CHAPTER 6: PROJECTS - Maluti-A-Phofung Municipality

Maluti-a-Phofung LM SDF 2010: Chapter 6: PROJECTS 

CHAPTER 6: PROJECTS 

6. PROJECTS …………………………………………………………………………………………………… 

6.1. Free State Growth and Development Strategy (2007 - 2014): Strategies and 

Programmes of Spatial Dimension ………………………………………………………….. 

6.1.1. Economic Growth, Development and Employment ………………………………. 

6.1.2. Social and Human Development ………………………………………………………… 

6.1.3. Justice and Crime Prevention …………………………………………………………….. 

6.1.4. Efficient Governance and Administration …………………………………………….. 

6.2. Maluti-a-Phofung IDP Programmes and Projects within a Spatial Dimension … 

6.3. QwaQwa Rural Formalisation Programme 

6.4. Rural Services Centres ………………………………………………………………………….… 

6.4.1. Introduction ……………………………………………………………………………………. 

6.4.2. Rural Services Centres as Economic Catalyst …………………………………….… 

6.4.3. Configuration and Rural Services Centres …………………………………………… 

6.4.4. Proposals on Rural Services Centres ………………………………………………….. 

6.5. Maloti-Drakensberg Transfrontier Project (MDTP) ………………………………………. 

6.5.1. Introduction …………………………………………………………………………………….. 

6.5.2. Objectives of the Project …………………………………………………………………… 

6.5.3. Vision of the Project …………………………………………………………………………. 

6.5.4. Project Background ………………………………………………………………………….. 

6.5.5. The Bottom Line ………………………………………………………………………………. 

6.6. Thabo Mofutsanyane Industrial Development Strategy ………………………………. 

6.6.1. Introduction …………………………………………………………………………………..… 

6.6.2. Vision and Mission ……………………………………………………………………………. 

6.6.3. Development Goals and Objectives ……………………………………………………. 

6.6.4. Spatial Economic Profile ……………………………………………………………………. 

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Emendo Inc. September 2008


6.6.5. List of Functional Catalyst Projects …………………………………………………..… 

6.7. Proposed Multi-Products Pipeline from Durban to Sasolburg ……………………….. 

6.7.1. Background Information …………………………………………………………………… 

6.7.2. What the Project Entails ……………………………………………………………….…… 

6.7.3. Environmental Implications ……………………………………………………………….. 

Emendo Inc. September 2008 

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6. PROJECTS 

6.1. Free State Growth And Development Strategy (2007 - 2014): 

Strategies and Programmes of Spatial Dimension 

The following section is an extraction from the Revised Free State Growth and 

Development Strategy (2007 - 2014), in order to identify specific spatial outputs 

relevant to the Maluti-a-Phofung Local Municipality and the Thabo Mofutsanyane 

district, (where specific district wide outputs or projects have an affect on the 

Maluti-a-Phofung LM): 

Chapter Six of the Free State Growth and Development Strategy (FSGDS) gave 

consideration to the strategic direction of the Free State. The aim of Chapter Six of 

the FSGDS is to formulate a strategic development framework, which will provide 

broad guidelines for role-players at local and district level and within line 

departments. The above framework serves as the basis from which activities and 

development interventions can be planned and implemented in the Free State. 

The provincial strategies and programmes with spatial dimension in respect of the 

development objectives set for the four Provincial priority areas will be outlined 

below: 

a. Economic growth, development and employment 

b. Social and human development 

c. Justice and crime prevention 

d. Efficient governance and administration 

6.1.1. Economic Growth, Development and Employment 

The following provincial strategies set in order to achieve the objectives for this 

provincial priority area have a spatial dimension and relevance to the Maluti-a- 


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Phofung Local Municipality and the Thabo Mofutsanyane district, (where specific 

district wide outputs or projects have an affect on the Maluti-a-Phofung LM): 

The key economic strategic approaches are divided into economic drives and 

enabling strategies. 

Economic Drivers 

Expanding the manufacturing sector in key sub-sectors: 

The emphasis in this sector will be on supporting high-value goods such as petro- 

chemicals (including bio-fuels) and jewellery. Within the framework of high-value 

goods, extensive experimentation and innovative partnerships will be created with 

national and provincial research institutions potentially to grow economic activities 

of this nature. Further emphasis will be on supporting initiatives in respect of the 

manufacturing of machinery (especially for the agricultural sector), as well as in 

supporting initiatives in respect of leather tanning and finishing and of agri- 

business. 

Applicable provincial programmes with spatial dimension: 

Beneficiation of agricultural products (biodiesel, cherries, asparagus, meat, 

maize/wheat, potatoes) 

Biodiesel - 

Spatial focus: Thabo Mofutsanyane, Lejweleputswa, Fezile Dabi, 

Asparagus - 

Spatial focus: Dihlabeng, Setsoto, Maluti-a-Phofung 

Meat - 

No specific spatial focus 

Maize/ Wheat - 


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Spatial focus: Thabo Mofutsanyane, Lejweleputswa, Fezile Dabi 

Mass produced goods 

Spatial focus: Those areas with high or above-average potential for mass produced 

goods: Dihlabeng (Bethlehem), Maluti-a-Phofung (Harrismith), Setsoto (Senekal), 

Matjhabeng (Welkom, Virginia, Odendaalsrus), Masilonyana (Theunissen), Nala 

(Bothaville, Wesselsbron), Mangaung (Bloemfontein), Moqhaka (Kroonstad, 

Viljoenskroon), Ngwathe (Heilbron) 

Developing tourism 

The emphasis in respect of tourism will be to optimise the benefits available from 

this sector of the economy in the Free State. The weekend tourism market for the 

north and northern-eastern Free State will be marketed explicitly. Emphasis will fall 

on nature tourism and heritage tourism so as to ensure that the Maluti-Drakensberg 

Transfrontier Park and the Vredefort Dome are prioritised and marketed in an 

efficient manner. Events tourism should be focused in the larger urban areas of 

Welkom and Bloemfontein. 


Develop and increase tourism products 

Spatial focus: Weekend tourism in Clarens, Parys and Sasolburg areas: Maluti- 

Drakensberg Transfrontier Park, Vredefort Dome, Lake Xhariep, business and 

events tourism in Welkom and Bloemfontein. 

Developing and expanding the transport and distribution industry 

In the context that a number of national roads are crossing the Free State, 

emphasis will be placed on the facilitation of transport services and logistic hubs. 


Develop transport distribution hubs 

Spatial focus: Along the N3 and N1. 


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Upgrade and maintain road infrastructure 

Spatial focus: Areas of mass production and tourism potential: Roads in Thabo 

Mofutsanyane, Lejweleputswa and Fezile Dabi, and routes to Mangaung – especially 

the tourism areas. 

