Infrastructure Barometer 2006 - Development Bank of Southern Africa

Infrastructure Barometer 2006 - Development Bank of Southern Africa
2006
Economic and Municipal Infrastructure in South Africa
THE DBSA INFRASTRUCTURE BAROMETER 2006
THE DBSA
INFRASTRUCTURE BAROMETER
Economic and Municipal
Infrastructure in South Africa
The DBSA Infrastructure Barometer 2006
Published by:
Development Bank of Southern Africa
Knowledge Management Division
Policy Research Unit
Midrand
March 2006
The DBSA Infrastructure Barometer 2006
ISBN: 1-919692-72X
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Preface
The availability of appropriate economic and social infrastructure represents a major platform for promoting
economic growth and the universal goal of ensuring that people have access to sustainable and affordable
basic services, such as water, sanitation and power.
The need to address backlogs, and to upgrade and expand key social and economic infrastructure are
cornerstones of government’s policy, strategy and programmes to promote sustainable economic growth
and to achieve a better life for all. This has recently been reiterated in the Accelerated and Shared Growth
Initiative (ASGISA) announced by the President in his State of the Nation Address on 3 February 2006, and
in the expenditure commitments made by the Minister of Finance in his Budget Speech on 15 February
2006. Sound policy decisions, programme design, budgeting and implementation require reliable data and
information. This publication, accordingly, seeks to contribute to the body of knowledge regarding this
complex sector, and to assist by providing current data and analysis as an input to decision-making.
The DBSA Infrastructure Barometer 2006 provides an overview of the current state of infrastructure in the
key sectors of water and sanitation, energy, ICT and transport; and it identifies backlogs and the challenges
and constraints that face all spheres of government in addressing South Africa’s future needs. In this
regard, municipal infrastructure services receive special attention. The local sphere of government plays a
particularly important role in the delivery of basic services, as well as infrastructure to support local economic
development. The challenges currently facing this sphere of government in fulfilling its key delivery role
are daunting, and it is hoped that the Infrastructure Barometer 2006 will provide a useful tool for those
responsible for project planning and implementation at this crucially important delivery interface.
In the analysis and discussion, the publication attempts to identify key policy concerns and possible
solutions to the many challenges posed by issues such as sustainability, affordability, appropriate levels of
service and the capacity to deliver, maintain and operate infrastructure. While it is beyond the scope of the
Infrastructure Barometer 2006 to provide definitive answers to these complex questions, I trust that it will
contribute not only to the intellectual debates, but also in practical ways towards finding new and innovative
solutions to the challenges of infrastructure delivery in South Africa.
Mandla Gantsho
Chief Executive
Development Bank of Southern Africa
PREFACE
1
Editor’s Note
The DBSA Infrastructure Barometer team is proud to present this report on economic and municipal
infrastructure in South Africa. As the development finance institution mandated to fund economic, social
and institutional infrastructure in the SADC region, the DBSA is ideally placed to consolidate important
information on infrastructure and to present such knowledge to our shareholder and our clients. This report
is therefore first and foremost a knowledge product. It aims to provide its readers with up-to-date, relevant
and interesting information. The focus of this report is on the history and current realities of South Africa’s
infrastructure.
The DBSA Infrastructure Barometer is the brainchild of the DBSA Chief Executive, Mandla Gantsho. He requested
the Knowledge Management Division to publish this infrastructure barometer as an important source of
information and knowledge to the many institutions and individuals concerned with the development and
growth of infrastructure in the South Africa. We therefore approached the production of the report from a
national interest point-of-view. This report is not about DBSA’s role in the development of infrastructure, but
rather addresses infrastructure as a national asset. It carefully unpacks this complex sector, which consists of
multiple parts and players, and presents the reader with a better insight into, and better comprehension of,
this concept of “infrastructure”.
The report consists of three Parts, each of which looks at South Africa’s infrastructure realities from a
completely different perspective. Before readers approach Part I, they should read the introduction, as it
sets the scene for the report as a whole. The Introduction provides the reader with tools to unpack and
understand infrastructure in South Africa. Part I follows, consisting of three chapters, all of which are on
economic infrastructure, viewed from a national or macro level perspective. Chapter 1 starts with a timeline
illustrating key events contributing to the development of the four selected economic infrastructure sectors:
transport, energy, water, and information and communications technology (ICT). Chapter 2 presents the same
four sectors, and provides a detailed overview of the policy, regulatory, institutional and financial dynamics
governing each of these four sectors in South Africa. Chapter 3 provides a visual overview, using maps and
figures, to illustrate the scope and geographical spread of key investments in these four sectors.
Part II, also consisting of three chapters, focusses on municipal infrastructure, and moves away from the
macro level analysis to the household level. Chapter 4 describes infrastructure backlogs in South Africa, and
unpacks each of the key household-level services (water, sanitation, electricity and telephones) by province
to illustrate where and to what extent service backlogs remain throughout the country. Chapter 5 goes a
step further and uses this backlog information to quantify the investment required to meet government’s
infrastructure service targets. Chapter 6 adds further value to the facts and figures presented before by
placing the spotlight on selected “marginal” communities. The chapter aims to unpack some of the typical
constraints that these municipalities struggle with, and to suggest some solutions. Part III consists of a full
and comprehensive set of municipal level service provision data, on a national, provincial, district and local
municipal level.
The report has been prepared by a DBSA team, assisted by a number of external experts. Refer to page 3
for a full list of contributors. I would like to acknowledge each of the DBSA team members, who managed
always to envisage the final product, through our debates about a figure or a date or even a single sentence.
I need to mention four people by name. Firstly, Janine Thorne, Manager of the Policy Research Unit, for
giving me scope and freedom to conceptualise and complete this report. Secondly, Snowy Khoza, Executive
Manager of the Knowledge Management Division for her encouragement and trust. Thirdly, Rina Roothman,
who co-ordinated the process from start to end with never-ending efficiency and drive. Finally, Kevin Wall
(CSIR BOUTEK), the technical editor, for his insight and thoroughness.
The report is a product of the staff of the DBSA and, as such, the findings, interpretations and conclusions
are those of the team. They do not necessarily reflect those of DBSA’s governance. The DBSA team took great
care in presenting the data and facts, but complete accuracy cannot be guaranteed.
Marié Kirsten
Editor: The DBSA Infrastructure Barometer 2006
2
THE DBSA INFRASTRUCTURE BAROMETER
Acknowledgements
Editor
Marié Kirsten
Coordinator
Rina Roothman
Information Editor
Andries Mouton
Internal Core Team
Dr Thuthula Balfour
Callie Calitz
Peter Copley
Glynn Davies
Dr Priscilla de Gasparis
George Finger
Barry Jackson
Dr Patrick Karani
Elsa Kruger-Cloete
Jean Madzongwe
Dr Moraka-Nakedi Makhura
Mike Marler
Richard Marwood
Dr Andrew Shaw
Mbulelo Tshangana
Dr Tobie Verwey
Background Paper Authors
Johann Basson
Dr Anthon Botha
Dr Rolfe Eberhard
Dr Malcolm Mitchell
Caroline Ogutu
Prof Richard Tomlinson
Dr Kevin Wall
External Reviewers
Heloise Emdon
Hassen Mohamed
Malijeng Ngqaleni
Technical Editor
Dr Kevin Wall
Language Editor
Keith Sanderson
Management
Dr Snowy Khoza
Janine Thorne
ACKNOWLEDGEMENTS
3
Abbreviations
3G
ACSA
ADSL
AEC
AM
AP
ATNS
BEE
BEVA
BOT
BTSC
CAA
CAGR
CBD
CDM
CEF
CER
CERN
CFL
CSIR
CMA
CRM
CSSA
CWSSP
DBSA
DCT
DIU
DME
DOA
DOC
DOT
DPLG
DRS
DSM
DST
DStv
dti
DWAF
ECB
EDC
EDI(H)
EDRC
EIA
ERWAT
ESCOM
ESI
ESKOM
FCCC
FDI
FFC
FM
GAMAP
GAPD
GCIS
GDP
GEAR
GFB
4
Third Generation
Airports Company of South Africa
Asynchronous Digital Service Line
Atomic Energy Corporation
Amplitude Modulation
Agent Position
Air Traffic and Navigational Services Company
Black Economic Empowerment
Nuclear Fuel Fabrication Plant
Build, Operate, Transfer
Bangkok Transit System Corporation
Civil Aviation Authority
Compounded Annual Growth Rate
Central Business District
Clean Development Mechanism
Central Energy Fund
Carbon Emission Reduction
European Centre for Nuclear Research
Compact Fluorescent light
Council for Scientific and Industrial Research
Catchment Management Agency
Customer Relationship Management
Computer Society of South Africa
Community Water Supply and Sanitation Programme
Development Bank of Southern Africa
Durban Coal Terminal
Development Information Unit
Department of Minerals and Energy
Department of Agriculture
Department of Communications
Department of Transport
Department of Provincial and Local Government
Deeds Registry System
Demand-Side Management
Department of Science and Technology
Digital satellite television
Department of Trade and Industry
Department of Water Affairs and Forestry
Electricity Control Board
Energy Development Corporation
Electricity Distribution Industry (Holdings)
Energy for Development Research Centre
Environmental Impact Assessment
East Rand waste water utility
Electricity Supply Commission (until 1987)
Electricity Supply Industry
Eskom Holdings Ltd (since 2001)
Framework Convention on Climate Change
Foreign Direct Investment
Financial and Fiscal Commission
Frequency Modulation
Generally Accepted Municipal Accounting Practice
Governance, Administration, Planning and Development
Government Communication and Information Service
Gross Domestic Product
Growth, Employment And Redistribution
General Freight Business
THE DBSA INFRASTRUCTURE BAROMETER
GHG
GHS
GNP
GPRS
GRAP
GSM
GTZ
HIV & AIDS
HP
IBA
ICASA
ICDL
ICT
IDC
IDP
IDZ
IEA
IFAW
IGFR
IPP
ISDN
ISP
ISRDP
ISSA
IT
JPTC
LAN
LHWP
LNG
LOS
LPG
MCT
MFF
mgt
MIG
MIIF
MPCC
MSA
NEMISA
NER
NERI
NERSA
NLTTA
NNR
NPA
NRA
NRF
NRF
NSDP
NTC
PATU
PBMR
PC
PDA
PDG
PIT
POP
Greenhouse gases
General Household Survey
Gross National Product
General Packet Radio Services
Generally Recognised Accounting Practice
Global System for Mobile communication
Gesellschaft für Technische Zusammenarbeit
Human Immunodeficiency Virus & Acquired Immune Deficiency Syndrome
Hewlett Packard
Independent Broadcasting Authority
Independent Communication Authority of South Africa
International Computer Driving Licence
Information and Communications Technology
Industrial Development Corporation
Integrated Development Plan
Industrial Development Zone
International Energy Agency
International Fund for Animal Welfare
Inter-Governmental Fiscal Review
Independent Power Producer
Integrated Services Digital Network
Internet Service Provider
Integrated Sustainable Rural Development Programme
Institute for Satellite and Software Applications
Information Technology
Joint Permanent Technical Commission
Local Area Network
Lesotho Highlands Water Project
Liquefied Natural Gas
Level of Services
Liquefied Petroleum Gas
Matola Coal Terminal
Municipal Fiscal Framework
Million gross tonnes
Municipal Infrastructure Grant
Municipal Infrastructure Investment Framework
Multi-Purpose Community Centre
Moving South Africa
National Electronic Media Institute of South Africa
National Electricity Regulator
National Energy Research Institute
National Energy Regulator of South Africa
National Land Transport Transition Act
National Nuclear Regulator
National Ports Authority
National Roads Agency
National Research Foundation
National Road Fund
National Spatial Development Perspective
National Transport Commission
Pan African Telecommunication Union
Pebble-Bed Modular Nuclear Reactor
Personal computer
Personal Digital Assistant
Palmer Development Group
Public Information Terminals
Point of Presence
ABBREVIATIONS
5
PPP
PWD
PWR
RBCT
RDP
RED
RWB
SAA
SAAEE
SABC
SABS
SADC
SAIX
SALGA
SANRAL
SAPIA
SAPO
SAPO
SAPP
SAR&H
SARCC
SASOL
SATRA
SATS
SDI
SEMA
SFF
SHS
SITA
SMME
SMS
SNO
SOE
TBVC
TCTA
tcf
Telco
teu
URP
USA
USAL
UTA
VANS
VFP
VoIP
WAN
WASP
WB
WiFi
WLAN
WMA
WSA
WSDP
WSI
WSP
WSSD
WUA
6
Public Private Partnership
Public Works Department
Pressurised Water Nuclear Reactor
Richards Bay Coal Terminal
Reconstruction and Development Programme
Regional Electricity Distributor
Rand Water Board
South African Airways
South African Association for Energy Efficiency
South African Broadcasting Corporation
South African Bureau of Standards
Southern African Development Community
South African Internet Exchange
South African Local Government Association
South African National Roads Agency Ltd
South African Petroleum Industry Association
South African Port Operations
South African Post Office
South African Power Pool
South African Railways and Harbours
South African Rail Commuter Corporation
South African Coal, Oil and Gas Corporation
South African Telecommunications Regulatory Authority
South African Transport Services
Spatial Development Initiative
South African Energy Management Association
Strategic Fuel Fund
Solar home system
State Information Technology Agency
Small, Medium and Micro Enterprise
Short Messaging Service
Second National Operator
State-Owned Enterprise
Transkei, Bophuthatswana, Venda, Ciskei
Trans Caledon Tunnel Authority
Trillion cubic feet
Telecommunication company
Twenty-foot equivalent unit
Urban Renewal Programme
Universal Service Agency
Under-Serviced Area Licensee
Urban Transport Act
Value-Added Network Services
Victoria Falls Power Company
Voice over Internet Protocol
Wide Area Network
Wireless Application Service Providers
Water Board
Wireless Fidelity
Wireless Local Area Network
Water Management Area
Water Services Authority
Water Services Development Plan
Water Services Infrastructure
Water Services Provider
World Summit on Sustainable Development
Water User Association
THE DBSA INFRASTRUCTURE BAROMETER
Contents
Preface ............................................................................................................................................................ 1
Editor’s Note ................................................................................................................................................... 2
Acknowledgements ....................................................................................................................................... 3
Abbreviations ................................................................................................................................................. 4
Contents .......................................................................................................................................................... 7
Executive Summary ............................................................................................................ 14
Introduction........................................................................................................................ 17
Background ................................................................................................................................................... 17
What development? ..................................................................................................................................... 17
What infrastructure? .................................................................................................................................... 20
How infrastructure supports development ................................................................................................ 21
Economic linkages – infrastructure and growth ........................................................................................ 22
Social linkages – infrastructure and poverty alleviation ............................................................................ 22
A concluding comment – reforming the role of government ................................................................... 23
Defining Infrastructure ................................................................................................................................ 26
PART I
UNDERSTANDING ECONOMIC INFRASTRUCTURE IN SOUTH AFRICA
Chapter 1: The Historical Context
Introduction .................................................................................................................................................. 31
Infrastructure History “at a glance” ............................................................................................................ 32
Transport ....................................................................................................................................................... 34
Background ............................................................................................................................................... 34
Transport Infrastructure Development .................................................................................................... 34
Energy ........................................................................................................................................................... 43
Background ............................................................................................................................................... 43
Energy Sector Policy .................................................................................................................................. 44
Sources of Energy ...................................................................................................................................... 44
Water and Sanitation ................................................................................................................................... 50
Background ............................................................................................................................................... 50
Water Resources ........................................................................................................................................ 51
Water Services ........................................................................................................................................... 53
Irrigation .................................................................................................................................................... 55
Information and Communications Technology (ICT).................................................................................. 55
Background ............................................................................................................................................... 55
Historical Context ...................................................................................................................................... 56
Regulations ................................................................................................................................................ 56
Access to Broadcasting, Post and Telecommunications .......................................................................... 57
Technology ................................................................................................................................................ 58
Post-2000 ................................................................................................................................................... 58
Spotlight on New England Road Landfill, Msunduzi Municipality: Landfill Gas Use Study .......60
Chapter 2: The Operating Environment
Introduction .................................................................................................................................................. 63
Transport ....................................................................................................................................................... 63
Introduction .............................................................................................................................................. 63
Policy .......................................................................................................................................................... 63
Regulatory Environment .......................................................................................................................... 65
CONTENTS
7
Institutional Environment ........................................................................................................................ 69
Financing Framework ............................................................................................................................... 70
Energy ........................................................................................................................................................... 73
Introduction .............................................................................................................................................. 73
Policy .......................................................................................................................................................... 73
Institutional Structure and Ownership .................................................................................................... 74
Regulatory Environment .......................................................................................................................... 78
Environmental Regulation ....................................................................................................................... 79
Financing Framework ............................................................................................................................... 80
Water and Sanitation ................................................................................................................................... 81
Introduction .............................................................................................................................................. 81
Policy .......................................................................................................................................................... 81
Institutional Structure ............................................................................................................................... 82
Regulation ................................................................................................................................................. 84
Financing Framework ............................................................................................................................... 85
Information and Communications Technology (ICT).................................................................................. 88
Introduction .............................................................................................................................................. 88
Policy .......................................................................................................................................................... 88
Institutional Structure ............................................................................................................................... 89
Regulatory Environment .......................................................................................................................... 92
Financing Framework ............................................................................................................................... 94
Investment Outlook .................................................................................................................................. 95
Spotlight on Restructuring of Urban Rail Systems .........................................................................96
Chapter 3: State of Infrastructure
Introduction .................................................................................................................................................. 99
Transport ....................................................................................................................................................... 99
Introduction .............................................................................................................................................. 99
Road, Rail, Port and Pipeline Infrastructure ............................................................................................ 99
Conclusion ............................................................................................................................................... 108
Energy ......................................................................................................................................................... 108
Introduction ............................................................................................................................................ 108
Electricity ................................................................................................................................................. 108
Liquid Fuels .............................................................................................................................................. 116
Gas ........................................................................................................................................................... 117
Renewable Energy .................................................................................................................................. 118
Conclusion ............................................................................................................................................... 118
Water and Sanitation ................................................................................................................................. 119
Introduction ............................................................................................................................................ 119
Water Resources ...................................................................................................................................... 119
Water Services ......................................................................................................................................... 121
Irrigation .................................................................................................................................................. 123
Conclusion ............................................................................................................................................... 124
Information and Communications Technology (ICT)................................................................................ 124
Introduction ............................................................................................................................................ 124
Information Technology ......................................................................................................................... 124
Computers ............................................................................................................................................... 126
Communication Technology ................................................................................................................... 128
Convergence ............................................................................................................................................ 132
Conclusion ............................................................................................................................................... 133
Spotlight on the Tembisa/Kempton Park Electrification Programme .........................................134
Part I: Conclusion.............................................................................................................. 136
8
THE DBSA INFRASTRUCTURE BAROMETER
PART II
ACCESS TO INFRASTRUCTURE IN SOUTH AFRICA
Chapter 4: Infrastructure Service Backlogs
Background ................................................................................................................................................. 143
Introduction ................................................................................................................................................ 143
Water........................................................................................................................................................... 144
Sanitation .................................................................................................................................................... 147
Energy ......................................................................................................................................................... 149
Telephones .................................................................................................................................................. 152
Mode of Travel in Urban and Rural Areas ................................................................................................ 154
Other Surveys .............................................................................................................................................. 156
Conclusion ................................................................................................................................................... 158
Spotlight on the Somerspost Water Project .................................................................................160
Chapter 5: Modelling the Financial Implications of Municipal Service Delivery
Introduction ................................................................................................................................................ 163
The Municipal Infrastructure Investment Framework ............................................................................. 163
Building a Financial Model ........................................................................................................................ 165
Elements of the Model ........................................................................................................................ 165
Services Included in the Model ............................................................................................................ 165
Types of Municipality ............................................................................................................................ 165
Current Access to Services .......................................................................................................................... 166
