Embed Size (px)
Citation preview
SUSTAINABLE LIVELIHOODS IN A NEW HOUSING DEVELOPMENT: THE CASE OF KUYGA, NELSON MANDELA BAY MUNICIPALITY
By
Khululwa Gugwini
A Treatise submitted in partial fulfilment of the requirements for the degree of Masters in Development Studies,
in the Faculty of Business and Economic Sciences at the Nelson Mandela Metropolitan University
December 2013
Promoter: Dr Janet Cherry
brought to you by COREView metadata, citation and similar papers at core.ac.uk
provided by South East Academic Libraries System (SEALS)
Declaration
I, Khululwa Gugwini 210242442, hereby declare that the treaties for the degree of Master in Development Studies to be awarded is my own work and that it has not previously been submitted for assessment or completion of any postgraduate qualification to another University or for another qualification.
Khululwa Gugwini
1 | P a g e
TABLE OF CONTENTS
PAGE NO
CHAPTER 1
RATIONALE AND DESIGN
1.1 Background…………………………………………………...............................5-7
1.2. Research problem………………………………………………………………..7
1.3. Study aims ………………………………………………………………………..7
1.4 Study objectives …………………………………………………………………..8
1.5 Study outline………………………………………………………………………..8-9
1.6 Conclusion……………………...…………………………………………………...9
CHAPTER 2
LITERATURE REVIEW
2.1. Introduction………………………………………………………………………..10
2.2. Urbanisation……………………......................................................................10-11
2.3. Education is vital for development……………...............................................12
2.4. Sustainable livelihoods…………………………………………………………..12-13
2.5. Unemployment in South Africa…………………………...................................13
2.6. Legislative framework…………………………………......................................13-14
2.6.1. A summary of White Paper,1994……………………………………..............15-16
2 | P a g e
2.6.2. The housing Act, 107 of 1997…………………………………………………15-16
2.6.3. Breaking New Ground (2004)………………………………………………….16-18
2.7. Economic Policies…………………………………………………………………18
2.7.1. Reconstruction and development plan (1994) ………………………………18-19
2.7.2. GEAR (1996……….....................................................................................19
2.7.3. AsgiSA (2006) ………………..………………………………………...............20
2.8. Local Economic Development……………………………………………………21-23
2.8.1. LED Draft Policy (2002)……………………….. ……………………………….23-24
2.9. Governance and development…………………………………………………….24
2.9.1. The Constitution of the Republic of South Africa (1996)…………………......24-25
2.9.2. White Paper on Local Government (1998) …………………………………….25-28
2.10.1. Integrated Development Plan……..……………………………………………28-29
2.10.2. Aspects of IDP……………………………………………………………………29
2.10.3. NMBM IDP-2011-2016…………………………………………………………..29-30
2.11 NMBM 2020 Citywide Strategy …………………………………………………....30-31
2.12. Conclusion… ………………………………………………………………………..31
CHAPTER 3
RESEARCH METHODOLOGY
3.1. Introduction……………………………………………………………………….32
3.2. Research methodology……………………………………..…………………..32
3.3. Research design…………………………………………………………..……..32
3.3.1. Primary data……………………………………………………..…..................33
3.3.2. Secondary sources……………………… …….…………..….…………….....33
3.4. Qualitative tool……………………………………………… ……………………33-34
3 | P a g e
3.5. Quantitative tool………………………………………… ……………….….......34
3.6. Data collection………………………………………………… ………….….....34
3.6.1. Interviews………………………………………………………………..…......34-35
3.6.2. Opinion survey………………………………………………………….….......36
3.6.3. Sampling…………………………………….…………………………………..36-37
3.7. Document review……….………………………………….……..……..……….40-41
3.8. Content analysis…………………………………… …………….……………..37-39
3.9. Ethical issues…………………………… ……………………………………….40
CHAPTER 4
RESEARCH FINDINGS AND ANALYSIS
4.1. Introduction……………………………………………………………………41
4.2. Section A
a) Characteristics of Kuyga community….……………………......... 41- 43
4.3. Section B
b) Income and employment in
Kuyga……………………….…………………………………....…..44-47
c) Transport……………………………………………………………..47
d) Local economic development……………………………………...47-48
4.4. Section C
4 | P a g e
a) Opinions of Kuyga residents……………………………….……48-49
b) Challenges of low-income development……………………….49-53
4.6. Conclusion……………………………………………………………………53-54
CHAPTER 5
SUMMARY, RECOMMENDATIONS AND CONCLUSION
5.1 Introduction………………………………………………………………………55
5.2 Summary of the findings and highlights of the study……………………….55-57
5.3 Recommendations………………………………………………………………57--58
5.4 Conclusion………………………………………………………………………..58
5.5 Bibliography………………………………………………………………………59-64
5 | P a g e
CHAPTER ONE
RATIONALE AND DESIGN
1.1. BACKGROUND
In the current democratic dispensation, South Africa as a developmental state demands
the building of a caring society. The South African state should not work in isolation, but
should rather engage in collaborative acts to realise the country’s ultimate goal, which is
to ensure that all citizens have access to basic services.
Poverty, inequality and unemployment are entwined in South Africa, and some believe
first boosting economic growth and then using the growth to develop or improve the
conditions of the poor can reduce poverty. Gelb (2007) believes that the process of
growth through redistribution focuses on redistributing income and wealth to the poor to
increase domestic demand and drive growth.
Pretorius (2010) argues that the poor and unemployed have little bargaining power.
Employed people have the option of industrial action, but the poorest of the poor are
disempowered and dependent. However, poor people are increasingly using their
limited power to protest and challenge local government agencies. This section of
society shows signs of social disintegration, which will present the local government
with a challenge that may require severe action (Pretorius 2010).
This research study explores livelihoods and the opportunities for creating more
sustainable and viable livelihoods in the low-income housing development of Kuyga.
The Kuyga housing project is a low-cost housing project built to accommodate newly
urbanised farm workers from the outlying areas and squatter camps of the Nelson
Mandela Metropolitan Municipality, such as Plakkerskamp, Wedgewood, Level Miles
and Boserkamp. On 8 March 2002, the Member of the Executive Council (MEC)
approved 1170 subsidies for government contractors to build houses, at R16000 per
subsidy. Phase 1 is Fran’s and Phase 2 is in Mission Rd. (NMBM, 2011). Most Kuyga
6 | P a g e
residents are unemployed and those who work are semi-skilled and earn very low
wages. The housing development is far from industries where people can easily seek
work, which contributes to poverty and the high unemployment rate in the area (Ndlebe,
2011).
According to Pretorius (2010), the Kuyga community has the following assets and
resources:
• A community clinic with a vegetable garden;
• Kuyga intermediate (primary) school;
• NGO: “Age in Action”;
• A computer literacy training program (community centre) established by an information
technology (IT) company and managed by the Department of Social Development. It
operated efficiently at the outset, but closed after two years – 2006.
• Every Thursday the Department of Social Development visits the area;
• Masakhane, a current contractor in Kuyga, sponsors a soup kitchen 4 days a week for
300 children;
• Home-based care;
• A crèche (brick built) and four informal crèches; and
• Ten churches (in shacks) and one community hall.
“In terms of the Housing Act of 1997, housing development means the establishment
and maintenance of habitable, stable and sustainable public and private residential
environments to ensure viable households and communities in areas that allow
convenient access to economic opportunities, and to health, educational and social
amenities in which all citizens and permanent residents will, on a progressive basis,
have access to:
a) Permanent residential structures with secure tenure, ensuring internal and
external privacy and providing adequate protection against the elements; and
a) Potable water, adequate sanitary facilities and domestic energy supply”
(Housing Act 107, 1997).
7 | P a g e
According to the Reconstruction and Development Programme (1994), “no political
democracy can survive and flourish if the mass of our people remain in poverty without
land and without tangible prospects about better life. Attacking poverty and deprivation
must therefore be the first priority in democratic government”.
1.2. THE RESEARCH PROBLEM
In the case of Kuyga in Nelson Mandela Bay Municipality (NMBM), most residents are
unemployed and those who are working are semi-skilled and earn low wages. Most
households survive on grants. The area is far from industries where people can seek
work, which contributes to poverty and unemployment. According to Pretorius, the
current unemployment rate is an estimated 80 to 90 percent for the Kuyga area. People
in the area depend on limited projects, such as garden and cleaning services (Pretorius,
2010:59).
After 1994, the African National Congress (ANC) government embarked on a housing
delivery programme to rectify past imbalances in housing provision. This enhanced
human settlement development nationally, provincially and locally to meet the needs of
South African citizens. “These include, among others, expressing housing policies,
confirming adequate access to relevant information so that citizens and civil society can
mobilize around housing rights, and on-going monitoring and evaluation of housing
progress and implementation” (Expanding Socio-Economic Rights and Access to
Housing, 2003: 4).
1.3 AIM OF THE STUDY
In this study, the researcher explores the livelihoods of the Kuyga community and the
opportunities for creating more sustainable and viable livelihoods.
8 | P a g e
1.4. OBJECTIVES OF THE STUDY.
• To analyse the livelihoods of residents of a low-income housing development;
• To assess the role played by local economic development initiatives in the Kuyga
community; and
• To make recommendations regarding policies and actions that could reduce the
unemployment rate and create sustainable and viable livelihoods for the Kuyga
community in NMBM.
1.5. OUTLINE OF THE STUDY
The study comprises of the following proposed chapters:
CHAPTER ONE: AN OVERVIEW OF THE RESEARCH
In this chapter, the researcher demarcates the field of study, formulates the research
objectives and study goals, and provides an outline of the study.
CHAPTER TWO: LITERATURE REVIEW
To sharpen and deepen the theoretical framework of this research, the researcher
reviewed different types of journals, books, legislation, relevant policies and internet
sources. In addition, this chapter outlines issues relating to local economic development
plans to reduce unemployment.
CHAPTER THREE: RESEARCH METHODOLOGY
This chapter contains an exposition of the research design, methodology and
procedures used in the research. The researcher used semi-structured interviews and
questionnaires completed by community members and selected municipal officials.
9 | P a g e
CHAPTER FOUR: DATA ANALYSIS AND VALIDATION OF RESULTS
This chapter contains a review of the empirical survey of members of the Kuyga
community in NMBM. The researcher analyses and reports the findings of the study in
this section.
CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS
In this chapter, the researcher provides summaries of the preceding chapters. General
conclusions and recommendations based on the empirical survey follow.
1.6. CONCLUSION
Since 1994, the government has formulated and implemented numerous policies and
statutory developments to reduce poverty and unemployment levels. In order to make
meaningful, rapid and sustained progress in reducing poverty and unemployment over
the coming years, it is important to evaluate the implementation of these development
plans and to develop programs that involve communities, specifically the unemployed.
These programs should aim to develop the capabilities of individuals and communities
to create sustainable livelihoods for all citizens. It is the mandate of all local
municipalities to implement these policies in their communities.
10 | P a g e
CHAPTER 2
LITERATURE REVIEW
2.1 INTRODUCTION
This chapter provides the background information required for the researcher to
determine the research topic in a way that permits a clear formulation of the problem
and the hypothesis. The researcher obtained this information by examining and
comparing publications that appear relevant to the research topic (Claire Bless & Craig
Higson-Smith, 2000). In addition, Chapter 2 outlines the relevant legislation, policy
documents and NMBM programs and strategies to improve the current situation the
Kuyga community faces.
