and investment muscle in terms of
additional skills to the Board in order to effectively carry out the core
mandate of GTEDA.
3.4.3. Board TermDirectors are appointed on a fixed term of five (5) years. A new and full Board
component was finally appointed on a five year term with effect 01 July 2015.
We give the assurance that the Board Members are diverse in terms of
education, experience, gender balance, geographical origin and interpersonal
skills.
3.4.4. Accountability, Roles and Functions of the BoardAll Board Members are independent for the effective functioning of the Board.
A Company Secretary was appointed among the Board members to ensure
that governance processes are not neglected and all issues of governance are
addressed. The Company Secretary liaises between the Board and
Management on Board matters.
The Board tables an annual report to the shareholder on the performance of
the organisation as well as the audited annual financial statements. Quarterly
reports are also submitted through the GTM Audit Committee.
A representative of the shareholder attends all GTEDA quarterly Board
meetings.
3.4.5. Board Committees
26
ANNEXURE “A”
GTEDA STRATEGIC PLAN
The Board has delegated certain of its duties to Board Committees which are
all chaired by independent non-executive directors:
Human Resource and Remuneration Committee (HR & REMCO) - Ms. J
Makapan;
Finance and Risk Committee (FRC) - Mrs. M.F Mushwana;
Project and Investments Committee (PIC) – Mr. M.Z Mawasha; and
Social and Ethics Committee (SEC) – Adv E.S Maake.
Figure 4: GTEDA Board Committees
3.5. The Organisational Structure
GTEDA has an approved organogram with a staff complement of nine.
The Finance and the Human Resource functions are performed under the
guidance of the Finance and Administration Officer, supported by the
Receptionist and Office Assistant; and
27
Finance and Risk
MF Mushwana
Pro jects and Investment
MZ Mawasha
Socia l and Ethics
ES Maake
HR& REMCO
J Makapan
BOARD OF DIRECTORS
M Z Mawasha: ChairmanES Maake: Deputy Chai rman
MF MushwanaMV Gardner
MI MoakamelaJ Makapan
BL Mathebula
Audit Committee
GTM
ANNEXURE “A”
GTEDA STRATEGIC PLAN
The Project Management functions are performed under the guidance of the
Project Manager, supported by the Project Coordinator and Business Advisory
Administrator.
3.5.1. Current Challenges:
The current staffing levels result in less than adequate performance of the organisation in certain areas.
Therefore there is a need for innovative thinking on resourcing the organisation to meet changing demands on it.
The organisation does not have as much communication and connection as is desirable with its stakeholders or customer base.
The structure does not provide for prospects of career growth and mobility.
The organisational structure is therefore undergoing a review process to
address these challenges and to generally accord with the mandate of the
organisation and its strategy.
3.5.2. Current Organisational Structure
Figure 5: GTEDA organisational Structure
28
ANNEXURE “A”
GTEDA STRATEGIC PLAN
29
1 X CHIEF EXECUTIVE OFFICER
1 X MANAGER CORPORATE SERVICES
1 X MANAGER: INVESTMENTS AND PROJECTS
1 X MANAGER MARKETING AND PR
COMPANY SECRETARY
- IT
- HR
- Finance
- Admin
- Marketing GTEDA and Projects
- Stakeholder Relations
- Exhibit ions
- Identi fy Investors
- Increase Revenue
- Project Management
- Maintain Current Projects
ANNEXURE “A”
GTEDA STRATEGIC PLAN
4. Strategy Map
4.1. Greater Tzaneen Municipality’s Strategic Map
Figure 6: GTM Strategy Map
GTEDA’s mandate is to grow the local economy in order to support development of the
people of the area. Therefore economic growth would be the main area of focus for the
Agency in the Greater Tzaneen Municipality’s Strategy Map.
4.2. GTEDA’s Strategic Map
The diagram below is a detailed presentation of the GTEDA strategy map. It is based on
GTEDA’s own realities and is premised on the balanced score-card approach.
30
ANNEXURE “A”
GTEDA STRATEGIC PLAN
GOALS 3. Increased availability of resources economic development in the Greater Tzaneen area. 4. A high level of investment in the local economy. 5. A thriving SMMEs sector in Greater Tzaneen. 6. Developed entrepreneurial capacity and increased involvement of PDIs in starting and developing businesses. 7. A viable and capable GTEDA.
THEMES ECONOMIC DEVELOPMENT CAPACITY BUILDING PUBLIC PARTICIPATION SUSTAINABILITY
STRATEGIC PERSPECTIVES
CUSTOMER SATISFACTION
FINANCIAL
31
To provide information, advice and support to businesses to ensure growth and sustainability.
To support entrepreneurs in accessing investment capital
To promote a conducive investment climate in Greater Tzaneen and attract suitable investors.
To provide information, advice and support to businesses to ensure growth and sustainability.
To acquire and manage assets and other facilities
To develop effective partnerships with economic development role-players
To develop effective partnerships with economic development role-players
ANNEXURE “A”
GTEDA STRATEGIC PLAN
INTERNAL PROCESSES
LEARNING AND GROWTH
Figure 7: GTEDA Strategy Map
32
To promote entrepreneurship as a career of choice among the youth
To cultivate
entrepreneurship in the
broader community
To develop economic research and analytical capacity of GTEDA
To improve organisational skills, systems and processes
ANNEXURE “A”
GTEDA STRATEGIC PLAN
5. STRATEGIC FOCUS AREAS, GOALS AND OBJECTIVES
Strategic Focus Areas for 2016 – 2021
5.1.1. Agriculture and Agribusiness
In terms of Agriculture, the Greater Tzaneen Municipal area has a
competitive advantage in Agriculture with considerable opportunities for
leveraging this sector and finding new entrepreneurs particularly in
agribusiness.