Emphasising SMME development 

An extensive service for SMME development will be established. The focus with 

regard to SMME development will be on the following aspects: 

Public sector procurement 

Business development service focusing on making markets work 

Developing networks 

Basic infrastructure provision 

Technology transfer 

SMME support will be provided over various sectors, including support to farmers as 

part of the land-reform programmes. 


Provide formal and informal training for SMMEs 

Spatial focus: Emphasis on areas of high or above average need 

Establish local business-support infrastructure 

Spatial focus: unspecified 

Promoting human resource development for economic growth 

Providing the skills for a growing economy will be done by means of the following: 

Learner-ships 

Providing skills through the FET sector 

Internships 

Although these programmes will be delivered over a range of economic sectors, 

specific emphasis will be placed on the four economic sectors identified as drivers 


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of the Free State economy, namely Agriculture, Manufacturing, Tourism and 

Transport/ Distribution services. 


Formal and informal training agriculture, manufacturing and tourism 


Support to beneficiaries of land redistribution and restitution programmes 


Non-formal training for farmers in agricultural management 


6.1.2. Social And Human Development 





Improving basic services and housing 

Overall basic services and housing will be provided to ensure a more sustainable 

environment, better health, and a foundation for economic activity. Although the 

focus will be on addressing the existing backlogs, specific attention will be given to 

informal settlements. In addition to the capital expenditure, systems for the 

provision of free basic service should also be developed. 

Provide water 

Spatial focus: 4 Municipalities with highest need: Maluti-a-Phofung, Setsoto, 

Matjabeng, Mangaung, 

Provide electricity 

Spatial focus: 4 Municipalities with highest need: Setsoto, Matjabeng, Maluti-a- 

Phofung, Nala 


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Provide cemeteries 


Provide solid-waste disposal sites 


Provide storm-water drainage 


Improving health care services and combating disease 

The focus will be on improving primary health care, ensuring adequate health 

infrastructure and a specific focus on the availability of anti-retroviral. 


Provide health infrastructure 

Spatial focus: Thabo Mofutsanyane 

Upgrade health infrastructure 


Implement and monitor comprehensive plan on care, treatment, and management 

of HIV and AIDS 

Spatial focus: Highest prevalence rates: Thabo Mofutsanyane, Lejweleputswa, 

Motheo 

Implement HIV and AIDS prevention and support programme 


Motheo 

Provide an integrated service to people affected and infected by HIV and AIDS 


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Motheo. 

Improve access to health care for people in rural areas 

Spatial focus: Largest % people: Thabo Mofutsanyane 

Improving education and educational services and skills 

The emphasis in this regard will be on improving the quality of education, access to 

educational facilities, ABET programmes, and ensuring the development of an 

adequate educational infrastructure to address the needs of a knowledge-based 

global economy. 


Implement adult literacy and numeracy programmes 

Spatial focus: Highest need municipalities: Maluti-a-Phofung, Setsoto, Matjhabeng, 

Mangaung, Mantsopa, Moqhaka 

Provide ABET in accordance with ABET Act. 



Implement skills development programmes 



Implement ECD Programmes 



Provide education infrastructure 

Spatial focus: Highest need municipalities: Lejweleputswa, Fezile Dabi, Motheo 


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Upgrade, rehabilitate, and renovate education infrastructure and facilities 

Spatial focus: Highest need municipalities: Lejweleputswa, Fezile Dabi, Motheo 

Eliminate backlog in basic services in schools 


Provide transport for farms schools 

Spatial focus: Rural areas 

Provide accommodation for learners from non-viable farm schools 

Spatial focus: Rural areas 

Implement schools nutrition programme 

Spatial focus: Maluti-a-Phofung, Setsoto, Matjhabeng, Mangaung, Mantsopa, 

Moqhaka 

Improving social development services 

Although economic growth is envisaged as the main vehicle for addressing the 

problems of unemployment and poverty, it is also recognised that the really 

destitute will have to be looked after in terms of social security. Programmes in 

respect of social security can be divided into three sub-groups: providing social 

grants to those who meet the criteria; providing social services to the aged, 

disabled, children, youth, and women; and, providing a framework for community 

development and moral regeneration. Participation in sports and culture is also 

seen as important in ensuring healthy people and communities. 


Increase to social assistance programme 

Spatial focus: Areas of high need 

Provide emergency food security to needy families and individuals 

Spatial focus: Areas of high need 


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Provide pay-point facilities 


Increase access to commonages 

Spatial focus: All municipalities 

Implement community-development projects 

Spatial focus: Municipalities of High need and Above-average need 

Implement training programmes to support care and protection of the vulnerable. 


Provide early-childhood development services 


Implement programmes targeting the unemployed and out-of-school youth 


Promote social integration and empowerment of people with disabilities 


Implement moral regeneration programmes for the community 


Implement income-generating projects for youth, women and persons with 

disabilities 


Improving cultural, sport and recreational services 

Improving cultural, sport and recreational activities is set as a strategic directive in 

order to create an environment for healthier and better-educated individuals. 


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Provide arts and culture centres 


Provide other government accommodation/ buildings 


Provide library infrastructure 


Provide sport facilities 


Provide multi-purpose centres 


Provide library and information services 


Provide special services 


Promote major cultural events 


Provide museum and heritage services 


Render sport science, exercise rehabilitation, and sport development services 



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6.1.3. Justice and crime prevention 





Facilitate an improved and effective integrated criminal justice system 

Develop and implement integrated crime-prevention programmes 

Spatial focus: see Crime Prevention Programme (Reviewed FSGDS, 2006) 

Ensure effective and efficient police service in the province 


Effective visible police service 

Spatial focus: Main tourism areas, as well as Matjhabeng, Mangaung 

Encourage community participation 


Promote accessibility to police services 


Enhance service delivery and transformation 

Spatial focus: Thabo Mofutsanyane tourism areas 

Maintain rural safety 

Spatial focus: Lesotho border area 

Establish an effective disaster prevention and response capacity for disasters 

throughout the Province 


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Coordinate integrated disaster management services 

Spatial focus: Districts with the highest potential for disasters: Thabo 

Mofutsanyane, Lejweleputswa, Fezile Dabi 

Minimise the impact of disasters 

Spatial focus: Thabo Mofutsanyane – veld fires, N3 and N1 road accidents, 

Sasolburg – chemical disasters 

Improve traffic policing and road incident management in the Province 


Provide effective emergency communication 

Spatial focus: N1/N3/N8/N6/N5, Metsimaholo 

Implement road-traffic regulations 


Implement effective emergency services 


Implement a Provincial EMS Plan 


Provide medical rescue, pre- and inter hospital EMSs 


Ensure a safe and secure environment at all institutions 


Implement safety programmes at all institutions 


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Spatial focus: Lejweleputswa, Fezile Dabi, Xhariep 

Provide effective emergency communication 


6.1.4. Efficient governance and administration 





Improve IDPs and IDP implementation. 