2.2. URBANISATION AND URBAN POVERTY IN THE NELSON MANDELA
METROPOLITAN AREA
De Beer & Swanepoel (1994) describe “urbanisation as a process in which people
(demographic aspect), services (social aspect) and opportunities, such as employment
(economic aspect), are concentrated in a limited geographical area (spatial aspect)”.
Because it is a process, urbanisation takes place continuously. Rural deprivation and
poverty push people towards cities. There is too little land for income generation and too
few job opportunities, and schools are rare. These factors contribute to the hardships
experienced by rural inhabitants and lead to the increasingly common belief that there is
a better life in the cities (De Beer & Swanepoel 1994).
De Beer & Swanepoel (1994) argue that most people relocate to urban areas because
the government is urban biased due to government policies that favour investments and
large development projects in the cities. Third World governments tend to invest more
capital in roads, schools, hospitals, and air fields in urban areas, which are, after all,
where the ruling elite mostly find themselves (De Beer & Swanepoel 1994).
11 | P a g e
The lack of proper housing and urban infrastructure presently experienced best illustrate
the consequences of urbanisation in South Africa. Through the influx of people from
rural to urban areas, an increasing number of backyard shacks and squatter settlements
have formed throughout metropolitan areas. In an attempt to solve this, the government
formulated strategies and policies such as the Reconstruction and Development
Programme, GEAR and ASGISA. The rate of unemployment is higher than 50 percent
in some places; finding a job is a priority on the needs list of these people ( De Beer &
Swanepoel 1994).
Pretorius (2010) claims levels of poverty and desperation have risen due to a
combination of the lack of new job-creating investment, drought, and the on-going
global financial crisis. In response to this need, the NMBM is planning a Metro-wide
feeding scheme. On 25 July 2010, the Executive Mayor of Nelson Mandela Bay,
Zanoxolo Wayile, committed R10 million to the “War on Hunger” which would bring relief
to the 10 most distressed areas of the Metro.
Pretorius further argues that there are approximately 90 000 people in the 11 selected
areas of the War on Hunger programme and, based on the available data, there are an
estimated 370 000 or more poor people in the Metro. All the areas identified are
severely poor. Most of the zones form part of the list of areas the NMBM regards as
service delivery priority areas. One can assume that the 40 to 45 areas on the
‘extended vulnerable communities’ list show similar trends. However, the 11 zones
identified in the War on Hunger programme are the most distressed and one can expect
the degree of poverty to be in some areas. Thus, the figure of 250 000 is probably too
low and the figure of 370 000 is hopefully too high (Pretorius, 2010).
2.3. EDUCATION IS VITAL FOR DEVELOPMENT IN COMMUNITIES
12 | P a g e
According to Psacharopoulos et.al. (1985) investment in education is a key element of
the development process. The growing recognition, since the early 1960s, that investing
in formal and informal education and training provides and enhances the skills,
knowledge, attitudes and motivation necessary for economic and social development
reflect the importance of education. For more than twenty years, the World Bank has
been providing loans for education in developing countries and accumulating
experience in the formulation of educational policies and project design.
Numerous authors of socio-economic literature have documented that overpopulation
results in unemployment, especially in developing countries. When people are
unemployed and lack the entrepreneurial skills and knowledge to create income for
themselves, they become poor. Poverty, in turn, leads to an inability to afford a proper
house, even with financial assistance from the government (Psacharopoulos et.al.
1985).
The concept that investment in human capital promotes economic growth dates to the
time of Adam Smith and the early classical economists, who emphasised the
importance of investing in human skills. In the 1960s, Schultz (1961) and Denison
(1962) showed that education directly contributes to the growth of national income by
improving the skills and production capacities of the labour force.
2.4. SUSTAINABLE LIVELIHOODS PERSPECTIVE
According to Davids (2005), sustainable livelihood remains a significant challenge in
South Africa, especially in the Eastern Cape Province. Many communities demonstrate
their dissatisfaction through protest. However, the sustainable livelihoods perspective
stresses the participation of individuals and communities in defining and solving their
own poverty. The assumption is that not all people are poor or vulnerable in the same
way and that identifying local variations in poverty or deprivation is crucial in shaping
effective development strategies. By focusing on vulnerability or the inability to cope
with hardship rather than on poverty per se, the issues that emerge may not be the lack
13 | P a g e
of an income or even unemployment, but rather factors such as the breakdown of the
family or social problems, for example, alcoholism.
2.5. UNEMPLOYMENT IN SOUTH AFRICA
Fryer (2006:1) argues that levels of unemployment are central markers of levels of
poverty in South Africa. Over the last decade, there has been a steady increase in the
level of unemployment in South Africa. Unemployment rose from 34.3 percent in
September 2000 to 40.5 percent in March 2005. Race, geographic location, gender and
level of skills continue to influence the likelihood of being employed in South Africa
(Fryer, 2006:1).
The Labour Force Survey in Makhalane (2008) states that there was an estimated 29.5
million people of working age in South Africa in March 2005. Of the 22.8 million black
South Africans of working age, just over half (11.8 million) were economically active.
Eight million of these people were working and 3.7 million people were unemployed. In
contrast, 2.1 out of 3 million white South Africans were economically active; 2 million
were working and 107 000 were unemployed. Of the 4.2 million unemployed workers in
South Africa, 1.6 million have been looking for a job for more or less than 3 years and
2.5 million have never worked before. Of these, the largest single section (41. 5 %) has
been looking for a job for at least three years.
2.6. LEGISLATIVE FRAMEWORK FOR HOUSING.
Since 1994, the government has formulated and implemented numerous policy and
statutory developments to give effect to the new approach to housing. These include the
Reconstruction and Development Programme (RDP) of 1994; the Housing Act, 1997
(Act No. 107 Of 1997), the Constitution of the Republic of South Africa (Act 108 of
1996), the White Paper on Local Government, the Local Government: Municipal
Finance Management Act (Act 32 of 2000), the Municipal Service policy of 2000, the
14 | P a g e
2020 City Wide Economic Development, the White Paper, 1994 and the
Comprehensive Plan for the Development of Sustainable Human Settlements, 2004
known as Breaking New Ground in Housing. South Africa’s current housing policy is
rooted in the 1994 Housing White Paper. The fundamental policy and development
principles introduced by the Housing White Paper remain relevant and guide all
developments in respect of housing policy and implementation (Chapter 2 of Part 2 of
the Housing Code, 2009). For providing housing in municipalities, the Draft Social
Housing Policy aimed at social housing in South Africa (2003:13) states that the
principle of integrated development planning is fundamental to the government housing
development approach. It is also a cornerstone for the creation of sustainable human
settlements. It is therefore a requirement that demonstrated demand in the framework of
an approved Integrated Development Plan of the relevant municipality support all
housing project funding applications.
According to the Municipal Finance Management Act (Act 56 of 2003), this act was
formulated to secure sound and sustainable management of the financial affairs of
municipalities and other institutions in the local sphere of government, to establish
treasury norms and standards for the local sphere of government, and to provide for the
matter connected therewith.
According to the Division of Revenue Act (Act 7 of 2003), the purpose of this act is to
provide for the equitable division of revenue anticipated to be raised nationally among
the national, provincial and local spheres of government, and the reporting requirements
for allocations pursuant to such division; to permit the withholding and delaying of
payments in certain circumstances; to provide for liability costs incurred for litigation in
violation of the principles of co-operatives’ governance and intergovernmental relations;
to regulate the adoption of local government budgets and to provide for matters
connected therewith.
2.6.1 A SUMMARY OF THE HOUSING WHITE PAPER, 1994
15 | P a g e
The White Paper, published in December 1994, contains the fundamental principles of
the government’s housing policy to achieve the housing vision.
“The housing vision is the establishment of viable, socially and economically integrated
communities, situated in areas allowing convenient access to economic opportunities,
as well as to health, educational and social amenities in which all South Africans will, on
a progressive basis, have access to” (The Housing White Paper, 1994).
The goal of the Housing White Paper is to improve the quality of living of all South
Africans with an emphasis on the poor and those who cannot satisfy their basic housing
needs independently (The Housing White Paper, 1994).
Section 5.7.6 of the White Paper on Housing (1994) reviews the national policy
approach to disposal and monitoring of publicly owned land for low-income housing.
Moreover, to provide low–income housing to the target group efficiently and effectively,
the state should launch sustainable housing programmes to meet the needs arising
from the inherited backlog and population growth.
2.6.2. THE HOUSING ACT 107 of 1997.
The Housing Act 107 of 1997 holds that its primary purpose is to provide for the
facilitation of a sustainable housing development process and to establish general
principles applicable to housing development in all spheres of government. The Act also
defines the functions of government in respect of housing development. In terms of
section 9 of the Act, every municipality must, as part of its process of integrated
development planning, take all reasonable and necessary steps within the framework of
national and provincial housing legislation and policy to:
16 | P a g e
Ensure that the inhabitants of its area of jurisdiction have access to adequate
housing on a progressive basis;
Set housing delivery goals in respect of its area of jurisdiction;
Identify and design land for housing development;
Create and maintain a public environment conducive to housing development
that is financially and socially viable;
Promote the resolution of conflicts arising in housing development process;
Initiate, plan, co-ordinate, facilitate and promote and enable appropriate housing
development in its area of jurisdiction;
Provide bulk engineering services and revenue generating services in so far as
such services are not provided by specialist utility suppliers; and
Plan and manage land use and development.
2.6.3. BREAKING NEW GROUND POLICY (2004)
The policy document, Breaking New Ground: A Comprehensive Plan for the
Development of Sustainable Human Settlement, published by the National Department
of Human Settlements in 2004, provides the following guidelines:
• Residents should live in a safe and secure environment, and have adequate access to
economic opportunities, a mix of safe and secure housing, and tenure types, reliable
and affordable basic services, educational, entertainment and cultural activities, and
health, welfare and police services.
• Ensure the development of compact, mixed land use, diverse, life-enhancing
environments, with maximum possibilities for pedestrian movement and transit via safe
and efficient public transport in cases where motorised means of movement is
imperative.
• Ensure that low-income housing is provided in close proximity to areas of opportunity.
17 | P a g e
• Integrate previously excluded groups into the city, and the benefits it offers, and to
ensure the development of more integrated, functional and environmentally sustainable
human settlements, towns and cities. The latter includes densification.
• Encourage Social (Medium-Density) Housing – Social Housing is generally medium-
density, and this housing intervention may make a strong contribution to urban renewal
and integration.
• There is a need to move away from a housing-only approach to a more holistic
development of human settlements, including the provision of social and economic
infrastructure.
• Multi-purpose cluster concept will be applied to incorporate the provision of primary
municipal facilities, such as parks, playgrounds, sports fields, crèches, community halls,
taxi ranks, satellite police stations, municipal clinics, and informal trading facilities.
• More appropriate settlement designs and housing products, and more acceptable
housing quality.
• Enhancing settlement design by including design professionals at planning and project
design stages, and developing design guidelines.
• There is a need to focus on changing the face of the stereotypical RDP houses, and
settlements, through the promotion of alternative technology and design.
• Social housing must accommodate a range of housing product designs to meet spatial
and affordability requirements. Social housing products may include:
Multi-level flats, or apartment options, for higher income groups, incorporating
beneficiary mixes to support the principle of integration and cross-subsidisation;
Co-operative group housing;
Transitional housing for destitute households; and
Communal housing with a combination of family and single-room accommodation
with shared facilities and hostels (Breaking New Ground Policy, 2004).