Base Data............................................................................................................................................... 166
Summary Data of Access to Services .................................................................................................... 167
Service Level Targets .................................................................................................................................. 168
Setting the Targets ............................................................................................................................... 168
Service Level Targets -- Summary ........................................................................................................ 169
Financing ..................................................................................................................................................... 170
Capital Expenditure .............................................................................................................................. 170
Sources of Capital ................................................................................................................................. 171
Operating Expenditure......................................................................................................................... 171
Operating Revenue............................................................................................................................... 171
Subsidy Allocation to Local Government ............................................................................................ 173
Cross Subsidy Potential ......................................................................................................................... 173
Operating Account ............................................................................................................................... 174
Results on a National Scale ........................................................................................................................ 174
Capital Spending and Sources of Funding: Capital Grant Implications ............................................. 174
Implications for MIG Subsidies ............................................................................................................. 176
Implications for Housing Subsidies ...................................................................................................... 176
Implications for the Use of Municipalities Own Capital Finance ....................................................... 176
Operating Budget Implications............................................................................................................ 177
Conclusions ................................................................................................................................................ 178
Spotlight on ICT making a difference in the lives of poor communities ....................................180
Chapter 6: Challenges for Municipal Infrastructure Service Delivery in Marginal Communities
Introduction ................................................................................................................................................ 183
Marginal Communities and Services Delivery ........................................................................................... 183
Service Levels and Services Backlogs.................................................................................................... 183
Household Incomes .............................................................................................................................. 184
Location of Marginal Communities ..................................................................................................... 184
CONTENTS
9
Social Environment for Infrastructure Service Delivery ........................................................................... 185
Increase in the Number of Households ............................................................................................... 185
Changing Location of Low-Income Households ................................................................................. 186
HIV and AIDS, Services Levels and the Ability to Pay for Services ..................................................... 187
Consumers, Levels of Service and Affordability in Marginal Communities....................................... 188
The Policy and Legislative Environment ................................................................................................... 188
Developmental Local Government and the Role of Municipalities .................................................. 188
Municipal Legislation for Infrastructure and Services ........................................................................ 189
Policy Instruments for Infrastructure and Service Delivery to Marginal Communities .................... 189
Institutional Challenges to Service Delivery ............................................................................................. 190
Capacity Needed to Deliver Infrastructure .......................................................................................... 190
Institutional Capacity and Governance ............................................................................................... 191
Infrastructure Asset Management and Efficiency .............................................................................. 191
Municipalities Servicing Marginal Communities ................................................................................. 192
Financial Challenges ................................................................................................................................... 192
Difficulties of Cost Recovery from Consumers in Marginal Communities ........................................ 192
Finance and Risk ................................................................................................................................... 193
Conclusion .................................................................................................................................................. 195
Part II: Conclusion............................................................................................................. 196
References ........................................................................................................................ 199
BOXES, FIGURES AND TABLES
Boxes
Box 1
Box 2
Box 3
Box 4
Box 5
Box 6
Box 7
Box 8
Box 9
Box 10
Box 11
Box 12
Box 13
Box 14
Box 15
Box 16
Box 17
South Africa’s infrastructure and economic growth .......................................................... 19
The historical evolution of Infrastructure in South Africa................................................. 21
eThekwini Transport Authority ........................................................................................... 38
South Africa’s Energy Policy Objectives .............................................................................. 44
Energy and the economy ..................................................................................................... 46
Rand Water........................................................................................................................... 54
Reflections on the Rural Water Supply Programme .......................................................... 55
Moving South Africa ............................................................................................................ 64
Energy and the Environment .............................................................................................. 75
Energy efficiency and Eskom’s DSM programme ............................................................. 118
Increase in access ................................................................................................................ 144
Interpreting telecom data ................................................................................................. 153
A case of a typical B2/B3 municipality .............................................................................. 189
Institutional capacity and governance of a typical B2/B3 municipality .......................... 190
Challenges to generating revenue.................................................................................... 193
Financial management challenges of a typical B2/B3 municipality ................................ 194
Some interventions for a typical B2/B3 municipality ....................................................... 195
Figures
Figure 1
Figure 2
Figure 3
Figure 4
Figure 5
Figure 6
10
Infrastructure investment as a percentage of GDP ............................................................ 19
Gross capital formation compared to growth.................................................................... 19
Infrastructure history “At a glance” ................................................................................... 32
Total government capital and maintenance expenditure on roads ................................. 35
Tonnages of freight moved by road and by rail ................................................................ 40
Patronage of South African commuter rail ........................................................................ 41
THE DBSA INFRASTRUCTURE BAROMETER
Figure 7
Figure 8
Figure 9
Figure 10
Figure 11
Figure 12
Figure 13
Figure 14
Figure 15
Figure 16
Figure 17
Figure 18
Figure 19
Figure 20
Figure 21
Figure 22
Figure 23
Figure 24
Figure 25
Figure 26
Figure 27
Figure 28
Figure 29
Figure 30
Figure 31
Figure 32
Figure 33
Figure 34
Figure 35
Figure 36
Figure 37
Figure 38
Figure 39
Figure 40
Figure 41
Figure 42
Figure 43
Figure 44
Figure 45
Figure 46
Figure 47
Figure 48
Figure 49
Figure 50
Figure 51
Tonnages handled at South African ports, 2001/02 ........................................................... 42
Numbers of domestic and international passengers passing through ACSA
managed airports ................................................................................................................. 43
Primary sources of energy in 2000 ...................................................................................... 45
Number of dams commissioned in South Africa (by decade)............................................ 51
DWAF capital expenditure on water resources in real terms (2000 prices) ...................... 52
Comparison between fixed line and mobile telephones................................................... 59
The proposed structure of Transnet .................................................................................... 67
Road funding financial flows, 2000/01 ............................................................................... 71
National electricity system (2002) ....................................................................................... 74
Schematic presentation of liquid fuel system .................................................................... 76
National Regulatory Framework for Water Services ......................................................... 84
Internet Solutions IS national backbone ............................................................................ 91
The impact of convergence on the ICT sector .................................................................... 93
Institutions and their roles in ICT financing ....................................................................... 94
Road infrastructure in South Africa .................................................................................. 100
The visual classification of South African route conditions............................................. 101
Annual Provincial Road Expenditure for South African Provinces, 2001 to 2005 .......... 102
Rail and port network of South Africa ............................................................................. 103
Capital expenditure as a proportion of turnover for Transnet ....................................... 105
Location and physical characteristics of South Africa’s 23 main airports ....................... 107
Eskom’s current generating capacity ................................................................................ 111
Major transmission lines .................................................................................................... 112
Households electrified, 2002 ............................................................................................. 114
Changes in the percentage of households electrified ..................................................... 114
Petronet pipelines .............................................................................................................. 116
Mean annual rainfall distribution in South Africa ........................................................... 119
The 20 largest dams in South Africa ................................................................................. 120
Water Management Areas (WMA) and inter-WMA transfers......................................... 121
Current Water Board service areas ................................................................................... 122
Composition of the South African IT market sub-sectors (percent)................................ 125
Expected growth in South African IT market sub-sectors, 2004 - 2009 .......................... 125
Distribution of IT expenditure by economic sector (percent) ......................................... 126
Cumulative investment in mobile telephony infrastructure in South Africa, 2000 - 2009 ...... 130
South Africa and provinces: Percentage of households without access to
piped water, 1996 and 2001 .............................................................................................. 145
Provinces: Number of households without access to piped water,
1996 and 2001 .................................................................................................................... 145
South Africa: Main types of water source used by households (percent), 2001 ............ 146
South Africa and provinces: Percentage of households without access to sanitation,
1996 and 2001 .................................................................................................................... 147
Provinces: Number of households without access to sanitation, 1996 and 2001........... 148
South Africa: Main types of toilet used by households (percent), 2001 ......................... 149
South Africa and provinces: Percentage of households not using electricity
as an energy source for lighting, 1996 and 2001 ............................................................. 150
Provinces: Number of households not using electricity
as an energy source for lighting, 1996 and 2001 ............................................................. 150
South Africa: Main energy sources used by households for lighting (percent), 2001...........151
South Africa and provinces: Percentage of households with no access or
no nearby access to telephones, 1996 and 2001 .............................................................. 152
Provinces: Number of households with no access or no nearby
access to telephones, 1996 and 2001 ................................................................................ 153
South Africa: Main types of telephone used by households (percent), 2001................. 154
CONTENTS
11
Figure 52
Figure 53
Figure 54
Figure 55
Figure 56
Figure 57
Figure 58
Figure 59
Figure 60
Figure 61
Figure 62
South Africa: Mode of travel of the employed and scholars in urban areas
(percent), 2001 ................................................................................................................... 155
South Africa: Mode of travel of the employed and scholars in rural areas
(percent), 2001 ................................................................................................................... 155
Summary of number of households without access to adequate services, 2004 ........... 167
Progress in addressing backlogs, 2001 – 2004. ................................................................. 168
Service delivery targets by service type ............................................................................ 169
Operating account comparison for different types of municipality based on 2003/04
figures (municipalities only, excluding non-municipal service providers) ...................... 172
Estimated capital expenditure for municipal infrastructure
(R million at constant 2004/05 prices) ............................................................................... 175
Predicted sources of capital required to cover estimated capital expenditure
(R million at constant 2004/05 prices) ............................................................................... 175
Operating expenditure results for chosen scenario (constant 2003/04 prices) .............. 177
Predicted sources of revenue for chosen scenario (constant 2004/05 prices)................. 177
Operating account comparisons with detail of individual services
(real terms, constant 2003/04) ........................................................................................... 178
Tables
Table 1
Table 2
Table 3
Table 4
Table 5
Table 6
Table 7
Table 8
Table 9
Table 10
Table 11
Table 12
Table 13
Table 14
Table 15
Table 16
Table 17
Table 18
Table 19
Table 20
Table 21
Table 22
Table 23
Table 24
Table 25
Table 26
Table 27
Table 28
Table 29
Table 30
Table 31
Table 32
Table 33
Table 34
12
Defining infrastructure ........................................................................................................ 26
Approximate length of road networks in South Africa..................................................... 35
Extent (km) of proclaimed provincial road network, 2000 ............................................... 36
Uses of coal in 2000.............................................................................................................. 45
Summary of the number and capacity of power stations in 2002 .................................... 47
Refineries in operation in South Africa .............................................................................. 49
Licensed renewable energy systems producing electricity ................................................ 79
Summary of energy infrastructure funding ....................................................................... 80
Details of Water Boards ....................................................................................................... 83
Water and sanitation, budgeted capital expenditure by municipal group, 2002/03 ...... 86
Budgeted capital financing by source (all municipal services), 2002/03 ........................... 87
Capital expenditure by Water Boards ................................................................................. 87
Distribution of satellite infrastructure in South Africa ...................................................... 90
Outlook for telecoms sector capital investment, 2003 - 2012 ........................................... 95
Business performance of Spoornet’s three operating divisions, 2001/02 ....................... 104
South African port characteristics ..................................................................................... 106
ACSA airport statistics for the year ending March 2004.................................................. 107
Licensed Eskom power Stations, 2002 .............................................................................. 109
Licensed Municipal power stations, 2002 ......................................................................... 110
Licensed private power stations, 2002 .............................................................................. 110
Eskom transmission system ................................................................................................ 112
National electricity distribution system, 2002 .................................................................. 113
Change in status of electrification over time ................................................................... 115
Annual new connections and annual expenditure .......................................................... 115
South African liquid fuel refineries................................................................................... 117
Water Boards and the populations and municipalities that they serve ......................... 123
Distribution of irrigation capacity in South Africa........................................................... 123
Software spending categories ........................................................................................... 125
PCs sold in South Africa in 2004 ........................................................................................ 126
Fixed line service providers and their installed infrastructure base in South Africa,
1998 - 2004 ......................................................................................................................... 128
Total fixed line capital expenditure by Telkom, 1998 - 2004 ........................................... 128
Projection of fixed line infrastructure investment, 2004 - 2009...................................... 129
South Africa’s satellite infrastructure ............................................................................... 131
1996 and 2001 Census categories...................................................................................... 143
THE DBSA INFRASTRUCTURE BAROMETER
Table 35
Table 36
Table 37
Table 38
Table 39
Table 40
Table 41
Table 42
Table 43
Table 44
Table 45
Table 46
Table 47
Table 48
Table 49
Table 50
Table 51
Table 52
Table 53
Table 54
Table 55
Table 56
Table 57
South Africa and provinces: Households with access to piped water, 1996 and 2001 ..........144
South Africa and provinces: Main types of water source used by
households (percent), 2001 ............................................................................................... 146
South Africa and provinces: Households with access to sanitation, 1996 and 2001 .............147
South Africa and provinces: Main types of toilet facility used by
households (percent), 2001 ............................................................................................... 148
South Africa and provinces: Households not using electricity
as an energy source for lighting, 1996 and 2001 ............................................................. 150
South Africa and provinces: Main types of energy source
used by households for lighting (percent), 2001 ............................................................. 151
South Africa and provinces: Households with access or nearby
access to telephones, 1996 and 2001 ................................................................................ 152
South Africa and provinces: Main types of telephone used by
households (percent), 2001 ............................................................................................... 153
South Africa and provinces: Mode of travel in urban areas expressed
as percentage of workers and scholars, 2001................................................................... 154
South Africa and provinces: Mode of travel in rural areas expressed
as percentage of workers and scholars, 2001................................................................... 155
South Africa: Access to services, number and percentage of households, 2003 ............ 157
Municipalities used in the modelling exercise ................................................................. 166
Summary of water, sanitation and electricity access to services (2004 estimates) ......... 167
Capital grant allocations in national budget (R million, nominal) ................................. 171
Sources of capital (R million, real, constant 2003/04 prices)............................................ 171
Estimates of municipal operating revenue sources (R billion) ........................................ 172
Subsidy allocations to local government (R billion) ......................................................... 173
Levels of surplus generated from high-income consumers (percent) ............................. 174
Relative trends relating to aggregated municipal services
operating accounts (percent) ............................................................................................ 174
Predicted capital expenditure over 10 years for each type of municipality
(2005/06 to 2014/15)........................................................................................................... 176
Percentage of households per area type earning less than R38 400 per annum........... 184
Percentage of households by area type, 2001 ................................................................. 185
Rate of increase in the number of households between 1996 and 2001 ....................... 186
PART III
KEY HOUSEHOLD SERVICES INDICATORS .................................................209
Note on the Key Household Services Indicators ....................................................................................... 211
Contents......... ............................................................................................................................................. 212
CONTENTS
13
Executive Summary
The DBSA Infrastructure Barometer addresses both economic and municipal infrastructure in South
Africa. The first part examines the four key economic infrastructure sectors, i.e. transport, energy, water and
sanitation, and information and communication technology (ICT). The second part takes those sectors to the
local or municipal level and deals with access to roads, electricity, water and sanitation, and telephones. The
third part contains a comprehensive set of data on access to municipal services.
The Introduction provides an overview of the economic and social roles of infrastructure in South Africa.
Studies have found a strong correlation between the availability of infrastructure and aggregate economic
growth and they also indicate that investments in infrastructure appear to lead economic growth in South
Africa. Electricity was singled out as the sector with the largest and most significant impact on economic
growth.
Part I starts with an historical overview of the growth and development of the key infrastructure
sectors, and indicates how the country’s infrastructure development was both dependent on, and at the
same time has facilitated, economic development. The history of the energy sector illustrates how economic
development hinged on this important resource, and how the development of the mining industry stimulated
the development of national infrastructure. South Africa’s water scarcity has always influenced development,
and successive governments have expended much legislative effort and funding on clarifying water use rights
and building infrastructure to manage this scarce resource. Transport networks are the country’s “arteries”
connecting people, industries and ports, and there has always been an emphasis on transport for economic
development. Since 1994, however, more attention has been devoted to transport as a tool for social
development.
Each of the four key sectors has its own character and set of issues. Transport is a complex sector with
many modes (road, rail, sea, air and pipeline), several delivery agents and an array of delivery mechanisms.
While ACSA airports and the national road network have been successfully reformed and are performing
well, urban and freight rail, metropolitan public transport, and the renewal and maintenance of provincial
roads are areas where delivery has generally deteriorated over the last 10 years. Abundant coal reserves
have enabled South Africa to enjoy one the cheapest sources of electricity in the world. Since 1994, the main
focus of national policy has been towards improving access to energy, and provision of an environmentally
sustainable future for South Africa.
Given the uneven distribution and high seasonality of rainfall in most parts of the country, the availability
of a reliable source of water has always been an absolute priority. Since 1994 the entire water sector has
benefited from a policy and legislative overhaul which addressed the severe inequities of the past and
produced state-of-the-art water resources management. Water services have also been addressed and the
new policies have been accompanied by massive fiscal injections to speed up the delivery of basic services
throughout the country. The sector has demonstrated considerable achievement over the last decade; but
many challenges remain.
It is only over the past decade that the ICT sector really gained momentum. The world-wide web became
available in 1993, and the first cellular networks were launched in 1994. ICT differs from the other three
sectors in that it is characterized by mostly private sector (and parastatal) service delivery providers; and
it is not constrained by physical boundaries, although it must comply with local policies. ICT consists of
information and communication technologies, radio and TV broadcasting, mail services and networks. Many
of the typical ICT components are rapidly converging into smaller, user friendly mobile devices that transform
the way we work, transact and play.
Taking the four sectors together, we can observe a number of common constraints, each of which is
discussed in detail in the conclusions to Part I:
• Infrastructure delivery suffers as a result of institutional and capacity constraints
• Infrastructure assets need to be maintained, but is there sufficient capacity?
• Inefficiency of operations and of regulatory mechanisms continue to hamper rather than support
infrastructure development
• Environmental consequences remain paramount especially in the energy, transport and water
sectors.
Part II focuses on access to municipal infrastructure services. It reviews the available data, examines
projections for infrastructure investments and identifies many of the challenges related to improving access,
14
THE DBSA INFRASTRUCTURE BAROMETER
especially for the poor and marginalised. These challenges are grouped into three areas: financial, social and
institutional issues.
Without doubt South Africa has made great strides in addressing the infrastructure dimensions of the
socio-economic legacy of apartheid. Statistics vary, as described in Chapter 4, but the general picture is
overwhelmingly positive as indicated by changes between the 1996 and 2001 censuses. National budget
allocations have been consistently increased and backlogs are being rapidly reduced, although some concerns
have been expressed over the sustainability of the municipal infrastructure being installed. Future growth
and development will depend not so much on the rapid roll out of infrastructure itself but on the sustainable
delivery of the services which that infrastructure makes possible.
Government has committed itself to an ambitious investment programme with specific targets and
timeframes for water supply, sanitation and electricity. Chapter 5 reports the interim results of the financial
modelling for the proposed roll out which was undertaken by the DPLG in partnership with DBSA as part of
a review of the MIIF. This work aims to inform future budgetary allocations for the Municipal Infrastructure
Grant (MIG) and the equitable share of national revenue allocated to the municipal sphere. Taken together
with the NSDP it will also inform government policy and municipal decisions on levels of service (LOS) that
should be adopted to ensure sustainability.