5.1.2. Manufacturing
The Provincial Employment and Growth strategy identifies that insufficient
attention is given to the potential development contribution of industries
especially manufacturing as a course of the decline in some municipal areas.
While manufacturing in Greater Tzaneen contributes 38% of the district
economy, it is on the basis of a strong endowment in natural resources that it
becomes a strategic sector to target for development.
“Limpopo Industrial Sector Key Action Plan’s main objective is to identify
interventions that will enable the province to revitalize both the natural-
resource based and advanced manufacturing growth in the province with a
focus on integrating SMMEs at the 2nd, 3rd, 4th and lower tiers into the
regional, national, continental and global value chains of the selected
sectors”Provincial Employment and Growth Strategy, 2009-2014.
5.1.3. Tourism and Heritage Conservation
Tourism is identified in the Municipality’s IDP as one of the sectors with high
economic potential within the municipality together with agriculture and agro-
processing. The area has tremendous natural and heritage potential. There
appears to be general consensus that tourism demand is well below what
would be expected from an area with such outstanding natural potential.
33
ANNEXURE “A”
GTEDA STRATEGIC PLAN
5.1.4. Property Development
The development of shopping centres still remains an area of high impact in
terms of creation of jobs in the area. Four shopping centres have been
identified and the private sector has responded well by coming forward with
the intention to invest in this sector. Once the shareholder (GTM) intervenes
and resolves the disputes that have put a halt on the project, the municipal
area stands to reap much needed jobs.
The availability of land to the Municipality presents a particular potential
advantage for GTEDA to create partnerships in the development of office
parks and residential development. This would also contribute to the self-
sustainability of the agency in the long term.
5.1.5. Green Energy
The Provincial Employment Growth and Development Plan looks at green
economy within the context of “agriculture, manufacturing, construction,
installation, and maintenance, as well as scientific and technical,
administrative, and service-related activities that contribute substantially to
preserving or restoring environmental quality.
GTEDA can play a key role in rolling out the Renewable Energy Economy
(REE) programme within the municipal area. Some of the renewable energy
supply sources include:
a) Biogas;
b) Concentrated solar power;
c) Landfill gas;
d) Solar water heaters; and
e) Solar photovoltaic.
34
ANNEXURE “A”
GTEDA STRATEGIC PLAN
Strategic Outcome Oriented Goals
Strategic Outcome Oriented Goal 1
Increased availability of resources for economic development in the Greater Tzaneen area
Goal statement To continually identify, collect and collate information of
funding institutions and investors, understand their niche and
requirements for accessing their funds and have the number
of business assisted by government funding agencies at 10
and private investors at 5.
The need for South Africa to grow its economy and create jobs has resulted in a
plethora of state institutions meant specifically for the assisting business with funding
and other kinds of support. GTEDA will seek to skew the flow of the resources held
by these organisations to the Greater Tzaneen area.
There are also many other opportunities internationally as well as in the business
community for supporting small businesses that should be identified so that GTEDA
positions itself to exploit these opportunities.
GTEDA should vigorously participate in planning activities of government at all levels to try to
influence development planning, the identification and location of projects as well as the allocation
of funding.
Strategic Outcome Oriented Goal 2
A high level of investment in the local economy
Goal statement Seek and recruit 5 new businesses in the selected focus
industries/sectors/sub-sectors in order to provide stable and
profitable employment opportunities to the residents of the
municipality
At the heart of the GTEDA mandate is attracting investors in the economy. This
means that GTEDA must work towards enhancing competitiveness and a healthy
investment climate in the area.
35
ANNEXURE “A”
GTEDA STRATEGIC PLAN
The success of efforts towards this goal would make a meaningful contribution
towards realising the key priorities of the NDP vision 2030.
Strategic Outcome Oriented Goal 3
A thriving SMMEs sector in Greater Tzaneen
Goal statement Incubation of 2 existing entities in the selected sectors and in
the growth points and facilitate the starting up and success of
5 new business.
Limpopo Provincial Government has an Enterprise Development Programme. The
aim of the Enterprise Development Programme is to promote the development and
transformation of the provincial economy by promoting the SMME sector, ensuring
that SMMEs in the province are better able to contribute to and benefit from
sustained economic growth by becoming more competitive, profitable, and able to
create more and better employment opportunities.
GTEDA will therefore, over the next five years, help develop new SMMEs and position existing ones
in the selected strategic sectors for growth and development.
Strategic Outcome Oriented Goal 4
Developed entrepreneurial capacity and increased involvement of PDIs in starting and developing businesses
Goal statement Generate or improve the existing avenues for community
learning and involvement in the business of developing the
local economy. Five (5) interventions must be developed and
implemented.
The majority of residents, entrepreneurs, SMMEs and established businesses in the
municipality do not have access to critical information and the services provided by
funding and support services agencies including LED.
It is also critical that people are an integral part of development, including the
generation of ideas that should shape the nature and direction of such development.