18 | P a g e
The Department of Housing (2004), argues that the demand-driven delivery approach of
the Breaking New Ground Policy (BNG), unlike the White Paper, seems to intend to
ensure that the government’s housing-delivery plans and programmes would adopt
(while making reference to the available state resources) a more bottom-up
(community-determined) than a top-down (externally-prescribed) approach. The intent
to ensure that government programmes regarding low-income housing delivery could
shift from a supply-side delivery model (as envisaged in the White Paper), one in which
new housing projects would be the only vehicle of mass housing delivery, to a demand-
side, individual subsidy model that would allow individual households to purchase
properties on an individual basis is central to the concept of demand-driven delivery
(Department of Housing, 2004). Instead of housing units as key deliverables, BNG
promotes delivery of human settlements. With human settlements as a concept, BNG
highlights the government’s attempt to shift the focus of its delivery towards attaining
more inclusive and dignified housing, as opposed to exclusively delivering housing as
advocated by the White Paper on Housing 1994. This housing would provide access to
social amenities, such as water and sanitation, clinics, schools, job opportunities and
transport (Department of Housing, 1994; Department of Housing, 2004).
2.7. ECONOMIC POLICIES
2.7.1. RECONSTRUCTION AND DEVELOPMENT PROGRAMME (RDP), 1994
In 1994, the African National Congress (ANC) adopted the Reconstruction and
Development Programme (RDP), an integrated socio-economic policy framework. The
RDP set a goal of 300 000 houses to be built per year, with a minimum of one million
low-cost houses to be constructed within five years (Housing in South Africa, 2001).
Furthermore, it outlined the relationship between housing and the RDP in the
Government White Paper on Housing of 1994.
19 | P a g e
Section 4.5.6 of the White Paper on Housing (1994:23) states that the RDP sets out a
clear vision for housing in the future. The provision of housing and services is the key
element of the RDP. Apart from being a national priority in its own right, future housing
strategy has a direct bearing on the success of all five key programmes of the RDP.
These programmes are:
Meeting basic needs;
Developing human resources;
Building economy;
Democratizing the State and Society; and
Implementing the RDP (White Paper on Housing, 1994:24).
2.7.2. GROWTH, EMPLOYMENT AND REDISTRIBUTION (GEAR)
The fundamental principles of the government’s economic policy are democracy,
demographically more representative participation, growth and development. In 1996,
the government announced a new macro-economic strategy, which incorporated its
priorities for Growth, Employment and Redistribution (GEAR).The goals of the strategy
are:
A competitive, fast growing economy, which creates jobs for all work seekers;
A redistribution of income and opportunities in favour of the poor;
A society in which sound health, education and other services are available to all;
and
An environment in which homes are secure and places of work are productive
(ANC, 1996:12).
20 | P a g e
2.7.3 THE ACCELERATED AND SHARED GROWTH INITIATIVE FOR SOUTH
AFRICA (AsgiSA, 2006)
The government launched AsgiSA in February 2006, following the appointment of a
high-level government task team by President Thabo Mbeki at the Cabinet Lekgotla of
July 2005. The task team, led by the Deputy President Phumzile Mlambo-Ngcuka, was
given a mandate to identify constraints in the economy and to propose interventions to
increase the capacity for growth to a sustainable 6 percent per year in the long term and
address challenges emerging within the Second Economy (AsgiSA, 2006).
The objectives of the task team were as follows:
•To reduce the unemployment rate from 30 percent to 15 percent by 2014;
•To reduce poverty from one-third to one-sixth of the population by 2014; and
•To Increase the annual GDP growth rate from the then average of 3 percent to 4.5
percent per year for the period 2005 to 2009 and to 6 percent for the period 2010 to
2014. This target should create a sustainable annual growth rate of 6 percent.
The task team developed proposals to address the constraints and identified the
following priorities for intervention:
• Macro-economic issues;
• Infrastructure;
• Education and skills;
• Sector development strategies;
• Second Economy and small, medium and micro enterprise (SMME) development; and
• Governance and public administration.
The growth envisaged through AsgiSA depends in part on resolving the shortage of
suitably skilled labour. South Africa lacks sufficiently skilled professionals, managers
21 | P a g e
and artisans. The uneven quality of education and the impact of the apartheid legacy,
which located many people a great distance from their places of work, thus increasing
the price of labour of the poor, amplify this challenge. The acquisition of priority skills is
one of the most significant challenges facing growth, as skills development is a long-
term process (AsgiSA, 2006).
2.8. LOCAL ECONOMIC DEVELOPMENT
Local economic development (LED) refers to the economic status of the development of
the community and alludes to whether economies allow communities to adopt
developmental growth initiatives. Binza (2010) views LED as pertaining to creating a
platform and an environment to engage stakeholders in implementing strategies and
programmes. The goal of LED is to stimulate local employment opportunities in sectors
that improve the community, using existing human, environmental and institutional
resources. The LED Policy Refocusing Development on the Poor (2002:6) further
discusses the local economic development plan.
According to Mpengu (2010:43), local economic development can create job
opportunities for the poor and can stimulate economic activities that result in more
opportunities that are permanent. The effect of infrastructure and service provision can
be both short-term and long-term.
RETENTION AND EXPANSION OF EXISTING BUSINESSES
The Policy Paper on Local Economic Development (LED Policy Paper, 2002:8) requires
municipalities to focus on retaining and expanding the existing businesses in municipal
areas. Municipalities’ investment in providing training assistance to local businesses
22 | P a g e
would ultimately improve economic growth in the area, which can be measured by
expanding businesses, job creation, shared growth and improved quality of life.
SMALL, MEDIUM AND MACRO ENTERPRISES DEVELOPMENT
Blakely (1994:203 in Jackson 2002: 45) states that the small, medium, and macro-
enterprise (SMME) sector has shown great employment potential in South Africa over
the past few years. Therefore, municipalities should provide professional advice and
assistance to small businesses in the following areas: management, marketing,
accounting, finance, human resource and problem solving. The SMME sector is most
likely to contribute significantly in local economic development. This sector participates
in the national economy through stimulating economic growth by creating jobs,
enhancing poverty alleviation and promoting social stability, thus aiding in the
redistribution of wealth throughout the economy.
COMMUNITY BASED ECONOMIC DEVELOPMENT
According to the Department of Provincial and Local Government 2003:39, the central
objective of community-based economic development (CBED) is the alleviation of
poverty and, in particular, improving the capabilities of the disadvantaged as well as the
creation of the sustainable livelihoods for the communities in question. CBED focuses
on combining employment, training, mentoring and enterprise development, to enhance
access to and the creation of jobs, resulting in self-sufficiency for disadvantaged
communities (Mpengu, 2010:46).
The Local Government Transition Act of 1993 mandates metropolitan municipalities to
take an active role in promoting local economic development by formulating a local
integrated development plan (IDP) (RSA, 1993a & 1996b). The Municipal Structures Act
of 1998 further states that district municipalities must aim to achieve integrated,
sustainable and equitable social and economic development in their areas (RSA,
1998a). The Municipal Systems Act of 2000 Act has outlined the core components of an
IDP of which section 26(c) speaks to LED (RSA, 2000a). To implement LED activities
23 | P a g e
and achieve LED strategies, the government strategically linked South African LED with
municipalities’ IDP. LED plans should be co-ordinated with municipalities IDPs and, to
avoid duplication, LED planning should be linked to the IDP (DPLG, 2000a:29). In
addition, The Rural Development Framework views LED as a strategy for rural
government (Nel, 2000:1011).
2.8.1. THE LED DRAFT POLICY (2002)
The title ‘Refocusing Development on the Poor, 2002’ makes a bold, explicit statement
supporting ‘pro-poor LED’. The authors of this manuscript adopt a defined pro–poor
stance and, without opposing more conventional business focused activities, argue that
pro-poor development interventions must be the priority for local governments to pursue
in the light of the country’s economic and social situation. People also refer to ‘pro-poor
LED’ as ‘developmental LED’ (DPLG: 2002). The document highlights the need to
develop pro-poor LED methods, which can address both poverty and entrenched
inequality.
It pursuit of this ideal, the authors of the text identify the following goals or objectives for
governments:
To establish a job-creating economic growth path;
To embark on sustainable rural developments and urban renewal; and
To bring the poor and disadvantaged to the centre of development.
In order to achieve this, the authors suggest that LED needs to be holistic, innovative,
creative and redistributive.
Moreover, the document contains arguments in favour of developmental LED. Non-
developmental LED takes places when equity is not addressed and social objectives
are secondary. Instead, pro-poor options should entail a greater measure of
redistribution, carefully designed to maximise local social and economic development
objectives (DPLG, 2002: 9) and new investments should be directed to maximize
24 | P a g e
integrated development, generate high quality jobs, and ensure clean production
processes. To promote developmental LED, the authors advocate the following broad
interventions:
Foster community-based development;
Promote links with wealthy and poor redistribution areas;
Human capital investments;
Delivery of infrastructure and services to those most in need;
Plug leaks in the local economy, in other words buy locally and prevent money
leaving the area; and
Retain and expand local economic activity and identify a lead LED strategy for an
area.
To achieve these objectives, the policy suggests that the local government needs to
focus on capacity improvement, market expansion and cost reduction instruments.
From an institutional perspective, municipalities should establish LED Units and local
government could play defined roles in terms of LED. An LED Unit coordinates
municipal activities, manages the LED strategy, monitors projects, coordinates all
stakeholders, manages the LED budget and creates an LED database. The four
identified roles for such a unit are to coordinate, facilitate and stimulate LED and to act
as an entrepreneur developer (The LED Draft policy, 2002).
2.9. GOVERNANCE AND DEVELOPMENT
2.9.1 THE CONSTITUTION OF THE REPUBLIC OF SOUTH AFRICA, 1996
In South Africa, the Constitution is the supreme law that forms the basis for all other
laws. The Constitution recognises local government as a distinctive sphere of
government and Section 153 mandates municipalities to give priority to the basic needs
of the community. A municipality must also promote the social and economic
25 | P a g e
development of the community and participate in national and provincial development
programmes. The Constitution makes provision for the establishment of municipalities.
Section 152(1) (e) of the Constitution obliges local government to “encourage the
involvement of the communities and community organisations in the matters of local
government”. This elevated status of local government and the associated participatory
rights of citizens is a clear reflection of the devolution of policy and authority. To this
end, Schedules 4 and 5 of the Constitution specify the competencies allocated to the
three spheres.
In terms of section 40(1) of the Constitution of the Republic of South Africa, “local
government becomes one of the three spheres of government, with the other two being
national and provincial government. In essence, local government becomes the closest
sphere to the heart of the public or community within which needs arise from the basis
of the environment that people find themselves in”.
Lastly, section 26 of the Constitution of the Republic of South Africa, 1996, enshrines
the inalienable right to housing as follows:
(1) “everyone has the right to have access to adequate housing.
(2) The State must take reasonable legislative, and other, measures within its available
resources, to achieve the progressive realisation of this right”.