Implement Community Based Ward Planning through Ward Committees 


Ensure effective communication with stakeholders and clients. 


Implement one-stop government services 


Strategic Approach E3: Promote BEE has no spatial dimension. 

Strategic Approach E4: Ensure effective Human Resource Development 

and Management has no spatial dimension. 

Ensure improvement in financial management. 


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Improve and coordinate revenue measures and mechanism 

Spatial focus: Municipalities under Project Consolidate 

Strengthen financial management capacity in departments 


Implement credit control systems 


Strategic Approach E6: Promote integrity in government has no spatial 

dimension. 

Strategic Approach E7: Establish proper management information and 

record management systems - has no spatial dimension. 

Strategic Approach E8: Improving asset management has no spatial 

dimension. 

Build government’s capacity in critical areas. 


Improve financial management capacity 


Provide capacity-building programme for all staff 


Ensure a healthy environment through integrated environmental 

management. 



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Implement integrated environmental management 

Spatial focus: Eastern Free State (Mountains), Metsimaholo 

Strategic Approach E11: Monitor, evaluate and review the FSGDS has no 

spatial dimension. 

6.2. Maluti-a-Phofung IDP Programmes and Projects (2008/09) of Spatial 

Dimension 

The following Programmes and Projects of the Maluti-a-Phofung Local Municipality 

Integrated Development Plan 2008/09 of spatial dimension were extracted, and 

listed: 

• Harrismith Corridor Township Establishment 

• Logistic Hub: Harrismith 

• Nuhella Trust Township Establishment 

• Summerwind Township Establishment 

• Makgolokwene Township Establishment 

• Remainder of the Farm Bluegumbosch No 199, Phuthaditjhaba – 800 erven Bopa 

Lesedi 

• Kestell Corridor – 1600 erven Township Establishment 

• Kestell Cemetery 

• Kestell Ext 6 Township Establishment: Robs Properties 

• Intabazwe 793 Township Establishment 

• Intabazwe 707 Township Establishment 

• Tshiame B 1000 erven Township Establishment 

• QwaQwa Rural formalisation 

• Sckoonplatz restitution claim / Township Establishment 

• Mckenchnie, King Street, N% business development and road alignment 

• Development and implementation of a Land Use Management System (LUMS) 


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6.3. QwaQwa Rural Formalisation Project 

At present a number of areas within the traditional Authority area of Qwa-Qwa is 

being formalized. This is an ongoing process and will be completed over the next 5 

years. 

6.4. Rural Service Centres 

6.4.1. Introduction 

South Africa is characterised by high levels of poverty, especially in rural areas. 

Approximately 70% of South Africa’s poor people live in rural areas, and about 70% 

of the rural residents are poor. Their incomes are constrained because the rural 

economy is not sufficiently vibrant to provide them with remunerative jobs or self- 

employment opportunities. Their cost of living is high because they spend relatively 

more on basic social services such as food and water, shelter, energy, health and 

education, transport and communication services. 

Rural people generally do not have access to natural resources to support their 

subsistence. More than 85% of the countryside is settled by commercial farmers 

and the population pressure in the former homeland areas has depleted the natural 

resource base to an extent that only a few communities can provide for their 

subsistence needs in this way (Integrated Sustainable Rural Development Strategy, 

2001). 

It is further estimated that 22% of the rural population lives in abject poverty 

(ISRDS, 2001). In essence the array and complexity of problems facing rural areas 

include, inter alias, the following: 

• Apart from former homelands, agricultural land in South Africa is largely utilised 

for capital-intensive commercial farming purposes; 


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• The rural poor are still affected by pre-1994 land ownership and settlement 

legislation, with specific reference to its impact on geographic settlement patterns 

and land ownership; 

• The sustainability of rural communities is increasingly compromised by rapidly 

depleting natural resources. This trend is not unique to South Africa. The world is 

currently experiencing un-scaled population migrations. Millions of people are 

migrating from the once fertile planes of Asia and Africa to Europe. Poor Mexicans 

are migrating across the border from Mexico into the USA. The central reason 

behind these massive migrations: the soil on which they have traditionally made a 

living has been exhausted and is no longer able to sustain an ever-increasing 

population. The implications of these trends are two-fold: firstly, agricultural 

production is decreasing and secondly, the nutritional value of agricultural 

products is decreasing. 

• Farm labourers, in particular, suffer from lack of opportunities and access to some 

of the most basic services. Activities (social, recreational, economic and transport) 

are fragmented throughout the area with the result that the rural poor need to 

travel long distances to reach social and economic facilities, with financial 

resources, which they do not often have. 

It is from the conditions outlined above that the need was born to identify means 

by which the livelihood of South Africa’s rural communities can be restored. Core 

issues in this dynamic challenge include the following: 

• Land ownership in rural areas; 

• Dispersed nature of rural settlement patterns; 

• Inherent differences between rural communities and the existence of a typology 

of settlements; 

• The need for an interventionist approach to diversify the rural economy and to 

introduce measures that will improve community’s access to economic 

opportunities and services. 

The solution to these problems lie within the consolidation of different land uses to 

form a concentration of economic activities in regionally accessible, multi-functional 

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Emendo Inc. September 2008


economic nodes in the form of rural service centres. This will provide rural areas 

with integrated economic centres. 

6.4.2. Rural Service Centres as Economic Catalyst 

As in any business opportunity, the principles amongst others, of economy of scale 

and competitive advantages will form the basis for the development of the rural 

service centres. 

Consumer behaviour, whether in urban or rural areas follow similar patterns where 

potential clients prefer focussed / concentrated service delivery, as opposed to 

fragmented service delivery. Where rural areas are characterised by intensive 

farming and tourism activities, smaller fragmented developments along transport 

corridors, complemented by focused rural service centres will provide sufficient 

economic activities at different levels (low, medium and higher order). Within 

extensive rural areas the primary development focus should be located at rural 

service centres. 

The economic advantages of rural service centres are as follows: 

• Economy of scale advantages will be established; 

• Higher order catalyst retail and social activities will be established which will 

promote the establishment of smaller complimentary land uses; 

• Integrated land use activities in support of each other will be established; 

• Job opportunities will be created; 

• The pricing structure of goods will be reduced in view of healthy competition; 

• The poor rural occupant will save transportation costs as the majority of goods 

will be available at rural service centres, thus saving on additional urban 

destined trips; and 

• Poverty levels could be reduced, as beneficiaries will have the opportunity to 

market and sell their goods at the rural service centre. 


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6.4.3. Configuration of Rural Service Centres 

An optimum network of rural service centres can be developed to generate evenly 

spread of economic benefits in rural areas. Through this duplicating and over 

development of rural areas can be controlled and the sustainability and affectivity 

of rural service centres can be optimised. 