36
ANNEXURE “A”
GTEDA STRATEGIC PLAN
This is where GTEDA focuses on market intelligence. Market intelligence is a very
important function in the support services that GTEDA renders. Potential investors
will need to know more about their immediate competitors and what potential
markets for their products/services have been identified. This includes the monitoring
of change and trends in demand which are happening in the market place on a
regular basis.
It is also critical that there is alignment among economic development agencies’
programmes and projects to ensure that there is synergised action to achieve the
common objectives
Strategic Outcome Oriented Goal 5
A viable and capable GTEDA
Goal statement Improve the capacity of GTEDA to facilitate and support
economic development and ensure sustainability of the
organisation from a R5m to a R15m revenue budget in five
years
GTEDA needs to build its own human resources capacity as well as to improve
improved institutional management processes. This includes a continual focus on its
business model and efficiency of business processes. It must develop its systems
and possess assets and other facilities that would make it self-sustainable. By so
doing GTEDA would position itself as an effective partner to reckon with in identifying
and implementing economic development initiatives.
37
ANNEXURE “A”
GTEDA STRATEGIC PLAN
Strategic Objectives
Strategic Outcome Oriented Goal 1
Increased availability of resources economic development in the Greater Tzaneen area
Goal statement To continually identify, collect and collate information of funding institutions and investors, understand their niche and requirements for accessing
their funds and have the number of business assisted by government funding agencies at 10 and private investors at 5.
No. Strategic Objective
Objective Statement /Output
Baseline Indicator and Target
2016/17 2017/18 2018/19 2019/20 2020/21
1. To support
entrepreneurs in
accessing
investment capital
Identify and sign
memoranda of
understanding with
10 funding
organisations
and/or venture
capitalists
MDDA
(GTFM)
Funding
Signed funding
agreements
Target: Two
concluded per
annum.
Sign MOU/SLA
with CPA’s for
each project and
Develop Value
Propositions; and
Develop
Business Plans
for each project
and Appoint
Transactional
Advisors
Develop
Business
Plans for each
project and
Appoint
Transactional
Advisors; and
Submit 10
funding
applications;
Commence
Implementatio
n of Projects;
Apply for
incubation
programme
Conclude 5
funding
agreements;
Implementation
of Projects
continues;
Monitoring and
Evaluation;
Incubation
programme
commences;
Develop Project
Exit Plan
Conclude 5
funding
agreements;
Implementation
of Projects,
Monitoring and
Evaluation and
Incubation
programme
continues; and
Develop Project
Exit Plan
Monitoring
and
Evaluation
Continues;
Finalise
Project Exit
Plan; and
Project
Close Out/
Hand Over
No. Strategic Objective Baseline Indicator and 2016/17 2017/18 2018/19 2019/20 2020/21
38
ANNEXURE “A”
GTEDA STRATEGIC PLAN
Objective Statement /Output Target
2. To support
entrepreneurs in
accessing
investment capital
Document, advice
and support
entrepreneurs on
all process for
applying for funding
MDDA (GTFM)
Rural
Development
(Leather
Making).
Number of
applications
approved.
Target: One
project
application per
quarter
submitted.
Develop
Business Plans
for each project
and appoint
Transactional
Advisors; Submit
4 funding
applications
Submit 4
funding
applications;
Implementatio
n of Projects;
Apply for
incubation
programme.
Submit 4
funding
applications
Implementation
of Projects,
Monitoring and
Evaluation and
Incubation
programme
continues; and
Develop Project
Exit Plan
Submit 4
funding
applications:
Implementation
of Projects,
Monitoring and
Evaluation and
Incubation
programme
continues; and
Develop Project
Exit Plan
Monitoring
and
Evaluation
Continues;
Finalise
Project Exit
Plan; and
Project
Close Out/
Hand Over
3. To support
entrepreneurs in
accessing
investment capital
Participate in
government
planning processes
to increase the flow
of resources in
favour of Greater
the Greater
Tzaneen area
See Appendix
Attached for
current
baseline in
respect of
each
organisation
(Makgoba Tea
Estates –
Dept. of
Agric/LEDA)
Signed SLA’s
with
government
sectors/
departments
Target: Two
concluded per
annum.
Develop a
database of state
development
funding
organisations and
develop Business
Proposals; and
Sign SLA’s with 2
government
sectors/
departments
Sign SLA’s
with 2
government
sectors/
departments;
Implementatio
n of Projects;
Apply for
incubation
programme
Sign SLA’s with 2 government sectors/ departments; Monitoring and Evaluation and Incubation programme
Sign SLA’s with 2 government sectors/ departments; Implementation of Projects, Monitoring and Evaluation and Incubation programme continues; and Develop Project Exit plan
Monitoring and Evaluation Continues; Finalise Project Exit Plan; and Project Close Out/ Hand Over
Strategic Outcome A high level of investment in the local economy
39
ANNEXURE “A”
GTEDA STRATEGIC PLAN
Oriented Goal 2
Goal statement Seek and recruit 5 new businesses in the selected focus industries/sectors/sub-sectors in order to provide stable and profitable
employment opportunities to the residents of the municipality
No Strategic Objective
Objective Statement
Baseline Indicator and Target
2016/17 2017/18 2018/19 2019/20 2020/21
4. To promote a
conducive
investment climate
in Greater Tzaneen
and attract suitable
investors.