2.9.2. THE WHITE PAPER ON LOCAL GOVERNMENT, 1998
The White Paper on Local Government of 1998 was a significant step in realising the
vision contained in the Constitution. In terms of section C of the White Paper on Local
Government, 1998, this policy created the guidelines for an integrated municipal system
based on principles of non-racism, equality and democracy. The White Paper justifies
integrated development planning. Municipalities face immense challenges in developing
sustainable settlements that meet the needs and improve the quality of life of local
26 | P a g e
communities (White Paper on Local Government, 1998:7). The White Paper further
suggests that the only way municipalities can meet these challenges is by
understanding the dynamics of the local region and then developing a concrete vision
and strategies to develop the area in partnership with stakeholders.
In terms of section B of the White Paper on Local Government of 1998, local
government creates developmental local government. This is committed to working with
citizens and groups within the community to find sustainable ways to meet their social,
economic and material needs and to improve the quality of their lives. To achieve this
objective, the White Paper recommends three tools and approaches:
Integrated development planning budgeting;
Performance management; and
Working together with local citizens (White Paper on Local Government, 1998:7).
In addition, Section B of the White Paper on Local Government, 1998 states that local
government can play an important role in promoting job creation and boosting the local
economy. Investment in proving good quality cost-effective services and making the
local area a pleasant place to live and work is important (White Paper on Local
Government, 1998).
The Department of Provincial and Local Government, in its definition of local economic
development, supports the above. It defines LED as a process whereby local initiative
combines skills, resources and ideas in stimulating local economies to respond
innovatively to changes in the national and global economies, towards the goals of job
creation, poverty alleviation and distribution. LED, which can take place via many
different mechanisms and in which different constituencies can play many different
roles, is a process that results in wealth creation, employment generation and more
equitable incomes in the local communities concerned
(http://www.dplg.gov.za/html/progs/led.htm).
27 | P a g e
Among other things, the local government should focus on the following developmental
roles:
Poverty alleviation;
Economic growth;
Governance;
Democracy;
Participation;
Focus on vulnerable groups; and
Attention to the environment (White paper on Local Government,1998).
The Municipal Systems Act (Act 32 of 2000) requires all municipalities to review their
IDP annually. Section 34 of the Act further states that a municipal council must review
its IDP annually in accordance with an assessment of its performance measurements.
The NMBM has provided its latest five year strategic IDP (2011 to 2016) to manage and
develop the municipal area. The municipality will evaluate the objectives of this vision
throughout the five-year period of the IDP strategic plan.
The Municipal Systems Act 32 of 2000, with the Housing Act of 1997, provides the core
principles, mechanisms and processes necessary to enable municipalities to move
progressively towards social and economic development and to ensure access to
essential services that are affordable to all. The Act defines the legal nature of a
municipality, provides the manner in which municipal powers and functions are
exercised and establishes an enabling framework for the core processes of planning,
performance management and resource mobilisation and organisational change.
The Municipal Systems Act further concentrates on the empowerment of the poor and
considers their needs. It provides a framework for the provision of services and
establishes support from and monitoring by other spheres of government to engage
local government in efficient development activities progressively (Municipal Systems
Act, 2000).
28 | P a g e
In terms of section 26 of the Municipal Systems Act, the core components of IDPs are:
Vision for the long-term development of the municipality;
Assessment of the existing spheres of development in the municipality;
Development of priorities and objectives for the council in its elected term;
Development strategies which must do with any national or provincial sectorial
A spatial development framework;
A financial plan; and
Set key performance indicators and performance targets (Municipal Systems Act,
2000).
According to section 43 of the Municipal Systems Act, municipalities must prepare key
performance indicators that government can use to check that they are implementing
their IDPs as planned, using resources efficiently and correcting deviations. To support
this view, the White Paper on Local Government of 1998 states that involving
communities in developing key performance indicators (KPIs) increases the
accountability of these communities. Developing clear and realisable KPI’s is a
significant challenge in establishing a performance management system. Municipalities
can achieve this only if all stakeholders set and agree upon priorities. They cannot
separate the development of performance management systems from the IDP process
itself as these systems form a critical part of the IDP (Municipal Systems Act, 2000).
2.10.1. INTEGRATED DEVELOPMENT PLANNING.
According to Craythone (1997:149), the concept of integrated development planning
was first introduced into municipal law by the Local Government Transition Act (Second
Amendment Act , Act 97 of 1996).The Act required metropolitan councils to have an IDP
29 | P a g e
and permitted district councils to formulate and implement an IDP for a local council
(Craythone (1997:149).
IDP is a process whereby municipalities prepare a five-year strategic plan, which they
review annually in consultation with local stakeholders, including local communities.
Thus, IDP promotes intergovernmental planning at national, provincial and local level.
The IDP illustrates how municipalities will achieve job creation, sustainable
development, stakeholder partnerships, infrastructure development and services
rendered to their residents (Local Community Systems Act, Act 32 of 2000).
2.10.2. ASPECTS OF AN IDP
Section 153 of the Constitution of the Republic of South Africa (Act 108 of 1996) states
that a municipality must adopt integrated development planning, thus requiring a
municipality to structure and manage its administration, budgeting and planning
processes to give priority to the basic needs and to promote the social and economic
development of the community. Chapter 5 of the Municipal Systems Act of 2000 states
that a municipality must undertake developmentally oriented planning to ensure the
following:
“To strive to achieve the objectives of local government set out in the
constitution;
To give effect to its developmental duties as required by the constitution; and
Together with other organs of state, to contribute to the progressive realisation of
fundamental rights”.
2.10.3. THE NELSON MANDELA BAY MUNICIPALITY’S IDP AND THE CONTEXT
OF THE CASE STUDY
30 | P a g e
The Nelson Mandela Bay Municipality presented the reviewed draft of the Integrated
Development Plan for 2013 to 2014.The IDP, which the municipality reviews annually, is
the institution’s key strategic planning tool. It presents the communities of Nelson
Mandela Bay with bold initiatives, strategies and programs to provide access to quality
basic services, in many instances for the first time in recipients’ lives. The IDP therefore
ultimately enhances integrated service delivery and development and promotes
sustainable, integrated communities, providing a full range of services, as communities
cannot be development in a fragmented manner (NMBM IDP, 2013-2014).
According to the NMBM 2011/2016 Integrated Development Plan, Ward 40’s IDP
priorities for 2011/2016 are as follows:
Building a high school and clinic;
Repair of houses with roof leaks;
Repair of faulty water-pipe connections;
Street naming in Kuyga and Witteklip;
Establishment of a cemetery in Kuyga;
Employment of local people (beach-cleaning and greening projects);
Prioritisation of service delivery and infrastructure development (peri-urban
areas);
Improving education facilities;
Training and skills development of local people;
Repair of toilet pipes connected to kitchen sinks; and
Need for economic development programmes (job creation).
2.11. NMBM 2020 CITYWIDE ECONOMIC DEVELOPMENT STRATEGY
The NMBM developed its 2020 Citywide Economic Development Strategy (CWEDS) for
implementation in April 2004, with an economic vision of achieving sustainable
31 | P a g e
development. The NMBM recognises unemployment as a significant challenge.
According to this strategy:
Balancing short-term job creation while creating a platform for SMMEs and co-
operatives, which will provide economic stability, is a key challenge.
Unemployment has increased from 35 percent to 42 percent over the last five
years.
Overall, jobs have grown by 1.6 percent over the same period, but formal
employment has declined by 0.4 percent per year, and informal employment has
doubled to 10 percent of the economically active population (NMBM 2020
CWEDS, 2004).
To attain its goals, the municipality must recognise the importance of the available
economic development sectors within the Metro and, especially, within the SMMEs and
co-operatives.
2.12. CONCLUSION
Poverty, inequality, and unemployment are intertwined in South Africa. Poverty can be
reduced by boosting economic growth and using this growth to develop, or improve, the
conditions of the poor. The South African Constitution addresses LED and gives
municipalities a mandate (RSA, 1996a:1331(3). Thus, municipalities are facilitators of
the LED programme. This does not mean that municipalities are the drivers or engines
of LED, but with all the connections from all of the relevant stakeholders, LED should
thrive (DPLG, 2006a:15). Consequently, LED encourages the creation of environments
conducive to engaging all stakeholders, from both the public and private sector, in
ensuring sustainable livelihoods (White Paper on Local Government, 1998). Overall, it is
the responsibility of the local government to foresee and implement the plans
established to sustain the livelihoods of the poor through low-income housing.
32 | P a g e
CHAPTER 3
RESEARCH METHODOLOGY
3.1. INTRODUCTION
This chapter provides a description and explanation of the data collection and analysis
methods the researcher used in conducting this research. This includes qualitative and
quantitative methods as well as semi-structured interviews and a household survey as
the main research instruments.
3.2. RESEARCH METHODOLOGY
Research methods provide a structured framework for investigating research problems
through the use of structured data gathering techniques, analysis techniques
(hypothesis testing or frequency analysis) and reporting (Saunders, 2006). For this
research study, the researcher used qualitative and quantitative research methods in
order to satisfy the research objectives and aims.
3.3. RESEARCH DESIGN
Lyberg and Kaspersky (1991) state that researchers may use one or many data
collection techniques within each general research approach. Typically, a researcher
will decide on one (or multiple) data collection technique by considering its overall
suitability to the research as well as other practical factors, such as the expected quality
of the collected data, estimated costs, predicted non response rates, expected levels of
measure errors, and length of the data collection period.
The researcher obtained the data used in this study from primary and secondary
sources. This study followed a deductive approach. It commenced with an
understanding of the role played by the Local Economic Development Department
within the NMBM in the low-income housing development of Kuyga and analysed
relevant policies as well as the livelihoods of Kuyga residents.
33 | P a g e
3.3.1. Primary data
The empirical study is qualitative and quantitative in nature. Hence, the researcher
gathered the primary data from two sources: semi-structured interviews with members
of the community of Kuyga and in-depth interviews with key local government
informants. In addition, the researcher used semi-structured interview schedule for in-
depth interviews, as they contribute to accurate data collection. Both categories of
informants, the residents of Kuyga and the Nelson Mandela Bay Municipal officials, are
respondents and participants in the research for the purpose of data collection. The
researcher focused on municipal officials because they possess detailed information on
development plans and on programmes to minimise unemployment and alleviate
poverty.
3.3.2. Secondary data
The researcher employed a desktop study and network research to review additional
data from archival documents, the Housing Act (Act 107 of 1997), the Constitution of the
Republic of South Africa (Act 108 of 1996), policies, the NMMB Integrated Development
Plan, and programmes in government housing interventions. Other sources include
relevant databases, related case studies, surveys and publications, and Internet
sources. The researcher obtained the quantitative data on housing delivery from local
municipal offices and through the analysis of relevant sources focusing on housing
delivery, statistics, housing policy, frameworks, process and practice and other official
reports related to housing programmes and projects.
3.4. QUALITATIVE RESEARCH METHOD
Byrne (2004: 182) describe qualitative interviewing as “particularly useful as a research
method for accessing individuals, attitudes and values [and] things that cannot
necessarily be observed or accommodated in a formal questionnaire”. Open-ended and
questions that are more flexible are likely to generate more considered responses than
those obtained from closed questions and provide better access to interviewees’ views,
34 | P a g e
interpretations of events, understandings, experiences, opinions when done well can
achieved a depth and complexity that is not available to other particularly survey-based,
approaches (Byrne, 2004:182).
3.5. QUANTITATIVE RESEARCH METHOD
In quantitative research, the term ‘quantity’ denotes measurement, which is, in essence,
objective and quantifiable and this is the crux of this research approach (Bryman,
2004:76). The researcher used the quantitative research method, limited to descriptive
statistics, to supplement qualitative research methods. According to Claire Bless et al.
