An Overview of the City of Newcastle and the Challenges facing the Achievement of Intermediary City Status United Cities and Local Governments(UCLG) Intermediary Cities Learning Exchange Programme Zimbali, Fairmont Hotel - KwaDukuza PRESENTER : Mr Kebone Masange Municipal Manager 18 March 2013
Who are we? Newcastle municipality is located in the Northern part of Kwa Zulu Natal falls within Amajuba District alongside Dannhauser and Utrecht municipalities It lies at the at the intersection of Kwa Zulu Natal, Mpumalanga and Free State Provinces Newcastle is the main growth node/centre in Northern KwaZulu Natal Municipal Area : 1 854.6 km 2 or 716 square miles Population Newcastle : 2001 332 981-2011 - 363 236 Population Density
Accessibility by Road National, Regional and District Road Transportation Newcastle has local, district, regional and national road transportation linkages via the N11 Road which traverses the city linking it south wards down to Durban and northwards up to Gauteng Province and beyond. The R34 provides crucial links eastwards within KwaZulu Natal and westwards towards the Free State and Gauteng Province Road network in neighboring provinces is poor National connectivity 300 km from Johannesburg (via R34 Road-N3 freeway) 480 km from Bloemfontein (via N11 Road N5 Road)
Accessibility cont d Regional Connectivity 340 km from Durban (via N11 Road- N3 freeway) 250 km from Pietermaritzburg 329 km from Richards Bay (via R34 Road) 96 km north of Ladysmith (via N11 Road) 57 km from Volksrust (via N11 Road) 115 km from Vryheid (via R34 Road) 70 km from Dundee (via N11 R68 Road) 380 km from Ballito venue of conference District Connectivity 50 km from Utrecht (via R34 Road) 34 km from Dannhauser (via N11 Road)
Other Connectivity Rail Transportation Durban - Johannesburg Railway Line passes through Newcastle Air Transportation Newcastle has an Airport for private small aircraft No passenger air transportation link with other centres Currently plans for upgrade of airport
Population Population Population Growth (% per annum) 1996-2001 Population Growth (% per annum) 2001-2011 Unemployment Rate Dependency Ratio 2001 2011 2001 2011 2001 2011 Ethekwini (Durban) Msunduzi (Pietermaritzburg 3 090 122 3 442 361 2.34 1.08 43,0 30,2 46.7 42.8 552 837 618 536 1,06 1.12 48,2 33,0 51.5 46.2 Newcastle 332 981 363 236 2.93 0.87 54,1 37,4 60.7 50.0 Emadlangeni (Utrecht) 32 277 34 442 2.81 0.65 39,3 37,6 69.3 131.3 Dannhauser 102 779 102 161 0.71-0.06 67,4 47,6 76.3 89.9 Ladysmith 225 459 237 437 4,67 0.52 49.2 34.0 62,4 60,7 Abaqulusi (Vryheid) Endumeni (Dundee) Pixley Ka Seme (Volkrust) 191 091 211 060 2.58 1.00 59,4 35,4 73.9 70.5 51 101 64 862 2.81 2.38 46,0 26,4 57.0 56.8 80 737 83 235 2,80 0.30 50,6 36,1 77.7 68.3
Demographic Profile
Demographic profile cont d Newcastle has a dominant population in Amajuba District and over neighbouring provincial towns in the Free State and Mpumalanga The rate of urbanisation from smaller towns in the hinterland remains high as economic hardships persist Population growth declined from 2.93 to 0.87 % between 2001 and 2011 High mortality rate due to HIV-AIDS is a huge threat to population growth and development Multi-sectoral interventions required to slow down the rate of increase in HIV infections. Besides health services, Town Planning designates spaces for health and learning facilities There is pressure to deliver services for residents and inevitably migrant residents from neighbouring towns Newcastle has the population threshold for development to take place
Population growth
Age Structure versus Dependency Ratio Dependency Recall: In economics and geography the dependency ratio is an age-population ratio of those typically not in the labour force (0-14 and 65 and above : the dependent part) and those typically in the labour force (15 64 : the productive part).
