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STELLENBOSCH MUNICIPALITY

REPORT

INVESTMENT ATTRACTION & PROMOTION STRATEGY

SUBMITTED BY SAMFA RESEARCH SOLUTIONS

JUNE 2013
The information/data furnished contains confidential and competitive information
proprietary to SAMFA RESEARCH SOLUTIONS, the release of which would harm the
competitive position of the firms involved. The municipality shall exercise its discretion
and seek to protect the commercial competitiveness when duplicating, using or
disclosing this information/data for programmatic reasons, to the extent provided in the
contract.
CONTENTS PAGE

1. INTRODUCTION

2. BACKGROUND

3. METHODOLOGY

4. SWOT ANALYSIS

5. IMPORTANCE OF ACCESS TO LAND

6. KEY PROJECTS

7. FOOD PARK & AGRI-INDUSTRIAL ZONE

8. FUNDING SOURCES

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1. INTRODUCTION

The Stellenbosch Municipality appointed SAMFA Research Solutions to provide an overview


of the investment environment in the Stellenbosch municipal area and to identify catalytic
projects that will unlock economic development and make the Stellenbosch municipal area
more attractive for investors.

To this end, this report provides a spatial economic framework as proposed by the spatial
development framework (SDF) of Stellenbosch municipality for investment and economic
development. The report then provides a SWOT analysis of the investment environment and
proceed to look at the the importance of land for investment and development, before
identifying key catalytic projects that emenated from the literature review and analysis.
Thereafter the report presents an implementation plan, with potential funding sources and a
detailed way forward for implementing the key catalytic project of establishing a Food Park
and Agri-processing Industrial Zone at Klapmuts.

2. BACKGROUND

The Stellenbosch municipality is experiencing a number challenges which include; lack of


investment, socio-economic problems, infrastructure shortages and budget constraints. To
address this, the Stellenbosch Municipality through its Local Economic Development (LED)
Department identified the need for a high-level investment environment analysis and an
investment attraction and promotion strategy.

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Stellenbosch Municipal Area
3. METHODOLOGY

The following methodology was followed when researching and compiling the report:

Review of key municipal documents the Integrated Development Plan (IDP),


(SDBIP), Spatial Development Framework (SDF), local economic development
information.
Review of economic sectors
Food Security Strategy
Integrated Zoning Scheme
Review of databases
Key informant interviews
Insights from and engaged current investors and developers
Scanned and probed potential investors
Discussions, input and data from relevant Stellenbosch municipality officials.
Opinions from relevant officials in the Provincial Department of Environmental Affairs
and Local Government.

4. SWOT analysis of Stellenbosch Municipal


Investment Environment
Strenghts Weaknesses
Land Lengthy approval periods
Natural beauty Red Tape in government
Culture Lack of local business support facilities
Heritage and advice centres
Human Capital / Knowledge Pool
Opportunities Threats
Sports and agri-tourism Lack of infrastructure and services
Cultural and heritage tourism Traffic congestion
Food park and agri-processing Water restrictions
Triangle of Agricultural Execellence Basic infrastructure problems
The deterioration of the road network

The proposed strategy for intervention is to use the strenghts to realise the opportunities
and to address the weaknesses and threats.
5. IMPORTANCE OF ACCESS TO LAND
Land markets that allow access to landand to buildingsthrough secure
property rights, at transparent prices, and with efficient permitting processes
and land tax systems are essential to a good business environment. Creating
such markets, however, can be a long, complex, politically charged process,
especially where most land is untitled and where there are conflicting claims.
But experience points to practical interim or step solutions that can have a
positive impact and generate the political capital to reform the overall land
market system.

Public Policy for the Private Sector: Land Markets. Promoting the Private Sector by
Improving Access to Land. Foreign Investment Advisory Service (FIAS -2005 ), a joint
facility of the World Bank and International Finance Corporation that helps
governments improve their countrys investment climate.

This section deals with the importance of access to land as a key driver for investment at
municipal level.

Business surveys conducted by different parties identify problems in gaining access to land
as among the biggest complaints of investors in developing countries.

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A detailed study in India shows that such problems, by constraining investment and
competition, can cost developing countries more than1 percentage point of GDP growth
annually.
Studies of titling programs in Peru, Thailand, and Vietnam show big increases in investment
and productivity on titled land compared with land without title. While investors seeking land
have varying needs and priorities, they generally face four key and related issues.

Access. Is the land I need available? If so, from whom can I obtain the land, at
what price, and on what terms? How long will it take?

Security. If I can get access to suitable land, what will be my rights over the land?
Will my property rights be secure? Will I be able to use them as security for bank
loans?

Use. Once I have acquired land, how may I use and develop it? How long will it take
to obtain all the permits for construction and related activitiesand how much will it
cost?

Consistency of treatment. Are my competitors being treated in the same way?

These four identified issues were then used to create an Access to Land Framework for
assessing the Stellenbosch Municipality.

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Access to Land Framework

Land issues concerning investors and factors determining the outcomes STELLENBOSCH LOCAL MUNICIPALITY (SLM)

Factors determining outcome Relevant to SLM / Action / Intervention


Issue Levers that the SLM has

Access: Is land available and at what price ? State ownership of land Dispose of land

Tribal or communal ownership of land

Ownership or user restrictions Flexible approach that involves discussions.

Zoning and planning requirements Create priority track for approvals and authorizations.

Property Tax Incentives / Defer payments

Security: What are my rights? Titling system


Are my property rights secure ?
Registration process

Collateral rules Property Tenure Security Assured

Transfer of property rights

Courts

Use: How can I use and develop land?


Location permits

Construction and building permits

Environmental impact assessment


Major enabler or constraint
Infrastructure / utility connections

Consistency of treatment:
Governance
Are my competitors treated like me? Municipal Corporate Governance and
Transparency
Integrity Management Policies and Systems
Accountability
An analysis of the Stellenbosch municipality using the aforementioned framework
highlighted the following when dealing with the four critical issues for investors:

Issue 1: Security of Tenure property rights and secuirty of tenure is assured.

Issue 2: Use (how can I use and develop the land?) Environmental impact
assessments and the availabillity of infrastructure are major determinants of potential
investment in the Stellenbosch municipal area.

Issue 3: Consistency of Treatment Good corporate governance, transparency and


accountability are parmount for investors and the Stellenbosch Municipalitys Corporate
Governance and Integrity Management Systems should be beyond reproach.