(1995) quantitative research analyses and compares different variables.
3.6. DATA COLLECTION METHODS
Data and methodology are inextricably intertwined. Leedy and Ormrod (2010:93) assert
that the methodology to be used for a particular research problem must always take into
account the nature of the data that will be collected in the resolution of the problem. In
this study, the researcher collected the data from respondents using interview questions
and questionnaires.
As there were two sets of respondents, the researcher used different methods to obtain
the data set from each set of respondents and analysed the information accordingly.
The two sets of respondents were residents of Kuyga and municipal officials (Local
Economic Development and Housing Department officials and councillors from Ward
40). This was a means to validate the data obtained from each set of respondents.
3.6.1. INTERVIEWS
The interview remains the most effective instrument available for investigating people’s
behaviour, future intentions, feelings and attitudes. It has specific requirements as a
reliable research tool. The semi-structured interview method used in this research is
open to potential subjectivity and bias. To achieve reliability, a trained interviewer must
conduct the interviews and the researcher must pre-test and revise the questions to
eliminate ambiguity.
35 | P a g e
The expectations, orientations and beliefs of the researcher affect observations, so the
researcher attempted to acquaint herself with her own prejudices, ideology, attitudes
and expectations in order to limit systematic approval responses and role expectations.
However, these effects likely still influence the data. An interaction between two or more
parties with the purpose of obtaining information that would not otherwise be
forthcoming characterises this method. In support of this assertion, Gay (2003) submits
that when an interviewer conducts an interview well, it can produce in-depth data that
the researcher would not have obtained through, for example, a questionnaire, and he
or she could be satisfied with the outcomes.. Oaks and Wincup (2004: 80) in Silverman
(2006:55) describe a method that enables a researcher to collect “rich data” through
open-ended interviews: through “active listening” in which the interviewer “allows the
interviewee the freedom to talk and ascribe meanings” while bearing in mind the
broader aims of the project.
The researcher used semi-structured interviews to obtain information from Kuyga
residents and in-depth interviews to collect information from NMBM officials. Bailey
(1994) argues that the interview is a special case of social interaction between two
persons and as such is subject to some of the rules and restrictions found in other
instances of social interaction. The study made use of open-ended questions for the in-
depth interviews with key informants (see Appendix 2).
Prior to the interview, the researcher wrote formal letters, wherein she highlighted the
objectives and the purpose of the study, to the participants in order to obtain their
consent.
3.6.2. OPINION SURVEY OF RESIDENTS
The researcher used a questionnaire (see Appendix 1) to conduct a survey of
households in order to explore the livelihoods of the Kuyga community and the
opportunities for creating more sustainable and viable means of support. As household
36 | P a g e
may contain numerous people, the researcher decided to interview the head of the
household or the eldest person present, regardless of age.
3.6.3. SAMPLING
The primary data of this study came from semi-structured interviews with members of
the Kuyga community. For this study to be executed appropriately, the researcher had
to perform sampling, which, as understood by Polit et al. (2001), is a process of
selecting a certain number of participants to represent a population. Delport et al. (2007)
state that this group has a particular set of identical characteristics. Sampling occurs
when the probability of including each element of the population can be determined. It is
thus possible to estimate the extent to which the findings based on the sample are likely
to differ from what a researcher would have found by studying the whole population. In
other words, the researcher can estimate the accuracy of the generalisation from the
sample to the population (Claire, Bless & Craig .Higson-Smith, 2000).
The researcher selected 60 households and used a questionnaire (Appendix 1) to
conduct interviews with these households. The respondents returned four incomplete
questionnaires due to illiteracy and/or the absence of the head or eldest member of the
household. The researcher obtained 56 completed questionnaires in the Greenbushes
area of Kuyga, which has a population of approximately 2 000 households (Councillor
Knoetze, 2013). This sample is not a strictly random sample nor is it representative of
the entire population, but the sample is adequate to generate valid information about the
situation and opinions of Kuyga residents.
Choosing random participants assisted the researcher in limiting answers shared by
neighbours. Participants did not know who else participated in the study. The research
was conducted in every second house in every second row of houses in the Fran’s area
of Greenbushes’ in Kuyga.
3.6.4. PURPOSIVE OR JUDGEMENTAL SAMPLING
The researcher conducted in-depth interviews with the following key local government
37 | P a g e
informants: the NMBM Local Economic Development Manager, Councillors Knoetze
(2013) and Ndlebe (2011) of Ward 40, and Mr Khohlakala of the NMBM Housing
Department.
Table 1: Sample Frame
Structure Number
Ward 40 Councillors 2
Unit Manager LED 1
Unit Manager Human Settlements 1
Total 4
The researcher used a purposive or judgmental sampling method to collect information
from the most knowledgeable and relevant officials of the NMBM to satisfy the research
aim. The investigator interviewed the current and previous councillors for Ward 40. The
previous ward councillor was councillor at the time the Kuyga housing development was
implemented.
3.7. DOCUMENT REVIEW
The following documents were reviewed:
The Growth Employment and Redistribution Strategy (GEAR), 1996
The Accelerated and Shared Growth Initiative for South Africa (AsgiSA, 2006)
Bobat, S., Khumalo, B. & Lieberg, T et al.2000, Local Government Development from
Democratic Local Government: A Guide for Councillors. Pretoria: Government.
Nelson Mandela Bay Municipality, 2006-2011.Integrated Development Plan. Six Edition.
38 | P a g e
Nelson Mandela Bay Municipality, 2013-2014. Integrated Development Plan. Twelve
Edition, 7 June 2013.
Nelson Mandela Bay Municipality, 2011-2016.Integrated Development Plan. Twelve
Edition.
African National Congress, 1994. Reconstruction and Development
programme.Johannesburg: Umanyano Publishers
RDP.1995.Key indicators of poverty in South Africa. An analysis prepared for the office
of the Reconstruction and Development Programme by the World Bank, co-ordinated by
the Southern African Labour and Development Research Unit (SALDRU), University of
Cape Town.
South Africa.1994.WhitePaper: Reconstruction and Development Programme.
Department of Human Settlements, 2004. Breaking New Ground Policy.
Nelson Mandela Metro Municipality, 2020. City Wide Economic Strategy.
Policy Paper on Local Economic Development, 2002.
Republic of South Africa, 2000. White Paper on Municipal Service Partnerships. Notice
1689 of 2000.
Government White Paper on Housing of the Republic of South Africa, 1994
Republic of South Africa, 1998.White Paper on Local Government of 1998.Department
of Provincial and Local Government.Pretoria.South Africa.9 March 1998.
Department of Provincial & Local Government. 2002: The LED draft policy: Refocusing
Development on the Poor: Pretoria.
Eastern Cape Provincial Government, 2002. Draft Policy on Local Economic
Development.Bhisho: Government Printers.
Department of Provincial and Local Government, 2003:39.
39 | P a g e
National Framework for Local Economic Development in South Africa (NFLED) of 2006-
2010 (Republic of South Africa,1996).
Pretorius, D, 2010.Pilot Project War on Hunger. Nelson Mandela Bay Municipality.
September 2010.
3.8. CONTENT ANALYSIS
After collecting the data from the in-depth interviews, the investigator had to extract
meaning from the data. Whilst conducting the analysis, the researcher followed the
advice of Agar (1991): “It is advisable to begin analysis by intensively examining a small
bit of data rather than intensively coding the data. This process has to be treated
carefully, as most researchers agree that there are no standard rules on how one can
code, as identification of the core meaning can be compromised if focus is lost, thereby
not being able to maintain the balance between social and theoretical values”.
This data analysis process is non–linear and iterative, as it is not a process that will
have to start when the researcher has collected all the data, but takes place during data
collection. The researcher executes some elements of noting and interpreting while
collecting the data. This has implications for the process of validating responses. These
responses have to be placed in their correct context. Data analysis is important, as
contextual issues may influence difference reflected in convergence and divergence of
views.
Content analysis assisted the researcher in extracting meaning and explaining some
phenomena and their implications, as the standard analysis procedure for qualitative
data is more a matter of describing, summarising and interpreting the data obtained.
This procedure is useful because it usually assists a researcher in identifying a
saturation point, which Polit et al. (2001) describe as a point where no new information
is forthcoming and the exercise of extracting new information becomes redundant,
serving no useful purpose in pursuing it. The researcher analysed the data using
thematic content analysis and qualitative-frequencies as well as Microsoft Excel-
40 | P a g e
generated percentages and graphs, which provided limited information.
3.9 ETHICAL ISSUES IN RESEARCH
Ethics in research refers to the appropriateness of the researcher’s behaviour in relation
to the rights of the individuals who are the subjects of the research (Saunder et al. 2003:
129).
In order to obtain permission for the intended research, the researcher presented a
detailed outline of the research problem to the respondents and requested a letter in
support of the study from NMMU. The researcher observed ethical guidelines by asking
for respondents’ permission to conduct the study with them. The investigator explained
the purpose of the study to the respondents and assured them that she would uphold
the ethical values of confidentiality, privacy and anonymity.
41 | P a g e
CHAPTER 4
RESEARCH FINDINGS AND ANALYSIS
4.1. INTRODUCTION
This chapter provides a detailed presentation of the data collected during the course of
the research and an analysis of participants’ responses. Data collected may be
meaningless or irrelevant until properly presented and systematically analysed in order
to translate information into knowledge. The researcher focused on the objectives of the
study outlined in Chapter 1 and aligned these with the findings of the study. The
following are the objectives the researcher set out to attain by means of this study:
To assess or analyse the livelihoods of residents of a low-income housing
development;
To assess the role played by local economic development initiatives in the
Kuyga community; and
To make recommendations regarding actions and policies that can reduce the
unemployment rate and create sustainable and viable livelihoods for the Kuyga
community in NMBM.
The first section of this chapter contains respondents’ biographical information. The
second section presents the results of the household survey regarding income,
employment and residents’ livelihoods of residents. The chapter concludes with an
analysis of the responses from the municipal officials and Ward 40 councillors.
4.2. A: CHARACTERISTICS OF THE KUYGA COMMUNITY
Kuyga is a relatively new community; no residents have been living there for more than
20 years. The government established this low-cost housing development in 2002 to
accommodate people moving from nearby farms and informal settlements in outlying
areas. On 8 March 2002, the MEC approved the building of 1 170 subsidised houses, at
42 | P a g e
R16 000 per subsidy. Phase 1 of the settlement is Fran’s and Phase 2 is in Mission
Road (NMBM, 2011). A combination of coloured and black people lives in the area,
some with their extended families. Household size is typically large, with 65 percent of
the respondents having five or more household members and 25 percent having three
to four people in the household. Ten percent of households consist of couples with
children, without overcrowding caused by grandparents or other relatives living in
backyard shacks. Most of the households are overcrowded and overcrowding typically
reflects the living standards of the families.
Few heads of household have passed Grade 12 and this has led to unemployment and
poverty in the area. The Kuyga community is one of the distressed areas identified in
the NMBM War on Hunger Programme.
The majority of respondents (65%) have lived in Kuyga for between 10 and 19 years.