The scenario incorporating government’s current targets was modelled in detail. The financial modelling
concludes that the proposed MIG budget allocations for the next few years are adequate but that there is
a risk of insufficient funds if a change in policy on housing subsidies excludes the costs of infrastructure.
However, the most significant conclusion is that even if the required amounts of capital can be mobilised
the real problem is the affordability of operations and maintenance. Under the “preferred” scenario chosen
for analysis, the majority of municipalities will have difficulty with recurrent costs, and when budget deficits
affect operations and maintenance this may lead to the premature deterioration (or collapse) of expensive
assets, environmental damage and it can even retard local economic growth. Even the modest levels of
service proposed under this scenario may prove hard to sustain in an environment of low affordability and
an obligation to provide free basic services. This highlights the need to explore other scenarios for national
policy and for each municipality to undertake detailed infrastructure investment planning to ensure the
selection of affordable levels of service.
The conclusions above are carried through to the discussion on servicing marginalised communities in
Chapter 6. The causes of marginalisation include a legacy of poor service delivery with extensive ongoing
backlogs, generally depressed incomes, and problems of location and migration. In addressing these problems,
most municipalities face a number of financial, social and institutional challenges in marginalised areas. The
ability and willingness to pay of marginal communities has always been problematic. Consumers need to be
involved in the choice of LOS to establish what they are willing to pay for; tariff structures must be pro-poor
while ensuring sufficient income for the service provider and subsidies must be carefully managed to avoid
unintended consequences.
There are many social challenges in marginalised communities. The average household size has decreased
and new household formation accelerated rapidly between the last two censuses. There is considerable
migration between rural and urban areas, some of which is seasonal and circulatory, making planning
difficult, and the impact of HIV and AIDS is dire. The pandemic is having serious effects on demographics,
household characteristics and incomes, placing a strain on the demand for certain services and reducing the
skilled workforce and productivity of service providers.
A recurring theme throughout this whole report is the inadequate capacity of service providers to fulfill
their responsibilities. South Africa has completely overhauled its legislative, fiscal, regulatory and policy
environments to enhance service delivery to the poor and marginalised, but it is now clear that institutional
capacity is the primary constraining factor. Delivering new infrastructure and operating it are complex
activities but competent skilled persons are in short supply, especially away from the major urban centers.
Some elements of public-private partnerships have been introduced to address this but more can be done,
with due regard to their regulation. Furthermore, the technical activities of municipalities are dependent
on good governance, which is also suffering from a lack of appropriate experience. Addressing the capacity
limitations of local government is the greatest challenge facing municipal service delivery in South Africa
today.
INTRODUCTION
15
16
THE DBSA INFRASTRUCTURE BAROMETER
Introduction
Background
The Development Bank of Southern Africa (DBSA) strongly holds the view that infrastructure is a means
to an end. Therefore, in the context of development, the provision of infrastructure is about improving
people’s quality of life through sustainable economic growth and equitable distribution of the benefits of
that growth. The key to such sustainability is economic diversification and the mitigation of risks to the
natural environment. Thus, if the infrastructure is purposefully managed and financed to deliver the services
where or when the economy requires or people need, at prices affordable to both the economy and the
individual, then development is more likely to be attainable. This requires institutions that are responsive
to their constituencies and clients, providing incentives to direct investment and consumption in support of
development goals (DBSA, 1998).
The purpose of this introductory section is to set the scene for this report by briefly discussing and giving
an overview of what role infrastructure plays and the impact it can have for development. Thus it provides
key highlights on the evolution of thinking on development and its application to South Africa; describes
infrastructure by distinguishing between economic and social characteristics; discusses how infrastructure
supports both economic growth and poverty alleviation; and in conclusion, suggests that there is need for
greater debate around structural issues.
The rest of the report consists of three parts, each containing three chapters, and a separate concluding
section. Part I has a chapter on each of the following: a brief historical overview of select infrastructure
sectors in South Africa; a discussion on the institutional, regulatory and financial environment which provides
context for infrastructure provision and operations; and lastly, to enrich the foregoing sectoral descriptions,
maps are provided illustrating the location and scope of the selected infrastructure sectors.
Part II also consists of three chapters. The first is a quantitative description of selected household service
infrastructure; the second chapter, using a municipal infrastructure investment framework, discusses and illustrates
household service and infrastructure options, together with financing implications for eradicating the backlogs;
and the last chapter highlights and discusses challenges to municipalities of providing infrastructure to marginal
communities. Part III provides a selection of infrastructure, household and other data in different formats.
What development?
Perspectives on growth and development have shifted markedly over the past 40 years. During the 1950s
and 1960s, development was equated with growth in Gross National Product (GNP) or Gross Domestic
Product (GDP), with per capita GNP (income per capita) being the preferred index. However, when it became
apparent that economic growth did not necessarily lead to a reduction in poverty and a better quality of
life for the population at large, analysts re-examined the concept of development. Eliminating poverty and
inequality became major objectives, as did reducing unemployment, which was seen as a main element of
poverty (DBSA, 2003).
The World Development Report of 1991 (World Bank, 1991) described the challenge of development as an
improvement in the quality of life. This is significant because the World Bank had earlier propagated economic
growth as the measure and aim of development. While emphasising that a better quality of life requires
growth in real income, the report states that development also encompasses, as ends in themselves, more
equality of opportunity, greater individual freedom and richer cultural life. It also encompasses independence,
self-esteem and freedom from ignorance, human misery and servitude. This was explored further in the 1994 World
Development Report which highlighted links between infrastucture and development (World Bank, 1994).
Achieving these aims, and not just materially through access to growing supplies of goods and services,
was seen to determine quality of life. This theme was further elaborated on and discussed in the DBSA
Development Report of 1998 as highlighted in the excerpts below:
Economic growth. Although economic growth in itself cannot guarantee that development will take
place, it is a crucial component of development. Sustainable and equitable economic growth requires
structural change in economic activity. This is illustrated by the significance that development thinking
accords the relatively faster growth of the manufacturing industry that accompanies a shift of resources out
of less productive primary sectors, notably agriculture. However, even industrialised economies experience a
continual process of structural change, characterised by sub-sectoral shifts in production (e.g. moving out of
textiles and steel into high-tech industries and the service sector).
INTRODUCTION
17
Income growth. High per capita income is often associated with economic development, but countries
with similar average income levels may have different levels of development. One reason could be inequitable
income distribution patterns. Where these patterns are highly skewed, even rapid growth in per capita income
may not benefit a large part of the population. Consequently, a reasonably equal distribution of income is an
important characteristic of development.
Sustainable livelihoods. Development requires that people’s ability to achieve acceptable levels of living,
or sustainable livelihoods, be strengthened. Creating secure, well-paid employment is an obvious way of
doing this. However, most of the poor in developing countries will never find formal employment, and among
those who do, many will earn too little to survive. People’s ability to maintain their livelihoods depends to
a large extent on their accumulating and using assets, such as cattle, farming implements, tools for small
manufacturing, natural resources and more important, their own labour. The provision of energy, water,
sanitation and health and education services enables people to develop their labour and other assets, and is
therefore another crucial component of development.
Environmental sustainability. Development has close links with the environment. Both extreme poverty,
with its lack of growth and development, and prosperity and very rapid growth can affect nature’s ability to
sustain people and economic growth. Absolute poverty is often characterised by environmental degradation
through deforestation, soil erosion and water pollution. Rapid industrialisation can also destroy the
environment through air and water pollution, urban congestion and the degradation of the natural habitat.
In both cases, human behaviour and structures conflict with the natural environment. However, sight should
not be lost that it is the “world view or approach” (e.g. capitalist accumulation and economic relations) that
predicate the form and nature of human behaviour and the structures underpinning it that create and nurture
the conflict. Notwithstanding, this implies the need for structural changes to address the fundamental causes
of the conflict, but it does not mean that attempts at mitigating conflict situations should be put on hold.
Should the latter not be followed, there will be very little likelihood of even minimal improvement in the
quality of life or increased opportunity for economic growth.
Institutional capacity. Institutions are pivotal to development. They are not merely formal organisations
governed by written constitutions, but entail shared understandings, attitudes and customs, interspersed
with conflicts shaped by power relations, and they respond to the incentives set before them. Because of this
complexity, institutions take time to develop, mature and become sustainable.
It was against this changed world view on development that democratic South Africa emerged in 1994.
The new government had an overwhelming mandate to transform and reconstruct the country – to create
the conditions for poverty eradication and sustained prosperity – in short, to assure equitable and sustainable
development. This vision was captured in, and given initial effect by, the Reconstruction and Development
Programme (RDP). However, in terms of practical politics, the government was faced with the very real
problem of making choices and trade-offs when addressing the issues of a stagnant economy versus the
demands of large-scale unemployment and mass poverty. Due to these early prevailing conditions, growing
the economy and ensuring macro-economic stability were therefore the chosen imperative. The GEAR policy
placed considerable emphasis on fiscal discipline and determined South Africa’s development trajectory. As
a result of the interventions, the country’s economic growth has improved. However, due to the tightly
reined-in rate of public expenditure on infrastructure and the provision of public services, infrastructure
provision and services availability continue to lag when compared with countries at a similar stage of
development. In point of fact “investment per capita fell from R1268 in 1976 to R356 in 2002 (1995 prices) - a
collapse of 72%” (Bogetic and Fedderke, 2005). Investments clearly need to both accelerate and expand if the
full potential for growth in the economy is to be harnessed.
18
THE DBSA INFRASTRUCTURE BAROMETER
Figure 1: Infrastructure investment as a percentage of GDP
PG(%1
1SJWBUFCVTJOFTTFOUFSQSJTFT
3COJO
Box 1: South Africa’s infrastructure and
economic growth
.VDIPGUIJTXBTVOFDPOPNJD
.VDIPGUIJTXBTVOFDPOPNJD
"QBSUIFJESFMBUFE
"QBSUIFJESFMBUFE
TFMGTVGmDJFODZBOE
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iTUSBUFHJDwQSPKFDUT
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iPWFSJOWFTUNFOUwCZ&TLPN
iPWFSJOWFTUNFOUwCZ&TLPN
&DPOPNJDJOGSBTUSVDUVSF
(FOFSBMHPWFSONFOU3CO
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Figure 2: Gross capital formation compared to growth
(SPTTDBQJUBMGPSNBUJPO
(SPTT$BQJUBM'PSNBUJPO
BTPG(%1
During the 1960s, South Africa’s growth in gross
capital formation (investment in social and economic
infrastructure as well as private business enterprise)
as a percentage of GDP mirrored economic growth
(Figures 1 & 2). Subsequent to the 1960s, trade
sanctions against South Africa began to take effect
and, notwithstanding continuing investment in
economic infrastructure, economic growth declined.
During the 1970s, much of the “balloon” of
apartheid economic investment was aimed at selfsufficiency. During the next period, the rates of both
investment and economic growth had dropped
dramatically and, by the mid-1990s, had reached
an all-time low. This trend is reversing and both
investment and economic growth are increasing.
However, matching the economic growth rates of
the 1960s will require a significant leap in the rate of
capital formation as a percentage of GDP.
(SPXUIXJMMCF
ESJWFOQSJNBSJMZ
BTJOUIFT
CZ
mYFEJOWFTUNFOU
TTTTTT
Source: RMB Economics and Reserve Bank Quarterly Bulletin, 2004
The pattern of investment over the past decade has been further skewed by an emphasis on reducing
backlogs in basic services, thus minimising expenditure on infrastructure used for economic production. The
lack of investment, in particular into electricity is potentially serious “as it appears that this sector exerts the
largest and most robust impact on aggregate growth” (Bogetic and Fedderke, p4, 2005). This challenge is
now being addressed. For example, both Eskom and Transnet are embarking on the roll-out of massive capital
expenditure programmes over the next few years. Refer to Chapter 2 as well as statements by the Minister
of Public Enterprises, Alec Erwin, and the Chief Executive of Transnet, Maria Ramos, with regard to corporate
rationalisation and expansion of investment in economic infrastructure. Structural issues necessary to gain
longer-term efficiencies will however remain, and these challenges are discussed at the end of this chapter.
In summary, in addressing development into the second decade of democracy, government has set itself
the following two goals (derived from PCAS, 2003):
• Increasing the rate of growth above an average of 2.8 percent per annum so that the economy can afford
to pay for a better quality of life, and
• Addressing the challenges of the second economy – those marginalised people who are unlikely to benefit
from an improved rate of growth without government intervention.
The first goal, focusing on the growth in the economy, is addressed in Part I of this report through an
examination of selected infrastructure sectors, while the second goal focuses on poverty and is discussed in
Part II which emphasises reducing backlogs in household infrastructure and services.
INTRODUCTION
19
What infrastructure?
Four infrastructure sectors were selected for further elaboration in this first Infrastructure Barometer because
they are currently central to the debate on growing South Africa’s economy and achieving sustainable
development. Transport, energy, water, and information and communications technology (ICT) are all
imperative to improving macro-economic efficiency through, for example, reducing the cost of doing business.
However, each is also important for delivering outcomes which are imperative to improving the quality of
life and increasing workforce productivity. Thus, to explain some of the impacts, a distinction is suggested
between economic infrastructure and social infrastructure, based on how each of these two infrastructure
categories is characterised and generally understood.
Economic infrastructure is that part of an economy’s capital stock that produces services to facilitate
economic production or serves as inputs to production (e.g. electricity, roads and ports) or is consumed by
households (e.g. water, sanitation and electricity). Economic infrastructure can be divided into three categories:
public utilities (electricity, gas, water, telecommunications, sanitation, sewerage and solid waste disposal),
public works (water catchment in dams, irrigation and roads) and other transport sub-sectors (railways, roads,
seaports, airports and urban transport systems) (DBSA 1998). Government departments responsible for these
infrastructure sectors are all involved in activities seeking to promote productive activities of companies and
households. Government departments in the economic cluster engage mainly with parastatals and private
sector agencies in investment in infrastructure (Department of Finance, 1998; Khosa, 2000).
The harnessing of economic potential across the whole country is being attended to with the evolution
of the National Spatial Development Perspective (NSDP), creating conditions for inter-ministry and interdepartment alignment and coordination (refer Chapter 6). For example, the Department of Trade and
Industry (dti) is creating a complementary framework for encouraging and securing the spatial deployment
of productive investment to areas of highest economic potential or, importantly, highest livelihood potential.
In specific designated areas, economic infrastructure has been coordinated through the Spatial Development
Initiative (SDI) programme. This consists of ten SDIs and four Industrial Development Zones (IDZ), each
currently in a different stage of development. To achieve the key objective of economic growth and job
creation, there is an emphasis on expanding infrastructure in these delineated areas to improve economic
efficiency through reducing transactional costs. In this case, public investment in infrastructure tends to lead
further productive investment.
Social infrastructure provides services such as health, education and recreation and has both a direct and
an indirect impact on the quality of life. Directly, it increases economic activity and employment creation, and
indirectly, it enhances broader developmental outcomes. For example, improved productivity is the indirect
benefit of improved primary health care, and in turn, improved productivity leads to higher real incomes.
Social infrastructure also facilitates investment in human capital by using some of the economy’s physical
capital stock to raise productivity of the workforce. The impact on growth is similar to an increase in the
supply of capital, and a higher capital-to-labour ratio enables a given number of workers to produce more
per capita.
Notwithstanding the above discussion, South Africa’s social infrastructure sector is characterised by being
largely concerned with the delivery of services to the poor – the bulk of the sector budget is from the national
fiscus. Much of this expenditure is administered through provincial and local governments. However, this can
be problematic as they do not necessarily have much control or influence over the actual spending of the funds
(Khosa, 2000). More coherence of priorities across social infrastructure sectors would enhance coordination
and the attainment of improved developmental outcomes within local areas or settlements (Khosa, 2000;
Department of Finance, 1998). The Urban Renewal Programme (URP) and the Integrated Sustainable Rural
Development Programme (ISRDP), both introduced in 2001, went some way in creating a spatially-defined
programme within which these sectors could find coherence and be better coordinated. However, to date,
they have met with mixed results (refer Chapter 6).
In concluding this section, it is clear that it is not only the type of infrastructure that is important but also
who takes the initial and ongoing responsibility, as well as the institutional arrangements necessary to give all
this effect. There needs to be coherence and coordination both vertically and horizontally across and between
spheres of government and departments. The current debate in the Financial and Fiscal Commission (FFC) on
the need to place funds at the disposal of local governments to enable them to undertake responsibilities
(e.g. housing and transport) which up until now have not clearly been theirs (but can be argued should be),
is part of this realisation.
20
THE DBSA INFRASTRUCTURE BAROMETER
How infrastructure supports development
Several studies and reports (World Bank, 1994; DBSA, 1998; Bogetic and Fedderke, 2005) have suggested that
there is a positive association between infrastructure and a country’s level of development. The economies
of developed countries generally have a sophisticated infrastructure which supplies services that sustain their
efficiency and competitive advantage. Clearly, the economic link is important but should not be emphasised
to the detriment of either the social or institutional dimensions.
Infrastructure provision affects, and is affected by, both the level of economic development and its
change over time. Economic development is characterised by structural change, that is, the diversification
of economic activity. Such diversification entails changes in the relative importance of individual sectors,
industries or groups of industries within an economy. A developed economy typically has a broad economic
base with high-productivity activity in advanced, high value-added manufacturing and sophisticated services.
However, such diversification, although a necessary condition for sustainable growth and development, is
insufficient to ensure it.
Diversifying an economic base entails a series of changes in the relative importance of categories of
economic activity. Infrastructure services play an important role in this pattern, supporting growth in economic
output, opening up opportunities for poor people and contributing to environmental sustainability. It would,
however, be incorrect to read a deterministic linear pattern into the process of economic development, as one
stage does not necessarily follow on from another. Neither can it be categorically stated that infrastructure
necessarily needs to lead development, or alternatively, that it should await concrete demand signals and
thus lag behind productive investment decisions. What is true is that infrastructure provision needs to be
sensitive to context in order to most effectively enable and support the translation of productive investment
into efficient economic growth and equitable development.
Historically, there have been shifts over time in infrastructure spending across sectors (shown graphically
in Chapter 2). As an example, the development of railways was a dominant trend at the turn of the previous
century, while at the turn of this century, ICT had become an important technological focus. This raises
fundamental questions as to how government and the private sector should prioritise infrastructure for this
millennium. It means grappling with shifts in technology, changes in the economy and changing social needs.
For example, fixing badly located railway lines because their physical condition is poor may not currently
represent the best use of scarce resources. As the economy becomes more global and its manufacturing and
service orientation grows, it will be more important that its infrastructure is aligned to enhance national
competitive advantage. This may imply a greater proportion of spending on telecommunications, energy, air
freight and seaports.
Box 2: The Historical Evolution
of Infrastructure in South Africa
Source: Fedderke, Perkins and Luiz, 2005
quoted in Bogetic and Fedderke, 2005.
200
180
160
140
Index (2000=100)
The first wave of infrastructure
investment went into railways during
the period 1875 - 1930, followed
by intercity, provincial and national
roads. This was the precursor to the
accelerated and sustained growth in
road transport which has for some
time exceeded that of rail. The last
phase is charactarised by investment
into electricity and telephony with the
myriad challanges and opportunities
of ICT being the current important
focus.
