The Free State province is centrally located in the Republic of South Africa occupying 129 825 square kilometres of land. The province is located between the Vaal River in the North and the Orange River in the South and it is in the boarder of Lesotho.
Its population size of the province is 2 745 590 which is constituted of the seSotho and Afrikaans speaking South Africans. The SeSotho speaking people in the Free State State account for 64.2 percent of the population followed by 12.7% of Afrikaans speaking people and lastly with 7.5% of the population speaking IsiXhosa. The Black/African population group constitute the majority in the province (85%), followed by the White population group (12%). The Coloured and Indian/ Asian population groups constitute the minority in the province (3,0 % and 0,1% respectively).
The economy of the province is derived from agriculture and mining. The province has 12 gold mines which produce 30% of the country’s gold and its by-product called uranium. In the Sasolburg area, Bituminous coal is mined and this is further converted into petrochemicals. The province also produces a substantial amount of diamonds.
The province is made up of one metropolitan municipality, four district municipalities and nineteen local municipalities. The capital city of the province is Bloemfontein or Mangaung.
Location Of The IDT Regional Office:
The IDT Free State Regional Office is located in the capital city of the province, which is Mangaung.
Department of Public Works and Infrastructure Regional Office
18 President Brand Street
Tel: (051) 411 6252
Regional General Manager
Executive Summary: 2014 Regional Environmental Scan
This document provides a synopsis of the key issues characterising and impacting on the operations of the IDT Free State Regional office. The contents are extracted from the main environmental scan report prepared by the regional office. The reader is therefore directed to the main report for the main content.
2. PROVINCIAL OVERVIEW
The Free State province is centrally located in South Africa with 129 825 land area in square kilometres, which is 10.6% of the country.
Its population size is 2 745 590 as counted in 2011, compared to 2 706 775 in 2001. It has a gender segregation of 1 328 967 females and 1 416 623 males. Among persons aged 5-24 years, 270 629 are not attending school, while 289 812 attend school. It has 7.1% of population aged 20 years and older with no education, 9.8% with post grade 12 qualifications.
Census results show that Free State grew by 0,5% in the period 1996–2001 and 0,1% in the period 2001–2011. The Black/African population group constitute the majority in the province (85%), followed by the White population group (12%). The Coloured and Indian/ Asian population groups constitute the minority in the province (3,0 % and 0,1% respectively).
2.2 Political & Administrative Perspective
The province is governed by the African National Congress which won the 2014 elections by 69.85% with 22 seats. The province has many opposition parties but the main three parties are the Democratic Alliance (DA), Economic Freedom Fighters (EFF) and VryHeidsfront Plus (VF Plus) which won by 16.23% (5 seats), 8.15% (2 seats) and 2.10% (1 seat) respectively.
In the State of the Province Address, Honourable Premier Ace Magashule mentioned the following to be the priorities of the province in alignment to the priorities as mentioned in the State of the Nations Address. Improving the quality of basic education; bursaries and skills development; youth development; long and healthy life for all; safety; decent employment through inclusive economic growth; Strategic Integrated Projects (SIPs) 9 and 10; Tourism; other infrastructure development: road infrastructure and freight rail; support to Cooperatives and SMMEs; job creation initiatives; vibrant, equitable and sustainable rural communities with food security for all; sustainable human settlements and improved quality of household life; upgrading of townships; upgrading of hostels; People’s Housing Process (PHP); provision of basic services; responsive, accountable, effective and efficient local government system; spatial integration of economic and residential activities; as well as social cohesion (SOPA, 21 Feb 2014).
2.3 Socio-Economic Perspective
The economy of the Free State province is driven mainly from four drivers which are Agriculture, Mining, Industry, Tourism and Infrastructure. Infrastructure conditional grants remain the second biggest source of revenue for the Province. The 2013 MTEF allocations for Conditional Grants amount to R18.659 billion; this amount is divided as follows: R6.021 billion in 2013/14, R5.923 billion in 2014/15 and R6.715 billion in 2015/16.