Issue 4: Access to land The municipality should consider disposing of municipal land as
a means to facilitate and incentivise investment.
6. Key Projects
A review of relevant documentation, particularly the SDF, IDP and the SDBIP, and input
from key informants highlighted the need for the following projects:
1. Food Park & Agri-processing Industrial Zone (Klapmuts)
2 . Align Stellenbosch Spatial Development Framework (SDF) and the Stellenbosch
University Strategic Development Framework
3 .Portfolio of Investment Opportunities
4. Database of Potential Investors
5. Invest- Stellenbosch website
6. Investment Lead Tracking System
7. Investment Promotion Material
8. Investment Destination Marketing Strategy
9. Package of Investment Incentives
10. Investor Visitation Policy, Protocol and Programme
11. Investment Promotions Centre with associated Information Services
12. Precinct / Node Development Visions
13. Emerald Necklace string of culture, heritage and nature tourism hamlets ( La Motte,
Wemmershoek, Groot Drakenstein, Dwars River Valley, Muldersvlei, Koelenhof,
Jamestown/De Zalze, Vlottenburg, Spier, Lynedoch & Raithby.
14. Infrastructure Investment Strategy
15. Solid Waste Strategy
16. Sports Tourism Strategy
17. Align SLM and SU procurement policies ito BEE and green procurement
18. Triangle of Agricultural Excellence - Elsenberg, Stellenbosch University & Sustainability
Institute linked to Future of Agriculture and Rural Economy (FARE) initiative of the
Western Cape EDP.
19. Food Bank. The Food Bank to be a central point for delivery and collection of food and
produce from corporates, farms, industry, etc. It would be here that community based
groupings and individual families could get essential food products free or at discount
prices. A key feature of the Food Bank will be its operating a a series of public kitchens
through out the municipal area. These public kitchens will be staffed by volunteers and
supplied and supported from the Food Bank and provide free and discounted foods for
the needy and destitute.
20. Funding Sources & Pitching Sessions for entrepreneurs, NGOs community groupings,
etc.

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STELLENBOSCH MUNICIPALITY STRATEGIC OVERVIEW OF PROJECTS

1/2014 1/2015 1/2016 1/2017 1/2018


2013/07/01 2018/07/31
short term medium term = 6 - 18 months long term = 3 - 5 years
0 -6 months

Strategic Horizon 1

Strategic Horizon 3
Strategic Horizon 2
PROJECTS

1: Food Park and Agri-


processing Industrial
Zone - Klapmuts

2. Align Stellenbosch MSDF


and Stellenbosch University
Strategic Development
Framework

3. Portfolio of Investment
Opportunities

4. Database of Potential
Investors

5. Invest- Stellenbosch
website

6. Investment Lead Tracking


System

7. Investment Promotion
Material

8. Investment Destination
Marketing Strategy

9. Package of Investment
Incentives
STELLENBOSCH MUNICIPALITY STRATEGIC OVERVIEW OF PROJECTS (Continued)

1/2014 1/2015 1/2016 1/2017 1/2018


2013/07/01 medium term = 6 - 18 months 2018/07/31
long term = 3 - 5 years

PROJECTS Strategic Horizon 1 Strategic Horizon 3


short term 0 -6 months Strategic Horizon 2

10. Investor Visitation Policy,


Protocol and Programme.
11. Investment Promotions
Centre with associated
Information Services

12. Precinct / Node


Development Visions

13. Emerald Necklace string of


culture, heritage and nature
tourism hamlets.

14. Infrastructure Investment


Strategy

15. Solid Waste Strategy

16. Sports Tourism Strategy

17. Align SLM and SU


procurement policies ito
BEE and green procurement

18. Triangle of Agricultural


Excellence

19. Food Bank

20. Funding Sources & Pitching


Sessions

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IMPLEMENTATION PLAN

ACTIVITY
PROJECT
0 - 6 MONTHS 12-18 MONTHS 3-5 YEARS

1. Food Park & Agri-processing 1. Obtain Council approval Successful bidder Site development
Industrial Zone (Klapmuts) to dispose of Council land commence with
for Food Park infrastructure
development.
2. Issue Call for Proposals

3. Award

2 . Align Stellenbosch Spatial 1. Overlay / superimpose SU 1. Develop, finance and


Development Framework Framework over SLM SDF implement the roll-out
(SDF) and Stellenbosch 2. Integrate Frameworks of combined
University Strategic Development infrastructure and
Framework capital works.

3 . Portfolio of Investment 1. Compile list of opportunities


Opportunities 2. Package opportunities for
investment

3. Match with potential investors

4. Facilitate through
application, letter, etc.

4. Database of Potential 1. Develop database

Investors 2. Distribute database


widely in municipal area

5. Invest- Stellenbosch website 1. Obtain approval


2. Source budget
3. Appoint website developer
4 Functional website

6. Investment Lead Tracking 1. Obtain approval


System 2. Develop in-house or source
budget
3. Appoint system developer
4. Functional lead tracking
system
IMPLEMENTATION PLAN

ACTIVITY
PROJECT
0 - 6 MONTHS 12-18 MONTHS 3-5 YEARS

7. Investment Promotion Material 1. Obtain approval


2. Develop in-house or source
budget
3. Appoint graphic designer
4. Completed investment
promotion material

8. Investment Destination 1. Obtain approval


Marketing Strategy 2. Develop in-house or source
budget
3. Appoint consultant
4. Completed strategy

9. Package of Investment 1. Obtain approval


Incentives 2. Develop in-house or source
budget
3. Appoint consultant
4. Completed proposed
investment incentive
package

10. Investor Visitation Policy, 1. Develop policy (general


Protocol and Programme. description)
2. Identify key municipal
people to be part of visitation
3. Develop protocol (step by step
procedure of how-to)
4. Council adopt protocol.

11. Investment Promotions 1. Write business plan with 1. Execute business plan
Centre with associated business model 2. Open centre
Information Services 2. Source grant funding

12. Precinct / Node 1. Appoint facilitator to 1. Align nodal


Development Visions conduct visioning workshops development to vision
for each of the development
nodes in the SDF.

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IMPLEMENTATION PLAN

ACTIVITY
PROJECT
0 - 6 MONTHS 12-18 MONTHS 3-5 YEARS

13. Emerald Necklace string of 1. Appoint consultant to assist


culture, heritage and nature with development of suite of
tourism hamlets ( La Motte, tourism products that
Wemmershoek, Groot combines culture, heritage
Drakenstein, Dwars River and nature.
Valley, Muldersvlei, Koelenhof,
Jamestown/De Zalze,
Vlottenburg, Spier, Lynedoch &
Raithby.

14. Infrastructure Investment 1. Appoint service provider to


Strategy identify different options for
financing municipal
infrastructure and to develop
a municipal wide
infrastructure investment
strategy that allows for node
specific investments.

2. Package infrastructure
investment opportunities.

3. Identify and match with


potential funders.

15. Solid Waste Strategy 1. Appoint service provider to do


baseline assessment of
current and future needs and
capacity.
2. Focus on environmental
protection and sustainability.
3. Explore green technologies
and initiatives vis--vis waste
with associated funding
models and funding sources.
4. Develop proposed waste
strategy and link to sector
development plan of the
municipality.

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IMPLEMENTATION PLAN

ACTIVITY
PROJECT
0 - 6 MONTHS 12-18 MONTHS 3-5 YEARS

5. Package municipal
opportunities in waste
management and match with
potential funders.

16. Sports Tourism Strategy 1. Appoint consultant to


develop sports tourism
strategy.
2. This to include consultation
with various stakeholders
and doing a baseline
assessment of different
sporting codes and sporting
infrastructure and expertise
available in the municipal
area.
3. The strategy to clearly
indicate how different
sporting infrastructure can be
leveraged and what tourism
products can be developed
for clearly-identified sports
tourist target market
segments.