120
100
80
60
40
20
0
1875
1885
1895
Railway lines
1905
1915
1925
Goods stock (rail)
1935
1945
Paved roads
1955
1965
Electricity
1975
1985
1995
2005
Phone lines: incl mobile
In addition to the shifts in economic infrastructure that are precipitated by exogenous factors, demographic
trends also impact on infrastructure needs. Whereas overall population growth has slowed, the movement
of people from rural to urban areas has continued. Meanwhile, growth in the number of households has
INTRODUCTION
21
accelerated due to the formation of smaller households. These have led to an increased need for housing and
associated services and infrastructure, especially in the urban areas. The incidence and severity of HIV/AIDS is
also a trend that, while not yet well understood, creates new dynamics and pressures for infrastructure and
service delivery and management.
In examining infrastructure in development, it is clear that there are broadly two types of linkage: the
economic linkages between infrastructure and economic growth and the social linkages between infrastructure
and poverty alleviation. The following section highlights some of these linkages.
Economic linkages - infrastructure and growth
In general, infrastructure reduces the cost of production and consumption, and makes it easier for participants
in the economy to enter into transactions. Thus, if the efficiency of infrastructure is increased, there should be
a concomitant improvement in growth performance, service provision and development outcomes. Overall,
this should also result in improved economic competitiveness.
However, although important, the efficiency of infrastructure alone is not sufficient, as it also needs to be
utilised effectively if economic competitiveness is to be attained and sustained. Recognition should be given to
the fact that there need to be shifts in infrastructure sector emphasis and usage, and that careful consideration
needs to be given to where to deploy expenditure to achieve the greatest developmental return.
In this regard, World Bank research findings, based on cross-country analyses (Leipziger, 2005), have
indicated that there is a direct correlation between infrastructure accumulation and growth, as measured by
improvements in GDP per worker and growth in infrastructure stocks per worker. Thus, clearly, infrastructure
is both essential for and can accelerate growth. Conversely, based on comparative analysis between Latin
America and Asia, it was also shown that under-investment in infrastructure has serious consequences for
growth and competitiveness, particularly when such holding costs as inventory are taken into account. It
is suggested that the availability or absence of the “right” infrastructure often influences the decisions of
producers and consumers about where to live or work, whether to produce, and also what to produce. This
in turn affects the ability of the economy as a whole to adjust to changes and external shocks.
Further, most infrastructure has a fixed location. To use it, producers and consumers must be in the same
place as the infrastructure facility. The availability of different types of infrastructure in a particular area
often leads to an agglomeration of economic activity in regions, cities and other localities. The effect is
enhanced production, consumption and trade, and thus potential competitiveness.
When compared with countries of similar development level, South Africa continues to lag behind in its
investment in infrastructure. The result of this is clearly illustrated by the findings of the recent IMD World
Competitiveness Yearbook which indicates that, although South Africa moved up three places in the rankings
to 46 out of 60, its competitiveness remains very low. This is a composite index of which infrastructure is only
one indicator. For infrastructure, the ranking is 58/60, which again is a composite reflecting the individual
rankings of different kinds of infrastructure. Basic infrastructure provision ranks the best at 51/60. All the various
types of infrastructure rated and taken together are critical to enhancing productivity growth. This further
underscores the imperative for South Africa to both accelerate and expand investment in infrastructure.
Social linkages – infrastructure and poverty alleviation
Developmental infrastructure concerns more than just economic growth and diversification. One measure of
its empowering effect is its contribution to reducing poverty. The vulnerability of poor people can be countered
by redressing low income levels, hazardous conditions, social powerlessness and isolation. Infrastructure has
considerable potential in this regard. For example, energy provision can ensure a better work and study
environment, access to information through the media, and more time for productive activities. As another
example, improved transport provides access to markets, employment opportunities, social and medical
services, education opportunities, and friends and family.
However, infrastructure provision does not inevitably contribute to the eradication of poverty. Ill-designed
infrastructure could have more costs than benefits for poor people because of inadequate targeting or
adverse social, health, financial and environmental effects. Infrastructure provision can also widen the gap
between poor and non-poor people when access to services is expensive, or where infrastructure services
were not planned specifically around the needs of the poor. Delivery can also be disempowering if it turns the
poor into passive recipients of services rather than central actors in their own development.
22
THE DBSA INFRASTRUCTURE BAROMETER
International and South African case studies show that the contribution of infrastructure investment
to the eradication of poverty is influenced by the way in which the investment and subsequent services
are planned and managed. In short, to reduce poverty, public investment must reach poor people with the
right mix of services, involving them in a way that ensures sustained improvement in their quality of life and
contributes to their own economic empowerment.
A concluding comment – reforming the role of government
This report does not address structural reform in significant detail. It focuses rather on a snapshot of
infrastructure condition and constraints to provision within the present environment. It would, however,
be negligent to avoid the ongoing debate about the structural conditions necessary to achieve enhanced
service delivery. In the past, the neo-liberal view centred simply on the need to privatise part of the public
sector delivery chain, and it was assumed that this would be a necessary precursor to improved service
delivery.
The debate has moved considerably from this position and now reflects on the role of the state in
managing service delivery, whether by the public or private sector. It questions the traditional public sector
model and introduces an approach which considers the natural monopoly tendency of many services provided
by the state, the structure of the state apparatus and also the more careful or calculated involvement of the
private sector (Batley and Larbi, 2004). In every sense, it is a more cautious approach.
Designing and presenting options for structural reform is therefore an important topic and its urgency
will be all the more evident if government is to enhance spending on infrastructure. Getting the most from
resources devoted to infrastructure provision, whether public or private, cannot be independent from the
regulatory, structural or competitive environment that exists in each sector.
Infrastructure spending will not transform sectors that suffer from forms of entrenched inefficiency.
Capital investment by monopoly parastatals to modernise and expand their infrastructure capacity will
only be truly developmental once efficiencies in operation are evident. Evidence from other countries
suggests that continued protection of state-owned monopolies, irrespective of the emphasis placed on
improving internal efficiencies limits the effectiveness of service delivery. For many nations, this has implied
full or partial privatisation, with a chequered history of both considerable success and dismal failure.
In the light of the new debate, structural reform should now be regarded as a reassessment of the public
sector delivery chain. For each sector or sub-sector, this may require formulating innovative responses to
enhance and incentivise delivery. Where the private sector is involved, it may require a carefully considered
approach to regulation in the public interest. Where the public sector is involved, it may involve structural
reform to incentivise public agencies to be more delivery-oriented.
In the case of the South African parastatals, the purpose of such structural reform should be to reduce
their natural monopoly tendencies. This could occur through separating activities into distinct, more
manageable and often less monopolistic entities, creating transparency and shifting into the private sector
those elements of the business that would benefit from more direct forms of competition (Kessides, 2004).
These reforms would need to be sustained by greater independent public sector regulation. It is easier
to regulate separate parts of a business that provide intermediate outputs than to regulate a monolithic
monopoly. Such monopolies are able to hide behind their own presentation of business characteristics such
as capital spending, cost recovery, efficiency, pricing and customer delivery.
In the case of conventional government, the purpose of structural reform would be to place emphasis
on fast-tracking the delivery chain. It would consider the nature of the bureaucracy, the capability of
delivering within the present environment and the incentives created to maximise effective delivery (Batley
and Larbi, 2004). Such approaches may see the establishment of specialist state agencies with clear delivery
objectives and a more commercial focus. A critical component would also be to create an environment to
attract and retain the necessary skills base.
Involving the private sector to enhance delivery may require a different approach, dependent on the
nature of the competitive environment that is created (Gonenc and Nicoletti, 2001). The first case would
recognise those components of public services that could be competitively provided by more than one
private sector entity. These are likely to be the operational components of delivery, such as providing
transport, telecommunication or other services to customers.
INTRODUCTION
23
The second case would be in respect of activities with strong natural monopoly tendencies. These would
tend to be, but not limited to, the more infrastructure-dominant parts of shared networks, such as the
telecoms, electricity, road or rail networks. Here, infrastructure could be provided by the private sector, but
within contractual constraints of state control and more often than not through a process of competitive
bidding. This is more closely aligned to the more traditional approach to public private partnership (PPP)
involvement of the private sector, such as is provided by Treasury’s PPP unit.
In either case, the involvement of the private sector needs to be linked to effective structural reform
within the public sector. This is, perhaps, one of the principal lessons of the ongoing debate.
24
THE DBSA INFRASTRUCTURE BAROMETER
INTRODUCTION
25
Table 1:
Defining Infrastructure
PRIMARY FOCUS AREA
26
SECONDARY FOCUS AREAS
TRANSPORTATION
AVIATION
RAIL
ROAD
MODAL TRANSFER
PORTS & PIPELINES
Infrastructure related to the process of
transporting goods, people etc.
Airports and related
infrastructure and
aircraft catering for air
transport (e.g. airside
and landside facilities,
air traffic control
equipment, etc).
Railway lines and
related
infrastructure, and
rolling stock
catering for rail
transport (e.g.
stations,
marshalling yards,
signalling
equipment, etc).
Roads and related
infrastructure (e.g.
drainage systems,
tunnels, bridges,
parking areas,
purchasing of land
for servitudes, etc)
and motorised
vehicles to cater
for land surface
transport.
Infrastructure (not
included elsewhere)
related to the means
of transferring goods,
people, etc from one
mode of transport to
another (e.g. bus- and
taxi-ranks).
Ports, pipelines and
related
infrastructure and
sea-going vessels
catering for
maritime transport
(e.g. harbours, docks,
terminals, waterways,
oil and gas pipelines,
etc).
ENERGY
CONVERSION
TRANSMISSION
DISTRIBUTION
Energy conversion, transmission and
distribution/transport using different primary
energy sources (e.g. coal, hydro, wind, solar, gas,
steam, bio-diesel, wave power, nuclear, etc).
Generation and/or
storage of energy and
fuel using
different primary
energy sources.
Bulk transmission and
transport of secondary
energy and fuel of
different types
Distribution or
reticulation of
energy and fuel to
different types of
end-users.
Examples of these
market operations
are independant
filling stations and
the Regional
Energy
Distributors (RED).
WATER & WASTE
WATER
WASTE WATER
ON-SITE
SANITATION
SOLID WASTE
Infrastructure related to any service which stores,
supplies, purifies, transfers and distributes water,
and treats and disposes of waste water and solid
waste.
Infrastructure related to the provision of sanitation
services.
Infrastructure related
to any service which
supplies, stores, purifies,
distributes untreated
or potable water. (e.g.
dams, water
purification works,
distribution
networks, bulk
pipelines etc).
Infrastructure for
collecting and
treating waste or waste
water.
On-site
treatment of human
waste and sullage
water.
Infrastructure for
collecting, sorting,
recycling and
disposing of
domestic and
industrial solid waste
(including
hazardous waste).
INFORMATION AND COMMUNICATIONS
TECHNOLOGY (ICT)
TELECOMMUNICATIONS
RADIO AND
TELEVISION
BROADCASTING
POSTAL
INFORMATION
TECHNOLOGY
Infrastructure related to providing access to
information and communication services, including
the convergence of voice and/or data and/or image.
Backbone and local
loop infrastructure for
fixed line, cell-phone or
cable communications
of voice, data or image
by utilising microwave
and satellite technology
infrastructure providing
bandwidth for data,
audio, visual and
internet communication
purposes.
Infrastructure
required for
transmission of voice,
image and data via
airwaves or satellite
orbits for
broadcasting and data
exchange.
Infrastructure
required for the
exchange of
physical mail.
Provision of the
hardware and / or
software required
to interconnect data
processing facilities.
SOCIAL INFRASTRUCTURE
HEALTH
EDUCATION
COMMUNITY
FACILITIES
MUNICIPAL
End-user infrastructure related to the provision of
services for the benefit of the community.
Facilities which
facilitate the
maintenance and
improvement of
personal health (e.g.
clinics, hospitals, etc).
Infrastructure
related to an
institution for the
provision of
tertiary and private
sector education,
including residences
and recreational
facilities.
Infrastructure
which provides
a service to the
communities (e.g.
community halls,
cemeteries, parks
and recreational
sports facilities,
AIDs orphanages,
etc).
Infrastructure which
provides a service to
Municipalities (e.g.
municipal buildings,
fire stations, licensing
offices, depots, plant,
etc).
URBAN RENEWAL AND HOUSING
URBAN RENEWAL
HOUSING
Rehabilitation and upgrading of infrastructure,
buildings and housing stock, as well as neglected
and brown field sites related to the renewal of
existing urban areas, thereby enabling investment
and support to improve the general performance of
the urban sector.
Revitalising the
economic role and
safety of the urban
area.
Any form of formal or
informal shelter for
low- to middle-income
groups.
TOURISM
PRIMARY
INFRASTRUCTURE
SECONDARY
INFRASTRUCTURE
ENABLING
INFRASTRUCTURE
Primary, secondary and enabling infrastructure
associated with tourism.
Infrastructure
associated with tourism
attractions (e.g. natural,
cultural, man-made,
business, conference,
sport, immigration,
etc).
Accommodation,
catering and retail
facilities associated
with tourism. Tour
operator maps and
guides.
Planning, policy,
strategic
guidelines, etc
associated with
tourism.
THE DBSA INFRASTRUCTURE BAROMETER
PRIMARY FOCUS AREA
SECONDARY FOCUS AREAS
MANUFACTURING, COMMERCIAL AND RETAIL
FACTORIES
INDUSTRIAL
DEVELOPMENT ZONES
LED DEVELOPMENT
ENTREPRENEURIAL
Infrastructure and support for manufacturing,
commercial or retail activities.
Production and
storage facilities, such
as factories,
warehouses, etc, linked
to Local
Economic
Development and
Industrial
Development Zones.
Real estate industrial
development.
Assistance to
Municipalities in
furthering the role
of sectors active
in their areas of
jurisdiction.
Infrastructure
supporting
small-, micro- and
medium-sized
entrepreneurs involved
in retail trading or in
the provision of
services in any
economic sector, as
well as involving
physical facilities for
the entrepreneurs
(e.g. shopping centres,
equipment, buildings).
RURAL, AGRICULTURE, FISHERY AND FORESTRY
OFF-FARM
INFRASTRUCTURE
ON-FARM
INFRASTRUCTURE
AGRO-INDUSTRIAL
INFRASTRUCTURE
MARKETS
Infrastructure and support related to rural
development and all forms of agriculture.
The bulk
infrastructure is the
entire infrastructure
that is associated with
a particular project but
that is not within the
physical boundaries of
the project, although
essential to it. The
infrastructure includes
storage dams, access
roads, power supplies,
water supply lines, etc.
This infrastructure is
not redeemed in full
from the project and is
often subsidised. There
is normally some kind
of cost recovery via
levies, etc.
This infrastructure is
normally not
dedicated
infrastructure but
rather shared
infrastructure. The
costs are normally fully
recovered. This
category includes items
such as infield roads,
major and minor water
supply lines,
balancing dams,
loading zones,orchard
development,
cultivating the soil,
crop irrigation and
rearing animals
(cattle or game);
on-farm pump stations,
land preparation,
liming the land,
foundations for broiler
houses, superior
genetic material, etc.
This is a vast
category of
infrastructure and
would cover
everything from
large sugar mills,
organic fertilizer
plants, juice
extractor plants,
etc, to small
local market stalls
through
intermediaries.
Establishment of,
management of and
access to markets for
agricultural produce.
MINING
INDUSTRIAL MINING
MINING EQUIPMENT
Support to mining ventures (e.g. establishment of
mining infrastructure, equipment, etc).
Support through the
establishment of
mining infrastructure
(e.g. quarrying, service
infrastructure, shafts,
etc).
Support with the
purchasing of capital
items required for
mining operations.
FINANCIAL MARKETS
FINANCIAL
INSTRUMENTS
The provision of financial support where market
failure occurs.
The application of a
variety of financial
derivatives /
instruments in order
to address client needs
(e.g. project/ income
bond, municipal bonds,
debt recovery /
restructuring
mechanisms,
securitisation
measures, credit risk
diversification
portfolios, etc).
ENVIRONMENTAL INFRASTRUCTURE
ECOSYSTEM
MANAGEMENT
POLLUTION
MANAGEMENT
SUSTAINABLE
RESOURCE USE
DISASTER
PREVENTION
MARKETS FOR
ENVIRONMENTAL
GOODS AND
SERVICES
The creation, maintenance and rehabilitation of a
functioning global environment and its constituent
ecosystems in support of sustainable development.
Infrastructure that
supports the creation,
maintenance and
rehabilitation of
ecosystems and their
biodiversity assets, such
as the creation of
protected
environments.
Infrastructure that
manages and reduces
pollution and its
impact at a local,
regional and global
level, such as waste
treatment, cleaner
production initiatives
and infrastructure that
leads to the
rehabilitation of
polluted
environments.
Infrastructure that
supports more
efficient and
effective means
of utilising natural
resources such as
energy efficiency,
waste minimisation
and water
conservation.
Infrastructure that
reduces the
vulnerability to
environmental
hazards (e.g. extreme
weather events as
a result of climate
change, coastal and
flood protection
infrastructure).
Mechanisms that
generate tangible
income streams that
reflect the real
benefits of
environmental goods
and services, such as
carbon finance.
Disclaimer: The Development Bank of Southern Africa regards the above classification of services purely as a contribution to the national and international debate on the
“Classification of Infrastructure for Developmental Purposes” and merely uses it as a guideline in supporting development infrastructure. The list is by no means regarded as
“complete or accurate” and is regularly updated.
TABLE 1: DEFINING INFRASTRUCTURE
27
PART I
UNDERSTANDING ECONOMIC INFRASTRUCTURE IN
SOUTH AFRICA
CHAPTER 1
The Historical Context
Chapter 1 places the development of
Introduction
This chapter provides a historical overview of the development of
the four infrastructure sectors selected for in-depth analysis in this
report, the sectors being transport, energy, water and sanitation and
information and communications technology (ICT). The historical
context serves to introduce the reader to the dynamics determining
the past development and the current nature of these four sectors.
The history of each sector is both unique and intertwined with those of other sectors and key historical
events. Figure 3 provides a visual overview of the historical milestones for each of the sectors, and shows how
the development of each sector is characterised by a different set of events, happening at different times.
The sequence of the presentation is deliberate, with transport representing the basis of infrastructure
investment. Transport allows movement of goods and people, reduces operating costs and increases the flow
of information. The energy sector, described next, assists the economy to produce goods and services and to
move these to markets. Energy is followed by water, South Africa’s scarcest natural resource. Access to water
resources ensures food production and clean water supplies to support urban development and industrial
production, and to facilitate improved sanitation and health in general. The ICT sector, the youngest in South
Africa’s suite of economic infrastructure sectors, is discussed last.
The historical context for each sector is described by unpacking the particular sector into its subsectors and describing key processes and events which have determined the current state of the sector.
See Figure 3 for a historical overview of significant infrastructure events over the past almost 150 years.
This timeline presents all four sectors, and highlights events that were noteworthy and influenced the
development of the particular sector at that point in time.
This chapter sets the scene for Chapter 2, in which the current policy, institutional, regulatory and financial
environments governing the four sectors are discussed.
transport, energy, water and sanitation, and
ICT infrastructure in a South African historical
context. The origins and development of each
of these four sectors and their sub-sectors are
traced through time.