Most of the respondents have been living in Kuyga long enough to refer to Kuyga as
their home. Twenty percent of the respondents have lived in Kuyga for fewer than 10
years, with 13 percent having lived in the area for 4 to 9 years and 2 percent of the
respondents for less than 4 years. Although these residents have been living in Kuyga
for a considerable period, the area still lacks a high school and cemeteries. The poor
quality of the Kuyga houses built by NMBM in 2002 remains a significant concern to the
residents, as they claim that they cannot maintain the houses due to unemployment.
Maintenance problems include faulty plumbing, such as water-pipe connections and
toilet pipes connected to kitchen sinks, and roof leaks.
Ninety-five percent of the respondents are females and the other 5 percent are males.
The researcher conducted the research on Saturday, 12 October 2013 between noon
and 3 p.m. The majority of people available at the time of the interview were females.
According to residents, some of the males were performing part-time jobs for income of
the household, which sometimes operate during weekends, and some were out in
entertainment areas. It became clear to the researcher that these women, the majority
43 | P a g e
of respondents, need to be empowered with skills to enable them to obtain employment.
Nonetheless, a survey was conducted with the household head available or eldest in
the house.
Seventy percent of the respondents were single, 25 percent were married, 3 percent
were divorced, and 2 percent were widowed.
Pension grant earners over the age of 56 years manage 11 of the households (20%).
Adults between the ages of 40 and 50 years head 20 households (36%); adults
between the ages of 31 and 40 years manage 17 households (30%); and young adults
aged 20 to 30 years head 8 (14%) of the households. The eldest household head, a
widow whose source of income is a pension grant, is 65 years of age. The youngest
head of household is 21 years old and has two children; she also receives child support
grants for her children and her two siblings. This indicates that the Kuyga population
mainly consists of middle-aged to elderly people of working age, but not considered
youths; and a high percentage of female-headed households.
Only 15 of the 56 heads of household had passed Grade 12; most heads of household
passed Grade 11 or lower.
44 | P a g e
4.3. B: INCOME AND EMPLOYMENT IN KUYGA:
Figure B.1 Income Source
This graph illustrates that the majority of the households (66%) were dependent on child
support grants. Twenty percent of the households depended on pension grants and 9
percent relied on disability grants or sick benefits. Low-income earners in permanent
employment provided for the remaining 5 percent of the households. This study
indicates that the majority of households depend on social grants as stable sources of
monthly income due to the level of unemployment and education in the area.
Kindly note that although fifteen respondents (27%) performed part-time work, in
addition to these various income source one cannot consider this a primary source of
income due to its temporary nature. The researcher has not included this type of income
in the above graph.
66%
20%
9%
5%
Income Source of the households
Child Support
Pension Grants
Disability Benefits
Permanent Employment
45 | P a g e
95%
3% 2%
NUMBER OF PEOPLE EMPLOYED IN THE HOUSEHOLD
None
One
Two
Three or more
B.2.The Number of the people employed in the household:
Figure.B.2. Number of people employed
Figure B.2 shows that 95 percent of the households confirm that they do not have
anyone permanently employed. Three percent of the households interviewed had one
person employed, and 2 percent had at least two members employed. None of these
households contained three or more working members, although some consist of
extended families where uncles, aunts and cousins live in one house. Of the
households interviewed, 27 percent of respondents confirmed that they occasionally
performed part-time or casual jobs. However, due to the temporary nature of this type of
work, the researcher did not consider this suitable for inclusion in the above graph.
B.3 The gross monthly income of the household of the household head
46 | P a g e
Figure.B.3 Gross monthly income
Figure B.3 shows that 66 percent of the households examined had incomes of R200 to
R500.00 per month; their stable monthly incomes consisted of child support grants.
Twenty percent of the participants had incomes between R1 000 and R 1500 per
month, obtained from heads of households’ pension grants. Five percent of the
households had incomes of R700 to R1 000 per month. These heads of household
were permanently employed, but earned low wages because of their low levels of
education. Nine percent of the households obtained their incomes mainly from disability
grants, which yielded R500.00 to R700.00 per month. Twenty-seven percent of
respondents confirmed that they performed occasional casual or part-time work. Due to
the temporary nature of this type of employment, the researcher did not include the
figure in the graph above.
This level of unemployment is extremely high and most residents are dependent on
66%
9%
5%
20%
0% 10% 20% 30% 40% 50% 60% 70%
THE GROSS MONTHLYINCOME OF HOUSEHOLD HEAD
R200.00‐R500.00
R500.00‐R700.00
R700.00‐R1000.00
R1000.00‐R1500.00
Series2 GROSS MONTHLY INCOME
47 | P a g e
government grants. The low levels of household income reflect high poverty levels in
the Kuyga community.
4.4. TRANSPORT:
The majority of the households interviewed (85%) responded that they needed to travel
16 to 20 kilometres to seek for work. Ten percent responded that they had to travel 25
to 30 kilometres to seek Work. Ninety-nine percent of the heads of households use taxis
to travel to work and employers provide daily transport for the remaining 1 percent.
Ninety-five percent of the households confirmed that transport is readily available in
Kuyga.
To travel, to go to work and to come back from work is easy
Ninety-eight percent of the respondents agreed with this statement. This indicates that
the majority of the respondents were satisfied with transport in the area; they said that
taxis were available at all times. Only 2 percent of the respondents did not agree with
the statement, as public transport can be inconvenient at times because of events such
as strikes.
4.5. LOCAL ECONOMIC DEVELOPMENT
Ninety-eight percent of the participants indicated that there were no local economic
projects within the area. The remaining 2 percent responded that there were initiatives
before the last elections. For example, the municipality initiated a project that
temporarily employed some members of the community to collect rubbish in the area.
However, they claimed “it all vanished into thin air without any explanations” and there
was no indication from the Nelson Mandela Metropolitan Municipality as to when it
would call upon these people again to participate in this programme.
The majority of the respondents (97%) agreed with the statement “Local economic
development projects can change the current situation of Kuyga” and added that this
could be a proper plan that can reduce levels of unemployment and poverty in the area.
It would enable people to gain skills for self-employment and to be employable in future.
48 | P a g e
Three percent of the respondents did not agree with the statement, as they felt that the
municipality did try to implement such initiatives in the past, but that only certain people
and certain families benefited from it, as they took some of the equipment the
municipality donated for their own benefit. The project did not benefit the community at
large.
4.6. OPINIONS OF KUYGA RESIDENTS ON SERVICE DELIVERY AND
LIVELIHOODS
The NMBM’s government plan/initiatives within Kuyga to deliver and provide for
basic services and to reduce unemployment and poverty are satisfactory.
In response to the above statement, the overwhelming majority (98%) of respondents
disagreed, while the remaining 2 percent agreed and responded positively. From their
responses, it is clear that the majority of respondents are angry with the local
municipality. They claimed that the NMBM had made numerous promises of local
economic development and improved service delivery. Some referred to previous
service delivery protests sparked by the poor construction of the low-income housing in
the area and homeowners’ inability to maintain their homes due to unemployment.
The living conditions are good in Kuyga and the municipality provides basic
services.
Ninety-eight percent of the respondents did not agree with the above statement and 2
percent responded positively. The majority of the respondents referred to the protest
that took place in July 2012. This protest allowed Kuyga residents to voice their
frustrations with the municipality’s lack of service delivery. These services include the
reconstruction of their houses, the repair of faulty plumbing and houses with roof leaks,
as well as the upgrading and tarring of gravel roads in the community. In addition,
residents demanded that the municipality upgrade the rugby field and repair the lights,
fencing, and ablution facilities at the fields and stands, upgrade the storm water system
in Kuyga East and provide economic development programmes or create jobs to
49 | P a g e
remedy the high levels of unemployment in the area.
Other members of the household can survive in the absence of the head of the
household.
Out of the 56 respondents, 37 confirmed that their stable incomes depended on child
support grants. The respondents from the 11 households that depended on pensioners
and pension grants wholly disagreed with the statement, as their families depended on
them for survival. The five households that relied on those who received disability and
sick benefits did not agree with the statement either, as they claimed that these grants
were the only sources of income for their families. Lastly, the three household with
members in permanent employment partly disagreed with the statement, as they
claimed that although they tried to earn money in a variety of ways, it was not easy as
they earned very low wages and seldom found permanent jobs. This indicates the
vulnerability of the livelihoods of many Kuyga households; people rely on income from
household members who may not always be there. In addition, this corroborates the
high levels of unemployment for those living in the Kuyga low-income housing
development.
All children have access to free education.
Ninety-eight percent of the respondents agreed with this statement and some added
that the Department of Education provides children in lower primary schools within the
area with food. Two percent disagreed and pointed out that there is no high school in
Kuyga; when children complete primary school they have to seek secondary education
elsewhere. They further indicated that although the municipality provided free daily
transport to and from school, the need to travel might cause children to leave school
before completing Grade 12.
50 | P a g e
4.7. CHALLENGES OF LOW-INCOME HOUSING DEVELOPMENT
Key informants (municipal officials and Ward 40 councillors) responded to the questions
contained in Appendix 2. All the respondents agreed that challenges exist in Kuyga, and
listed what they think the challenges are. The main challenges were:
Unemployment;
Poverty; and
Lack of infrastructure such as a cemetery, a high school and tarred roads.
The role of the Municipality in LED
According to Councillor Knoetze (2013), local economic development is designed to
create an environment in which local and foreign investors would want to invest and
develop, creating employment and eliminating unemployment and poverty in the
process. She stated that officials have to formulate a comprehensive implementation
plan to create projects to improve infrastructure and decrease housing backlogs and to
make use of other government departments while doing so. This indicates that although
there has long been a plan, the municipality has failed to implement it in Kuyga.
Knoetze advised that the relevant officials must seek assistance from other departments
in order to implement the plan effectively, as the IDP for 2012 and 2013 had long been
submitted to the NMBM and, to date had not been implemented. In addition, there is a
lack of clarity from the relevant officials within NMBM in response to the submitted
Kuyga IDP requests for service delivery.
According to the LED Manager and IDP Officer, the municipality has an economic
development strategy with a five-year review period in place. The council adopted it in
February 2011.The LED focuses on the following:
Building and strengthening the auto manufacturing base of the local
economy, whilst diversifying within manufacturing;
51 | P a g e
Promoting the diversification of the local economy, focusing on industries with
the potential to create jobs and harnessing skills and innovative capabilities;
and
Promoting entrepreneurship and providing support to small businesses and
the growth of co-operatives.
According to the NMBM 2011/2016 Integrated Development Plan, Ward 40’s IDP
priorities for 2011/2016 are as follows:
Building a high school and clinic;
Repair of houses with roof leaks;
Repair of faulty water-pipe connections;
Street naming in Kuyga and Witteklip;
Establishment of a cemetery in Kuyga;
Employment of local people (beach-cleaning and greening projects);
Prioritisation of service delivery and infrastructure development (peri-urban
areas);
Improving education facilities;
Training and skills development of local people;
Repair of toilet pipes connected to kitchen sinks; and
Need for economic development programmes (job creation).
Although these priorities are listed in the NMBM IDP 2011-2016, the municipality has
implemented few in Kuyga. It established a clinic and employed of local people in the
Masiphuhle cleaning project where members were responsible for collecting the rubbish
bins in the local area.