The rural service centre consists of activities and facilities, which need to be 

analysed in terms of nature, ideal size and demand drivers. As opposed to urban 

areas where facilities are provided based on households and population thresholds, 

these standards can’t be applied within the rural context. 

Based on various needs assessments that have been conducted within rural areas, 

the following activities need to be provided in rural service centres: 

� Residential: 

Security of tenure within rural areas is a highly contentious issue where farm 

labourers are more than often the victims of evictions, unfair settlement 

practices on farms and the lack of settlement options within rural 

environments. 

The above, together with the housing need necessitates that a residential 

component be included which will be affordable and provide security of 

tenure. 

The demand for housing is related to the population size and economic 

performance of an area. The demand for housing is complex and differs for 

each of the different levels of the rural typology. For example, the housing 

demand in former homelands can be expected to be much higher than in 

commercial farming areas. 


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The above-mentioned accentuates the necessity of the housing component 

to be flexible and comfortable to apply to the context of each different rural 

area. The nature and the extent of the residential component will differ at 

every level of the rural typology and will be subject to the availability and 

nature of natural resources. Although it is difficult to determine the exact 

number of stands to be provided per rural service centre, the guideline 

should not be more than 250 stands. The total residential extent will be 

subject to the characteristics of the rural area (intensive vs. extensive), soil 

conditions, the housing need and the availability of water sources. The 

intention is not to create large townships in the rural environment, but to 

provide an option to farm labourers and rural dwellers to obtain security of 

tenure in the vicinity of the areas where they work. 

In providing a housing component within the rural service centre, the 

following principles should be adhered to: 

• The housing projects need to be financed by the Department of 

Housing and does not replace the initiatives of the Department of Land 

Affairs; 

• The housing areas should exclusively be made available to rural tenants 

who are presently living and working in the area or who have been 

displaced actions; and 

• The housing component must not be viewed as an opportunity for 

employers to dispose of their housing responsibilities. 

There are advantages and disadvantages related to the inclusion of a 

residential component in the rural service centre complex. The advantages 

are the following: 

• Alternative settlement options are provided to farm workers, informal 

dwellers and displaced rural families; 

• Security of tenure is provided within rural areas; 

• It provides access to facilities and services; 

• It promotes lower transport costs to reach facilities and services; and 


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• A linkage between the residential component and the market is 

provided, providing employment opportunities from home or nearby 

facilities. 

The disadvantages are the following: 

� Retail: 

• Farm workers could be separated from farms and other areas of 

employment; 

• Promotes ‘ruralisation’ versus the process of refocusing the housing 

policy to deliver affordable housing in the inner cities. The distance 

from the cities increases transport costs and decreases the efficiency 

of service delivery. All of these affect the sustainability of the housing 

component. More valuable agricultural land is used for residential 

purposes; 

• An induced demand for housing will be created in rural areas and can 

lead to an infiltration of people beyond the catchments area; and 

• The reliance on public transport increases to reach employment 

opportunities on farms. The sufficiency of the rural transport system 

can create a barrier. 

The proposed retail component will be in the form of a small local shopping 

centre. The product mix of such facilities will focus primarily on convenience 

goods. A typical anchor tenant is an independent superette or café- 

greengrocer type of business. 

The demand for retail facilities is directly related to disposable household 

income, indicating that if population income increases, the demand for retail 

floor space will increase. Population income is related to the population size 

of an area. This indicates that there is a relationship between retail demand, 

population size and disposable household income. 


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Several factors must be acknowledged before a retail facility can be 

developed in a specific area, these include: 

• Nature and extent of the centre – the nature of the retail facility 

determines the size of the catchment area and the service radius. Is 

also determines the size of the facility and the tenant mix; 

• Population characteristics – the population of the catchment area 

should be able to sustain the retail facility. The characteristics of this 

population determine the disposable household income and buying 

power available in an area. Shopping patterns and lifestyles of the 

residents determine the shopping need of the residents; 

• Accessibility of retail facility – the facility must be accessible to 

commuters using public transport, pedestrians and private vehicle 

owners. Sufficient parking facilities must be provided. The facility must 

also be accessible to delivery vehicles. The retail facility must be visible 

in the area; 

• Competition – this refers to the existing retail activities in the area and 

the associated trade areas. The competitive potential of the specific 

rural area needs to be determined; and 

• Costs – several costs play a role in the development of the retail facility 

in a specific area with reference to rates and taxes payable, 

maintenance costs, delivery costs, purchase price, leasing terms and 

building costs. 

� Informal market: 

The function of public markets is essentially to provide assistance to the 

informal sector manufacturers and traders, to improve access to lower 

income customer’s commercial services, to provide a space for community 

interaction. Public markets enable many unemployed to generate income 

through small-scale manufacturing, service and retail activities. Markets are 

very accessible to entrepreneurs. 


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Markets provide products at lower prices directly to the public. By means of 

a market the ‘retail middle man’ is excluded. The capital costs of markets 

are low, they require low maintenance and the rent is on average very low. 

The main benefits of markets are the provision of central trading locations 

for small operators, creating agglomeration advantages and therefore 

markets need to be located at accessible points in an area. 

The size of a market and the variety of products and services offered, 

determine the success thereof. Larger markets tend to be more successful 

than smaller markets due to the greater variety and pull factors. Public 

market configuration must be such that it will be adequately accessible. 

Locating the facility close to the retail component of the service centre can 

strengthen the demand for the informal market. Due to increased 

agglomeration advantages, local markets perform better if located in the 

vicinity of a formal retail facility. However, the formal market must not 

compete with the retail component, concerning products and prices offered. 

This is essential to ensure the viability of both of these components. 

� Social services: 

The provision of higher order social services within rural environments does 

not exist. Rural residents must more often be satisfied with mobile social 

services, lower educational facilities, informal recreational facilities and 

unstructured cemetery sites. 

The provision of public facilities such as health and education is determined 

by specific standards specified by government departments, which is often 

linked to population thresholds. Should one apply the quantitative criteria 


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for service provision in the rural areas, it is understandable that higher order 

facilities can’t be provided throughout. 

However, in view of the number and existing fragmented nature of lower 

order social facilities, which warranties some higher order facilities, limited 

higher order facilities are provided, for example, one will find a number of 

primary schools in an area without the provision of a secondary school. 

With the identification of rural service centres, the rural areas will be more 

defined in terms of potential development areas, which will create the 

opportunity for higher social services to be provided in a focussed manner. 

The following social facilities are envisaged at the rural service centres, 

namely: 

• Clinic – in addition to the quantitative standards, other demand 

drivers, which have an impact on the provision of clinics, include the 

Department of Health’s regulations, the medical expenditure of 

households and existing clinics in the area. The facility at the rural 

service centre should be a Primary Health Care Centre. A mobile 

health service could be operated from this clinic to outlying areas. 