The Union Buildings in South Africa’s administrative capital, Pretoria, Gauteng.
PART I CHAPTER 1
31
Figure 3:
Infrastructure History “At a glance”
Pre 1900
1900
1910
1920
1930
1940
1930s Depression
1871 Diamonds & Kimberley
1886 Gold & Johannesburg
1899-1902 Anglo-Boer War
1910 Union of South Africa
1914 – 18 World War 1
1950
1939 – 45 World War 2
1948 National Party Government
Apartheid Laws
(e.g. Group Areas Act 1950 & Homeland development)
TRANSPORT
Pre 1900
1900 – 1930
1930 – 1960
Local road solutions.
Widely differing standards of road provision between provinces and municipalities.
National Roads Board established, culminating in a Road Fund in 1948 and a shift
towards common standards.
Ports developed in isolation.
Creation of SAR&H.
Continued centralised control in ports.
Separate early rail systems commenced from
coast to the interior. 1859: First railway
Primary rail network extended into Sub-Saharan Africa. Demand for branch lines began to be met.
Apartheid era “townships” led to calls for fairly massive central government
subsidy into both bus and rail commuter systems.
No flying prior to 1900
Municipalities constructed own regional airports with, in some cases, military assistance.
1909: First powered flight took place in East London.
Civil Aviation Branch of the DOT responsible for international and regional airports.
1934: SAA established.
Fuel distribution largely through carrying
own fuel.
Service stations developed by private sector with inter-city fuel distribution by rail from coastal refineries.
Development of SASOL 1 to augment coastal refineries capacity.
ENERGY
Pre 1900
1900 – 1930
1930 – 1960
Discovery of gold and development
of mining sector led to exploitation
of abundant coal for electricity
production.
1906: Victoria Falls Power Company established to supply power to the mining industry in the Transvaal
and Orange Free State
1931: Unlawful Determination of Prices Act; fuel prices to be market-driven.
Importing fuel from multinational oil
companies.
1923: Eskom started providing power to railroads and non-mining industry.
1945: Industrial development from ferro-metals and aluminium increase demand for electricity.
1922: Electricity Act. Creation of Electricity Control Board & Electricity Supply Commission.
1948: Eskom bought Victoria Falls Power Company.
1882: First electricity power station
in Kimberly
WATER AND SANITATION
Pre 1900
1900 – 1930
1930 – 1960
Separate municipal supplies.
Central Government dam building commenced.
1930s: Vaalharts Irrigation Scheme.
Bucket latrines in Johannesburg and Cape
Town.
1903: Rand Water bulk supplier for Witwatersrand.
1956: Water Act.
1904: Sewerage in Johannesburg.
1950s: Dam building stepped up.
1912: Irrigation Act.
1924: Athlone sewage works, Cape Town.
ICT
Pre 1900
1900 – 1930
1930 – 1960
1791: First Post Office at Cape Town castle.
1901: Radio service introduced.
1932: First overseas airmail service introduced.
1853: First South African stamp with the
figure Hope on triangle-shaped stamp.
1902: First public payphone in Bloemfontein.
1932: First overseas telephone call between Cape Town and London.
1905: “Cullinan” diamond posted to London as ordinary registered mail article.
1936: SA Broadcasting established.
1910: Four main Post Office administrations amalgamated.
Before 1950: Radio starts.
1876: First telephone installed in Cape
Town.
1924: First overseas radio telegraph message received from London.
32
THE DBSA INFRASTRUCTURE BAROMETER
1960
1970
1980
1990
2000
post 2000
1994 Democratic Government
Amalgamation of racial local
authorities
Demarcation of 284
contiguous municipalities
1976–81 “Independence” of
Transkei, Bophuthatswana,
Venda & Ciskei
TRANSPORT
1960 – 1982
Post 1982
Post 1996
Freeway construction continued in earnest. Homeland policy led to a skewed
road system developing.
1982 National Transport Policy Study shifted
transport’s role from being supply-driven.
New constitution established “concurrent” responsibility and supported continued deregulation.
Richards Bay and Saldanha ports developed.
Ports continue to operate as an oligopoly.
NPA established. Ngqura Port under construction.
Trucks became a meaningful means of moving freight.
Many freight branch lines closed down in rural areas.
SARCC created in 1990 as owner and oversear of
commuter rail infrastructure.
Taxis now dominant mode of commuter transport.
Issues of poor efficiency and decline in asset condition reduce rail’s competitiveness against road
freight operators.
Advent of larger jet aircraft forced consolidation of primary airports and a
reduction in light aircraft movements.
ACSA established to operate 9 regional airports on
behalf of the Department of Transport.
20% of ACSA sold to private sector in 1998. High levels of investment in South African airports and
primary roads.
Pipeline network continued to expand, overall capacity protected by the
Official Secrets Act.
Pipeline network marginally extended to Rustenburg.
Portions of the fuel pipeline system converted to transporting gas and Pande gas pipeline installed.
ENERGY
1960 – 1980
1980 – 1990
Post 1994
1950s: Development of crude oil refineries to reduce dependence on
imports.
1982: Discovery of natural gas at Mossel Bay and
development of Mossgas.
Commencement of roll-out of National Electrification Programme - led by Eskom.
1950: Sasol formed.
1984: Commissioning of first nuclear power plant
at Koeberg.
1998: White Paper focus on social equity and increasing access to energy.
1986: Oil price crisis.
2000: Liquid Fuel Charter with BEE target.
1986: Nuclear fuel enrichment Z-Plant.
2001: Eskom Conversion Act establishes Eskom Holdings as a public company.
1988: BEVA Nuclear fuel fabrication plant.
2002: Restructuring of the distribution industry - EDI Holdings Company.
1995: National Electricity Regulator.
1972: Eskom’s role as central generating authority established.
1973: Oil price crisis.
2004: Sasol gas pipeline from Mozambique.
2004: National Energy Regulator Act (Regulator to be formed in 2005).
WATER AND SANITATION
1960 – 1994
Post 1994
Massive dam building increase and irrigation schemes.
Legislative overhaul for both resources & services.
Formation of 10+ Water Boards.
Central Government focus on rural water supplies and sanitation.
Investment in homeland rural water supplies.
2001: On-site sanitation emphasis, phasing out all bucket latrines.
Homeland “toilets in the veld” often not appropriate.
1986: Lesotho Highlands Water Project Treaty.
ICT
1960 – 1970
1970s – 1990s
1990s – 2000
New Millenium
Integrated postal and telecom
services.
Separated postal and telecom services.
1990: Five millionth telephone
issued.
Mobile commerce and wireless networks - medium and long range radio
networks.
1993: Internet - optical fibre and
bandwidth.
Satellites for communications, broadcasts, navigation and surveillance - downlinks
to the subscriber.
Privatisation of Telcos (unbundling
of Telcos in smaller specialist units).
Competition in the fixed line service.
Introduction of the Personal Computer- hardware and software.
Limited mainframe computers and
mini-computers.
Fixed-line communications,
copper-based and limited
microwave.
The World Wide Web (CERN, 1989).
Satellite communications - base stations and satellites.
Introduction of private radio stations.
Submarine cables, copper-based.
1974: Post Office Savings Bank.
Voice traffic dominates.
5 January 1976: Television started.
The beginnings of the Internet.
Competition among mobile service providers.
Data traffic starting to dominate
telecommunication thinking.
31 March 1994: Introduction
of mobile telephony, cellular
networks.
Convergence of computers, cameras and mobile phones.
2003: Telkom listed.
Sub-marine cables - optical fibre
based.
Satellite communications expand.
FIGURE 3: INFRASTRUCTURE HISTORY “AT A GLANCE”
33
Transport
Background
Transport has played a significant historical role in the development of the sub-continent. This section
describes transport sector development since the beginning of the 20th Century, with emphasis on changes
since 1994. It covers the evolution of the various modes of transport such as roads, rail, ports, airports and
pipelines. Details are provided of the more recent policy debate and, specifically, the impact of the 1996
White Paper (Department of Transport, 1996), which continues to provide the core of current policy direction.
Urban transport represents a particular challenge and, for this reason, is dealt with under a separate heading.
Institutional and financial arrangements and the impact of the regulatory environment are contained in
Chapter 2.
Early emphasis on expanding particularly the rail network demonstrated the importance of rail in linking
emerging urban settlements and in giving access to the developing mining and agricultural areas. Rail
provides a cost-effective means of transporting high-volume low-value goods over considerable distances.
In so doing, it has played a crucial role in facilitating South Africa’s mineral exports. The development of
bulk export terminals at the ports of Richards Bay and Saldanha in the 1970s created dedicated rail and port
infrastructure for such purposes.
The development of a national road network from the 1930s onwards was followed in the 1960s and
1970s by an intensive public sector financed road construction programme. This helped to consolidate the
national road network and provided much of the urban motorway network now heavily relied upon within
the major metropolitan areas.
In urban areas, transport has also played an important role. It was used to foster the economic development
of urban conurbations and was also used to facilitate the separate land use development policies of
Apartheid.
From 1994 onwards, more emphasis in infrastructure development was placed on social development.
Road infrastructure was provided in support of lower-income housing development and increased accessibility
to previously marginalised rural areas. Whilst this contributed to the wellbeing of a substantial number of
people, it did have the downside that very little public sector investment in “economic” infrastructure in the
transport sector has been made since 1994. This has led to a shortfall, particularly in the rail and port sectors,
with a consequential negative impact on national competitiveness and growth.
Transport Infrastructure Development
Road Infrastructure
Roads carried approximately 75 percent of freight, in tonnage terms, on the dominant inter-city freight
corridors in 2003 (Creamer, 2005). Road-based modes also dominate the inter-city and urban passenger market.
Roads are the only means of access to most rural communities. The primary characteristic of the South African
road network is the great variance in standards and serviceability that exists within the network – more so
than in most countries of the world. This variance is primarily attributable to past fund allocation and the
skewed capability of institutional support. The “modern” element of the network comprises high-standard
roads, including freeways such as the M2 in Johannesburg which carries in excess of 120 000 vehicles per
24 hours. The other extreme embraces hundreds of thousands of kilometres of dirt/gravel roads, some of
which carry traffic volumes of 2 000 vehicles per day (e.g. the Ulundi to Nongoma road) but which, in the
main, carry less than 50 vehicles per day, predominantly in deep rural environments. The road network in
South Africa can be classified into primary (national), secondary (provincial), and tertiary (regional) rural
roads, and urban roads and streets (Table 2).
34
THE DBSA INFRASTRUCTURE BAROMETER
Table 2: Approximate length of road networks in South Africa
Road Authority
Length (km)
National roads
Percentage split
6 700
1
Provincial roads
357 000
47
Unproclaimed rural roads
221 000
29
168 000
23
752 700
100
Metropolitan, Municipal and
other
Total
Source: National Department of Transport, 2002
South Africa embarked on a considerable roads enhancement programme from the mid-1960s through
to about 1978. Much of the emphasis of this programme was devoted to enhancing the primary or national
roads network, but also included elements of the dominant secondary, or provincial, roads network. Emphasis
was also given to constructing dual-carriageway motorway infrastructure where traffic volumes warranted
such improvements.
Total expenditure on capital and ongoing maintenance for roads by all levels of Government since the
mid-1990s has increased marginally in real terms, although major maintenance and rehabilitation backlogs
remain (National Department of Transport, 2002) (Figure 4).
Figure 4: Total government capital and maintenance expenditure on roads
&YQFOEJUVSF3N
Financial year
Nominal expenditure (Rm)
Expenditure in constant 2000 (Rm)
Source: National Department of Transport, 2002
Primary Roads (National Roads)
Until the mid 1980s, the emphasis of primary road infrastructure development was on handling traffic demand
between the main centres of the country, and the links to neighbouring states. Under the influence of the
transport policy studies in the 1980s and 1990s, a new strategy emerged. This strategy was directed towards
the promotion of the development of export-related freight movements, both locally and internationally,
and also towards improving mobility in metropolitan areas. The necessity for efficient and safe linkages
between the main towns and cities of the country did not diminish, but merely assumed a lesser priority.
PART I CHAPTER 1
35
The proposed primary road network is very similar in layout to the 1971 network, albeit associated with
considerably different standards and overall infrastructure quality. A major institutional change is to increase
the nearly 6 700 km under the control of the National Roads Agency (SANRAL) in 2002 to 20 000 km, through
the transfer of selected roads from the provinces (Le Roux, 2005; SANRAL Annual Report, 2005).
A commercial approach towards the provision of primary roads has facilitated the growth of road
provision concessions to the private sector on a large portion of the heavily trafficked primary road network.
2 500 km of road have already been concessioned (Le Roux, 2005) and the SANRAL “twenty ten” plan proposes
a further 3 383 km to be tolled over the next five years (SANRAL, 2002). This is expected to grow to a toll road
network of 7 000 km once completed (Le Roux, 2005).
Rural Secondary and Tertiary Roads
Secondary and tertiary roads cater mainly for intra-provincial travel and are, in the main, the responsibility
of provincial governments. The predominant characteristic of roads under the jurisdiction of provinces is the
vast network of gravel and access roads. The national average for provincial roads that are either gravel or
unsurfaced is 83 percent (Table 3). A process of transferring some of the lower level or intra-district roads to
district councils is currently underway.
Table 3: Extent (km) of proclaimed provincial road network, 2000
Province
Surfaced roads
Gravel roads
Unsurfaced access roads
(km)
(km)
(km)
Eastern Cape
6 233
34 718
7 631
Free State
7 070
22 046
20 000
Gauteng
3 487
1 771
2 410
KwaZulu-Natal
7 489
19 347
10 571
Limpopo
6 403
11 866
10 578
Mpumalanga
7 062
10 517
7 479
Northern Cape
5 630
53 725
12 023
North-West
6 723
19 161
10 017
Western Cape
7 172
24 991
7 822
57 269
198 142
88 531
TOTAL
Source: National Department of Transport, 2002
While it was possible, even in the face of severe financial constraints, to sustain the quality of the
provincial road system of secondary and tertiary roads in relatively consistent condition up until the
mid-1980s, it has not been possible to do so during the subsequent period. From this time, the funds provided
were barely able to meet basic maintenance requirements, and this had been escalating due to previous
financial constraints and also as a result of the ever-increasing age of the network (National Department of
Transport, 2002). Severe overloading by heavy vehicles has exacerbated this position, and has led to major
structural damage on certain haulage routes.
36
THE DBSA INFRASTRUCTURE BAROMETER
A Department of Transport study in 1991 showed that, whereas in 1975 only 17 percent of the
countrywide expenditure on roads was needed for maintenance and rehabilitation, this proportion had
risen to 52 percent by 1990. This was directly due to the continued deterioration of the overall road network
as a consequence of the continuous under-investment in road provision, particularly in the rehabilitation of
roads past their economic life-span of 20 years (Mitchell, 2004).
This situation has been considerably worsened by the fact that, in constant rand values, total road
expenditure on rural roads in 1975 had halved by 1990. These figures relate to the total road network,
including national roads, which are generally more favourably positioned financially than provincial roads
(largely as a consequence of the contribution of road tolling). This last period of some 10 years probably
represents the low point for the provincial roads departments over the past 60 years.
The advent of a democratic dispensation in 1994 saw a change from four provincial road administrations
and various homeland road administrations to nine provincial road authorities. Bloated personnel
establishments, a shortage of skills and a re-allocation of responsibility for various components of the
road network continue to present a challenge to road provision agencies in both the rural and urban
environments. Since 1994, provincial road planners have recognised that the absence of a road network in
deep rural areas constrains delivery of other services necessary for social and economic development of rural
populations. New housing projects and other social infrastructure require supporting road infrastructure
to accommodate the transport needs which will facilitate social integration of these areas with the broader
community. Further features of this era are the involvement of central government in low-volume road
provision and the development of emerging contractors. This latter endeavour is promoted through the
requirement that a percentage of the work of all large construction and maintenance projects be entrusted
to small emerging contractors.
The “Moving South Africa” (National Department of Transport, 1998/1999) transport strategy (refer
Box 8) suggests that 32 percent of the rural roads to farming areas are in a very poor state, while this
proportion increases to 82 percent for rural villages. Another facet of the country’s road activities that has
received attention during the past 10 years is the need to “grow” the tourist industry by providing access
to tourism facilities, through the provision of adequate road links to the primary network. A crucial but
frequently overlooked aspect of transport is adequate signage.
Urban Transport Development
In this document, the term “urban transport infrastructure” is used to denote infrastructure for the
efficient movement of people and goods within developed urban areas. The importance of urban transport
infrastructure is emphasised by the fact that by far the greatest proportion of the South African population
lives in cities (58 percent in 2001) (DBSA, 2003). Unfortunately, the urban transport infrastructure milieu in
South Africa during the past three decades is a story of lost opportunities, caused by a failure to “grasp the
nettle” in addressing the burgeoning traffic problem, the poor accessibility of many marginal communities
and the challenges posed by South Africa’s inefficient urban form.
One of the essential requirements of efficient urban transport is an integrated and efficient public transport
system. Efficiency implies using urban public transport modes such as minibus, bus and rail optimally, and
matching the capacity provided by these modes with demand levels on various routes and corridors across
each urban area. The absence of appropriate institutional arrangements over the past 30 years or more to
promote coordinated public transport delivery, as well as grossly inadequate levels of funding, have created
car dependence among that portion of the population which can aspire, and afford, to acquire a private
vehicle, together with reliance on inadequate, unsafe and dilapidated public transport among those who do
not have access to a car (Khoza, 1998).
South African cities have emerged from a form of spatial planning which has emphasised separate
development. Before 1994, the Group Areas Act (1950) and a form of National Government top-down spatial
structuring of cities dominated South African urban development. Public transport usage during this period
was high for two reasons. Firstly, there was complete reliance on public transport by low-income township
dwellers who, through financial constraints, had no access to private cars. Secondly, a tightly structured urban
form meant that commercial retail and industrial areas were all well served by public transport, even though
overlapping public transport services were racially delineated and integration was actively discouraged.
PART I CHAPTER 1
37
Box 3: eThekwini Transport Authority
eThekwini Transport Authority is the first
metropolitan-level (local government) transport
authority set up under the National Land Transport
Transition Act (NLTTA) of 2000. It is assigned all
functions and powers relating to transport in the
city and represents a key shift towards effective
institutional management of the transport function at
local authority level. Effective local level institutional
control is key to addressing issues of fragmentation
in the management and control of transport,
wasteful subsidisation, integration between modes
and services, control and enforcement of public
transport operators and effective management of
key supporting infrastructure such as roads.
The eThekwini Transport Authority comprises
three departments: transport, strategic planning
and road system management (www.durban.gov.za/
eThekwini/Services/eta). This enables the integrated
management of public transport operations, including
outsourcing, contract management, enforcement,
customer liaison, planning and service design.
The Transport Authority will be responsible for
all planning and implementation functions and
represents a separate juristic entity with a governing
body including the representation of councillors as
part of its structure (Peters, 2001).
The NLTTA makes allowances for a Transport
Authority to have an influence over land use policy
and to integrate transport plans with the IDP planning
process. However, in reality, the transport and land
use functions continue to remain separate.
Centralising the decision for the funding and
subsidisation of transport within the Transport
Authority will ultimately be a key element to allowing
the authority to begin making trade-offs between
different parts of the services it provides to the public.
This represents a considerable ongoing challenge,
especially with a lack of clarity on the devolution
of powers and with provinces wishing to control
some public transport expenditure, such as some
components of the subsidy provided to busses.