The table below is a brief synopsis of the socio-economic perspective for the province:
|Population Size||2 745 590 (5.3% of total national population)|
|Females||1 416 623|
|Males||1 328 967|
|Grade 12/Std 10||26.7%|
|Key economic sectors||Agriculture, mining, tourism and infrastructure|
|Average household per capita/income||R 75 314 (R 60 000 national)|
2.4 Physical Perspective
The Free State Province is one of nine provinces in South Africa and is centrally located in terms of the geographic distribution. It represents 10.6% of the total land area of the country with wide horizons, blue skies, farmland, mountains, goldfields and widely dispersed towns. It is peaceful, with a high quality of life, good infrastructure and a low crime rate.
|Number of households||823 316|
|Households in Formal dwellings||81.1%|
|Households in Informal dwellings||15.7%|
|Households with (ownership) as tenure status||60.7%|
|Households renting their dwellings||19.9%|
2.5 Services Delivery
|Level of access to basic services|
|Households using electricity for cooking, heating, and lighting||84.5% (nb: CRDP)|
|Households with access to refuse removal services by the local authority||72.7% (nb: FFWP)|
|Households with access to piped water inside dwelling or yard||89.1%|
|Households with access to piped water outside dwelling and yard||8.8%|
|Households with no access to water||2.2%|
|Flush toilet (connected to sewerage system)||65%|
|Flush toilet (with septic tank)||2%|
|Pit Toilet with ventilation (VIP)||9%|
|Pit Toilet without ventilation||14%|
3. INDUSTRY ANALYSIS
3.1 Competitor Analysis
|Main actors/competitors||Market Dominants||Competitor products/services similar to those provided by the IDT||Target locations by IDT Competitors|
|1. ??? Public works[ specific provincial department name]2. Education [specific provincial department name]
3. Health [ same as 1 and 2 above]
5. DBSA and,
6. Development agency (Premier’s office) [ same as 1, 2 and 3 above]
|Public Works[[specific provincial department name]
|Social development programmes
Social infrastructure programmes
[which competitor applies to which IDT portfolio]
[which competitor is which location]
3.2 Client Analysis
3.3 Supplier Analysis
|Social Infrastructure||• Consultants: we need their CIDBs, BBBEE, and Cipro• Contractors: CIDB’s, BBBEE, and Cipro (Supplier questioners)
• Supplier of goods and services (same documents except professional docs)
|Social Development||• Supplier of goods and services (same documents except professional docs) – [what does this mean???]|
4. BUSINESS GENERATION & PORTFOLIO GROWTH
4.1 Business Generation
The regional Business Generated for 2013/14 is reflected in the table below:
|VALUE OF BUSINESS GENERATED 2013/14||YE TARGET||YE ACTUAL (ACHIEVEMENT)||% VARIANCE||DIVERSIFICATION OF PORTOLIO (BY RAND VALUE, BASED ON ACTUALS)|
|Free State||746 836 232||509 681 067||-32%||424 078 221||83||85 602 846||17|
4.2 Key Opportunities
Total projected expenditure tabled for the 2012 MTEF period for the province (with relevance to the IDT Free State region):
|Total Budget Free State:R 84,143 bn||R 26,872 bn||R 27,720 bn||R 29,551 bn|
|Quality Basic Education||R 40,456 bn||R 11,018 bn||R 11,804 bn|
|Long Healthy Life||R 7,895 bn||R 8,370 bn||R 8,848 bn|
|Social Development||R 951,229 m||R 985,160 m||R 1,032 bn|
|DSACR||R 515,137 m||R 584,341 m||R 630,566 m|
|DETEA||R 450,155 m||R 448,703 m||R 465,873 m|
|Human Settlements||R 1,234 bn||R 705,883 m||R 719,329 m|
|Public Works||R 1,418 bn||R 1,459 bn||R 1,501 bn|
|Police, Roads and Transport||R 2,260 bn||R 2,356 bn||R 2,694 bn|
|Vibrant, Equitable and Sustainable Rural Communities|
|Agriculture & Rural Development||R 673,294 m||R 696,528 m||R 709,433 m|
|Accountable, Effective and Efficient Governance|
|DCoGTA||R 348,413 m||R 373,086 m||R 392,140 m|
4.3 Portfolio Growth
The regional Business Generation over MTEF (3 years) is reflected below:
|Value||Social Infrastructure||Social Development|
|Programmes||No. of Projects||Programmes||No. of Projects|
|323 531 222||ASIDI||10|
|54 188 459.80||Upgrades, Renovations and Refurbishment||2|
|3 000 000||Correctional Services||1|
|19 571 625||Heritage Programmes (Arts and Culture)||5|
|7 725 946.62||Heritage Programmes (Sports, Arts, Culture Recreation)||2|
|296 099 666.67||Community Facilities||0|
|704 116 919.79||6||20||1||2|
5. SWOT ANALYSIS
STRATEGIC ANALYSIS & IMPLICATIONS