17. Align SLM and SU 1. Stellenbosch University staff 1. Both Stellenbosch


procurement policies ito with an interest in applied Municipality and
BEE and green procurement research to review university Stellenbosch university
and municipality procedures for adopt and implement
procurement. new procurement
policies and
2. Develop new procurement procedures.
procedures that achieve BEE
and sustainability objectives for
both institutions.

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IMPLEMENTATION PLAN

ACTIVITY
PROJECT
0 - 6 MONTHS 12-18 MONTHS 3-5 YEARS

18. Triangle of Agricultural 1. Representatives of the three


Excellence institutions and the FARE
- Elsenberg, Stellenbosch initiative meet with the view
University & Sustainability of starting a dialogue around
Institute linked to Future of creating a triangle of
Agriculture and Rural Economy agricultural excellence
(FARE) initiative of the Western consisting of the respective
Cape EDP. institutions.

2. This group then jointly


develop a discussion
document on how to develop
the triangle of excellence with
associated projects and
initiatives as a basis for
developing a way forward.

19. Food Bank 1. The municipality writes a 1. Secure finance and


To be a central point for delivery business plan for the setting premises.
and collection of food and produce up of a Food Bank to be 2. Open Food Bank
from corporates, farms, industry located in Stellenbosch.
etc. It would be here that
2. Constitute Food Bank as
community based groupings and
NPO.
individual families could get
3. Submit funding application
essential food products free or at
to National Lottery
discount prices. A key feature of
Distribution Board and
the Food Bank will be its operating
others.
a a series of public kitchens
through out the municipal area.
These public kitchens will be
staffed by volunteers and supplied
and supported from the Food
Bank and provide free and
discounted foods for the needy
and destitute.

20. Funding Sources & Pitching 1. Appoint a facilitator to conduct


Sessions a series of workshops on
funding sources to project
champions, NGOs, etc.

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7. FOOD PARK AND AGRI-INDUSTRIAL ZONE
KLAPMUTS.

This section provides a summary overview for a proposed Food Park and Agri-Zone in
Klapmuts. This initiative is multi-faceted and involves the establishment of a specialized
economic zone, a number of associated institutions, enterprise development, research and
development, draws on public and private sectors and the creation and development of
financial, intellectual and human capital in the food and agriculture industries.

Concept

To cluster specialized industries in the food, drinks and beverages, herbs and essential oils,
nutri-pharmaceutical, agriculture, livestock and fisheries sectors into a Food Park and Agri-
Zone.

The zone to provide enabling environments for:

1. Small and medium scale entrepreneurs and industrialists with a food and agri-
processing idea where they can pilot their products journey from conceptualization to
consumer markets.

and

2. Major national and international corporations doing advanced research and


development.

Mega Food Park

The Park is to be equipped with state-of-the-art infrastructure and the most modern
technology to cater to the food processing industry. Every need of the manufacturer will be
taken care of under one roof.

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Infrastructure

Basic Infrastructure to be provided:

Internal roads
Power
Cold storage
Abattoirs
Common effluent treatment plan
Warehousing
Salient features & concessions

Product testing in well-equipped laboratories and hi-tech Quality Control facilities will also
be available.

Assistance in assessing the viability of the project, procurement of machinery and raw
material, setting up assembly line, packaging, distribution and marketing will be provided
to all the constituent units of the Food Park. There will be a pilot plant where trials
regarding the commercial viability of the product for national and export markets will be
executed. There will also be common administrative facilities at the Park. The Food Park
will provide the entire back end and front end support under one roof.

Facilities & Amenities

Product Development Centre


Pilot Plant
Analytical and Quality Control Laboratories
Cold Storage and Warehouse
Effluent Treatment Plant
Engineering and Maintenance

Facilities to include production/planning, pre-production, transport, assembly, sorting,


packaging, storage, processing, distribution.

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Administrative Facilities

Market & Technology Information Centre


Business Centre
Centre for entrepreneurship
Legal Guidance
Banking Services
Connectivity
Communication Centre
Library
Canteen, Cafeteria, Guest Houses
Exhibition Hall

Sample List of Products

Baked Products
Fruits & Vegetables Processing
Cereal Processing
Baby-food Manufacturing
Extruded Products
Health Food
Edible oil Manufacturing
Milk Processing
Food ingredients
Medicinal Plant Processing

How the Food Park will add value

By scaling ideas from kitchen level to pilot plant and then on to industrial level
By acquiring and sharing information on consumer markets, product acceptance and
the right target segment.
By integrating farm outputs with modern manufacturing facilities.
By setting up consistent quality practices for meeting national and international
standards.
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By helping create infrastructure facilities.
By providing modern management practices, Information technology and human
resource development.
By assessing commercial feasibility of any food processing idea
By arranging finance or getting a committed partner.

Centres, Institutes and Programmes

The Agri-Zone could house the following:

Food Technology Institute

Agri-Technology Centre

Agro-Processing Centre of Excellence

Farmers and Farm Management Centre of Excellence ( Creating a Brains Trust in


Stellenbosch) linked to other agriculture Centres of Excellence and with farms
located globally.

Agro-Pedia online resource for food and agriculture

Agri-Academy: Training and Development Programmes

Seed Bank

Indigenous Agricultural Knowledge and Practice Centre: with global programme

Sustainable and Organic Farming Programme

Bio fuels Programme

Horticulture Programme

Explore the setting up of a Municipal Food Security Agency. Its mandate would be to
ensure availability of food all year round at affordable prices, reduce post harvest
losses and have in store seven percent of total municipal food output for necessary
life-line in times of need.

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Center for Entrepreneurship: Commercial property development clustered around key
sub-sectors with tenants as entrepreneurial companies where the property developer
has minority equity stakes in each of the tenant companies.

Virtual Incubating and Business Consulting

Clusters

The Agri-Zone will consist of a number of different clusters. These are:

1. Food

2. Drinks and Beverages

3. Herbs and Essential Oils

4. Nutri-pharmaceutical

5. Agriculture

6. Livestock

7. Fisheries and Sea Products

Cluster: Nutri Pharmaceuticals

Nutripharmaceuticals' are food products or part of them that have the


proven capacity of giving benefits to health, such as the prevention and
treatment of diseases. The term nutripharmaceutical' comes from nutri',
nutrient and ceutic' from pharmaceutical, that is, food products that feed
and bring health - medicinal compounds derived from plants.

This cluster consists of companies, plants and institutions that are involved in
nutripharmaceuticals and will include the following sectors; food, cosmetics and health
products.

It will be a Centre of Excellence in technology, production processes and innovation in


neutripharmaceuticals, with a key aspect being human capital development.

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Bio-prospecting, Research and Development and Intellectual Property facilities and services
will be paramount.

This cluster will house a National Nutripharmaceutical Data Bank that will include banking of
nutripharmaceutical intellectual capital (know-how) and intellectual property (patents, etc).
It will also house a Nutripharmaceutical Development and Investment Company (NDIC).
This company to raise a Nutripharmaceutical Fund.

