GEORGE NEWS - What significant events have impacted on local government since the Local Government Elections in November 2021?

The results of the elections in 2021 meant that coalition governments had to be formed and managed in many municipalities across the country. In many of the metropolitan areas, this has been a huge challenge, thereby creating uncertainty which has also impacted on service delivery and making critical decisions.

During the past year it has been evident that many municipalities have become dysfunctional and thereby unable to deliver basic services to residents. 

The lack of maintenance of infrastructure has resulted in interruptions in the supply of water, sewerage treatment plants not working, refuse not being collected.

In addition to this, Eskom has been unable to ensure a reliable supply of electricity, resulting in load shedding doubling in the first ten months of the year.

The combination of these factors has affected confidence, the level of certainty and economic growth in South Africa.

These levels of uncertainty have resulted in citizens exploring opportunities in the Western Cape where there is greater stability and better governance in municipalities.

How has the Western Cape fared in this scenario?

The Western Cape has actually fared rather well in comparison to the rest of the country. We are 14-15% of the national economy.

However, if we take agricultural exports, the Western Cape produces and exports 54-55% of South Africa's agricultural exports.

As a result of numerous factors, the Western Cape is experiencing significant in-migration from other provinces. The 2021 population is 7,1 million. By 2030, it is expected that the Western Cape population will grow by 1,3 - 1,4 million.

Last year, the increase in population was 108 000. In 2022, it is expected to exceed 120 000. These are significant numbers. While the migrating citizens move investments into the province, this also has other implications. More water needs to be provided; we need more schools, as examples.

In comparison, Gauteng is 35% of the SA economy.

When we look at building plans passed from January to September 2022, the Western Cape achieved R27-billion (with a year-on-year increase of 27%) and Gauteng R26-billion. In terms of buildings completed, in the Western Cape, R21- billion was completed (year-on-year growth of 30%) with Gauteng completing R15-billion.

This provides some perspective of the confidence in investing in the Western Cape economy and the speed with which building plans are approved.

With regard to load shedding and the negative impact that unreliable electricity has on the economy, there is much pro-active work being done to alleviate this impediment. 

Municipalities are making plans as if they are in competition with each other.

As with ongoing planning in relation to energy resilience and the introduction of renewable energy over the next few years, planning for the future is taking place to provide for additional water, education, health, roads, housing, safety and social services.

What has the impact been on George?

Fortunately, we have navigated challenges to drive a very different scenario in George compared with other parts of the country.

Firstly, we have appointed a top-class team, with Dr Michele Gratz as municipal manager, and excellent directors.

In 2021, we began making some critical decisions with regard to infrastructure. Firstly, we needed to complete the expansion of our major waste-water (sewage) treatment works. This had already stalled construction activity as the existing Outeniqua Works was at maximum capacity. 

The new additional capacity of 10Ml is already operational with only the refurbishment of the old works still taking place, to be completed by March/April 2023.

We also succeeded to secure a Budget Facility for Infrastructure (BFI) Grant through National Treasury of over R1,1-billion, which has enabled us to begin construction on a new 20Ml water treatment works and the refurbishment of three major sewer pump stations that were built in the 1975 era. 

This project has radically altered our forward planning in something of a leapfrog movement where increased infrastructure spending enables the attraction of investment.

GDP

The recent Municipal Economic Review and Outlook (Mero) analysis by the Western Cape Government has revealed that George comprised 40% of the GRDP (Gross Regional Domestic Product) of the Garden Route District economy in 2020, with Mossel Bay, Oudtshoorn and Knysna combined making up 41%. 

George's GRDP was R21-billion in 2020 and it is likely that this will have increased in 2021 and 2022, given the economic activity taking place.

George has experienced a significant in-migration influx over the past few years. One measure is the level of construction activity. In the financial year to June 2022, the value of building plans passed was just short of R2-billion. 

If all of this translated into completed buildings, it equates to 4% of the total municipal valuation of land and buildings in June 2021. This trend has continued into the 2022/23 financial year. It is understood that cement sales in George and the Western Cape increased by 20% in volume in the year to June 2022.

Electricity

George has also actively been examining ways of alleviating the debilitating effects of load-shedding on the economy through the introduction of solar PV plants and battery energy storage. 

Projects to install solar PV plants at municipality-owned water and waste-water plants are underway as part of an approved capital budget of R220m over the 2022-25 period. 

This budget has targeted 15% of George's daily power usage. It is an objective to generate sufficient renewable energy to alleviate Stage 1 of load-shedding by the end of 2023 and Stage 2 in the year thereafter.

 Two of the hurdles receiving constant attention remain environmental approval of a 9mW solar PV plant and the complex technical requirements to integrate the energy generated from renewables into the municipal electricity network. Ongoing research is taking place to make this a practical reality.

Growth and forward-planning

Research has shown that George is one of the fastest growing intermediate cities in the country.

The impact of the in-migration into the Western Cape is very evident in George as well. This requires that our forward planning needs to cater for adaptability to take advantage of potential investment opportunities. An example of the interest being shown in George was a visit by senior executives of an international public company who are exploring the establishment of a business presence in George. 

Another example is that a team from Harvard University's Growth Lab recently spent a weekend in George to conduct research on fostering economic growth. This is part of an assignment they are conducting for National Treasury.

Lastly, I would like to wish all our citizens and visitors to George a wonderful, peaceful and blessed holiday. Please enjoy our relaxed lifestyle. 

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