Umzinyathi warns of deepening poverty as area’s economy declines
The Mayor noted that he district 'has a highly underdeveloped economy with high levels of unemployment and poverty, compounded by rapid population growth'.
The diminishing economies of Dundee and Greytown have led to a re-look at how the poverty-stricken Umzinyathi area can be rejuvenated.
The disinvestment in the two towns – caused mainly in Dundee by the closure of Magdalena Colliery (and the loss of around 500 jobs), the shutting down of some businesses and the inability of the area to attract new investment – was one of the main issues at Friday’s Local Economic Development Plan and Budget Summary meeting.
A document presented at the meeting in the Moth Hall noted that the district ‘has a highly underdeveloped economy with high levels of unemployment and poverty, compounded by rapid population growth’.
According to Census SA, the population of Umzinyathi grew from 510 838 in 2011 to 554 882 in 2016.
Disturbingly, 35,7% of women in the district aged between 15-49 are HIV positive. This is according to the National Antenatal Sentinel, 2013.
The Ilembe District has an even higher HIV prevalence of up to 46% among the same sector.
Other challenges noted by Mayor Ngubane include the operation and maintenance department which has over 100 employees but still have to rely on the hiring of trucks as the Department does not have its own fleet.
To fight these ills, the Umzinyathi District Municipality, UDM, has embarked on a drive, in collaboration with Provincial and National Departments, to develop an Investment Promotion Facilitation Strategy.
The main focus areas are tourism and agriculture – i.e. using the natural strengths of the district. The Rural Development and Land Reform Department aim to establish 27 agri parks throughout the country – including Umzinyathi.
The vision is that the parks will network local producers and assist with training, marketing and processing to boost production and in that way beat poverty. In the Endumeni area, the focus will be on beef, maize and dry beans. The vision of UDM is ‘the championing of an economically viable district which strives to promote sustainable development by 2035’.
Budget summary
Mayor Petros Ngubane highlighted the draft budget for the 2019/2020 municipal financial year. The total budget is R733,125,256.00.
- The capital budget is R734,602,357.00
- The Municipal Operating Grants standing at R359,887,000.00
- Capital Grants money from the State contributing R279,277,000.00
In addition, Mayor Ngubane added that most vacant posts have been occupied in the Municipal Manager’s office.
Other challenges noted by Mayor Ngubane include the operation and maintenance department which has over 100 employees but still have to rely on the hiring of trucks as the Department does not have its own fleet.
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