Cluster: Chemical Extraction and Agriculture


This cluster will be for companies, plants and institutions that are involved in chemical
extraction from agriculture. It will allow for public and private investments and cater for
different industry players, sectors, sub-sectors and products.

It will include commercial, financial and legal services. An Agri-Chemical Fund to be


established. Research and development and intellectual property will be key components.

It will be a Centre of Excellence in technology, production processes and innovation in


chemical extraction from agriculture, with a key aspect being human capital development.

It will also include chemical input and sustainable agriculture.

Agri-Logistics Hub
Logistics park, freight village, intermodal; trans-shipment centre
Includes retail and industrial space for lease and build to suite sites for
manufacturing, assembly, packaging, distribution, warehousing, and cold storage.
Transport logistics and supply chain services with world-class operations
Business Centre with comprehensive business support services where companies can
rent space on an hourly, daily, weekly, monthly and yearly basis.
State of the art information and communication technology
Build ready sites, industrial spec buildings and build to suit opportunities
Custom tailored leasing.

Residential Clusters with Commercial Nodes


A sustainable and integrated human settlement with residential, commercial, social and
educational components will be included.

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Implementation Process
The Food Park and Agri-Zone to be constructed in distinct phases according to a detailed
master plan. It will contain plots of land allocated for the various clusters. Each cluster
involves, amongst other things, establishing a number of factories.

Management
A Special Purpose Vehicle (SPV) tol be established. A long-term concession to be provided
to the SPV to design, develop, manage and operate the Food Park and Agri-Zone.

Municipal Options
The Stellenbosch Municipality has two options for taking forward the development of the
Klapmuts or other municipal land.

Option 1: Stellenbosch Municipality puts in place and funds the external services.
This option requires that the municipality finds approximately R1 billion for infrastructure
backlogs as refelcted in the SDF, in its budget and Integrated Development Plan (IDP) for
financing of the services. This seems a highly unlikely possibility given the competing and
unlimited demands on the already scarce financial resources that the municipality has. This
is unlikely to change in the foreseeable future even if approaching Provincial and National
Treasury is considered. For the municipality to raise these funds as loans will also require
stringent evaluation and due dilligence processes which is doubtfull the municipality will be
able to comply with. In other words, it will be difficult for the municipality to to meet the
qualifying criteria and loan prescriptions of a lending institution and at the same time satisfy
Treasury and legislative regulations. This is made worse by the time that it will take to
secure this loan.

Option 2: Stellenbosch Municipality dispose of the property and issue a call for
proposals for private investors to service and develop municipal land.
This option requires that the municipality calls on the private sector to submit proposals to
service and develop the municipal land. This can be done on a fair exchange of value basis
where the municipality disposes of the land to the private investor for the value of putting in
place the external services. In this way the private sector will pay for the external services
(water, sewer, stormwater, roads, electricity and telecoms) to the site and the municipality
will transfer ownership of the site to the private investor. In essence, the asset value of the
external services constitute the purchase price of the land.

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DISPOSAL OF THE LAND

The proposed disposal of the land by the Stellenbosch Municipal Council complies with
Section 14 of the Municipal Finance Management Act and relevant National Treasury Asset
Transfer Regulations.

Section 14 of the Municipal Finance Management Act (Act No. 56, 2003) states:

14. (1) A municipality may not transfer ownership as a result of a sale or other
transaction or otherwise permanently dispose of a capital asset needed to provide
the minimum level of basic municipal services.

(2) A municipality may transfer ownership or otherwise dispose of a capital asset


other than one contemplated in subsection (I), but only after the municipal council,
in a meeting open to the public -

(a) has decided on reasonable grounds that the asset is not needed to provide the
minimum level of basic municipal services : and

(b) has considered the fair market value of the asset and the economic and
community value to be received in exchange for the asset.

(3) A decision by a municipal council that a specific capital asset is not needed to
provide the minimum level of basic municipal services, may not be reversed by the
municipality after that asset has been sold, transferred or otherwise disposed of.

(4) A municipal council may delegate to the accounting officer of the municipality its
power to make the determinations referred to in subsection (2)(a) and (b) in respect
of movable capital assets below a value determined by the council.

(5) Any transfer of ownership of a capital asset in terms of subsection (2) or (4) must
be fair, equitable, transparent, competitive and consistent with the supply chain
management policy which the municipality must have and maintain in terms of
section 111.

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INCENTIVES

It is proposed that the Stellenbosch Municipality offer potential investors and developers
incentives in the form of rebates and deferments in terms of rates and taxes to
encourage investment and development of the Klapmuts land. The nature and details of
these can only be discussed once there are concrete proposals for investment and
development.

BENEFITS TO THE COUNCIL

There will be multiple benefits to the Stellenbosch Municipality. These benefits would take
the form of:
Rates and Taxes approximate amounts for taxes, water, sanitation, refuse,
electricity etc, can only be determined once an investor / developer provides a site
development plan to the municipality.

Job Creation and Economic Development The development of the municipal land
will be a major economic driver or engine for the local economy and also provide
much needed jobs.

Infrastructure paid for by the private sector will revert to the municipality.

RECOMMENDATION and PROPOSED WAY FORWARD.

This section spells out proposed logical steps and future activities.

Step 1. The municipality obtains an As-Is valuation of municipal land.

Step 2. The Stellenbosch Municipal Administration considers the disposal of


municipal land.

Step 3. The Stellenbosch Municipal Administration refers the consideration for


disposal to the municipal finance and legal departments for advice and opinion.

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Step 4. The Municipal Administration prepares a submission with supporting
documents to the Mayco recommending disposal of the site.

Step 5. The Stellenbosch Municipality issue a call for proposals for investors /
developers to service and develop municipal land. In this case specifically land at
Klapmuts

Step 6. The municipality provides an Klapmuts Site Information Package with the
Call for Proposals. See Annexure 1

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8. Funding Sources
This section identifies potential funding sources for the identified projects.

NAME JOBS FUND

OBJECTIVE OF THE FUND: THE OBJECTIVE OF THE JOBS FUND IS TO CO-FINANCE PROJECTS BY
PUBLIC, PRIVATE AND NON-GOVERNMENTAL ORGANISATIONS THAT WILL
SIGNIFICANTLY CONTRIBUTE TO JOB CREATION.

FUNDING WINDOW / INFRASTRUCTURE INVESTMENT


FUNDS TO BE UTILISED FOR SUPPORT FOR WORKS SEEKERS
INSTITUTIONAL CAPACITY BUILDING
ENTERPRISE DEVELOPMENT

NATURE OF THE FUND GRANT FUNDING, ALLOCATED ON A COMPETITIVE BASIS.

APPLICATION PROCEDURE THE JOBS FUND HAS A TWO-STAGE APPLICATION PROCESS.