Research and
document/profile the
potential of Greater
Tzaneen as a
tourism and
investment
destination for the
national and
international market
Transactional
Advisors
(Sapekoe Tea
Estates)
Value
Propositions
(Retail studies)
Rand value of
Investment
attracted
Target:R20 mil in 5
years
Benchmark on
profiling of
Investment
promotions
and
Appoint
Consultant
(Transactional
Advisors);
Package/
profile Greater
Tzaneen as a
tourism and
investments
and Develop
Value
Propositions
Sign Off
tourism and
investments
profile; and
Appoint
Marketing
and
Investments
Manager /
Outsource
Promotion of
Greater
Tzaneen as
a tourism
and
investments
Conclude
5
Investme
nts
agreemen
ts/ SLA
Conclude 5
Investments
agreements/
SLA
Conclude 5
Investments
agreements/ SLA
No Strategic Objective Baseline Indicator and 2016/17 2017/18 2018/19 2019/20 2020/21
40
ANNEXURE “A”
GTEDA STRATEGIC PLAN
. Objective Statement Target5. To promote a
conducive
investment climate
in Greater Tzaneen
and attract suitable
investors.
Identifying
bureaucratic delays
and raising these
with the municipality
and other
government
agencies and
departments, e.g.
business registration,
EIA/HIA applications,
business permits and
licences and zoning
applications etc.
Draft
Investment
Policy (in
coordination
with GTM)
A documented
analysis report
and number of
engagements
with the
municipality on
shortening
processes
MOU/SLA
signed with
Three Investors
Target: Three
Investments
Attracted/
secured in GTM
Adopted
Investment
Policy; Obtain
Council
Resolution on
committed
Incentives;
Commence
preparation
for
International
Investor
Conference
Host National
Investor
Conference;
Appoint
Events
Management
Consultant;
and Launch
the
International
Investor
Conference
Host
Internationa
l Investor
Conference
; and
Secure/
Attract
Three
Investors
Host International Investor Conference; and Secure/ Attract Three Investors
Host International Investor Conference; and Secure/ Attract Three Investors
No Strategic Objective Baseli Indicator and 2016/17 2017/18 2018/19 2019/20 2020/21
41
ANNEXURE “A”
GTEDA STRATEGIC PLAN
. Objective Statement ne Target6. To promote a
conducive
investment climate
in Greater Tzaneen
and attract suitable
investors.
Support the
development of new
or improvement of
existing 4 tourism
products or services
in the growth market
areas (special
interest tourism)
Greater
Tzanee
n
Touris
m
Develo
pment
Frame
work
(Feasib
ility
Study
conduct
ed)
Number of
initiatives
supported
through GTTA.
Target:Conclude 5
SLA/ MOU’s
for strategic
partnerships/
Investors
Develop
criteria for
identifying, a
milestone
checklist for
incubation
programme
and project exit
plans
Identify 5
potential local
initiatives
and Conduct
Impact Risk
Assessment;
and develop
Value
Propositions;
Sign 5
MOU/SLA’S
with CPA’s for
each project;
and Appoint
Transactional
Advisors
Develop
Business Plans
for 5 potential
local initiatives;
Implementation
of Projects;
Apply for
incubation
programme
Provide
Business
Support
Advisory
Services to 5
potential local
initiatives;
Implementation
of Projects
Continues,
Monitoring and
Evaluation and
Incubation
programme
continues; and
Develop
Project Exit
Plan
Provide Business
Support Advisory
Services to 5
potential local
initiatives;
Continues; Finalise
Project Exit Plan;
and Project Close
Out/ Hand Over
42
ANNEXURE “A”
GTEDA STRATEGIC PLAN
No. Strategic Objective
Objective Statement
Baseline Indicator and Target
2016/17 2017/18 2018/19 2019/20 2020/21
7. To promote a
conducive
investment
climate in Greater
Tzaneen and
attract suitable
investors.
In conjunction
with all relevant
stakeholders,
identify and
implement 2
possible
alternative
farms for
traditional food
and medicine
Support of
Restituted
farms
through
BSSC; and
facilitated
Investment
for
Batlhabine
farm
Number of co-
ops functional
and
sustainable
Target: Two
(2) Co-ops
established
Develop criteria
for identifying,
a milestone
checklist for
incubation
programme
and project exit
plans
Identify 2 potential
local initiatives
and Conduct
Impact Risk
Assessment
Sign 2
MOU/SLA’S
with each co-
ops and
develop Value
Propositions
local initiatives;
Implementation
of Projects
Submit
funding
applications for 2
Co-ops
Submit
funding
applications
for 2 Co-ops
8. To promote a
conducive
investment
climate in Greater
Tzaneen and
attract suitable
investors.
Promote agro-
processing of
the sub-tropical
fruits by
facilitating the
development of
3 agro-
processing
businesses (co-
operatives and
home
industries)
Feasibility
Study
conducted
on value
preposition –
value chain
Subtropical
Fruit and Nut
Cluster
Number of co-
ops functional
and
sustainable
Target: Three
(3) agro-
processing
Co-ops.
Conduct
Community
Consultations;
Establish or
identify 3 agro-
processing Co-
ops
Develop milestone
checklist for
incubation
programme and
exit plans for 3
agro-processing
Co-ops; Sign 3
MOU/SLA’s with
each Co-op and
develop Value
Propositions
Appoint
Transactional
Advisors and
Develop
Business Plans
for 3 agro-
processing Co-
ops
Submit
funding
applications for 3
agro-processing
Co-ops
43
ANNEXURE “A”
GTEDA STRATEGIC PLAN
Strategic Outcome Oriented Goal 3
A thriving SMMEs sector in Greater Tzaneen
Goal statement Incubation of 2 existing entities in the selected sectors and in the growth points and facilitate the starting up and success of 5
new business.