52 | P a g e
According to the Integrated Plan 2011-2016 for Poverty Eradication, the municipality is
aware that despite progress made in job creation and the provisions of basic services,
high poverty levels persist. Initiatives to fight poverty introduced by the municipality
include:
Provision of free basic services to indigent households;
Implementation of Expanded Public Works Programme (EPWP) and job creation
initiatives;
Implementation of the Community Work Programme as part of the Safety-net
Programme;
Provision of human settlements;
Development of cooperatives, SMMEs and informal traders;
War on Hunger Programme;
Repair of water leakages in indigent households;
Skills development, learnerships and entrepreneurship support;
Rural/peri-urban development; and
Empowerment of youth, women and people with disabilities.
According to the responses from government officials, they are aware of what is
expected of them and what they are supposed to do for communities like Kuyga, as
they further mentioned that Kuyga is one of the communities identified for the pilot
project of the “War on Hunger Programme” in NMBM.
Local economic development projects within the area of Kuyga as a strategy to
reduce unemployment and poverty within the area
The ward councillor of Kuyga indicated that no projects are available in the area. She
further stated that all the project ideas were presented to the Municipality and a skills
audit carried out prior to the request for project implementation, yet to date the NMBM
53 | P a g e
has implemented nothing.
The municipal officials responded to the above statement that the municipality had
initiated projects in Kuyga to reduce unemployment and alleviate poverty, such as the
Masiphuhle Cleansing Co-operative. According to the NMBM officials, the municipality
established this in 2005 and it comprised of men and women, mostly especially youths.
The officials further stated that the NMBM awarded the co-operative a three-year
contract to clean the area in early September 2006.
The challenges faced by the NMBM in implementing these services to Kuyga.
The Kuyga ward councillor identified budget constraints and a lack of political will as
challenges the NMBM faced in implementing services in Kuyga.
The Nelson Mandela Bay Municipality officials responded that the following challenges
exist within the NMBM at large and do not affect only the Kuyga community:
High unemployment and poverty levels, exacerbated by the recent worldwide
recession;
Inadequate resources to promote investments and provide incentives to potential
investors;
Lack of coherent development strategies between the three spheres of
government and other role players;
Absence of an entrepreneurship support programme;
Lack of mainstreaming of women, youths and people with disabilities; and
Food security
The study revealed poor relations between the Ward 40 councillor and the Nelson
Mandela Bay Municipality; a breakdown in communication between the two parties
seems to have led to failure to implement policies that meet the needs of Kuyga
54 | P a g e
residents. There is lack of communication between the respondents and NMBM officials
failed to provide feedback regarding possible impediments in the implementation of LED
initiatives within Kuyga.
4.8. CONCLUSION
In this chapter, the quantitative and qualitative data collected through questionnaires
and interviews. The researcher presented the participants’ responses to the
questionnaires completed as well as the socio-economic profile of the sample group.
The socio-economic aspects of the respondents’ demonstrated issues include
education level, family size, employment and income status. In chapter 5, the
researcher draws a conclusion from the study and presents her recommendations.
55 | P a g e
CHAPTER 5
SUMMARY, RECOMMENDATIONS AND CONCLUSION
5.1 INTRODUCTION:
In this chapter, the researcher summarises the findings of the study, draws a conclusion
based on the empirical study as discussed in the previous chapter, and presents
recommendations for possible improvements that the Nelson Mandela Bay Municipality
could use for Kuyga residents.
The aim of the study was to explore the livelihoods of the Kuyga community and the
opportunities for creating more sustainable and viable livelihoods.
5.2 SUMMARY OF FINDINGS AND HIGHLIGHTS OF THE STUDY
The research objectives of the study were as follows:
To assess/analyse the livelihoods of residents of a low-income housing
development;
To assess the role played by local economic development initiatives in the
Kuyga community; and
To make recommendations on what can be done to reduce the unemployment
rate and create sustainable and viable livelihoods for the Kuyga community in
NMBM.
Summary of the findings
The Kuyga settlement is in the Greenbushes area of the NMBM and is one of the areas
that comprises Ward 40, under Councillor Vicky Knoetze This is a low-income housing
development built to accommodate people from outlying areas. The study indicates that
due to the level of unemployment and education in the area, grants are the only stable
56 | P a g e
source of monthly income for most households. The household survey indicated that the
population of Kuyga consists mostly of middle-aged people who have a low level of
education, with only a quarter having finished high school. Household size is typically
large, with most households having five or more members. Many consist of extended
families, with some family members living in backyard shacks.
This study shows extremely high levels of unemployment in Kuyga. Most residents are
dependent on government grants and the low household incomes reflect high levels of
poverty in the community.
All the respondents agreed that challenges exist in Kuyga. The main challenges
identified were:
Unemployment;
Poverty; and
Lack of infrastructure.
According to the municipal LED Manager and the IDP Officer, the municipality has
an economic development strategy with a five-year review period in place, which the
council adopted in February 2011. The LED focuses on the following:
Building and strengthening the auto manufacturing base of the local
economy, while diversifying within manufacturing; and
Promoting the diversification of the local economy, focusing on industries.
57 | P a g e
The researcher drew the following conclusions in relation to the objectives of the study:
To assess/analyse the livelihoods of residents of a low-income housing
development of Kuyga in NMBM.
The livelihoods of most households in the Kuyga community are not sustainable.
In fact, they are dependent on government grants and in some cases are
vulnerable to loss of income if the head of household is absent. Kuyga residents
live far from formal employment opportunities and there are few opportunities for
income generation from other sources.
To assess the role played by local economic development initiatives in the
Kuyga community.
Although there are plans for local economic development initiatives, the
municipality has not implemented them in Kuyga, with the exception of the
cleaning cooperative. The NMBM has also failed to provide the ward councillor
with feedback regarding the implementation of the submitted IDP for Kuyga.
5.3 RECOMMENDATIONS
The final objective of this study was to provide recommendations regarding action and
policies that could reduce the unemployment rate and create sustainable and viable
livelihoods for the Kuyga community in NMBM.
The researcher felt it was pertinent to identify the following recommendations from
members of the Kuyga community and from the ward councillor of Kuyga:
Local economic development is a key means of improving the economic prospects of
South African citizens. The purpose of LED is to develop the economic capacity of a
local area to improve its economic future and quality of life for all. It is a process by
which public, business and non-governmental sector partners work collectively to create
better conditions for economic growth and sustainable development.
58 | P a g e
NMBM officials must formulate a comprehensive plan to create projects with
regard to improving infrastructure;
The municipality must confirm the availability of resources, such as finance and
infrastructure, to implement the suggested projects;
Community members should participate in the identification, planning and
implementation of the projects;
There should be investment in capacity building of the Kuyga community
beneficiaries;
Stakeholder participation with clear roles and responsibilities in the
implementation of these projects is important;
Ensure sound sustainability and marketing plans for income generating projects;
Ensure that there is a monitoring and evaluation system for these projects;
Establish a specialised unit for project impact assessment; and
Ensure the participation and involvement of the relevant sector department
throughout the project stages.
Lastly, NMBM officials (those responsible for the integrated development plan and local
economic development) and the councillor for Ward 40 should establish effective
working relations, put their differences aside and work closely with each other to
implement effectively the plans to improve the Kuyga community and reduce
unemployment.
5.4. CONCLUSION
The municipality should provide the people of the Kuyga community in the NMBM,
where developmental projects are to take place, with training for semi-skilled or skilled
jobs. This will allow these people to take part in improving their own community. In
addition, it will allow them to be self-employed and employable in the labour market,
earning better incomes and benefiting themselves and future generations.
59 | P a g e
60 | P a g e
BIBLIOGRAPHY
Bailey, K.D. 1994. Methods of Social Research. The Free Press. New York.
Bless, C; Higson-Smith, C.and Kagee, A. 2006. Fundamentals of Social Research
Methods: An African Perspective. Cape Town: Juta.
Binza, M.S. 2009. A public-Private Partnership Model for the Improvement of the Local
Economic Development in South African Metropolitan Government.NMMU: Port
Elizabeth.
Blakely, E.J.1994.Planning Local Economic Development: Theory and Practise.
London: New Delhi.
Bryman, A.1989. Research Methods and Organizations Studies. London: Unwin Hyman
Ltd.
Craythorne, D.L.1997. Municipal Administration:; a handbook. Kenwyn, Cape Town:
Juta publications.
Davids, I. Heron, F. & Mapunye, K.J. 2005. Participatory Development in South Africa:
A development Management Perspective Pretoria: Van Schaik.
De Beer, F.C.1993. Housing policy in South Africa; a view from below. Africa insight,
23(2).
De Beer, F.C. & Swanepoel, H.J. 1994. Energy and the community of the poor urban
settlements, household needs and participatory development in South Africa. Energy
Policy February 1994.
Dennison, E.F. 1962. The Sources of Economic Growth in the United States and
Alternatives Before Us. New York: Committee for Economic development.
Francis, W. & Mamphela, R. 1989. Uprooting Poverty-the South African Challenge.
Cape Town & Johannesburg: David Phillip.
61 | P a g e
Fryer, I. 2006. Poverty and Unemployment in South Africa. National Labour and
Economic Development. Bisho: Government Printers.
Galbraith, J.K.1979. The nature of mass poverty.Cambrigde: Harvard University Press.
Harijan, H. 2006. Toward a quality of life theory: Net domestic product of happiness.
Social Indicators Research, 75, 31-41.
John, P. Blair & Michael, Carroll. 2009. Local Economic Development: Analysis,
Practises, and globalisation. Sage Publications, Los Angelos.London.
Kenny, C. 2005. Does development makes you happy? Subjective well-being and
economic growth in developing countries. Social indicators Research, 73(2), 199-219.
Leedy, P. D. And Ormrod, J. N. 2010. Practical Research: planning and design.
Pearson Education Inc. New Jersey.
Makhalane, V. 2008. The assessment of factors contributing to the sustainability of
poverty relief in the Eastern Cape. Port Elizabeth.NMMU.
Maree, K. 2007. First Steps in Research. Van Schaik Publishers. Pretoria.
Partridge, M.D. & Rickman, D.S. 2003. Do we know economic development when we
see it? Review of Regional Studies, 33(1), 17-39.
Leedy, P.D. 2001. Practical Research Seventh Edition, Planning and Design.
PIR.1998.Poverty and inequality in South Africa. Report prepared for the office of the
Deputy Executive President and the Inter- Ministerial Committee for poverty and
inequality. Durban: Praxis Publishing.
Qiang, Li. 2006. An Investigation of the challenges facing the Nelson Mandela Bay
Municipality in the Provision of low-income housing. Nelson Mandela Metro University
Thesis.
RDP.1995. Key indicators of poverty in South Africa. An analysis prepared for the office
62 | P a g e
of the Reconstruction and Development Programme by the World Bank, co-ordinated by
the Southern African Labour and Development Research Unit (SALDRU), University of
Cape Town.
Rubin, H.J. and Rubin, S. R. 2005. Qualitative Interviewing: the art of hearing data.
Sage.
Saunders, M., Lewis, P.& Thornhill, A. 2003. Research Methods for Business
Students.3rd Edition. Great Britain. Pitman Publishing.
Silverman, D. 2006. Interpretative Qualitative Data. Sage Publications. Thousand Oaks
Publications. London.
Schultz, T.W. 1961. Education and Economic Growth. In Social forces Influencing
American Education, Ed .N.B .Henry. Chicago: National Society for the study of
education, University of Chicago Press.
Van Wyk Westhuizen, G.1995. Emerging patterns in the expansion of housing. In Van
Wyk Jasper,J.Strategies towards sustainable enablement of the low income housing
markert.Unpublished thesis for the degree of Magister Commerce.Universty of Port
Elizabeth, South Africa.