STAGE 1 - CONCEPT APPLICATION STAGE: THIS FIRST STAGE REQUIRES THE SUBMISSION
OF A CONCEPT APPLICATION IN A STANDARDISED FORMAT, VIA THE ELECTRONIC
APPLICATION SYSTEM. THE CONCEPT APPLICATION INCLUDES A DESCRIPTION OF ALL THE
KEY FEATURES OF THE PROJECT AND ENABLES AN INITIAL ASSESSMENT OF THE ELIGIBILITY
OF AN APPLICATION AS WELL AS ITS COMPETITIVE PERFORMANCE AGAINST THE IMPACT
CRITERIA.

STAGE 2 - FULL APPLICATION STAGE: ONCE CONCEPT APPLICATIONS ARE APPROVED, A


DETAILED PROJECT PROPOSAL WILL BE REQUESTED. THE REQUEST WILL BE ACCOMPANIED
BY GUIDANCE NOTES TO HELP IMPROVE THE QUALITY AND CHANCES OF SUCCESS OF THE
FULL APPLICATION. HOWEVER, WHILE THE JOBS FUND PROJECT MANAGEMENT UNIT MAY
CONSULT WITH THE APPLICANT DURING THE DEVELOPMENT OF THEIR DETAILED PROPOSAL,
PROJECT DESIGN, ASSOCIATED ACTIVITIES AND TARGETS REMAIN THE RESPONSIBILITY OF
THE APPLICANT.

CONDITIONS FOR FUNDING MATCHED FUNDING RATIO: PRIVATE SECTOR - 1:1, NON-PRIVATE SECTOR - 0.2:1. THIS
MEANS THAT FOR EVERY R1 OF FUNDING REQUESTED FROM THE JOBS FUND, THE
APPLICANT MUST PROVIDE R0.20 THE MINIMUM GRANT SIZE THAT WILL BE CONSIDERED BY
THE JOBS FUND WILL BE R5 MILLION, IMPLYING A MINIMUM CONTRIBUTION BY THE
APPLICANT OF R1 MILLION FOR A TOTAL PROJECT COST OF R6 MILLION.

FUNDING CYCLE OPEN CALL FOR PROPOSALS ONCE OR TWICE PER ANNUM

WEBSITE: WWW .JOBSFUND.ORG.ZA

28
NAME THE GREEN FUND

THE OBJECTIVE OF THE GREEN FUND IS TO LAY THE BASIS FOR THE SOUTH AFRICAN
OBJECTIVE OF THE FUND:
ECONOMY TO MAKE A TRANSITION TO A LOW CARBON, RESOURCE EFFICIENT AND CLIMATE

RESILIENT DEVELOPMENT PATH DELIVERING HIGH IMPACT ECONOMIC, ENVIRONMENTAL AND

SOCIAL BENEFITS. THE GREEN FUND AIMS TO PROVIDE CATALYTIC FINANCE TO FACILITATE

INVESTMENT IN GREEN INITIATIVES THAT WILL SUPPORT SOUTH AFRICAS TRANSITION

TOWARDS A GREEN ECONOMY.

FUNDING WINDOW /
GREEN CITIES AND TOWNS - LOCAL GOVERNMENT PROCUREMENT AND ALIGNMENT OF
FUNDS TO BE UTILISED FOR
SPENDING ON INFRASTRUCTURE AND SERVICES, WITH ENVIRONMENT PERFORMANCE

INDICATORS, CAN PLAY A SIGNIFICANT ROLE IN GENERATING THE DEMAND FOR GREEN

PRODUCTS AND SERVICES. THIS IN TURN CAN CREATE GREATER LOCALISATION OF GREEN

TECHNOLOGIES.

LOW CARBON ECONOMY - THESE INCLUDE INTERVENTIONS TARGETING INDUSTRIAL

EFFICIENCY AND THE CARBON INTENSITY OF THE ECONOMY INCLUDING ENERGY

EFFICIENCY, REDUCING POLLUTION FROM INDUSTRIAL PROCESSES, WASTE MANAGEMENT

AND REUSE OF BY-PRODUCTS.

ENVIRONMENTAL AND NATURAL RESOURCE M ANAGEMENT - THE PROTECTION OF

BIODIVERSITY AND SECURING THE SUSTAINABLE DELIVERY OF ECOSYSTEM SERVICES IS THE

PRIMARY FOCUS OF THIS WINDOW . THIS INCLUDE INTERVENTIONS TARGETING ECOSYSTEM

BASED ADAPTATION TO CLIMATE CHANGE THAT COULD DRIVE RURAL DEVELOPMENT

MODELS. MANAGING AND REDUCING THE IMPACT OF AGRICULTURE AND LAND USE

CHANGES THROUGH DEMAND MANAGEMENT AND RESOURCE CONSERVATION WILL BE

SUPPORTED.

NATURE OF THE FUND GRANT FUNDING, ALLOCATED ON A COMPETITIVE BASIS.

APPLICATION PROCEDURE 1. REQUEST FOR PROPOSALS (RFP) IS ANNOUNCED.

2. APPLICANTS THEN SUBMIT PROPOSALS IN RESPONSE TO THE RFP.

CONDITIONS FOR FUNDING CONDITIONS FOR FUNDING WILL VARY AS PER THE REQUIREMENTS OF THE RESPECTIVE
RFPS.

FUNDING CYCLE OPEN CALL FOR PROPOSALS ONCE OR TWICE PER ANNUM

WEBSITE: WWW.SAGREENFUND.ORG.ZA

29
NAME CRITICAL INFRASTRUCTURE FUND - DTI

OBJECTIVE OF THE FUND: SUPPORT COMPETITIVENESS BY LOWERING BUSINESS COSTS AND RISKS;

PROVIDE TARGETED FINANCIAL SUPPORT FOR PHYSICAL INFRASTRUCTURE; AND

STIMULATE UPSTREAM AND DOWNSTREAM LINKAGES.

CRITICAL INFRASTRUCTURE REFERS TO THE STRUCTURAL FOUNDATIONS, PERMANENT


FUNDING WINDOW /
FUNDS TO BE UTILISED FOR NETWORK FACILITIES OR A SPECIAL ECONOMIC ZONE VIA WHICH ENTERPRISES OR SOCIETY

IN GENERAL RECEIVE OR SUPPLY BASIC SERVICES SUCH AS TRANSPORT, ELECTRICAL

INFRASTRUCTURE AND BULK WATER SUPPLY, SANITATION, TELECOMMUNICATIONS, PLACE

OF TRADE OPERATIONS, ETC. EXAMPLES OF INFRASTRUCTURE INCLUDE ROADS AND

BRIDGES, INDUSTRIAL PARKS, ELECTRICITY TRANSMISSION LINES, RENEWABLE ENERGY, AS

WELL AS THEIR ASSOCIATED GENERATION (E.G. GENERATORS) STORAGE, WATER

PIPELINES, PURIFICATION, SEWERS, AND TELEPHONE LINES, AND OTHER FACILITIES THAT

SUPPLY, PROTECT OR IN ANY WAY FACILITATE THE NETWORKS, SYSTEMS AND TRADE.