No Strategic Objective
Objective Statement
Baseline Indicator and Target
2016/17 2017/18 2018/19 2019/20 2020/21
9. To provide
information, advice
and support to
businesses to
ensure growth and
sustainability.
Engage with the
local and district
municipalities,
government
departments
and agencies
to, in their
procurement of
goods and
services,
support GTEDA
supported
SMMEs
Not
available
(n/a)
Number of
engagements
with
government
Number of
procurement
opportunities
provided
Target: SCM
SLA’s
Concluded with
5 SMME’s
Identify
Supply Chain
Opportunities
for SMME’s
and Sign 10
MOU’s with
local and
district
municipalities,
government
departments
and agencies
Identify and
Assess
SMME’s as per
criteria checklist
and Sign 5
MOU/SLA’S
with each
SMME
Strength
incubation
programme and
exit plans; and
Facilitate
database
registration
processes
Provide training
to SMME’s on
Supply Chain
Management/
Tendering
Processes and
related SARS
processes
Conclude SLA
with local and
district
municipalities,
government
departments and
agencies
No Strategic Objective Baseline Indicator and 2016/17 2017/18 2018/19 2019/20 2020/21
44
ANNEXURE “A”
GTEDA STRATEGIC PLAN
Objective Statement Target10. To promote
entrepreneurship as
a career of choice
among the youth
In conjunction
with other
stakeholders,
carry out 50
promotional
activities aimed
at raising the
profile of
entrepreneurshi
p as a career of
choice for
residents of
Greater
Tzaneen,
especially
black, women
and people with
disabilities.
BSSC
Accredited
for new
venture
creations
# Public
Participation,
Youth Forums
and Incubation
programmes.
Target: Entrepreneurshi
p
Training
SLA/MOU’s
Develop a
selection
criteria for
identifying, a
milestone
checklist for
incubation
programme
for local
entrepreneurs
; and Secure
Training
Centre
Facility
Identify
strategic
partners in
Entrepreneurshi
p
Incubation
programmes ;
and Sign 5
MOU/SLA’S
with strategic
partners in
Entrepreneurshi
p
Incubation
Provide training
on
Entrepreneurshi
p and Host an
Annual Award
Ceremony for
the Best
Entrepreneur
Provide training
on
Entrepreneurshi
p and Host an
Annual Award
Ceremony for
the Best
Entrepreneur
Provide training on
Entrepreneurship
and Host an
Annual Award
Ceremony for the
Best
Entrepreneur
45
ANNEXURE “A”
GTEDA STRATEGIC PLAN
No. Strategic Objective
Objective Statement
Baseline Indicator and Target
2016/17 2017/18 2018/19 2019/20 2020/21
11. To provide
information, advice
and support to
businesses to
ensure growth and
sustainability.
In collaboration
with LED, SEDA
and others,
provide support
services to 10
SMMEs to enable
them to start and
become
successful
beyond the first
three years of
inception and
operation
Community
Bank
Established
(Greater
Tzaneen
Financial
Services
Cooperative)
through
BSSC
# Business
Incubation
Programme
implemented.
Target: Concluded
MOU on
incubation
programme
with strategic
partners/
funders
Develop a
selection
criteria for
identifying, a
milestone
checklist for
incubation
programme
and exit
plans for
SMME’s
Identify
strategic
partners
and Sign 5
MOU/SLA’S
with strategic
partners on
SMME
Incubation
programme
and Develop
Self
Sustainability
Strategies
Develop
Business Plans
and Appoint
Transactional
Advisors; and
submit funding
applications;
and Self
Sustainability
Implementation
Plan
Provide
training on
Business Skills
and
Management;
and Conduct
Monitoring and
Evaluation
Provide training
on Business
Skills and
Management;
Conduct
Monitoring and
Evaluation
Strategic Outcome: Developed entrepreneurial capacity and increased involvement of PDIs in starting and developing businesses
46
ANNEXURE “A”
GTEDA STRATEGIC PLAN
Oriented Goal 4
Goal statement Generate or improve the existing avenues for community learning and involvement in the business of developing the local economy.
Five (5) interventions must be developed and implemented.
No. Strategic Objective
Objective Statement
Baseline Indicator and Target
2016/17 2017/18 2018/19 2019/20 2020/21
12. To cultivate
entrepreneurship
in the broader
community
Identify and
implement 3
meaningful projects
for encouraging
community
dialogue,
networking and
opportunities for
interaction and
development of
innovative ideas
about growing the
Greater Tzaneen
economy
Three projects
identified and
supported.
New project
identified and
adopted by
Council
Target: Concluded
SLA/MOU with
strategic
partners on
establishing an
Ideas Hub
Conduct
Consultative
meetings with the
community in
relation to
establishment of
an Ideas Hub
programme; and
Develop a
selection criteria
for identifying
projects from
Ideas Hub and
milestone
checklist; and
Identify and Sign
MOU/SLA’S with
potential strategic
partners/ funders/
Develop
Business
Plans and
Appoint
Transactional
Advisors; and
submit
funding
applications;
Host an
Annual
Award
Ceremony for
the Best
Ideas
Host an
Annual
Award
Ceremony
for the Best
Ideas
Host an
Annual Award
Ceremony for
the Best
Ideas
Host an Annual
Award
Ceremony for
the Best Ideas
47
ANNEXURE “A”
GTEDA STRATEGIC PLAN
investors in
establishing an
Ideas Hub
programme
13. To provide
information,
advice and
support to
businesses to
ensure growth
and sustainability.