Wilson, F. & Ramphele, M.1989.Uprooting poverty: the South African challenge. Cape
Town: David Philip.
INTERVIEWEES
Councillor Ndlebe, former Ward Councillor during Phase 1 and 2 in Kuyga. 2011. Kuyga
Community Hall
Councillor Vicky Knoetze, Ward Councillor, Ward 40.12 October 2013.Kuyga
Community Hall.
Mr. S. Khohlakala, Manager in Human Settlements.17July 2013.Nelson Mandela Metro
Municipality.
63 | P a g e
Ms .B. Lobishe, Councillor of portfolio.22 October 2013.Nelson Mandela Metro
Municipality.
INTERNET
www.pmg.org.za/files/docs/091110pcsettlereport.doc
Human Settlement Country profile, South Africa.no date .Retrieved July 10, 2013.
A new housing policy and strategy for South Africa.no date. Retrieved May 11, 2013,
from http://www.info.gov.za/documents.htm.
LEGISLATION
The Housing Act, 1996 Act No.107 of 1996.
The Constitution of the Republic of South Africa Act 108 of 1996.
The Housing Act, 1997 Act No. 107 of 1997.
The Public Finance Management Act, Act No. 1 of 1999.
The Division of Revenue Act, Act No. 7 of 2003.
The Municipal Finance Management Act, Act No. 56 of 2003.
Republic of South Africa, 1995.Development Facilitation Act, Act No.67 of 1995
The Local Government Transition Act 209 of 1993
DOCUMENT REVIEW
The Growth Employment and Redistribution Strategy (GEAR), 1996
The Accelerated and Shared Growth Initiative for South Africa (AsgiSA, 2006)
Bobat, S., Khumalo, B. & Lieberg, T et al.2000, Local Government Development from
64 | P a g e
Democratic Local Government: A Guide for Councillors. Pretoria: Government.
Nelson Mandela Bay Municipality, 2006-2011.Integrated Development Plan. Six Edition.
Nelson Mandela Bay Municipality, 2013-2014. Integrated Development Plan. Twelve
Edition, 7 June 2013.
Nelson Mandela Bay Municipality, 2011-2016.Integrated Development Plan. Twelve
Edition.
RDP.1995.Key indicators of poverty in South Africa. An analysis prepared for the office
of the Reconstruction and Development Programme by the World Bank, co-ordinated by
the Southern African Labour and Development Research Unit (SALDRU), University of
Cape Town.
African National Congress, 1994. Reconstruction and Development programme.
Johannesburg: Umanyano Publishers.
South Africa.1994.WhitePaper: Reconstruction and Development Programme.
Department of Human Settlements, 2004. Breaking New Ground Policy.
Nelson Mandela Metro Municipality, 2020. City Wide Economic Strategy.
Policy Paper on Local Economic Development, 2002.
Republic of South Africa, 2000. White Paper on Municipal Service Partnerships. Notice
1689 of 2000.
Department of Provincial and Local Government, 2003:39.
Government White Paper on Housing of the Republic of South Africa, 1994
Republic of South Africa, 1998.White Paper on Local Government of 1998.Department
of Provincial and Local Government.Pretoria.South Africa.9 March 1998.
Department of Provincial & Local Government. 2002: The LED draft policy: Refocusing
65 | P a g e
Development on the Poor: Pretoria.
Eastern Cape Provincial Government, 2002. Draft Policy on Local Economic
Development.Bhisho: Government Printers.
National Framework for Local Economic Development in South Africa (NFLED) of 2006-
2010 (Republic of South Africa, 1996).
Pretorius, D, 2010.Pilot Project War on Hunger. Nelson Mandela Bay Municipality.
September 2010.
66 | P a g e
APPENDIX: 1
Research developers
P.O. Box 472
NMMMU
Port Elizabeth
4960
Kuyga Community member/Stakeholder
P.O Box 111
Ward Councillor phase 1 and 2 ( Kuyga)
Port Elizabeth
60001
Sir/madam
EVALUATION CONSENT FOR SUSTAINABLE LIVELIHOODS OF KUYGA COMMUNITY
You are requested to participate in a study that will seek to explore the livelihoods of the
Kuyga community and the opportunities for creating more sustainable and viable
livelihoods. Its main objectives are of the following:
• To assess/analyse the livelihoods of residents of a low-income housing
development.
• To assess the role played by local economic development initiatives in the Kuyga
community.
• To make recommendations on what can be done to reduce the unemployment rate
and create sustainable and viable livelihoods for the Kuyga community in NMBM
67 | P a g e
As the stakeholders/ residents of the Kuyga housing development in NMMBM, what will
be discovered after the evaluation, can be used to enhance the livelihoods of the Kuyga
residents. Your participation can give an insight to the study and full understanding of
the goals and objectives of the study can also indirectly or directly suggest
recommendations to challenges that prohibit the goals to be more effective, or to what
extent are the successes of the goals in generating the income.
If your response is positive, you will be required to undertake interview where you will
be required to answer questions about success/ challenges experienced in trying to
achieve the goals and strategies that are set to ensure the achievement of these goals.
Your participation will be voluntary. You are free at any time you wish to withdraw your
participation without any prejudice.
For any uncertainties occurring about the study, before the commencement of
participation, please feel free to contact me on the above address.
Participant’s signature: .................................... Date: .............................
Researcher’s signature: ..................................... Date: ...............................
68 | P a g e
SECTION A: BIOGRAPHICAL DATA
Please supply the following personal details by marking an “X” in the appropriate box
A.1 How long have you resided in Kuyga?
1-4 Years
5-9
10-19
20+
A.2 What is your gender?
Male
Female
A.3 What is your marital status?
Single
Married
Divorced
A.4 What is your age group?
20-30 Years
31-40
69 | P a g e
41-50
51-55
56+
A.4 What is your highest educational qualification?
Three year tertiary qualification and above
Certificate
Matric
Grade 11 & under
Other
If other qualifications, please specify
……………………………………………………………………………………………………..
……………………………………………………………………………………………………..
70 | P a g e
SECTION B:
Please supply the following details by marking an”X” in the appropriate box. Please do not
hesitate to ask the researcher if you have questions about the alternatives.
B.1 What is the employment status of the head of this household: are you employed?
Yes
No
B.2 What is the income source of the head of the household?
Pension grant
Child support grant
Disability grant or Sick benefits
Other
If other please specify
……………………………………………………………………………………………………..
………………………………………………………………………………………………………
B.3 How many people are employed in this household?
One Person
Two People
Three and more
If three people and more please specify those people and how are they are related
……………………………………………………………………………………………………..
………………………………………………………………………………………………………
71 | P a g e
B.4 What is the gross monthly income of this household?
R200.00-R500.00
R500.00-R700.00
R700-R1000.00
R1000.00-R1500.00
Other
If other please specify
……………………………………………………………………………………………………..
……………………………………………………………………………………………………..
B.5 How far are industries/ places from Kuyga to seek for work?
15 Kms or less
16-20 Kms
25-30 Kms
Other
If other please specify
……………………………………………………………………………………………………..
………………………………………………………………………………………………………
B.6 What do you use for transportation to travel to work and to come back from work?
Bus
72 | P a g e
Taxi
Own transport
Other
If other please specify
………………………………………………………………………………………………………………
……………………………………………………………………………………………..
Do you think transport is easily available in Kuyga at all times?
Yes
No
If no please explain
……………………………………………………………………………………………………..
……………………………………………………………………………………………………..
B.6 Are there any local economic initiatives in the area of Kuyga?
Yes
No
If yes, please specify
……………………………………………………………………………………………………..
………………………………………………………………………………………………………
73 | P a g e
B.7 Do you think local economic development initiatives in the area of Kuyga are / could change
the current situation?
Yes
No
Underneath, please support your answer.
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
…………………………………………………………………………………….
74 | P a g e
SECTION C:
To answer the following the household will tick the number that represents his/her answer as
follows: 1= Totally disagree
2=Disagree
3=No comment
4=Agree
5=Totally agree
Tick in the appropriate box
C.1 The NMBM’s government plan/initiatives within Kuyga to deliver and provide basic services
and to reduce unemployment & poverty are satisfactory
1 2 3 4 5
C.2 To travel to work and back is easy.
1 2 3 4 5
C.4 The living conditions are good in Kuyga, basic services are provided.
1 2 3 4 5
C.5 The other household members can still survive in the absence or unemployment of the
head of the household.
1 2 3 4 5
C.6 All the children have access to free education.
75 | P a g e
1 2 3 4 5
76 | P a g e
APPENDIX: 2
Questions to be answered by the selected NMMB government officials:
A.1 Do you think that challenges exist in low- income housing developments such as Kuyga in
NMBM?
Yes
No
If yes, please list what you would consider to be the three main challenges faced by the Kuyga
community in NMBM.
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
…………………………………………………………………………………….
A.2 According to the Municipality, what is the Dept. of Local Economic Development supposed
to do in communities like Kuyga? Please explain
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
…………………………………………………………………………….
A.3 Does the NMBM have any local economic development initiatives within Kuyga as a
strategy to reduce unemployment and poverty?
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
……………………………………………………………………………
A.4.What are the challenges faced by the NMBM in implementing services in the Kuyga
community?
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
77 | P a g e
………………………………………………………………………………………………………………
…………………………………………………………………………….
After the interview session has been finalised, the researcher will thank the participants and
remind them of the aim and objective of this study, as it will impact positively to assist both the
Kuyga community in NMBM together with its local government officials in the correct
implementation of community development in Kuyga in Nelson Mandela Bay.
78 | P a g e
RECOGNITION AND ACKNOWLEDGEMENTS
It is a great honour to present the successful completion of this research study. Various
people have supported, motivated and advised me throughout, and provided me with
their unconditional love and prayers.
Thank God Almighty, our Father in Heaven, who is the source of wisdom, knowledge
and understanding and has empowered me to prosper in every good act of life.
Further gratitude goes to the following people:
My research promoter, Dr Janet Cherry, for her professionalism and wealth of academic
experience in the field. She is a true and determined supervisor who has given her all,
provided guidance and demonstrated a deep insight into her field expertise.
Both the primary and secondary sources of this research, who made it possible for me
to acquire the information needed for the study.
Finally yet importantly, I am indebted to my entire family for their unconditional love,
prayers and support throughout the years of my studies.
79 | P a g e
“Sustainable livelihoods in a new housing development: the case of Kuyga in Nelson
Mandela Metro”
ABSTRACT
The study was undertaken to satisfy the following objectives of the research study:
To determine the livelihoods of residents of a low income housing development;
To assess the role played by the local economic development initiatives in the
Kuyga community; and
To make recommendations regarding policies and actions that could reduce the
unemployment rate and create sustainable and viable livelihoods for the Kuyga
community in Nelson Mandela Bay Municipality.
To note, what triggered the researcher to undertake the study, are the high levels of
unemployment, poverty and poor monitoring of the local economic initiatives within the area. In
this study, the researcher explores the livelihoods of the Kuyga community and the opportunities
for creating more sustainable and viable livelihoods.
Attention is drawn to Government policies, Local economic Development as well as Integrated
Development Plans of the Nelson Mandela Bay Municipality, simultaneously realising that the
South African government cannot work in isolation to deliver all the community needs effectively
as expected.