NATURE OF THE FUND A CASH GRANT TO A MAXIMUM OF 30% CAPPED AT R30 MILLION OF THE DEVELOPMENT
COST OF QUALIFYING INFRASTRUCTURE.

APPLICATION PROCEDURE DIRECT REQUEST / LETTER OF ENQUIRY.

NON-QUALIFYING COST:
CONDITIONS FOR FUNDING
INDIRECT COSTS SUCH AS COST ELEMENTS THAT THE APPLICANT WOULD HAVE IN ANY CASE
INCURRED WILL NOT QUALIFY FOR THE GRANT. THEY INCLUDE, BUT IS NOT LIMITED TO THE
FOLLOWING:

WORK SCOPING, STUDIES, PLANS AND SUCH COST ELEMENTS THAT THE
APPLICANT WOULD HAVE IN ANY CASE INCURRED BY WAY OF PAYMENT OF
SALARIES OR REMUNERATION OF PERMANENTLY RETAINED PROFESSIONAL
STAFF, INCLUDING MANAGEMENT;
EQUIPMENT SUCH AS OFFICE BUSINESS MACHINES (COMPUTERS, FACSIMILE
MACHINES, PRINTERS, TELEPHONES, AND SOFTWARE TOOLS OR SYSTEMS) AND
OFFICE FURNITURE;
VALUE ADDED TAX (VAT) PAYABLE IN CONNECTION WITH THE DIRECT
QUALIFYING PROJECT COSTS;
MAINTENANCE AND REPAIR COSTS OR ANY OTHER COSTS INCURRED AFTER THE
COMPLETION OF THE CONSTRUCTION OF THE INFRASTRUCTURE AND
COMMISSIONING THEREOF;
COSTS ASSOCIATED WITH TENDERING DOCUMENTATION AND THE TENDERING
PROCESS.

FUNDING CYCLE ONGOING

WEBSITE: www.thedti.gov.z

30
NAME INCUBATOR SUPPORT PROGRAMME (ISP) - DTI

OBJECTIVE OF THE FUND: THE OBJECTIVE OF THE ISP IS TO ENCOURAGE PRIVATE SECTOR PARTNERSHIPS WITH
GOVERNMENT TO SUPPORT INCUBATORS IN ORDER TO DEVELOP SMMES AND NURTURE
THEM INTO SUSTAINABLE ENTERPRISES THAT CAN PROVIDE EMPLOYMENT AND CONTRIBUTE

TO ECONOMIC GROWTH.

THE INTENTION OF THE PROGRAMME IS TO PROVIDE FUNDING FOR INCUBATORS THAT OVER
TIME CAN GENERATE REVENUE THROUGH THE PROVISION OF SERVICES AND INITIATIVES

THAT CAN BE SELF-SUSTAINABLE.

THE INCUBATION SUPPORT WILL BE AVAILABLE ON A COST-SHARING BASIS BETWEEN THE


GOVERNMENT AND PRIVATE SECTOR PARTNER(S). IT IS AVAILABLE FOR INFRASTRUCTURE
AND BUSINESS DEVELOPMENT SERVICES NECESSARY TO MENTOR AND GROW ENTERPRISES

TO ENSURE THAT WITHIN 2 TO 3 YEARS THE ENTERPRISES WILL GRADUATE TO A LEVEL OF


SELF-SUSTAINABILITY BY PROVIDING PRODUCTS AND SERVICES TO THE MARKET.

FUNDING WINDOW /
BUSINESS DEVELOPMENT SERVICES (E.G. BUSINESS ADVISORY SERVICES,
FUNDS TO BE UTILISED FOR
COACHING AND MENTORING, TRAINING, FACILITATION OF FUNDING, PRODUCTION
EFFICIENCY AND IMPROVEMENT, QUALITY AND STANDARDS ACQUISITION)
MARKET ACCESS
MACHINERY, EQUIPMENT AND TOOLS
INFRASTRUCTURE LINKED TO INCUBATOR (BUILDINGS, FURNITURE)
FEASIBILITY STUDIES FOR ESTABLISHING AND EXPANDING INCUBATORS
PRODUCT OR SERVICE DEVELOPMENT
INFORMATION AND COMMUNICATION TECHNOLOGY (ICT)
OPERATIONAL COSTS

NATURE OF THE FUND COST-SHARING GRANT OF 50:50 FOR LARGE BUSINESSES AND A COST-SHARING OF 40:60
FOR SMMES.

APPLICATION PROCEDURE DIRECT REQUEST / LETTER OF ENQUIRY.

CONDITIONS FOR FUNDING AS PER ISP GUIDELINES

FUNDING CYCLE ONGOING

www.thedti.gov.za
WEBSITE:

31
NAME IDC DEVELOPMENT FUNDS

OBJECTIVE OF THE FUND: PROVIDE FUNDING SUPPORT TO PROJECTS THAT HAVE A HIGH
DEVELOPMENTAL IMPACT AND WILL, OVER TIME, GROW THE SOUTH
AFRICAN ECONOMY.

THE FUNDING SCHEMES SUPPORT THE AIMS OF THE NEW GROWTH PATH
SET OUT BY THE ECONOMIC DEVELOPMENT DEPARTMENT, WHICH
EMPHASISES GROWTH, EMPLOYMENT CREATION AND EQUITY.

FUNDING WINDOW / 1. GRO-E SCHEME


FUNDS TO BE UTILISED FOR
2. RISK CAPITAL FACILITY PROGRAMME
3. SUPPORT PROGRAMME FOR INDUSTRIAL INNOVATION
4. TRANSFORMATION AND ENTREPRENEURSHIP SCHEME
5. GREEN ENERGY EFFICIENCY FUND
6. W OMEN ENTREPRENEURIAL FUND
7. DISTRESSED FUND
8. MANUFACTURING COMPETITIVENESS ENHANCEMENT
PROGRAMME

NATURE OF THE FUND CONCESSIONARY PRICING, RISK CAPITAL SHARING, DEVELOPMENT


FINANCE, EXPANSION CAPITAL

APPLICATION PROCEDURE DIRECT REQUEST / LETTER OF ENQUIRY / ONLINE ENQUIRY.

CONDITIONS FOR FUNDING VARIES DEPENDING ON FUND MANDATES

FUNDING CYCLE ONGOING

WEBSITE: WWW .IDC.CO.ZA/DEVELOPMENT-FUNDS

32
NAME DBSA DEVELOPMENT BANK OF SOUTHERN AFRICA

OBJECTIVE OF THE FUND: AS FINANCIER THE DBSA FOCUSES ON THE FUNDING OF LARGE SCALE INFRASTRUCTURE
PROJECTS WITHIN THE PUBLIC AND PRIVATE SECTOR. THIS FINANCING TAKES VARIOUS
FORMS.