In addition, further challenges remain, such as
the effective and sufficient funding of Transport
Authorities, the regulation and co-ordination of the
involvement of minibus ”taxis” in a more formal
public transport service delivery environment. The
basis for the devolution of the commuter rail function
to metropolitan level is a necessary requirement for
effective city-wide integration of public transport.
From a transport infrastructure perspective, the constraints
emerging from historic patterns of urban form are twofold:
• Separate high-density urban townships some distance from the
dominant urban economy (1st economy), with integration of
these areas often constrained by “buffer zones” in the form of
watercourses, major infrastructure lines and industrial areas.
• Low-density suburban development characterised by high
dependence on private car usage and an associated well-developed
supporting road network.
The spatial structure of apartheid cities started to change after 1994
(South African Cities Network, 2004). However, the levels of efficiency
from an urban transport infrastructure perspective have tended to
worsen rather than improve. These more recent shifts in urban form
are characterised by the following changes:
• The de-densification of commercial and industrial activity, often
to areas in closer proximity to low-density suburban areas and to
major primary and secondary road infrastructure. A consequence
of a shift away from traditional urban centres is that commercial
and industrial activity has moved away from the dominant public
transport networks, and usually further away from dense township
development.
• Further extensive low-density sprawl, largely as an extension to
existing low-density suburban areas, often in areas where road
access was originally good but where development pressure has
exceeded the ability of the road infrastructure to cope with the
influx of private car users.
• The development of low-income housing as an extension to
existing spatially marginalised townships. On the basis of one
family per plot, this has further exacerbated the ineffectiveness of
high-volume public transport modes such as urban rail.
This situation has resulted in substantially increased congestion
levels, with average travel time to work in Johannesburg having reached
50 minutes in 2003, a 17 percent increase since 1995 (South African
Cities Network, 2004). The land use/transport situation is exacerbated
by the fact that different levels of government are responsible for
land use and transport provision decisions. Little coordination exists
between these two primary functions which dictate how and where
transport facilities are provided. The Integrated Development Planning
(IDP) process, now a legal requirement, partly addresses this historic
deficiency, but continues to see land use and transport as separate
components.
The rapid growth in the minibus “taxi” mode and a decline in
both patronage of and funding for urban bus and rail modes, have
both created much pressure on the existing road infrastructure. This
is exacerbated by little real success in creating a multi-modal urban
public transport system, and the emergence of a city form which is incompatible with promoting efficient and
integrated public transport.
The 1980s saw attention being given to various, and isolated, public transport infrastructure projects
to make public transport more attractive to the commuter. These included “pilot projects” promoting
“park-and-ride” facilities, improved bus services, modal transfer stations, improved rail stations, many
new taxi ranks and a few exclusive bus lanes. Unfortunately, many of these changes occurred without
the necessary supporting legislation provided by the National Land Transport Transition Act (NLTTA) and
38
THE DBSA INFRASTRUCTURE BAROMETER
without sustained funding to the responsible metropolitan authorities. Many local governments failed to
use the strong powers assigned to them by the Urban Transport Act to reduce traffic on congested parts
of the road network. This was partly through an unwillingness to increase the costs to road users without
providing them with realistic alternative options, and partly through a lack of appropriate funding support
to provide improved public transport systems and supporting infrastructure.
The bus industry was also in trouble during the mid-1980s and onwards, due to the lack of
adequate urban infrastructure, such as busways and good “rural” roads on which to operate. It is an
anachronism of public urban transport in South Africa that many commuters travel on a daily basis up to
80 km or more from rural areas to their places of work in cities. This problem still persists today in the northern
part of Gauteng Province and in the Northern Cape Province. The major problems for urban transport over
the past two decades are inadequate funding and the lack of an effective Passenger Transport Authority
in the various metropolitan areas. The exception is the recently constituted eThekwini Public Transport
Authority (refer Box 3).
The bus industry has historically emerged as a subsidised formal mode of public transport. Its method
of operation has not changed significantly since the 1980s. Subsidised bus routes tend to service either
suburban areas with high levels of car ownership, as commonly served by municipal bus operators, or longdistance services, originally conceived to support apartheid land use planning, between low density rural
and peri-urban areas and commercial centres, such as central business districts (CBD) and industrial areas.
Low-income townships within the larger cities were traditionally served by rail and bus services, and it is
these services that have been characterisd by a consumer shift from commuter rail to minibus “taxi”.
Seventy percent (Department of Transport Annual Report, 2004) of all commuter transport journeys
are now made by an only nominally, but not de facto, regulated minibus “taxi” industry, which operates
completely outside an integrated public transport system, and often by destructively competing with other
more formal modes of transport.
The minibus “taxi” industry is still largely informal in nature and operates outside the legal and
commercial spheres of the economy. It is widely characterised as being financially unsustainable (although
levels of profitability may differ from route to route) due to low barriers to entry, a highly competitive
marketplace and a lack of reinvestment into capital assets (Fourie and Pretorius, 2003). Attempts have been
made to regulate the industry and Provincial Governments administer the issue of permits to operators.
Permit issue should be based on the planning requirements of the NLTTA, but restrictions to the number
of permits issued to enhance entry barriers are low, and levels of enforcement are insufficient to make the
permit system an effective regulatory tool.
A R7.7 billion government programme to recapitalise the minibus “taxi” industry is proposed
(Mokopanele, 2005). Ideally, this programme should be used as a catalyst to integrate the minibus “taxi”
mode more formally with other public transport service providers, improve safety and reduce destructive
competition and overtrading on key urban corridors.
Rail Infrastructure
State ownership and control of railways began in the 1870s when two pioneer railways in the then Cape and
Natal became government property. An Act of Parliament in 1916 merged all railways and ports into a single
entity known as South African Railways and Harbours (SAR&H). Railways and ports expanded considerably
from that time and, by 1981, were organised into the South African Transport Services (SATS). The Legal
Succession to the South African Transport Services Act, 1989, transformed SATS from a government
department to a public parastatal company. With responsibility for all rail infrastructure and operations,
Spoornet became the largest of eight operating divisions of this company, known as Transnet (Kleingeld,
2003; www.transnet.co.za).
As the railways on the sub-continent developed, so the focus of their use changed:
• The initial emphasis was access and the development of the sub-continent, with passenger services being
an important component of what was otherwise a freight-dominated railway service.
• As inland areas began to develop and industrialise, the emphasis changed to a general freight railway, with
access to relatively remote areas and where railways moved almost all freight goods and a considerable
proportion of passengers.
• As the road network developed and private vehicle ownership became more entrenched, railways were
focussed on hauling bulk goods over long distances, with high-volume low-cost commodities such as
minerals, agricultural products and primary manufactured goods, such as steel and chemicals, being the
areas where competitive advantage was sustained.
PART I CHAPTER 1
39
There are two implications of this last shift in focus. The first implication, and the partial cause of the
shift, was the deregulation of the road freight market in 1988. This removed the protection of rail from road
competition (Stander and Pienaar, 2002) and came in the wake of changes in the economy, the provision
of a more effective road network and a situation where road freight operators could now compete costeffectively, not possible only a few decades before.
The second implication is a consolidation and reduction in the network size which rail was then able to
serve. Many branch lines were constructed in the heyday of rail, linking small predominantly rural settlements
to the main rail network. With the railways under complete public sector control during this time, many of
these branch lines were also created for political rather than economic reasons, and have quickly become
redundant as road freight became a more cost-effective mover of smaller freight volumes.
The dominance of rail as a freight mode has shifted as the relative cost of road transport has fallen and
as the quality of the rail service has declined. A further factor favouring faster, more reliable and flexible
road transport is the shifting needs of the economy. There is now stronger emphasis on active supply chain
management, with emphasis on reducing goods in transit or in inventory, and with greater emphasis on
smaller volumes delivered more reliably to support “just-in-time” production techniques. The result has been
a steady shift from rail to road over the last decade, as demonstrated in Figure 5.
Figure 5: Tonnages of freight moved by road and by rail
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3PBE
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Source: Department of Transport, 2005b
In illustration of this shift, finished goods moved over a distance of 775 km in 1991 were some 15 percent
more expensive when moved by road rather than by rail. Six years later (1997), when the same goods were
moved over the same distance, rail transport was 15 percent more expensive than road transport (Business
Times, 18 July 1999). This rapid shift over a relatively short timeframe is a consequence of the following:
• An increase in the allowable road vehicle mass from 48 to 56 tonnes during this period. This was further
compounded by vehicle overloading, which is continuously being monitored by the respective road
agencies, and more recently, by private sector toll road operators.
• A vicious cycle within the rail environment of declining cash flows, which led to under-investment, and a
reduction in demand which reduced asset utilisation and increased the unit cost of moving ever-declining
freight tonnages.
This situation is by no means unique to South Africa and is a worldwide phenomenon, exacerbated by
railways that are often bloated and inefficient public sector monopolies that are unable to adjust to shifts in
demand.
Similar to the decline in the dominance of rail in the inter-city freight market, so rail has also declined as
an urban transport mode. Part of the reason for this decline is the flexibility of road services, particularly in
responding to new or emerging residential and commercial locations not served by rail. The changing urban
40
THE DBSA INFRASTRUCTURE BAROMETER
form of South Africa’s cities has further exacerbated the decline of rail as an urban public transport mode.
The decline is also influenced by poor rail service quality, with safety and security being particularly important
issues. Commuter rail is also poorly integrated with other modes of public transport. The result has been a
steady decline in the use of rail as a public transport mode within urban conurbations, as demonstrated in
Figure 6.
Figure 6: Patronage of South African commuter rail
1BTTFOHFSTNPWFEQFSBOOVNNJMMJPOT
Source: Department of Transport, 2001 and SARCC, 2002 - 2004
In the late 1990s, the commuter rail system was identified as being in extremely poor condition, with much
of its rolling stock exceeding 30 years old (National Department of Transport, 1999) and with, in some places,
dangerously inadequate signalling systems and permanent way. Rail commuter transport was becoming,
in certain instances, dangerous and was losing its attractiveness to the commuter. Since then, the state of
infrastructure has further declined and, while an ongoing programme of rolling stock rehabilitation continues,
this investment is insufficient to neutralise the negative impact of ageing and inadequately maintained
assets. In an attempt to remedy the rail infrastructure problem, the Department of Transport made proposals
in 1996 for rail commuter services to be concessioned to the private sector as a means of improving operating
efficiency and enhancing customer focus, in a similar fashion to the successful endeavour in Argentina.
Unfortunately, this proposal was unacceptable to organised labour and was subsequently shelved.
From the 1980s to the end of the century, as the use of road traffic to convey freight grew rapidly, the
rail “branch lines”, which were a feature of the early development of the rail network, and which brought
a “form of comfort” to many remote villages, became uneconomical. With much opposition from local
communities, Spoornet embarked upon a programme of closing branch-lines down, with the consequence
that many remote villages suffered economic deterioration. Other villages, however, enjoyed good road
access and they survived. With the recent advent of “tourist rail” routes, there has been an expressed interest
in the revival of some of these branch lines.
From the mid-1980s to very recently, the attraction of rail transport to commerce and industry has waned
considerably in relation to road transport. The rail system has gradually deteriorated and, despite its surplus
infrastructural capacity on certain lines, it has not succeeded in winning back general freight transport from
the road sector. The iron ore and coal lines remain very well used. Many within the rail industry have said
much about the “unevenness of the playing field” between rail and road, and attempts are being made to
win traffic back to rail.
Very recently, in May 2004, Spoornet announced a plan to spend more than R14 billion over five years to
upgrade and revamp assets and infrastructure in an attempt to win back customers. The involvement of the
private sector in such investments has been clearly articulated by the Transnet Chief Executive who identifies
the potential to use public private partnerships (PPP) to spread risk, bring in skills and enhance efficiency
(Creamer, 2005).
PART I CHAPTER 1
41
Port Infrastructure
During the past 50 years or so, port authorities have attempted to match infrastructure supply with demand
at all South African ports, rather than analysing the overall logistical approach to the handling of imports
and exports. The Moving South Africa (MSA) strategy has suggested a “hub and spoke” approach to the
development of port facilities in the country. The proposal envisages two deep-water hub ports for the
country, one east-facing and one west-facing, with coastal “feeder shipping” and specialist users serving the
remaining ports. Two new ports have been developed during the last 50 years, Richards Bay and Saldanha,
while the construction of the Ngqura Port has been initiated in the last two years.
Focussing on enhancing economies of scale at South African ports, improving their efficiency and
promoting greater levels of specialisation, remain the core issues for continued development of the country’s
port infrastructure.
The tonnages handled at South African ports (Figure 7) demonstrate the importance of the bulk sector
which is largely confined to the export of iron ore and coal through the ports of Saldanha and Richards Bay
respectively. While this sector grew at 7.5 percent for the five years to March 2002, it is the 19 percent growth
in containerised tonnages over the same period that provides the more substantial challenge to infrastructure
upgrade and renewal at South African ports. As is common internationally, the break-bulk sector has slowly
declined over the last five years.
Figure 7: Tonnages handled at South African ports, 2001/02
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NUPOOFT
HSPXUIPWFSZFBST
Source: NPA, 2005
Airport Infrastructure
The Constitution of South Africa mandates “airports” as a function of all three levels of government.
However, it is necessary to draw a distinction between airports and aerodromes. Airports are taken here to
refer to manned and controlled runways for aircraft, and aerodromes to be unmanned, although licensed,
“landing strips”, of which more than 600 exist in the country. This short history of the development of airport
infrastructure is restricted to national or state airports, currently administered by the Airports Company
of South Africa (ACSA) and previously, jointly by the Department of Transport (DOT) and the Public Works
Department (PWD). The PWD was responsible for building and the DOT for the civil and other works. Other
than Johannesburg International, the two primary airports in South Africa are Durban International and
Cape Town International.
Substantial growth in both international and domestic air travel, both having almost doubled over the
period 1996 to 2003 (Figure 8), has placed considerable pressure on ACSA to increase the size and quality of
infrastructure at airports. It has been widely credited with having implemented infrastructure well in advance
of demand, albeit based on a strong revenue stream from air ticket sales.
42
THE DBSA INFRASTRUCTURE BAROMETER
Figure 8: Numbers of domestic and international passengers passing through ACSA managed airports
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NJMMJPO
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*OUFSOBUJPOBM
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Source: Department of Transport, 2001; ACSA, 2005
While significant upgrades at airports continue, it is the proposal to shift Durban Airport to La Mercy that
is perhaps the latest potential new airport infrastructure project. There has been repeated pressure by local
politicians and others for the construction of the King Shaka Airport, which ACSA has strenuously resisted on
financial grounds. The latest proposal from local interests is to combine the construction of an initial freighthandling airport with a “trade port” – the Dube Trade Port.
Pipeline Infrastructure
Approximately 3 900 km in length for the conveyance of petroleum products, pipeline infrastructure was
first introduced into South Africa during the mid-1960s by the then South African Railways & Harbours
Administration (SAR&H).
In 2004, approximately 14 billion litres of petroleum products were transported annually through the
Petronet pipelines. As the products transported are all energy-related products, the topic is more fully
addressed in the Energy section of this chapter. The recent completion by Sasol of the Pande to Secunda gas
pipeline is starting to change the ownership and primary function pattern of pipelines in South Africa.
Energy
Background
This section provides a historical overview of the energy sector in South Africa over the past five and a half
decades. Energy is fundamental to the social and economic development of South Africa. Over the years, the
economy has largely depended on mining and highly energy-intensive industries. Of importance has been
the shift in policy towards a more equitable, secure and sustainable distribution of energy resources on a
national level. However, progress in the various sub-sectors has been diverse, with coal providing the major
primary source of energy - and the cheapest electricity in the world. Reference is also made to the strategies
engaged to ensure sufficient fuel reserves during the embargo years. Today, South Africa leads the world in
converting coal and natural gas into liquid fuels and chemicals. The design of the pebble-bed modular reactor
(PBMR) in the nuclear field, and progress in new and renewable forms of energy, are ongoing challenges for
the development of the sector.
The historical objective of the South African energy policy was to satisfy the needs for energy provision to
all parts of the economy at the lowest possible financial cost. In addition, security of supply and balance of
payments were considered important to the development of the sector, especially in the 1970s and 1980s.
The discovery of gold in the late 1800s and the subsequent development of the mining sector were the
initial driving force for the development of the electricity sector, based on cheap and abundant coal. This
was followed by the development of the industrial sector and the founding of the steel industry. Later, high
PART I CHAPTER 1
43
Box 4: South Africa’s Energy Policy is
based on the following key objectives:
• Attaining universal access to energy by 2014
• Accessible, affordable and reliable energy
especially for the poor
• Diversifying primary energy sources and reducing
dependency on coal
• Good governance which must also facilitate
and encourage private sector investments in the
energy sector
• Environmentally responsible energy provision.
Source: Budget speech, Minister of Minerals and Energy,
19 May 2005.
electricity demand emanated from growth by large energy-intensive
ferro-metal and aluminium industries. Development of the crude oil
refineries took place in the 1950s, primarily to satisfy the growing
demand for liquid fuels, to improve self-sufficiency and to reduce
payments to fuel-exporting countries. In 1950, Sasol was formally
incorporated as a state-owned company with the purpose of producing
oil from coal, and it established its first plant in the new town of
Sasolburg. The political embargo of the 1970s and the oil price crises of
1973 and 1986 led to local nuclear developments (Koeberg) and a huge
increase in the capacity of the synfuel industry (Sasol 2 and 3 in the
1970s and Mossgas in the 1980s). Subsequently, the rising concern for
social equity led to the initial electrification of households in specific
townships from the late 1970s, and the development in terms of the
National Electrification Programe by Eskom in the early 1990s.
Energy Sector Policy
Two White Papers on Energy Policy were published:
• The 1986 White Paper
The objective of the energy policy was primarily to ensure:
• Security of supply
• Adequate and uninterrupted provision of energy
• Its efficient utilisation, in order to promote optimum economic and social development in South Africa.
Limited attention was given to this last objective.
• The 1998 White Paper
The objectives of the energy policy moved significantly from security of supply to that of social equity. Five
specific objectives were formulated and used to develop sub-sector strategies:
• Increasing access to affordable energy services
• Improving energy governance
• Stimulating economic development (including competition, addressing market failures, cost-reflective
pricing, transparent subsidies, appropriate energy taxation)
• Managing energy-related environmental impacts, and
• Securing supply through diversity (including energy trade within the SADC).
Sources of Energy
One major secondary source of energy is electricity generated in thermal power stations, which takes
advantage of South Africa’s abundant coal resources. The other major secondary energy source is petroleum
products, refined from imported crude oil. South Africa has very small oil resources and modest natural gas
resources which are used on a limited scale. Liquid fuels are also sourced from coal conversion through Sasol
and liquefaction of natural gas from PetroSA, the latter supplying about 8 percent of liquid fuel requirements.
Initially uranium production was a by-product of gold mining, and used to fuel nuclear power production.
Eskom now procures conversion, enrichment and fuel fabrication services on world markets to feed the only
nuclear station, Koeberg.
Hydroelectric power is generated on a limited scale including a few pumped storage schemes on the
Drakensberg escarpment and in the Western Cape. The use of renewable energy sources, mainly biomass
in the form of firewood, dung, crop residues and other organic matter, is extensive. It is very difficult to
obtain an accurate estimate of total biomass use and reserves. However, it was estimated in 2000 to comprise
8-10 percent of South Africa’s primary energy consumption.