• Pension and Child support payment point – Pension payment 

points are typically provided within Post Offices. They operate at 

normal working hours from eight to four on a daily basis. A variety of 

pension funds and other associated welfare grants exist and each 

fund has certain dates set for collection. 

There are a variety of factors that determine the development of a 

welfare payment point. A process is followed to determine if the 

payment point can be provided. In this process several factors are 

taken into account, including: 


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• Welfare payment points must be located at accessible points 

within rural areas; 

• Security must be provided at these points; 

• The type of payment point influences the size of the facility. 

The larger the payment points the higher the security 

required. 

Surveys are undertaken to determine whether there is a demand 

among the population for a welfare payment point. Based on the 

results of the surveys the Department of Welfare decides if such a 

payment point will be effective within an area. 

It is generally accepted that eight officials are allocated to a welfare 

point, where three of them work in the field. Although, in areas 

where there are a limited number of welfare recipients, the post office 

clerk pays out the funds. 

• Secondary school – Notwithstanding the large number of primary 

schools in the rural environment very few secondary schools exist in 

rural areas. The implication of this is that scholars are forced to 

attend schools in urban areas, sometimes to the disadvantage of the 

scholar (cost- and time implication and unreliable scholar transport). 

The aforementioned, together with some unlawful employment 

practices on farms force the student to leave the school at an early 

age. This statement correlates with the level of education in rural 

areas. 

Based on the above, it will be imperative to provide a Secondary 

School at each of the identified rural service centres. The facilities 

must also be flexible to provide ABET training, skills transfer courses 

and launching of awareness programmes. 

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• Cemetery – In view of the lack of formalised cemeteries in rural 

areas, the deceased’s family members are often dependent on the 

‘mercy’ of landowners to allow burials on farms. In addition to the 

aforementioned, the burial costs within formal cemeteries can more 

often not be afforded by rural families. For this reason we believe 

that cemetery sites should be provided within close proximity to rural 

service centres. Depending on the proximity of the proposed rural 

service centres centralised cemeteries in order to serve more than one 

rural service centre could also be investigated. 

• Sport and recreation – Formalised recreational facilities do not exist 

in rural areas. With the development of rural service centres, 

provision will be made for formalised sport areas, which could include 

as a point of departure, soccer fields and netball courts. 

Provision may also be made for the establishment of multi-purpose 

community centres that could be used for community meetings, 

church services and smaller indoor sport facilities. 

• Satellite police station – With the extensive nature of rural areas, 

the reaction time of the SA Police Service to attend to crime scenes is 

often very long. Based on the population thresholds and the 

extensive nature of the rural areas, the establishment of satellite 

police stations need to be promoted in rural service centres. 

The advantage of the satellite police stations within the rural service 

centre will be to: 


• Increase police visibility within the area; 

• Reach time scenes sooner; and 

• Attend to even minor cases. 

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� Light service industries: 

In general, manufacturing can be subdivided into three categories, heavy 

noxious industries, light service industries and high-tech clean industries. 

Light service industries could be included in the rural service centre 

development concept. These new industrial developments should not 

compete with existing industrial nodes. As such, they should focus 

predominantly on providing a service function. 

Industrial demand is a function of; inter alias, population size, market 

demand and an area’s economic base. The following location criteria should 

be acknowledged prior to the establishment of light service industrial 

activities in a specific area: 

• Labour – industries must be located in close proximity to a sufficient 

labour force with the necessary skills and training; 

• Accessibility – this refers to forward and backward linkages and the 

transportation of raw, intermediate and final products, as well as the 

accessibility of the labour force to the industry. Accessibility also 

incorporates visibility; 

• Location – this refers to the availability and location of the input suppliers 

as well as the availability and location of the market for the final product; 

and 

• Agglomeration advantages – this refers to the advantages experienced by 

economic activities within a geographical area. Linkages refer to the 

contacts and flows between at least two agents, of various commodities, 

including products, services, information and goods. 

� Agriculture: 

As part of the process of land redistribution, the principle of municipal 

commonage needs to be considered in areas in close proximity to the 


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subsidized housing areas. The objective of the grant for the acquisition of 

municipal commonage area is to enable municipalities to acquire land. The 

land so acquired is used to create or extend commonage to establish 

agricultural or other productive lease schemes, which will involve use of the 

natural resources by poor and disadvantaged individuals. The grant will not 

cover the development of the land acquired. 

The reasons why municipal commonage areas are proposed are as follows: 

• The land is purchased by the Department of Land Affairs and 

transferred to the municipality; 

• These commonage areas should be located adjacent or in walking 

distance from the housing developments; and 

• Unemployed beneficiaries could obtain (rent) portions of the 

commonage area, which could be cultivated for subsistence farming. 

The local municipality will manage the allocation of areas within the 

municipal commonage. 

The development of rural service centres and areas adjacent to transport 

corridors must act as markets where beneficiaries could sell their produce. A 

large variety of produce is cultivated on an annual basis within rural areas, 

but the major portion of produce is exported out of the area fro processing. 

Where processing factories are small in extent, these could be 

accommodated within the rural service centres. 

� Public transport (taxi rank): The public transport system in rural areas 

is characterised by an unreliable frequency of trips, the lack of services to 

certain areas, the absence of proper taxi loading- and off-loading facilities 

and the high costs, which passengers have to pay to reach facilities. 

A rural service centre must provide for an area to be developed as a Taxi 

Rank. This facility will contribute towards the establishment of more reliable 

taxi routes not only between rural service centres, but also between the 


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urban and rural areas. A petrol filling station could also be considered within 

or in close proximity to the rural service centre. 

6.4.4. Proposals on Rural Service Centres 

In order to further the concept of Rural Service Centres, the following more 

detailed proposals are made, however, the exact location of such centres should 

result from a more detailed study for the local municipality: 

� Optimum size and threshold requirements: 

The size determination of rural service centres is derived from existing 

market data such as population characteristics and economic performances 

of rural areas. Facilities in rural areas are expected to be smaller than 

facilities provided in densely populated urban areas due to the lower amount 

of buying power and population numbers. There is an optimum size and 

associated minimum population threshold requirement to sustain a centre in 

a rural area. 