Initiate 15 in-house
training to project
participants to
enable skills
development and
effectiveness.
Registered
with the
Services
SETA but no
training
activities have
taken place.
Accreditation
lapses in
March 2016.
Signe MOU with
SETA and
Universities
Target:15 In-House
training by
SETA and
Universities or
other strategic
partners
Conduct
Consultative
meetings and
Skills Audit within
the GTM
Community; and
Identify and Sign
MOU/SLA’S with
potential strategic
partners on Skills
Training
Develop
Business
Plans and
submit
funding
applications:
Provide 2
trainings on
Business
Skills and
Management
as per skills
gap
identified.
Provide 3
training on
Business
Skills and
Management
as per skills
gap identified
Provide 5
training on
Business
Skills and
Management
as per skills
gap identified
Provide 5
training on
Business Skills
and
Management as
per skills gap
identified
No. Strategic Objective Baseline Indicator and 2016/17 2017/18 2018/19 2019/20 2020/21
48
ANNEXURE “A”
GTEDA STRATEGIC PLAN
Objective Statement Target14. To develop
effective
partnerships with
economic
development role-
players
Development of
formalised
partnerships with 5
economic
development
agencies at the
international,
national, provincial
and local levels
SLA
concluded
with
LEDA/LDA
(Sapekoe Tea
Estates)
# Facilitated
SLAs with
identified
stakeholders
Target:5 SLA’s
concluded
Identify and Sign
2 MOU/SLA with
potential strategic
partner; and
Facilitate/
Coordinate the
LED Forum
Identify and Sign 2 MOU/SLA with potential strategic partner; and Facilitate/ Coordinate the LED Forum
Identify and Sign 1 MOU/SLA with potential strategic partner; and Facilitate/ Coordinate the LED Forum
Identify and Sign 1 MOU/SLA with potential strategic partner; and Facilitate/ Coordinate the LED Forum
Identify and Sign 1 MOU/SLA with potential strategic partner; and Facilitate/ Coordinate the LED Forum
49
ANNEXURE “A”
GTEDA STRATEGIC PLAN
Strategic Outcome: Oriented Goal 5
A viable and capable GTEDA
Goal statement Improve the capacity of GTEDA to facilitate and support economic development and ensure sustainability of the organisation from
a R5m to a R50m self-generated revenue budget in five years
No Strategic Objective
Objective Statement
Baseline Indicator and Target
2016/17 2017/18 2018/19 2019/20 2020/21
15. Develop
economic
research and
analytical
capacity of
GTEDA
To undertake
research aimed at
providing the basis
for development
policy and
programme
implementation
focusing on poverty
eradication,
unemployment and
inequality.
Not available
(n/a)
Number of
research
reports
Target:MOU/SLA
concluded with
1 Research
Institution
Develop
TOR’s for
Research and
Development
Reports
required; and
Identify and
Sign 1 MOU
with 1
Research
Institution; and
Develop
Research and
Development
Policy
Develop
service
value
propositi
on
proposal;
and
Identify
Client
base for
provision
of
service
on latest
date and
sign SLA
Provide
informatio
n on latest
Research
data to
subscribe
d
stakehold
ers
Provide
informatio
n on latest
Research
data to
subscribe
d
stakehold
ers
Provide
information on
latest Research
data to
subscribed
stakeholders
No Strategic Objective Baseline Indicator and 2016/17 2017/18 2018/19 2019/20 2020/21
50
ANNEXURE “A”
GTEDA STRATEGIC PLAN
. Objective Statement Target
16 To improve
organisational
skills, systems and
processes
Procure technology
and services to enable
GTEDA to provide
market research and
intelligence services to
investors.
SMME Support
through BSSC
in partnership
with SEDA,
LIMDEV etc.
LEDA
Impact of
Business
advisory
services
provided
Target:Signed 5 SLA’s
between
SMME’s and
Investors
Develop criteria
for identifying, a
milestone
checklist for
incubation
programme and
project exit
plans; Identify 5
potential
SMME’s
and Conduct
Impact Risk
Assessment
Sign MOU
with 1
SMME’s
and
Facilitate
funding/
strategic
partnership
s/ Investors
Sign MOU
with 1
SMME’s
and
Facilitate
funding/
strategic
partnership
s/ Investors
Sign MOU with 1
SMME’s and
Facilitate funding/
strategic
partnerships/
Investors
No Strategic Objective Baseline Indicator and 2016/17 2017/18 2018/19 2019/20 2020/21
51
ANNEXURE “A”
GTEDA STRATEGIC PLAN
Objective Statement Target17. To improve
organisational
skills, systems
and processes
To develop and
implement
systems and
processes to
improve efficiency
and effectiveness
of internal control
and
organizational
performance
Skills audit
conducted in
financial year
2012/13
# Work skills
Development
plan and skills
audit initiated
Number of IT
Systems
Number of
policies.