Population cont d
Population cont d The current dependency ratio for Newcastle is 58%. That means for every 10 working adults, there are 5.8 people that need to be supported, be it through social security or childcare or healthcare. A high dependency ratio for Newcastle causes problems for the town. As the largest proportion of a government's expenditure is on health, social security & education which are mostly used by old and young population. Also the increasing expenditure on pension is a problem as well. A high unemployment rate (37%) complicates the dependency ratio in that many of those of 'working age' are actually not working.
What do we offer? Newcastle commands a strategic location in Northern Kwa-Zulu Natal It is located at the intersection of Kwa-Zulu Natal, Free State and Mpumalanga provinces Newcastle is a regional hub It is located reasonably far away from the Durban metro and Gauteng metros hence an opportunity for further development The city is the 3rd largest town in KZN and has the population threshold (363 236) to support development It has good road network connectivity via the N11 Road and R34 with good linkages with the main economic hubs in KZN and Gauteng The Durban Johannesburg railway line traverses the city
What do we offer cont d The city offers higher order commercial services Although currently depressed, the industrial infrastructure for clothing manufacturing exists Land is abundant although farms in the fringes present land availability challenges for development Coal resources are abundant The city has planned housing projects for decent living conditions in sustainable settlements The city is striving to develop and maintain service infrastructure Strategic city planning is dynamic, pro-development and less prohibitive The city has qualified professionals to facilitate and manage growth and development Electricity infrastructure is good
Newcastle Alliance Newcastles of the World Japan ; Germany; UK; Switzerland; Canada; Australia; USA; Austria South Africa Chinese Investments Alliances with Chinese Cities Zibo and Nanchang
What are the key developmental challenges that prevent us from achieving intermediary status? Bulk Water Services Bulk Water Infrastructure Water sources inadequate Water purification plant needs upgrade Waste water treatment plant need upgrade Ageing Infrastructure
Developmental challenges Cont d Funding High urbanisation Undiversified economic base High mortality and long term unsustainable development Poor road infrastructure in neighbouring provinces poor condition of the R34 and N11 Road Underdeveloped airport for air transportation linkages Inadequate threshold to support air transportation Lack of higher order community facilities eg education facilities. The contradiction of long distances to metros, lack of higher order facilities and continuing dependency on distant metros The unstable economic environment/economic depression Internal Capacity problems
Public participation in planning and budgeting : key challenges Lack of understanding of budget process Need for improved communication strategy Community needs exceed available resources
Financial planning and viability: Some key challenges Financial models used to fund projects and Funding sources Internal funds and resources External Loans Grants - (Municipal Infrastructure Grant (MIG); - Department of Energy, - National Treasury (Neighbourhood Development Programme) - COGTA - Corridor funding - Department of Water Affairs - Etc
Financial matters cont d Sources of income - Property Rates - Electricity Revenue Investment - Water and Sanitation charges - Interest on Investments - Rental of facilities and equipment - Fines - Grants eg. Equitable share - Investments in banks Challenges - 25% Grant dependent - Inefficient debt collection - High rates of indigency (24 000) due to high rates of poverty and unemployment - Inadequate funding from national purse
Key Institutional Challenges Capacity problems difficulty attracting skilled personnel Organisational Structure 65% filled Inertia of past political instability
Strategic Governance Challenges Organisational Structure Organisational structure in place and only 65% of positions are filled Capacity problems due to inadequate skills
Municipal Vision
Status quo Current Status quo Municipality characterised by high levels of poverty and unemployment (37%) High backlogs in service delivery (housing, water and sanitation) High rate of HIV prevalence Decline in manufacturing sector Municipality strives to create an environment for investment
Envisaged Growth Current growth patterns and trends Challenges in dismantling apartheid spatial patterns Commercial nodes competing for across the city Choices made Facilitation of investment into the Town (malls, mining, residential ) Efforts to attract higher order education facilities Urban Restructuring and nodal/corridor development JBC Urban Node Restructuring zones for residential integration (Siyahlalala developing in formerly exclusive area) Developing alternative road linkages with townships Township regeneration
NEWCASTLE MUNICIPALITY Thank you/ Ndiyabulela