The first step in the development of the base model is to discuss the different 

land uses in relation to the population required in order to sustain each 

activity, as well as the viable size of the facility. The following comments are 

applicable to land uses and sizes: 

• The retail component of the rural service centre should be in the form of a 

small local type of shopping centre focussing primarily on convenience 

goods; 

• Examples of the type of industrial activities suitable for rural areas include 

building material suppliers, engineering workshops such as mechanics and 

panel beaters, entrepreneurial manufacturing of furniture and craft; 

• The size of the pension payment point is influenced by the Department of 

Welfare’s criteria of eight officials per pay point. For each person 20m 2 of 

space is required, resulting in an average building size of 200m 2 . However, 


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there is no standard prescribed population size that determines the 

development of such facilities. As mentioned previously, there are several 

factors that need to be considered before this service is provided within an 

area. The Department therefore evaluates each application on its own 

merits; 

• No prescribe size is determined for the informal market. It is accepted that 

this will vary from area to area and according to the products to be sold. It 

should be accentuated that the informal market must be linked to the retail 

component and must not be in competition therewith based on the products 

sold and the prices offered; 

• The size of the residential area and the number of houses are a function of 

the type of rural area. It must be in line with the minimum standards as 

provided by the Department of Housing; 

• The size of the secondary schools (whole size) is 4,8ha which services 

between 1,200 and 15,000 families; 

• The establishment of satellite police stations is not guided by a set of norms 

and standards, but depends on certain factors, which are evaluated by the 

SAPS Management Services; 

• The standards pertaining to sport activities vary between 1 per 2,250 

(soccer) to 1 per 3,170 (netball); 

• Community centres are based on an erf size of 0,5ha and should be provided 

at a standard of 1 per 10,000 persons; 

• Although there is a formula to determine the exact size of a cemetery, the 

guideline is to plan a cemetery which has adequate space available for a 20- 

year period; and 

• The size of a taxi rank will be determined by the strategic locality of the rural 

service centre, the nature of activities, number of residential units and the 

density within the rural environment. 


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� Market size and optimum service radius 

Population density is an essential factor in the equation for determining the 

catchment areas: 


Catchment Area (km 2 ) = Population size / Population density 

Based on the above-mentioned equation, the next step is to determine the 

optimum service radius of each land use. The service radius indicates the 

distance from the service centre to the outskirts of the catchment area. The 

actual size of the catchment area and service radius is determined by means of 

the following formula: 

Catchment area (km 2) = πr 2 

It is envisaged that with the implementation of the rural service concept within 

the Maluti-a-Phofung Local Municipality’s SDF some of the issues pertaining to 

sustainable development of the area could be addressed. 

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6.5. Maloti–Drakensberg Transfrontier Project (MDTP) 


The Maloti-Drakensberg Transfontier Conservation and Development Project 

(MDTP) is a collaborative initiative between South Africa and the Kingdom of 

Lesotho to protect the exceptional biodiversity of the Drakensberg and Maloti 

mountains through conservation, sustainable resource use, and land-use and 

development planning. This area encompasses distinct landscape and biological 

diversity. It is quite rich in species and high in endemism. Excessive livestock 

grazing, crop cultivation on steep slopes, uncontrolled burning, alien invading 

species and human encroachment threatens this asset. This five-year project takes 

a regional and ecosystem approach to conservation and development, and serves 

to promote biodiversity conservation through linkages with community development 

based on realization of the region’s high potential for nature–based tourism. 

6.5.2. Objectives of the Project 

The project is funded by the Global Environment Facility (GEF) with its main 

objective being to conserve globally significant biodiversity in a transfrontier 

mountain range. A secondary objective of the project is to contribute to community 

development through nature-based tourism. 

6.5.3. Vision Of The Project 

A framework for co-operation between Lesotho and South Africa is to ensure the 

protection and sustainable use of the natural and cultural heritage of the Maloti- 

Drakensberg Mountains for the benefit of present and future generations. 


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6.5.4. Project Background 

The Maloti Mountains in Lesotho and the adjacent Drakensberg range in South 

Africa are a unique but fragile ecosystem. Though fragile, this area is globally 

important as a centre of endemism, source of freshwater due to the unique wetland 

systems, as preferred area for nature based tourism and as a place of cultural 

significance. To maintain the ecosystem integrity of these areas and to alleviate 

poverty in the mountains, the Governments of Lesotho and South Africa have made 

a joint intervention to arrest these problems through the Maloti-Drakensberg 

Transfrontier Project. The project duration is 5 years (2003 – 2008). The project 

was conceptualized about two decades ago as an initiative by conservationists in 

Lesotho and South Africa, namely the Range Management Division and KZN Parks 

Board. It eventually became a bilateral project between the Kingdom of Lesotho 

and South Africa when the two Governments signed a memorandum of 

understanding in 2001. After the Lesotho Highlands Water Development Project, 

the Maloti -Drakensberg Transfrontier Project is arguably the second largest joint 

project between Lesotho and South Africa, representing a bold response to 

common problems, potential and the demands of the common future that is shared 

by the people of two neighbouring countries. In Lesotho, the project is housed 

within the National Environment Secretariat in the Ministry of Tourism, Environment 

and Culture, while KZN Wildlife serves as lead agency in South Africa. 

The Maloti Drakensberg Transfrontier Project (MDTP) addresses conservation and 

community development issues in the Maloti-Drakensberg Mountains; a 300 

kilometres long alpine and montage zone along the southern, eastern and northern 

borders of the landlocked mountain Kingdom of Lesotho and the Republic of South 

Africa. Most of the high altitude areas lie in the kingdom of Lesotho. The remainder 

lies in the Free State, KwaZulu-Natal and Eastern Cape provinces of the Republic of 

South Africa. The Maloti-Drakensberg Mountains have globally significant plant and 

animal biodiversity, with unique habitats and high levels of endemism. It is also 

home to the greatest gallery of rock art in the world with hundreds of sites and 

many thousands of images painted by the San or Bushmen people. Significantly, 


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the region is also the most important water catchments area for the people of 

Lesotho and South Africa. Two of the largest civil engineering projects in southern 

Africa, the Tugela-Vaal Scheme and the Lesotho High-lands Water Project, carry 

water from the mountains to the economic powerhouse of Africa, the province of 

Gauteng. 

However, these special resources are increasingly under threat from commercial 

uses, timber plantations and crop-ping. Rangelands in areas of high conservation 

value have been degraded by a grazing regime based on communal access and 

decreased regulatory capability; more especially in Lesotho. The cultural resources 

of the area are also faced with extreme pressure from resource prospectors and 

vandals who will stop at nothing except total destruction of the resource. 

Exacerbating these problems even further is the lack of ownership of the land that 

restricts investment in conservation of the natural resource base. Due to a 

communal land tenure system that permits access right to resources, Lesotho has 

the lowest protected area coverage of any nation in Africa (


On both sides of the international boundary, there are local populations who are 

dependent on the mountains for all or part of their livelihood. The challenge to 

conservationists is to conserve this exceptional and unique mountain region while 

ensuring that the development needs of the local populations are met. Starting in 

late 2002 extending to the end of 2007, approximately US$16 million has been 

made available to Lesotho and South Africa. The MDTP is funded by the Global 

Environment Facility (GEF), with the World Bank acting as implementing agency on 

behalf of the GEF. Money will be used under eight headings: Project Management, 

Conservation Planning, Protected Area Planning, Conservation Management in 

Existing Protected Areas, and Conservation Management in Priority Areas outside 

existing Priority Areas, Community Involvement, Nature-Based Tourism Planning, 

and Institutional Development. 