Target:Skills
development
training and
workshops
provided
Conduct
Organisational
Skills Audit and
Identify and
Sign
MOU/SLA’S
with potential
strategic
partners on
Skills Training
submit funding
applications on
trainings; and
Provide 3
training on
Business Skills
submit
funding
applications
on : trainings;
and Provide
3 training on
Business
Skills and
Management
as per skills
gap identified
Provide 3 training
on Business
Skills and
Management as
per skills gap
identified
Provide 5
training on
Business Skills
and
Management as
per skills gap
identified
Provide 5
training
on
Business
Skills and
Managem
ent as per
skills gap
identified
18. To acquire and
manage assets
and other facilities
To facilitate
funding for
procurement of
capital assets
Fixed Asset
Register (i.e.
Furniture and
fittings, office
and computer
equipment)
% increase in
Balance Sheet.
Target:Acquire Vacant
Land for
development
Identification of
potential
municipal
vacant land and
submit request
GTM for transfer
of Vacant Land
Obtain GTM
Council
Resolution
Transfer of
Land for
Business
development
Sign Concluded
Transfer of Land
documentation;
and Commence
Title deeds
registration
processes
Obtain Title deed
for Vacant Land;
and Develop
Building Plan for
Office Park and
Quotation on
Building package
Building
of Office
Park
commenc
es
52
ANNEXURE “A”
GTEDA STRATEGIC PLAN
6. BUSINESS MODEL
Figure 8: GTEDA Business Model
GTEDA’s business model is also premised on the Balance Score Card approach
which is meant to ensure that our energies are aligned to our vision and strategy in a
manner that leads to balanced institutional performance. The balanced score card
posits the organisation from four perspectives, namely, the Customer Perspective,
Learning and Growth Perspective, Internal Perspective and the Financial
Perspective. To each perspective GTEDA identifies key drivers/pillars of success. As
53
ANNEXURE “A”
GTEDA STRATEGIC PLAN
can be seen from the model, some of these drivers/pillars straddle more than one
perspective by their very nature.
6.1. The Customer Perspective
6.1.1. Brand BuildingGTEDA must improve the worth of its brand through marketing and
promoting itself. The organisation however considers branding as
inextricable from the total process of developing the organisations. It is, in
the final analysis, its own capabilities and value-add that will increase its
reputation in the eyes of the public and customers.
6.1.2. Selection and Service The strategy is there to guide GTEDA in deciding the programmes and
projects it engages in. Therefore selection thereof, including the selection
of persons that should be its customers is critical. The relevance and
potential impact of a programme and the energy of the entrepreneur
directly affect the level of service that GTEDA would provide to the
customer. The customer’s service experience at GTEDA is a matter for
particular attention so that it is perfected continually.
6.1.3. Partnership In as much as GTEDA has clients, it views them also as partners in the
immediate and the long term. Apart from those receiving support from
GTEDA, the organisation also needs many other institutions to be able to
deliver on its core business. Creating partnerships in all perspectives is
therefore paramount.
6.1.4. Graceful Exit Post project establishment, GTEDA will generally incubate a project for not
more than two (2) operational/ financial years. It is a key indicator of a
successful project when an institution is able to graceful exit it in a healthy
54
ANNEXURE “A”
GTEDA STRATEGIC PLAN
and profitable state. GTEDA will also exit projects that do not succeed
when in its view success is improbable within a reasonable period.
6.2. Internal Perspective
6.2.1. Sustainability and Pitfall Avoidance Pre-assessment and risk identification will be conducted on all initiatives in
order to set the risk appetite and develop remedial action plans. GTEDA
should not unduly waste public resources on projects that are apparently
to falter. GTEDA should also take measures to secure its participation and
investments in any or all projects through service level agreements.
6.2.2. Innovation Processes The organisation will seek to create an environment and opportunities for
internal innovation and input from its clients and stakeholders. Establishing
of Ideas Hub is already one of the strategic projects in line with this. It will
create a platform where the community will be engaged in project
identification and prioritisation.
6.2.3. Operations Management ProcessesIt is critical that GTEDA pays attention to its operating processes in order
to have the assurance of the changes of producing excellent services to
customers. Constant refinement of work methodologies is paramount to
the execution of organisational strategies.
6.2.4. Regulatory and Social Processes As a public service organisation, albeit of a different character, GTEDA
cannot fall foul of compliance to the applicable prescripts. It is also
important that the organisation discharges its social responsibility in an
exemplary manner. Over and above legislation and the applicable
regulations, directives etc. from relevant authorities, GTEDA subscribes to
King III as the key guiding document.
55
ANNEXURE “A”
GTEDA STRATEGIC PLAN
6.3. Financial Perspective
6.3.1. Cost Recovery GTEDA is under pressure to sustain itself financially. It therefore should
look for appropriate opportunities to recover the cost of its involvement in
projects from sponsors or through financial structuring or directly from
clients themselves.
6.3.2. Return on Investment GTEDA must provide a quality service that should enable it to not only
recover costs in other instances but to also make a profit. The Agency
should acquire the resources to enable it to do so as it pursues its
objectives.
6.3.3. Regulatory Processes GTEDA must maintain its prudent management of financial resources and
remain accountable.
6.4. Learning and Growth Perspective
GTEDA believes that if we are to truly make an economic difference, there
is no better way than through education and exposure to ensure that an
entrepreneurial culture is instilled in the hearts of our youth and the
community at large.