In rural and peri-urban areas, biomass is the main form of household energy, used mainly for cooking and
heating, but it is often used in an unsustainable manner. Technologies in wind generation are new and there
is also limited solar energy production in the form of solar water heaters. Other renewable sources include
bagasse and municipal waste or biogas, but their use is limited and still on a small-scale basis. Figure 9 shows
the primary sources of energy in 2000.
44
THE DBSA INFRASTRUCTURE BAROMETER
Figure 9: Primary sources of energy in 2000
$PBM
$SVEFPJM
/BUVSBMHBT
)ZESP
#JPNBTT
6SBOJVN
Source: Department of Minerals and Energy
Coal
Coal is by far the largest source of local primary energy, not forgetting that large volumes of coal are also
exported. The coal reserves are mainly bituminous, with relatively high ash content (45 percent) and low
sulphur content (1 percent). Recoverable reserves are estimated at 55 billion tonnes, which is the fifth largest
in the world and about 5 percent of the total global reserve. The large Waterberg Coal Field, with about
50 percent of South Africa’s resources, is situated in the Limpopo Province close to Thabazimbe.
Coal mining is largely a private sector activity, involving large companies such as Anglo Coal, Ingwe Coal
(subsidiary of BHP Billiton), Eyesizwe Coal, Kumba Resources, Sasol Mining and Swiss-based Xstrata Coal. South
Africa has more than 60 collieries, ranging from small-scale producers to some of the largest in the world,
with outputs in the range of 5 000 to 1 million tonnes per month. About 45 percent of South Africa’s coal is
mined by opencast methods. The low cost of mining coal led to its extensive use for electricity generation,
mineral exports and the development of the large synfuel industry that uses coal as a feedstock. The national
consumption of coal in 2000 is given in Table 4.
Table 4: Uses of coal in 2000
Use of coal
Million tonnes
Percent of total
Exports
69.2
31
Electricity production
89.3
41
41.7
19
17.6
7.9
2.5
1.1
220.3
100
Synfuels (including chemical
production)
Direct use in industry
Households
Total
PART I CHAPTER 1
45
The Richards Bay Coal Terminal (RBCT) is the world’s largest coal export facility, with a capacity of
97.4 million tonnes per annum. It handles 95 percent (2001) of South Africa’s coal exports. Other small export
facilities are the Durban Coal Terminal (DCT), handling 2.2 million tonnes, and the Matola Coal Terminal
in Maputo (MCT), handling 1.4 million tonnes. Coal is transported to these terminals by railway line. The
Richards Bay link was upgraded in the 1990s and the Maputo link recently underwent a US$13.8 million
upgrade. Conveyor belt, railcar or road trucks transport coal for inland use. The cost of coal transport tends
to be very high, thus reducing the use of coal with increasing distance from the coal mining areas.
Box 5: Energy and the economy
Energy is fundamental for South Africa’s social
and economic development. The energy sector
contributes about 15% of South Africa’s Gross
Domestic Product (GDP) and employs more than
250 000 people. The economy is highly energyintensive and is dominated by mining and primary
processing, metal smelting and synfuel production.
Energy consumption in South Africa is dominated
by industry at 42%, comprising mining, iron and
steel, other metals, chemicals, pulp and paper, food,
tobacco, etc. Growth in this sector is inevitable and
driven by international competition. The transport
sector is the next largest energy consumer and
mainly uses liquid fuels. Land passenger transport
is the largest, followed by land freight and then air
transport. Although the commercial sector, which
includes financial services, IT, retail, tourism and
education, consumes a smaller quantity of energy,
the opportunities for energy efficiency are large,
particularly in buildings. The agriculture sector includes
large modern farms as well as small subsistence
farmers. Most energy comes from diesel for modern
farming and vegetable wastes for subsistence farms.
Finally, the residential sector includes households
which rely on electricity and traditional energy such
as woodfuel, dung and paraffin. The level of access
to electricity in South Africa is among the highest in
the region, at 71%.
The Government is committed to improving the
level of access through its support to the National
Electrification Programme.
Electricity
The electricity industry initially developed around the mines during
the late 19th Century, mainly in Kimberley and the Witwatersrand
(Conradie and Messerschmidt, 2000; Department of Minerals and
Energy, 1992). At that time, it consisted of local distribution systems
and a number of small independent power stations. Electricity in
municipal areas was initially utilised for tramways and lighting. In
parallel with this development, four provinces passed legislation after
1910 concerning the establishment of electricity undertakings in local
government areas. The Victoria Falls Power Company (VFP) was formed
as a private initiative.
Demand by the mines and urban areas increased sharply, and
government passed the Electricity Act of 1922, which allowed for:
• The creation of the Electricity Control Board (ECB), the first national
regulator
• Creation of the Electricity Supply Commission (Escom), with wide
statutory power to acquire and/or establish power generation and
supply undertakings wherever necessary or desirable, and
• The requirement for all undertakings to obtain licences for the
selling of electricity.
Over time, Escom took over the existing undertakings, including
the VFP in 1948. Construction began on a national transmission grid
at 400 kV in 1969 (Department of Minerals and Energy, 1992). The
integrated national transmission system was completed during the
1970s, interconnecting the northern and southern parts of the country.
Eventually in 1972, the central generating undertaking of Escom was
established and consisted of all non-municipal power stations. During
Source: South Africa Energy Profile 2003
this period, a number of smaller and old municipal power stations
were no longer cost-effective and were closed down.
In 1983, Government appointed the De Villiers Commission of
Inquiry (Government Printer, 1984) to investigate tariff policy and structures in the electricity supply industry
(ESI). The Commission made a number of drastic recommendations on the institutional structure of the then
Escom, its governance, efficiency of operations and tariff policy. The governance of Escom was restructured
by means of an Electricity Council (appointed by Government) with a Management Board appointed by
the Council. In 1987, Escom was renamed Eskom. The Eskom Act (Act 40 of 1987) did away with the capital
development and reserve funds and created the brand name “Eskom” that was no longer an abbreviation
for the Electricity Supply Commission.
More than a decade later, the Eskom Conversion Act (No 13 of 2001) created the public company, Eskom
Holdings Limited, with effect from 1 July 2001. This company is wholly-owned by the State, and for the first
time, Eskom became liable for the payment of taxes and dividends, and its borrowings would be secured
against revenues and assets and not by Government guarantees. At the time, national government saw this
legislation as a first step in commercialising Eskom, and created a public company in terms of the Companies
Act with its share capital held by the State.
46
THE DBSA INFRASTRUCTURE BAROMETER
Eskom enjoys a practical monopoly in bulk electricity sales. Thus, in 2002, it supplied 96.5 percent of the
electricity generated in South Africa (NER, 2002a). It sells electricity in bulk to local municipalities and, since
1994, has been involved in the roll-out of the major part of the national electrification programme. At the
end of 2002, it was calculated that 80 percent of all urban households and 50 percent of all rural households
had been supplied with an electricity connection (NER, 2002b). However, a review of the programme
undertaken in 2001 identified some weaknesses resulting from the low level of consumption per customer,
poor recovery of operational costs and the lack of resultant socio-economic development (EDRC/DBSA,
2001).
A summary of the generation facilities as a function of primary energy technology is given in Table 5.
Table 5: Summary of the number and capacity of power stations in 2002
Type of power station
Number of facilities
Eskom
Coal-fired
Municipal
Total capacity
MW
Private
Eskom, percent
of total capacity
10
7
4
34 668
92
Nuclear
1
-
-
1 800
100
Bagasse
-
-
5
105
0
Hydro
6
3
1
668
99
Pumped storage
2
1
-
1 580
89
Gas turbines
2
9
-
672
51
Mothballed coal-fired
3
-
-
3 541
100
-
-
1
17
-
-
-
1
13
-
24
20
12
43 064
92
Biomass under
construction (i)
Wind under construction
(ii)
Total
(i) Biomass Energy Ventures, 17.4 MW capacity (ii) Darling Demonstration Wind Project, 13 MW capacity
Source: NER, 2002a
Generation and transmission have been centrally controlled by Eskom. In the distribution arena, Eskom
and 188 large municipalities and small town councils play a role. Latest developments include the planned
restructuring of the electricity distribution industry (EDI) into six Regional Electricity Distributors (RED). This
will consist of a merger between the distribution components of local governments and Eskom on a regional
basis. This is the largest industry restructuring process in South Africa for an EDI valued at some R50 billion.
The Electricity Restructuring Bill was published in 2002, but the legislation that should be forthcoming is still
being debated in Parliament. In 2003, EDI Holdings Company was formed, and is responsible for all planning
and functions of this process. The first RED will be established in Cape Town during 2005. The Electricity
Restructuring Committee in 1996 recommended that the entire industry should move towards cost-reflective
tariffs with separate and transparent taxes to fund electrification.
In 2000, Cabinet accepted a policy for free basic services. Paraffin was zero-rated for VAT in mid-2001.
In 2002, the DME introduced “free basic electricity” in the form of pilot projects for a number of selected
areas. This consisted of the first 50kWh of consumption in each month being supplied free to “qualifying
PART I CHAPTER 1
47
households”, as defined by each respective local authority. This policy was implemented nationally in
mid-2003 with the intention of cross-subsidising this cost with higher use customers. It has been implemented
by all distributors, that is, Eskom and municipalities.
Liquid Fuels
The liquid fuel industry started with the import of refined products and local marketing late in the 19th
Century. By the 1920s, a number of multinational oil companies, such as British Imperial Oil Company (now
Shell), Vacuum Oil Company (now Mobil) and Texaco (now Caltex), were selling liquid fuel products in South
Africa. In response to cartel-driven prices, the Government passed the Unlawful Determination of Prices Act
of 1931, with the aim of leaving price determination to market forces. This Act was amended in 1937 and
made provision for regulated prices of fuel that was sold by approved filling stations only. Subsequent Acts
and policies swung between regulation and free market principles, and this remains the situation today.
The first oil refinery was constructed by the Standard-Vacuum Oil Company (later split into Mobil and
Exxon) in Durban and commissioned in 1954. In 1963, Shell and BP joined forces to erect a second refinery in
Durban. The Caltex refinery was erected in Cape Town in 1966. The oil companies financed these developments
privately. In 1950, the South African Coal, Oil and Gas Corporation (Sasol) was formed to produce oil from
coal at Sasolburg. By 1971, Sasol joined forces with the Iranian National Oil Company and Total SA in refining
crude oil at the new Natref Refinery in Sasolburg. Following large global oil price increases and sanctions on
South Africa in the 1970s, Sasol was extended with additional plants to increase the production of synfuels.
Thereafter, Sasol was privatised and is now listed on the JSE Securities Exchange (Sasol Limited, 1979).
The South African Government founded Soekor in 1965 to initiate an oil and gas exploration programme.
Initial inland exploration yielded no results and was abandoned in 1978. In 1982, a major discovery of natural
gas was made off-shore from Mossel Bay. Development of the Mossgas liquid fuel refinery was approved in
1985 and required funding of about R12 billion for the 45 000 barrel per day facility. Mossgas was funded
through the Central Energy Fund (CEF) by means of commercial loans and a levy on liquid fuel sales. Mossgas
merged with Soekor in 2002 to form PetroSA. Together with Energy Africa and Pioneer, PetroSA owns and
operates the limited amount of oil reserves on the south coast (Oribi/Oryx fields and the Sable field in the
Bredasdorp Basin), with proven reserves of 49 million barrels.
Sasol’s 15th oxygen plant at Sasol Synfuels operation at Secunda
During the embargo years, Government created the CEF out of the activities of the Strategic Fuel Fund
(SFF) that was housed at the Industrial Development Corporation (IDC). The Fund also housed the Strategic
Oil Fund Association. CEF constructed a number of storage tank farms at Saldanha, Durban, Milnerton and
Ogies as strategic stocks of fuel, sufficient to last the country for up to two years.
Crude oil and refined products were transported by rail until 1962. In that year, a 700 km pipeline was
constructed from Durban to the Witwatersrand.
48
THE DBSA INFRASTRUCTURE BAROMETER
The liquid fuel sector is highly regulated in terms of retail price maintenance and limitations to vertical
integration. Government signed the Liquid Fuel Charter with industry in 2000. The Charter states that
25 percent of the equity of the sector needs to be in empowerment hands by 2010, and only then will attention
be given to the deregulation of the sector. Other new targets include the removal of all lead from petrol and
the reduction of sulphur in diesel to a maximum of 0.05 percent by 2006 (also see Box 9 on page 75).
Today, the Petroleum Agency of South Africa (not to be confused with PetroSA, the producer of liquid fuel
from gas, as described above), is the regulator and marketer for the exploration of oil and gas resources. The
International Petroleum Encyclopaedia 2001 reports South Africa’s reserves as 29.4 billion barrels for oil and
780 billion cubic feet for gas. Table 6 gives a summary of refineries in the country.
Table 6: Refineries in operation in South Africa
Refinery
Location
Capacity (barrels/day)
1992
Ownership
2002
Sapref
Durban
120 000
165 000
BP 50%, Shell 50%
Genref
Durban
70 000
105 000
Engen
Calref
Cape Town
50 000
100 000
Caltex
Natref
Sasolburg
78 000
86 000
Sasol
Secunda
150 000
150 000
PetroSA
Mossel Bay
45 000
45 000
513 000
698 000
Total
Sasol 64%, Total 34%
Sasol
Central Energy Fund
Natural Gas
PetroSA owns the only gas field in production, with an estimated reserve of 1 trillion cubic feet (tcf), located
south of Mossel Bay. This supplies the Mossgas synfuel plant that produces petrol, diesel and paraffin. South
Africa also has sizeable reserves of coal-bed methane of about 3 tcf in the Waterberg and Perdekop region,
and these have not yet been exploited. Sasol Gas markets and distributes both hydrogen- and methane-rich
gas produced from coal at Sasolburg and Secunda respectively (Sasol, 2003). The company delivers pipeline
gas through a 1 550 km pipeline network to more than 500 industrial and commercial customers in Gauteng,
Mpumalanga, Free-State and KwaZulu-Natal. More than twenty years ago, Sasol developed the distribution
networks in Gauteng/Mpumalanga and the assets have since been written off (Greeff, 2004). The replacement
cost is estimated at R2 billion.
In the late 1990s, Sasol researched the piping of natural gas from Mozambique as a feedstock for its existing
synfuels plants. This project started in 2002 and involved the development of the Pande and Temane gas fields
in Mozambique and the construction of an 865 kilometre pipeline to Secunda. The line commenced operation
at the beginning of 2004. The cost of this project was $1 200 million of which Sasol and the governments of
South Africa and Mozambique are the major shareholders in the pipeline component (Greeff, 2004).
Nuclear Energy
The success of the pilot enrichment programme by the Atomic Energy Corporation (AEC), the euphoria with
nuclear energy in the global power sector in the 1960s and 1970s, the potential of cost-competitive power
generation, and the diversification from the concentration of coal fired electricity generation in the north of
the country, were all factors that contributed to the decision to construct the Koeberg Nuclear Power Station
close to Cape Town. The decision to build the 1 840 MW pressurised water reactor (PWR) Koeberg power
station was taken in 1974, with the first reactor being commissioned in 1984. The actual cost of Koeberg
remains unknown, although Eskom calculated its net present value between R2.3 and R2.8 billion in 1995.
PART I CHAPTER 1
49
Extensive problems were experienced in obtaining fuel for this plant because of the numerous
international requirements, embargoes, political decisions and policies, some being of South African origin.
The AEC developed its own fuel enrichment plant called the Z-plant, which started operating in 1986 using
a novel local technology. This was followed by the construction of a fuel fabrication plant, the BEVA-plant,
which was commissioned in 1988. Limited information is available on the cost of these activities as they were
classified as top-secret. The cost of the locally produced fuel assemblies was also much higher than purchasing
on global markets and, in March 1995, the uneconomic Z-plant was closed down, followed by the closure of
the BEVA-facility in 1997.
Eskom has supported the development of an experimental pebble-bed modular reactor (PBMR) from
about 1995. The technology of the PBMR is reported to be inherently safe and environmentally friendly.
The PBMR would be constructed in approximately 150 MW modules which could also be suitable for export.
However, opposition from specific organisations in regard to the high cost of the technology, nuclear safety
and proliferation and the handling of waste products, has delayed its development.
Renewable Energy
Although the use of firewood and crop residues is extensive in specific rural areas, other more modern forms
of renewable energy form a very small part of the energy sector, and many of the projects are still at the
experimental stage. In addition, the cost efficiency of electricity produced by renewable technologies in
relation to the low price of coal-generated electricity presents a challenge for the growth of this sub-sector.
The main components are:
• Household and institutional solar water heaters
• Photovoltaic systems in remote telecommunications facilities
• Large wind generators in areas with high wind speeds
• Sugar mills utilising bagasse in co-generation plants
• Mini-hydro plants and pumped storage installed in isolated parts of the country
• A rural household solar photovoltaic system pilot project, and
• Refuse in landfill sites converted to biogas and methane (refer case study on New England Road landfill)
(end Chapter 1).
The DME released a White Paper on Renewable Energy in 2003 (DME, 2002b). Among others, this sets
a target for renewable energy-based electricity of 10 000 GWh by 2013. In January 2004, the government
created the Energy Development Corporation (EDC) within the CEF group of companies (www.cef.org.za).
The EDC supports the development of modern renewable energy and energy efficiency projects, especially in
markets where there is insufficient private sector activity. A number of projects and initiatives are underway,
including a low-smoke fuel project, solar water heating, hydropower and biodiesel. The government is
looking into supporting and subsidising renewable energy investments.
Water and Sanitation
Background
This section provides an overview of major developments since the beginning of the 20th Century, with
in-depth examples of certain features such as the evolution of water services in the Witwatersrand,
predominantly the southern portion of Gauteng, and the more recent emphasis on rural areas. Further detail
on current policies, institutional and financial arrangements, and coverage are contained in subsequent
chapters.
For the purposes of this report, “water sector infrastructure” is defined as follows (Eberhard, 2004):
• Water resources infrastructure includes dams, inter-basin transfer schemes and related infrastructure.
Water may be used for domestic, industrial, power or irrigation use
• Water services infrastructure includes the infrastructure necessary for the conveyance, treatment, storage
and distribution of water to end-users; and sanitation infrastructure for the conveyance, treatment and
disposal of waste water, and on-site treatment of domestic human waste
• Irrigation infrastructure is the infrastructure necessary to undertake irrigation but excludes multi-purpose
water resources infrastructure as defined above.
50
THE DBSA INFRASTRUCTURE BAROMETER
South Africa is a semi-arid country with unevenly distributed rainfall (43 percent of the rain falls on
13 percent of the land) and with high annual variability and unpredictability. Until the 20th Century,
most farming was rain-fed with only isolated pockets of irrigation, but from the early 1900s, successive
governments concentrated on the provision of water for irrigation to increase agricultural productivity and
to absorb surplus (usually white) labour (Wall, 1983). By the mid-1900s, the demand for water was beginning
to shift towards the needs of a growing industrial economy, but the growth areas did not coincide with the
availability of water. The industrial heartland of the country, the area surrounding Johannesburg, is situated
in an arid zone and straddles a continental divide. As a consequence, inter-basin transfer schemes have been
developed which are amongst the largest in the world (Abrams, 1996).