Overall policy and direction for the MDTP is set by a joint Lesotho-South Africa 

Steering Committee. Under this in each country are Project Coordination 

Committees and the day-to-day work is managed by two small teams of full-time 

staff, one based in Maseru, Lesotho and the other near Pietermaritzburg, KwaZulu- 

Natal. 

The MDTP will make a major impact on the economies of the mountain region and 

through better range management, the establishment of community conservation 

areas and through nature-based tourism and the facilitation of sustainable natural 

resource based livelihoods a major step forward will have been taken in the 

protection of the bio-diversity and cultural heritage of the Maloti-Drakensberg 

Mountains. 

6.5.5. The Bottom Line 

The project will have two principal products. The first will pull together existing 

knowledge and fill in the gaps so that at the end of 2007 a clear picture of the most 

important areas for biodiversity conservation will have emerged. These insights will 

have led to comprehensive conservation planning both within and outside existing 


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protected areas and the limited expansion of the protected area network in the 

region. The second principal product will be the involvement of local communities in 

the conservation and development of the region. The establishment of range 

management areas and grazing associations being but one example of what will be 

done through community participation. Thus, local livelihoods will have been 

enhanced through improved resource management and the development of nature- 

based tourism opportunities. 

Underpinning these two outcomes is an assumption that the MDTP vision will live 

on long after the GEF funding has dried up. This means that the all major 

stakeholders (local community structures, municipalities, conservation agencies and 

government departments – environment, agriculture, conservation, tourism) will be 

actively involved in coordinated efforts to ensure the long term sustainability of 

conservation, tourism and land use practices in the region. 


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6.6. Thabo Mofutsanyane Industrial Development Strategy 


Thabo Mofutsanyane’s Dept of LED and Tourism appointed Urban-Econ and 

Sabalala consultants to develop the above-stated strategy for the district 

municipality. From the spatial perspective view point, the project encompassed the 

following scope of work: 

• Identification of the suitable industry, identification of economic contribution of 

the sector to the provincial and national economy, and identification of 

potential linkages to the existing industrial sector. 

• Socio-economic assessment of district population and potential impact of the 

industrial sector. 

• Potential maximization of job creation opportunities 

• Transformation of the industrial sector in the district 

• Alignment of district and provincial industrialization strategies 

6.6.2. Vision and Mission 

The vision of Thabo Mofutsanyane Industrial Development Strategy is to develop a 

viable, domestically and internationally recognized industrial node, with a diversity 

of products ranging from intermediate to final products that will facilitate 

employment creation, investment and SMME development. Its mission is for the 

development of the industrial sector, investment and employment opportunities will 

be achieved by the creation of favourable conditions for successful public and 

private sector investment in high priority areas, spatial efficiency, economies of 

scale, and economic empowerment and SMME development. 


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6.6.3. Development Goals and Objectives 

The development goals and specific development objectives are as follows: 

• To formulate a district industrial strategy with implementation guidelines for 

the identified development opportunities in key economic sectors so that the 

district can direct economic development and investment. 

• Emphasize local job creation, the alleviation of poverty and the redistribution 

of opportunities and wealth. 

• Promote the creation of an enabling environment conducive for economic 

development by addressing inter alia, human resource development and an 

appropriate institutional framework as integral components of the strategy. 

• Focus explicitly on opportunities for SMME development in all economic 

sectors. 

Industrial development strategy includes the formulation of the strategy adhering 

to a shared provincial vision and strategic thrusts. Opportunities, options and 

scenarios are related and translated into sectoral priorities for implementation 

phasing, provincial budgeting and resource allocation. An integrated approach was 

followed ensuring optimal and sustainable service delivery, project investment and 

economic development of the district. 

6.6.4. Spatial Economic Profile 

Socio-economic profile of the district municipality provides an overview of the socio- 

economic characteristics of the district and its underlying local municipal areas. It 

also provides information on the population size and distribution, level of education, 

level of employment and industry employed in, average annual income, as well as 

household expenditure. 

Thabo Mofutsanyane District Municipality is located within the North Eastern section 

of the Free State Province and borders for most part of Lesotho and KwaZulu Natal. 

It is located in the shade of the Maluti between the Orange River and the Vaal River 


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in the North. It is primarily agriculture in nature and includes the former homelands 

of QwaQwa. The main economic centres within the district include Bethlehem, 

Ficksburg, Harrismith, Vrede, Memel, Phuthaditjhaba, Senekal, Reitz and Warden. 

This reflects that the district municipality is relatively integrated from an economic 

perspective, referring to access to the larger economic nodes and logistic support- 

rail, air and sea (ports). 

The District Municipality is approximately 32 264.7km2 in size, and had a 

population size of 725 947 within 2001, translating into 183 048 households, with 

an average household size of 4.0 people per household. This population is 

distributed at a density of 22.5 people/km2, reflecting an exceptionally dispersed 

population pattern. Maluti-a-Phofung represents the local municipal area with the 

highest population figure and the highest population density of 71.6 people/km2. 

The spatial economic profile of Thabo Mofutsanyane has a direct impact on the 

manifestation of the industrial sector within a specific geographic area. Industrial 

development is the result of either market decisions or direct consumer demand. 

The socio-economic analysis of the district population reflected the following 

implications for the industrial sector: 

• Industrial development is focused towards dominant economic nodes due to 

dispersed settlement patterns. 

• High representation of unskilled and semi-skilled labour serves as incentives for 

labour intensive industries utilizing cheap labour in the production processes. 

• Skill level indicates need for aggressive skills training to attract higher 

technological and mechanical driven industries. 

• Quality and level of skills of labour force direct location of type of industries. 

• High unemployment levels indicate importance of attracting industries to the 

area. 

• Income profiles reflect demands directed towards every day products- 

emphasizing necessity of market extension and networking. 


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Thabo Mofutsanyane district municipality is thus located in such a manner that it 

enjoys high levels of connectivity to other districts, provinces within South Africa, as 

well as to airports and harbours. The location of the district serves to be a 

comparative advantage with reference to potential forward and backward linkages. 

The above-stated discussion implies that the district has: 

• At least 747 140 people within the district, 

• Rural environment, 

• Dispersed settlement pattern at various population densities, 

• Relatively low segment of skilled and highly skilled labour 

• Highly representation of unskilled labour 

• Dominant employment industries include the manufacturing sector as well as 

forward and backward linkage sectors such as agriculture, trade etc. 

• Weighted average household income of approximately R2 340.00 per month. 

• Lower to middle-income community 

6.6.5. List of Functional and Catalyst Projects 

The following functional and catalyst projects have been identified for 

implementation within the district in order to contribute to the development of the 

industrial sector. 