NATURE OF THE FUND GRANTS: THE DBSA DEVELOPMENT FUND USED TO PROVIDE GRANT FUNDING AND CO-
FUNDING FOR PROJECT-LEVEL CAPACITY BUILDING PROJECTS AT MUNICIPAL LEVEL.
GIVEN
THAT THE DEVELOPMENT FUND HAS RECENTLY BEEN DE-REGISTERED IT IS UNCERTAIN
WHETHER THE DBSA WILL CONTINUE TO PROVIDE GRANT FUNDING THROUGH A DIFFERENT
FUND OR WHETHER THE DBSA HAS EFFECTIVELY EXITED GRANT FUNDING OF MUNICIPAL
INITIATIVES.

LENDING: DBSA LENDING PRODUCTS INCLUDE A RANGE OF FINANCIAL INSTRUMENTS


AND OTHER LENDING RELATED SERVICES THAT ARE AVAILABLE TO MUNICIPALITIES. THE
BANK OFFERS NUMEROUS COMBINATIONS OF FINANCIAL INSTRUMENTS STRUCTURED TO FIT
THE NEEDS OF A SPECIFIC MUNICIPAL CLIENT, AND LENDING FOCUSES ON INFRASTRUCTURE
AND COMMERCIALLY VIABLE PROJECTS. THE DBSA ALSO PROVIDES CREDIT LINES TO
OTHER DEVELOPMENT FINANCE INSTITUTIONS AND USES THE FOLLOWING CURRENCIES:
DOLLAR, EURO AND RAND. LONG-TERM LENDING IS GENERALLY FOR MORE THAN FIVE
YEARS.

INVESTING: THE DBSAS FINANCING ROLE ENTAILS THE PROVISION OF A RANGE OF


FINANCIAL PRODUCTS TO PRIVATE AND PUBLIC SECTOR ORGANIZATIONS. THE DBSAS
FINANCING ROLE WILL BE DETERMINED PRIMARILY BY THE NEED TO PLAY A CATALYTIC ROLE
IN LEVERAGING PRIVATE SECTOR INVESTMENT FOR MUNICIPAL INFRASTRUCTURE.
INVESTING PRODUCTS INCLUDE EQUITY FUNDS, BEE FINANCING OF EQUITIES, AND PRIVATE
FUNDING.

UNDERWRITING GUARANTEES: AS A DEVELOPMENT ORIENTATED FINANCIAL


INSTITUTION, THE
DBSA IS COMMITTED TO ASSUME RISK FOR DEVELOPMENT AND IMPROVE
THE BORROWING CAPACITY OF MUNICIPALITIES. THE BANK UNDERWRITES GUARANTEES
AND ITS CREDIT ENHANCES MUNICIPAL PROJECTS AND/CLIENTS TO ATTRACT BETTER
FINANCING TERMS AND CONDITIONS. ARRANGING OF FINANCE THE DBSA PARTNERS
WITH INTERNATIONAL DEVELOPMENT AND FINANCE INSTITUTIONS TO ENHANCE INTEGRATED
ECONOMIC DEVELOPMENT AND GROWTH AT MUNICIPAL LEVELS.

APPLICATION PROCEDURE DIRECT REQUEST / LETTER OF ENQUIRY / ONLINE ENQUIRY.

CONDITIONS FOR FUNDING VARIES DEPENDING ON NATURE OF SUPPORT PROVIDED

FUNDING CYCLE ONGOING

WEBSITE: WWW .DBSA.ORG

33
NAME NATIONAL LOTTERY DISTRIBUTION TRUST FUND (NLDTF)

OBJECTIVE OF THE FUND: TO SUPPORT NON-PROFIT ENTITIES WORKING FOR THE PUBLIC GOOD

FUNDING WINDOW / ARTS, CULTURE AND NATIONAL HERITAGE SECTOR


FUNDS TO BE UTILISED FOR
GENERALLY THIS SECTOR FUNDS THE DEVELOPMENT OF THE ARTS AND THE PRESERVATION
OF SOUTH AFRICAN CULTURE AND NATIONAL HERITAGE.

IN GENERAL, APPLICATIONS ARE WELCOMED FROM ORGANISATIONS THAT: ENABLE PEOPLE


ACROSS THE COUNTRY TO ENJOY A RANGE OF ARTS ACTIVITIES.

MAKE THE ARTS ACCESSIBLE TO MORE PEOPLE.


IMPROVE FACILITIES SO PEOPLE GET MORE ENJOYMENT FROM THE ARTS.
PROVIDE ARTS FACILITIES OUTSIDE MAJOR CULTURAL CENTRES
PROMOTE ART FORMS THAT ARE NOT ADEQUATELY SUPPORTED.
PRESERVE AND PROMOTE AWARENESS OF CULTURE AND OUR HISTORICAL,
NATURAL AND ARCHITECTURAL HERITAGE.
PROTECT AND PROMOTE TRADITIONAL KNOWLEDGE AND CULTURAL
EXPRESSIONS.
PROMOTE ARTS AND CRAFTS PRODUCED BY GROUPS OF WOMEN AND PEOPLE
WITH DISABILITIES.
DEVELOP AND PRESERVE CULTURAL HERITAGE SITES AS A WAY TO GENERATE
REVENUE AND DEVELOP COMMUNITIES.
PROVIDE TRAINING AND SUPPORT FOR WOMEN FARMERS.

WITHIN THIS FRAMEWORK, THE EMPHASIS MAY SHIFT SLIGHTLY FROM ONE CALL FOR
APPLICATIONS TO THE NEXT. ORGANISATIONS WISHING TO APPLY SHOULD READ THE
WORDING OF EACH CALL FOR APPLICATIONS CAREFULLY.

CHARITIES SECTOR

THE CHARITIES SECTOR RECEIVES THE LARGEST SHARE OF FUNDS AND COVERS A WIDE
RANGE OF ORGANISATIONS IN THE SOCIAL WELFARE, COMMUNITY HEALTH, LITERACY, AND
SOCIAL DEVELOPMENT FIELDS.

IN GENERAL, ORGANISATIONS CAN APPLY FOR FUNDS IF THEIR ACTIVITIES:

IMPROVE THE QUALITY OF LIFE OF THE COMMUNITY AS A WHOLE.


ASSIST DISADVANTAGED OR EXCLUDED GROUPS, SUCH AS THE ELDERLY,
PEOPLE WITH DISABILITIES AND VULNERABLE CHILDREN.
PROVIDE FACILITIES OR SERVICES FOR THE UNDERPRIVILEGED.
EXPAND HOME-BASED CARE SERVICES THROUGH TRAINING AND DEVELOPING
INFRASTRUCTURE FOR THE CARE OF OLD PEOPLE, SICK PEOPLE AND
VULNERABLE GROUPS, INCLUDING ORPHANED CHILDREN.
PROVIDE EDUCATIONAL FACILITIES FOR EARLY CHILDHOOD EDUCATION AND
ADULT LITERACY, AND UNDERTAKING VOCATIONAL TRAINING AND MENTORING
FOR SKILLS DEVELOPMENT THROUGH PROGRAMMES THAT INCLUDE PEOPLE WITH
DISABILITIES.

WITHIN THIS FRAMEWORK, THE EMPHASIS MAY SHIFT SLIGHTLY FROM ONE CALL FOR
APPLICATIONS TO THE NEXT. ORGANISATIONS WISHING TO APPLY SHOULD READ THE
WORDING OF EACH CALL FOR APPLICATIONS CAREFULLY.