56
ANNEXURE “A”
GTEDA STRATEGIC PLAN
7. RESOURCE CONSIDERATIONS
Actual expenditure
Detail per Classification Outcome Adjusted Appropriation
R thousand 2013/14 2014/15 2015/16Employee Related Costs R3,105 R3,231 R3,238
Contracted Services R401 R432 R523
Administration Expenses R1,841 R1,531 R1,888
Project Cost R368 R455 R690
Capital Expenses R62 R0 R2
Total Expenditure R5,779 R5,650 R6,342
Approved Grant Funding: GTM R2, 375 R2, 500 R6, 342
Approved Grant Funding: IDC R3, 000 R3, 000 Contract Ended
Other Income: Facilitation Fees R 100 Contract Ended Contract Ended
Total Revenue R5, 475 R5, 500 R6, 342
The Employee Related Cost has increased over three financial years 2013/14 to
2015/16 by 7% respectively due to an across the board Annual Increment as per the
South African Local Government Association’s approval (SALGA).
The Contracted Services has increased over three financial years 2013/14 to
2015/16 by 0%, 2% and 6% respectively.
The Administration Expenses has increased over three financial years 2013/14 to
2015/16 by 1%, -23% and 8% respectively.
The Project Cost has increased over three financial years 2013/14 to 2015/16 by
2%, 18% and 1% respectively.
57
ANNEXURE “A”
GTEDA STRATEGIC PLAN
The Capital Expenditure has increased over three financial years 2013/14 to
2015/16 by 100%, 2998% and 0% respectively.
8. GROWTH PLAN Projected Annual Budget
Detail per Classification
Multi-year Projections
R thousand 2016/17 2017/18 2018/19 2019/20 2020/21Employee Related Costs R3,500 R3,700 R3,967 R4,200 R4,452
Contracted Services R700 R700 R700 R700 R1,000
Administration Expenses R1,300 R1,300 R1,300 R1,300 R1,300
Project Cost R3,665 R4,015 R4,398 R4,865 R4,978
Capital Expenses R235 R235 R235 R235 R248
Total R9,400 R9,950 R10,600 R11,300 11,978
Approved Grant Funding: GTM
R6, 735 R6, 948 R7, 363 R7, 805 R8, 273
Potential Strategic Funder/Investor
R5,600 R10,000 R15,000 R20,000 R35,000
Other Income: Facilitation Fees (Potential Strategic Investor)
R2,665 R3,051 R4,500 R5,000 R6,727
Total Revenue R15,000 R20,000 R26,863 R32,805 50,000
The projected Multi-Year Annual Budget illustrated above increased by 6% annually
over the four (4) financial years 2016/17 to 2019/20 respectively. This budget
encompasses the development of the Greater Tzaneen Area’s Growth Development
Plan which is central to outlining our shareholder’s Vision 2030 to transform the
Greater Tzaneen Municipality into a city; and in support of this vision, GTEDA’s
strategy focuses on key economic drivers which will ensure enormous increase in
the population of Greater Tzaneen.
58
ANNEXURE “A”
GTEDA STRATEGIC PLAN
In 2016/17, GTEDA will be nationally launching an international Agri-Tourism
Investor Conference in the Greater Tzaneen, an event to be hosted annually around
September from the 2017/18 financial year. Therefore the Greater Tzaneen Area has
potential to be the future biggest tourism destination in the country.
9. RISK MANAGEMENT
GTEDA Board conducts an annual risk assessment to identify potential challenges
and the top ten strategic risks thereof are prioritised and will be managed on a
regular basis.
NO STRATEGIC RISK LINK TO STRATEGIC OBJECTIVE
MITIGATION STRATEGY
1.Inability to Sustain the Agency as a going and growing concern.
Through the Strategic review, 5 focus
areas have been identified but if there
is cost cutting or the budget does not
grow, GTEDA will not be able to grow /
implement the portfolio of projects.
2,6,9A funding model to be developed that
will enable GTEDA to source additional
funding.
Reprioritisation of projects to
accommodate the budget.
Source more funding for project
implementation.
2. Lack of Business Continuity Plan
(BCP)
7,8 Allocate funding to participate in the
GTM off-site back up plan
3. Divergent understanding of the role
and mode of operation of GTEDA 6,3Ongoing engagement on the GTEDA
Strategic Plan and processes to key
stakeholders.
Expose stakeholders to other successful
agencies.
4.Inability to secure land for
development 6,9 Engage Traditional Authorities on
economic development benefits
59
ANNEXURE “A”
GTEDA STRATEGIC PLAN
5. Impact of politics on the functioning of
GTEDA and investment decisions 2,6Improve stakeholder engagements.
Engage GTM Council to facilitate
political intervention and secure
stakeholder support for projects.
6. Inability to attract and sustain
investors 2,6 Obtain GTM Council commitment on
Investor Incentives
7. Inability to retain staff due to lack of
job security. 6,7,8,9Develop staff retention policy
8. Negative assessment of the impact of
GTEDA by AGSA, GTM and Treasury 2,3,6,7,8 Accelerate delivery of viable and
sustainable economic development
projects.
10. CONCLUSION
The Strategic Plan has identified the opportunities that need to be pursued; mapped
out goals and assessed potential results for each opportunity. The GTEDA Board,
together with Management therefore must stimulate relationships and identify
projects that will grow the economy and attract more revenue. This is essentially at
the core of the mandate of GTEDA.
60