PROJECT PROJECT TYPE 

Industrial Representative Forum (task team) Functional 

Electronic platform to stimulate industrial participation Functional 

Industrial audit database Functional 

Industrial Marketing Manual Functional 

One-Stop Industrial Centres - SMME orientated Catalyst 

Designated industrial zones Catalyst 

Information packages on unexploited industrial ventures Functional 

Skills audit and database Functional 


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Industrial Learnership Programmes Catalyst 

Incentive packages and decision support models Catalyst 

Innovative funding mechanism - industrial funding database and 

application process 


Catalyst 

Investment Crusade Unit (task team) Functional 

Aftercare system for investors Functional 

Industrial information database Functional 

Property Profile Catalyst 

Systematic building upgrade programme Functional 

Security augmentation programmes Functional 

Maintenance and upgrade programme Functional 

Industrial Development Framework Functional 

Econo Monitor - performance management and evaluation 

model 

Catalyst 

Infrastructure assessment and prioritization Functional 

Infrastructure upgrade and development Catalyst 

Telecommunication network Catalyst 

e-infrastructure and supporting services Catalyst 

Industrial Leasing and Purchase Policy Functional 

Land-use and urban design master plan for industrial areas Functional 

Industrial ownership system Functional 

Road Management Plan Functional 

Rail Management Plan Functional 

Logistics-cum-long Distance Freight Transport Centre Catalyst 

Small industrial business network Functional 

Techno-entrepreneur programmes Functional 

Industrial Mentorship Programme Functional 

Database of industrial companies providing bursaries and 

sponsorships for training 

Functional 

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Business Management Training Programmes Functional 

Industrial Starter Packs Catalyst 

Industrial business hives Catalyst 

Industrial Marketing Campaign Functional 

Market Research Database Catalyst 

Industrial Investment Strategy Functional 

Expanded fruit production projects: Strawberries, cherries, 

apricots, plums, apples, granadilla 


Catalyst 

Fruit value chain development Functional 

Expanded vegetable production projects: Carrots, cabbage, 

broccoli, celery, beans, potatoes, pumpkin, eggplant, gherkins, 

tomatoes, spinach and peppers 

Catalyst 

Vegetable value chain development Functional 

Herb and spice production expansion: garlic, coriander, 

mustard, parsley, anise, cecile, basil 

Catalyst 

Expanded meat production project Catalyst 

Expanded poultry production project Catalyst 

Expanded dairy production project Catalyst 

Value chain networking initiative Catalyst 

Database of commercial and emerging farmers Functional 

Industrial Cluster Task Team Functional 

Food and beverage cluster Catalyst 

Textile cluster Catalyst 

Venison cluster Catalyst 

Chemicals, rubber and plastic cluster Catalyst 

Furniture cluster Catalyst 

Metal product cluster Catalyst 

Cluster feasibility studies and development plans Catalyst 

Regional innovation network Functional 

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Industrial visitation project Catalyst 

Manufacturing sub-sectors development strategies Functional 

Develop industrial by-laws Catalyst 

Industrial Stabilization Fund Catalyst 

Packaging of agricultural products - boxes, bottles, crates Catalyst 

Fruit processing - juice, fruit juice extract, dried fruit, canned 

fruit, jam, baby products 

Vegetable processing - dried vegetables, canned vegetables, 

processing of asparagus, baby products 


Catalyst 

Catalyst 

Manufacturing of spices Catalyst 

Potato beneficiation - chips, crisps, fries Catalyst 

Animal Feed Manufacturing Catalyst 

Dairy Product Manufacturing - milk, cream, cheese, yogurt Catalyst 

Venison Production Catalyst 

Game Meat Processing Catalyst 

Production of Mineral Water Catalyst 

Manufacturing of organic pesticides Catalyst 

Fertilizer Manufacturing Catalyst 

Floriculture project Catalyst 

Industrial Innovation Centre Catalyst 

Wooden artefacts for tourism market Catalyst 

Sunflower processing and oil extraction Catalyst 

Sorghum beer production Catalyst 

Cold Storage and Packaging facility Catalyst 

Grain Mill Product Manufacturing Catalyst 

Soya Oil extraction Catalyst 

Edible oils and soap manufacturing Catalyst 

Packaging of gas Catalyst 

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Building Material Manufacturing - bricks etc. Catalyst 

Sandstone beneficiation Catalyst 

Source: Thabo Mofutsanyane Industrial Development Strategy, 2006 


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6.7. Proposed Multi-Products Pipeline from Durban to Sasolburg 

6.7.1. Background Information 

This report is a summarised briefing paper in February 2006 based on 

Environmental Impact Assessment Process on Proposed New Multi Purpose Pipeline 

project by Petronet. The proposed pipeline project is taking place from Fynnland 

(Durban) to Sasolburg (Free State). The purpose of the project is to convey refined 

petroleum products from Fynnland Pump Depot to Sasolburg Pump Depot. The 

clients that are likely to benefit to the proposed project include major oil companies 

like BP, Caltex, Engen, Sasol Oil and Gas, Shell and Total. The rapid economic 

growth in South Africa particularly in Gauteng and other regions and great need of 

more energy supply triggered Petronet and other stakeholders involved to come up 

with this proposal in order to meet the countries energy demand. 

6.7.2. What the Project Entails 

The pipeline will cover a distance of approximately 635km and has a diameter of 

approximately 400-600mm and will be constructed at approximately 1m below the 

ground. During construction phase, construction servitude of approximately 30m 

will be required. A permanent servitude of 6m wide will also be negotiated and 

secured by Petronet for the establishment of the pipeline. Technical studies were 

undertaken to identify feasible route corridors for the construction of the proposed 

project. Two feasible route corridors and alternative route corridors were identified. 

In the Free State province towns and localities that will be affected by the route 

corridors of the project are within Thabo Mofutsanyane and Fezile Dabi district 

municipalities (see attached map). The Pump Depots are at Van Reenen (which 

borders Thabo Mofutsanyane district municipality with Kwazulu-Natal) and at 

Sasolburg (Fezile Dabi district municipality). These alternative routes take into 

account the existing infrastructure, boundaries and natural features. 


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6.7.3. Environmental Implications 

Comprehensive environmental studies and environmental implications will be 

undertaken in accordance with Environmental Impact Assessment (EIA) Regulations 

and Standards. National Department of Environmental Affairs and Tourism will act 

as lead authority together with Free State Department of Tourism, Environmental 

Affairs and Economic Affairs. The Environmental Scoping Study will identify and 

evaluate all potential environmental impacts associated with the proposed project. 

Amongst some of the issues that will be addressed will involve social and 

biophysical issues, such as impacts on vegetation removal, crossing of rivers, 

wetland areas, heritage sites or any environmental impact associated with the 

project. All the stakeholders involved will be consulted, public participation will be 

encouraged and public comments will be made available. 

The following site can be visited for more information about the project: 

www.nmppeia.co.za 


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CHAPTER 6: PROJECTS - Maluti-A-Phofung Municipality

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