34
SPORT AND RECREATION SECTOR

EQUITY, ACCESS AND DEVELOPMENT ARE KEY THEMES IN THIS SECTOR, WHICH ACCEPTS
APPLICATIONS FROM NATIONAL SPORTING BODIES, THROUGH REGIONAL BODIES, TO LOCAL
SPORTS CLUBS, RECREATIONAL CLUBS AND SCHOOLS.

GENERALLY, THE SPORT AND RECREATION DISTRIBUTING AGENCY CONSIDERS FUNDING


FOR ORGANISATIONS THAT:

ENABLE MORE PEOPLE TO BECOME INVOLVED IN SPORT AND RECREATION.


ASSIST DISADVANTAGED COMMUNITIES TO PARTICIPATE IN SPORT AND
RECREATION ACTIVITIES.
PROVIDE SPORT AND RECREATION FACILITIES THAT ARE ACCESSIBLE TO
COMMUNITIES.
DEVELOP SPORT AND RECREATIONAL FACILITIES IN ORDER TO NURTURE TALENT
IN RURAL AREAS.
INCREASE ACCESSIBILITY TO SPORT AND RECREATION FACILITIES FOR ALL,
INCLUDING PEOPLE WITH DISABILITIES.

WITHIN THIS FRAMEWORK, THE EMPHASIS MAY SHIFT SLIGHTLY FROM ONE CALL FOR
APPLICATIONS TO THE NEXT. ORGANISATIONS WISHING TO APPLY SHOULD READ THE
WORDING OF EACH CALL FOR APPLICATIONS CAREFULLY.

NATURE OF THE FUND GRANT FUNDING, ALLOCATED ON A COMPETITIVE BASIS.

APPLICATION PROCEDURE CALL FOR PROPOSALS ARE MADE IN EACH SECTOR

CONDITIONS FOR FUNDING NGOS WHOSE ACTIVITIES FIT THE SCOPE OF THE THREE FUNDING SECTORS I.E. 1. ARTS,
CULTURE AND NATIONAL HERITAGE; 2. CHARITIES (SOCIAL WELFARE, COMMUNITY HEALTH,
LITERACY, EDUCATION, SOCIAL DEVELOPMENT) 3. SPORTS AND RECREATION

FUNDING CYCLE ANNUAL

WEBSITE: WWW .NLB.ORG.ZA

35
NAME TOURISM SUPPORT PROGRAMME

OBJECTIVE OF THE FUND: THE OBJECTIVE OF THE PROGRAMME IS TO FACILITATE THE EXPANSION OF
TOURISM ENTERPRISES THAT WILL STIMULATE JOB CREATION AND
INCREASE THE GEOGRAPHIC SPREAD OF TOURISM INVESTMENT.

FUNDING WINDOW / TOURISM OPERATIONS SUCH AS:


FUNDS TO BE UTILISED FOR
ACCOMMODATION SERVICES
PASSENGER TRANSPORT SERVICES
TOUR OPERATORS
CULTURAL SERVICES, AND RECREATIONAL AND ENTERTAINMENT
SERVICES.

NATURE OF THE FUND REIMBURSABLE CASH GRANT

APPLICATION PROCEDURE DIRECT REQUEST / LETTER OF ENQUIRY / ONLINE ENQUIRY.

CONDITIONS FOR FUNDING DEPENDED ON NATURE OF PROJECT

FUNDING CYCLE ONGOING

WWW .TOURISM.GOV.ZA
WEBSITE:

36
The following graphic matches the identified projects with potential funders / investors.

PROJECTS FUNDING
1: Food Park - Klapmuts

2. Agri-processing Industrial Park (Klapmuts)

3. Align Stellenbosch MSDF and Stellenbosch


University Strategic Development Framework

4. Portfolio of Investment Opportunities THE GREEN FUND

5. Database of Potential Investors

6. Invest- Stellenbosch website CRITICAL INFRASTRUCTURE


PROGRAMME (CIP) -DTI
7. Investment Lead Tracking System

8. Investment Promotion Material


INCUBATOR SUPPORT
9. Investment Destination Marketing Strategy
PROGRAMME (ISP) - DTI

10. Package of Investment Incentives

11. Investor Visitation Policy, Protocol and


Programme.

12. Investment Promotions Centre with


associated Information Services

13. Precinct / Node Development Visions

14. Emerald Necklace string of culture, heritage


and nature tourism hamlets.

15. Infrastructure Investment Strategy

16. Solid Waste Strategy

17. Sports Tourism Strategy

18. Align SLM and SU procurement policies ito


BEE and green procurement

19. Triangle of Agricultural Excellence


(Elsenburg, Stellenbosch University,
Sustainability Institute - FARE Initiative.
Tourism Support Programme
20. Food Bank

21. Funding Sources & Pitching Sessions

37
This following graphic indicates the steps the municipality must follow in terms of submitting
enquiries and applications for the funding for the identified projects.

FUNDING PROCUREMENT PROCESS

Follow-up

Online
application or
physical
submission of
application

Develop proposal and


prepare / collate
supporting documentation

Letter of enquiry / E-mail enquiry

Match need with potential funders

Identify municipal need / projects


- Prioritise
- Approval / sign-off

38
ANNEXURES
ANNEXURE 1 - KLAPMUTS SITE INFORMATION PACKAGE

1. A copy of a relevant detailed urban planning document related to the site. For example, a
map showing the area where the site is located and the site itself, its borders, existing
infrastructure etc.
2. Basic information about the site
size, geographical location (address or geodetic data),
information about location with all building parameters and permitted
uses of the site.

3. Aerial photo (orthophoto image) if available and 3D image of the site (optional).

4. Cadastral and land register data for the site; including cadastral parcels which should be
listed.

5. A document confirming local governmentsdispose of the land. If there is a third partys


claim for this land (a legal cloud), this should be clearly disclosed. The general rule,
though, should be not putting the land burdened by claims for disposal.

6. Right that is transferred (ownership or lease right (duration/number of years)).

7. Initial valuation / price / pricing model.

8. Model contract on sale of land.

9. Contacts of a person (name, position, body / departments, phone number, email address)
appointed as responsible for overall coordination of the preparation of disposal and
assistance to potential investors (or their representatives, brokers etc.) in connection with
the subject site (from the announcement to the land contract signature).

10. Contacts of all persons (name, position, body / departments, phone nombers, email
addresses) from bodies and departments of the municipality responsible for:
Processing a sale contract of the site,
Issuance of necessary permits for development,

39
Various infrastructure hook-ups needed for the site,
Local economic development and investments (if such exists).

11. Steps in the process of registration of rights to the site after its acquisition.

12. Information on obtaining permits for development.

13. List and characteristics (capacity) of existing infrastructure.

14. List of missing infrastructure and position of the closest (primary) infrastructure.

15. The schedules / rates of infrastructure-related fees and charges.

16.The amount of fees and charges for connecting to the utility infrastructure.

40

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