Historically, government ideology and its manifestation in policy have had a profound influence on the
development of water infrastructure in South Africa. Subsequent to the foundation of the Union of South
Africa, the strong centralised government set up a sizeable and technically proficient Department of Water
Affairs (initially known as the Department of Irrigation), and directed explicitly social irrigation schemes
such as the Vaal-Harts Scheme. The Orange River Development Project and the development of water
infrastructure to support strong state enterprises, such as Eskom, followed in later years. The uneconomic
homelands system and the associated regional and geographically-dispersed spending on irrigation and rural
water schemes were pursued for several decades. After 1994, the focus on the part of the Department of
Water Affairs and Forestry (DWAF) was radically shifted to one of meeting basic needs.
Water Resources
The number of dams commissioned in South Africa is shown in Figure 10 by decade (World Commission on
Dams, 2000). It illustrates the political imperative to support commercial farming through irrigation which was
accelerated following the accession in 1948 of the National Party with a large and vocal rural constituency.
Figure 11 provides fiscal capital expenditure on water resource development from 1960 onwards. While most
dam construction up to that time had been primarily to serve agricultural needs, attention in the decades
after World War II turned increasingly to the water needs to support mining, industry, power production and
the burgeoning urban populations, especially in the metropolitan areas. The current serious water shortages
in Cape Town provide a vivid example of the pressures of urbanisation. The projected water shortages on the
Witwatersrand were a major factor in stimulating the Lesotho Highlands Water Project (LHWP). In addition,
because of the generally low flows and major seasonal variations in base river flows, DWAF promulgated
stringent discharge regulations to protect streams from pollution, especially during the dry months.
Figure 10: Number of dams commissioned in South Africa (by decade)
UP
/PQFSEFDBEF
%FDBEF
PART I CHAPTER 1
51
Figure 11: DWAF capital expenditure on water resources in real terms (2000 prices)
3NJMMJPOQFS':
'JOBODJBM:FBS
Note: Excludes approx R16 billion spent on LHWP in Lesotho and in South Africa between 1990 and 2004.
The signing of the LHWP Treaty by the Governments of Lesotho and the Republic of South Africa on
24 October 1986 established the Joint Permanent Technical Commission (JPTC) to represent the two countries
in the implementation and operation of the LHWP. The first Phase (1A) of the proposed four-phased scheme
comprises a large dam at Katse in the central Maluti Mountains, an 82 km transfer and delivery tunnel
system reaching to the Ash River across the border in South Africa, and a hydropower station. This phase
was commissioned in 1998 and an average of 1 470 Megalitres of water per day is now being delivered to
South Africa. Phase 1B, comprising Mohale dam and a 32 km long transfer tunnel between Mohale and Katse
reservoirs, was completed in 2004 and will add 1 000 Megalitres per day to the yield of Katse.
The LHWP was a very significant infrastructure development which sought to secure adequate quality
supplies for the industrial heartland of South Africa. It has been argued that the demand projections for the
Vaal River system were overly ambitious and that the development of the infrastructure comprising the LHWP
could have been delayed through better raw water pricing and more efficient use, with substantial savings to
consumers.
Energy experts indicate that South Africa has moderate hydroelectric potential, and that the establishment
of small hydroelectric projects around the country could provide a sustainable future energy supply. The US
Department of Energy estimates that 6 000 to 8 000 potential sites in South Africa are suitable for small hydroutilisation below 100 megawatts, with the provinces of KwaZulu-Natal and the Eastern Cape offering the
best prospects (Southafrica.Info Reporter, 2004). The largest hydroelectric power plant in South Africa is the
1 000 megawatt Drakensberg Pumped-Storage Facility, part of a larger scheme of water management that brings
water from the Tugela River into the Vaal watershed. The country’s second-largest plant, also a pumped-storage
scheme, is situated on the Palmiet River outside Cape Town. Water transfer between Lesotho and South Africa also
generates electricity at the Muela Hydropower Plant, making Lesotho self-sufficient in electricity generation.
The electricity generation industry is a large consumer of water and the choice of cooling technology has
a highly significant impact on water demand. Water-cooled coal-fired power stations typically consume some
2 litres/kWh (efficient ones slightly lower, at about 1.7 litres/kWh), whereas dry-cooled power stations consume
only about 0.1 litres/kWh. There is also a relationship between specific water consumption and plant age, as
the newer water-cooled plants show an improvement in water use efficiency. The most recent plants are drycooled and offer a very significant reduction in specific water consumption. The recent proposal to re-commission
several of the older mothballed plants to increase generation capacity could have a marked impact on water
requirements from the systems that supply them.
Water resource management also includes controlling effluent discharges, since these are an integral
part of South Africa’s limited water resources. Because of the seasonal flow of most streams, all municipal
sewage discharges to surface water streams are required to be treated to specified standards. Most have the
requisite facilities installed but poor operations and maintenance sometimes result in poor quality discharges
(refer Chapter 3 for more detail).
52
THE DBSA INFRASTRUCTURE BAROMETER
Water Services
Urban water services
Municipalities
Almost all early human settlement was dictated by the availability of fresh water. An important exception
to this was the gold mines of the Witwatersrand where settlement was situated on a watershed with very
limited local sources of water. In the early years, the provision of water to cities and towns was largely the
responsibility of the towns themselves. In well-watered areas, early urban water supplies began as river flow
diverted into open canals through the settlement (e.g. Cape Town, Stellenbosch, Grahamstown). Over time,
these were superseded by combinations of weirs, pipes and reservoirs, and increasingly larger and more
distant storage dams. In semi-arid areas, initial supplies depended largely on groundwater but increased
demand has, in many cases, required extensive investment in more distant sources. During the second half of
the 20th Century, the National Department of Water Affairs assumed greater responsibility for the planning
of water resources and the development of water resources infrastructure for cities and towns, especially
where this infrastructure was significant and where water schemes were constructed for multiple uses.
Most towns and cities have been challenged for decades to keep apace with population growth due to
urbanisation. Most recently, the newly demarcated municipalities are even more challenged to provide services
in those rural areas that have been incorporated into municipal areas. Since 1994, two sets of demarcation
of service areas, successive reorganisations and a re-allocation of powers and functions have all impacted on
the ability of local government to render water services efficiently. A small number of attempts have been
made to involve the private sector as operators of urban water services (two 30-year concessions and several
management contracts, including Johannesburg Water). While these can be described as qualified successes,
there is much unease about public-private partnerships and the political and regulatory environments are not
currently conducive to this form of restructuring (Jackson, 2002).
The provision of sanitation services and treatment of waste water has always been a local authority
function (except where homeland governments managed certain urban areas within their jurisdiction). One
regional waste water utility, ERWAT (East Rand Watercare Company), was set up 1992 and is owned by
several municipalities in the East Rand. Anecdotal history records that, within five years of Johannesburg’s
foundation, a bucket removal system was set up (circa 1890), and Cape Town began installing a “modest”
sewerage system in 1895 and Johannesburg in 1904.
Recent policies that have greatly influenced the sector include:
• The 1994 White Paper on Community Water Supply and Sanitation, which introduced an “RDP Standard”
for basic water services
• The Free Basic Services Policy of 2001
• The National Water Services Strategy of 2003 (refer Chapter 2), and
• The transfer of rural schemes from DWAF to municipalities (refer Chapter 2).
Apart from two sets of legislation aimed at local government, Municipal Structures Act (1998) and
Municipal Systems Act (2000), the most significant and comprehensive legislation has been the Water
Services Act of 1997. This declared the right of citizens to basic water supply and sanitation; it laid down the
basis for regulations on standards and tariffs; it drew a distinction between water services authorities (local
government) and water service providers; and spelled out their responsibilities. It also gathered a uniform set
of requirements for all Water Boards.
Water Boards
From the time of the discovery of gold on the Witwatersrand in 1886, the supply of water to the area
was entirely in the hands of private companies. The price was high and the supply erratic. After various
governmental commissions, it was decided that the Rand Water Supply Board (RWB) should be constituted by
legislation. The Board, established in 1903, was given certain powers for the exploitation of water, could raise
loans and arrange for their repayment, and could lay down tariffs for the sale of water. The RWB was initially
constituted under a Transvaal Provincial Ordinance. In 1950, a Private Act was created, being the Rand Water
PART I CHAPTER 1
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Board Statutes (Private) Act 17 of 1950. A number of amendments and consolidations followed. This Act
coexisted with the Water Act of 1956 but was replaced by the Water Services Act (Act No. 108) in 1997.
Rand Water was the forerunner of a family of public utilities or Water Boards which emulated, in many
respects, the purpose, mandate and modus operandi of the pioneering water utility in South Africa. Before
1997, the activities of these Water Boards were governed by the Water Act of 1956. The enactment of the
Water Services Act of 1997 brought all Water Boards under its ambit. The Water Services Act allows the Minister
of Water Affairs and Forestry to establish and dis-establish Water Boards. A total of 15 Water Boards have
been created to date (refer Chapter 2 for more detail). Water Boards are public entities in terms of the newly
enacted Public Finance Management Act, with shareholding and control held by national government.
After 1994, DWAF encouraged Water Boards to play a more proactive role in the delivery of retail services,
especially to poor consumers. Several became actively involved in the retail water distribution business. This
was undertaken in an ad hoc manner until the Water Services Act 1997 effectively authorised Water Boards
to undertake retail services.
Another form of bulk and retail water services provider has been
created in KwaZulu-Natal. uThukela Water is a multi-jurisdictional
Box 6: Rand Water
service district set up in 2004 in terms of the Municipal Systems Act. It
Rand Water was the first professionally-run and
managed water utility to be established in South
is owned and controlled by three district municipalities and one local
Africa. It was established as a self-funding bulk water
municipality.
utility to provide water to mines and urban areas in
the Witwatersrand area. The initial guarantors for the
RWB were, interestingly, the local authorities and not
the mining houses. Together with the major mining
houses, the local authorities formed the so-called
foundation members and each had a representative
on the management board of the utility.
In 1915, the dolomitic waters were fully exploited
and it was decided to turn to the Vaal River for
further water supplies. The Vaal Barrage was built in
1921 (built and financed jointly by Rand Water and
the National Government) and water pumped to the
Witwatersrand from 1923. This development secured
a reliable and expandable supply and enabled the
RWB to extend its area of supply. RWB supply was
extended to Pretoria in the 1940s, the far West Rand
in the 1950s, the Eastern Goldfields in the 1960s and
Rustenburg for the platinum mines in 1966. Further
expansion of the supply area has continued to the
present day.
Rural Water Services
Until the creation of the homelands in the 1970s, little or no government
attention was given to the provision of water services in rural areas.
Water supplies were typically community activities supported by
missions. These areas were largely populated by dispersed traditional
settlements, or artificial resettlement villages made up of people
displaced from so-called “white areas”, plus some formal urban
settlements. Later, the newly-established homeland governments
sought to provide water supplies to rural areas but they had insufficient
resources and paid scant attention to operations and maintenance and
securing the funds needed for operations and maintenance. Many
formal homeland towns received full services, including sewerage,
funded directly by the South African government, but struggled to
maintain them.
Soon after the new government was formed in 1994, DWAF
established a Community Water Supply and Sanitation Programme
(CWSSP) which was strongly aligned with RDP objectives. This
Source: Eberhard, 2004
programme focused primarily on water supply in rural areas, but
probably less than 10 percent of the funds were allocated to sanitation.
A total of R7.1 billion has been spent by DWAF on water supplies between 1994 and March 2005, and an
estimated 10.2 million people have been provided with access to a piped clean water supply (DWAF, 2005a).
This is one of the largest and most rapid programmes of service provision in Africa (WSP, 2002).
In the absence of a formal and stable local government framework and prevailing weak capacity, a
flexible approach to delivery was adopted at the time. As partners in delivery, the programme made use
of Water Boards, NGOs (notably the Mvula Trust), some transitional local government bodies and private
sector companies. In 1996, the programme was accelerated in four provinces through the use of four
private-sector partnerships contracted to build, operate, and transfer (BOT). These partnerships had mixed
results. Although speed of delivery was increased, capacity was not optimally used and high unit costs resulted.
The approach emphasised construction and thus, as a result, issues of cost recovery and sustainability suffered
(Jackson, 1999).
Until recently, little attention had been given to sanitation facilities, but this is now a major DWAF thrust,
with targets of more than 300 000 improved latrines per annum in order to address the backlog by 2010. A
white paper and a strategy for sanitation were approved in 2001 and momentum has been building steadily
54
THE DBSA INFRASTRUCTURE BAROMETER
since then. In particular, sanitation programmes are not just exercises
in building facilities but emphasise the need for user education.
R1.2 billion has now been allocated to this programme and a
priority target is to phase out the 460 000 bucket latrines by the end
of 2006.
The CWSSP has been a major achievement in terms of infrastructure
delivery. New means of involving communities in the planning of
projects have been implemented and new implementing agent
arrangements tested. Problems are evident with the operation of
many (but not all) of the water supply systems constructed under the
programme. The CWSSP programme is in the process of being wound
down. Capital subsidies are now being channelled through the
consolidated Municipal Infrastructure Grant (MIG), so consequently
the direct role of DWAF in water services infrastructure delivery will
diminish and the role of local government will increase.
Irrigation
Box 7: Reflections on the Rural Water
Supply Programme
Some lessons arising from this large and significant
programme in providing basic water services
infrastructure include the following:
1) Capacity. DWAF was able to harness its relatively
strong institutional (technical and operational)
capacity (developed in earlier years and focussed
on resources) in a new direction and endeavour.
However, local government has very weak capacity
in many areas of South Africa and this poses a risk
to the sustainability of water services infrastructure
now that responsibility for this has been transferred
to local government.
2) The operational sustainability of the schemes
developed poses a significant challenge to the sector
as a whole. Standards were engineer-driven and may
prove to be unsustainable in certain circumstances.
3) Multiple roles. DWAF was the financier, policymaker and regulator (as well as provider). The role of
DWAF will change in future.
4) Private participation was important for
the delivery of the infrastructure (design and
construction) but has not been a major force in the
operation of infrastructure. The political context
indicates that future take-up of the private sector in
service provision will be slow.
The Roman-Dutch water law in the early colonies and Boer Republics
empowered the state to divide water as it thought fit in the interests
of the people. The common law of England was later introduced, a
law evolved to deal with problems of, for example, driving water
wheels, but not conducive to the use of water for growing crops
under irrigation. In particular, the owners of riparian land (adjoining
or containing a river) were the sole owners of all the water in the
stream (Wall, 1983).
Source: Eberhard, 2004, based on WSP, 2002
The Irrigation and Conservation of Waters Act of 1912 created
the means to set up irrigation boards for the purposes of controlling
cooperative irrigation schemes. This effectively enabled farmers to organise and lobby for the construction
of storage schemes for a number of beneficiaries who had riparian rights to the stored water. Almost all such
dams were constructed with public funds. There were notable exceptions to the riparian principle, the main
one being the government-sponsored Vaal-Harts Irrigation Scheme in the 1930s.
The 1956 Water Act allowed for government control of water rights for the most beneficial use, but
such control was required to respect pre-existing rights of individuals, provided that they were exercised
beneficially and with due regard to the rights of other consumers. The National Water Act of 1998 marked
a significant departure in the treatment of water rights, moving from a (largely) riparian system to one
of administratively authorised and time-limited water use, effectively separating water rights from land
ownership (more detail in Chapter 2) (Eberhard, 2003).
Further, South African agricultural policy has aimed since 1998 to increase the income of the poorest
groups in society. The National Agricultural Policy prepared by the Department of Agriculture (DOA, 1998)
gives particular attention to small-scale agriculture, including supporting production and stimulating an
increase in the number of new small-scale and medium-scale farmers. DWAF reports that it has developed a
common approach with the Department of Agriculture in order to assist small farmers to access the water
reserved for them (Sonjica, 2005).
Information and Communications Technology (ICT)
Background
This section captures the historical context in which information and communications technology (ICT) has
evolved in South Africa over the past 50 years, and gained momentum during the last two decades. The
context of infrastructure in the ICT sector should be seen in the widest possible sense. In a globalised world,
information infrastructure has no boundaries, however policy and physical infrastructure remain local issues.
PART I CHAPTER 1
55
While facing the challenge of providing basic infrastructure, South Africa has the advantage of being able to
leapfrog technologies and to develop modern infrastructure, applications and content of a knowledge-based
economy based on ICT.
The sector, commonly known as ICT, includes information technology (IT), radio, TV, broadcasting, cellular
and fixed-line, mail services and networks. As experienced worldwide, this sector has developed enormously
in South Africa over the last 20 to 30 years.
Historical Context
From the 1950s to the 1990s, South African telephone services were provided by the Department of Posts,
Telecommunications and Broadcasting. During this time, the Post Office was responsible for running both
telecommunications (fixed telephone and telegraph lines) and postal services. Documents were sent by paperbased mail, either by rail, road, air or sea. The fastest way to get a formal document to another country, or
to remote areas within the country, was by airmail. The cost of the mail service was recovered by means of
postage and the postage stamp, which is still the payment medium today (and which makes an interesting
collector’s item). Phased liberalisation of telecommunications was implemented shortly after 1990 with the
creation of Telkom as a distinct public corporation in 1991. Authority for telecommunications services was
transferred from the Post Office to Telkom, and hence, Telkom SA received the responsibility to license other
operators in telecommunications.
The policy flux within the telecommunications sector is indicative of enormous political and social
transformation at the national level and reflects the rapid changes in the global telecommunications market.
Regulations
The Department of Posts, Telecommunications and Broadcasting regulated all nationwide communications
networks until 1990. In anticipation of possible privatisation, the government formed two state-owned
companies in 1991, the telecommunications corporation, Telkom, and the South African Post Office (SAPO)
to deliver the mail.
However, institutional arrangements resulting from the policy reform soon required a more complete
break from the past and an end to regulation of the sector by Telkom and the Department of Posts and
Telecommunications. An independent regulator, the South African Telecommunications Regulatory Authority
(SATRA) was established to oversee the liberalisation of various telecommunications market segments in a
phased process and to regulate them in the public interest. In 1999, the Minister changed the name to the
Department of Communications, and it assumed responsibility for setting policy on telecommunications and the
radio frequency spectrum, while the Regulator became responsible for impartial implementation of that policy.
Apart from its post and telecommunications policies, the South African Government had no policies
relating to ICT before 1994. Some of the important Acts and policies that have governed ICT in South Africa
since 1994 are listed (Botha, 2004):
• Green Paper on Telecommunications (1995)
• White Paper on Telecommunications (1996)
• Telecommunications Act (1996)
• Independent Communications Authority of South Africa Act (2000)
• Telecommunications Amendment Act (2001)
• Regulation of Interception of Communications and Provision of Communication-related Information
Act (2002)
• Electronic Communication and Transactions Act (2002)
• Promotion of Access to Information Act (2003).
The Convergence Bill that will assemble all current legislation is being debated in Parliament. The
Independent Communications Authority of South Africa (ICASA) is the regulator of the telecommunications
and broadcasting sectors. ICASA was created in 2000 in terms of the Telecommunications Act, following
the merger of the South African Telecommunications Regulatory Authority (SATRA) and the Independent
Broadcasting Authority (IBA).
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THE DBSA INFRASTRUCTURE BAROMETER
Access to Broadcasting, Post and Telecommunications
Telecommunications
The telephone service became a symbol of racial disparity under Apartheid, especially during the 1980s when
per capita access to a telephone service in black communities was less than one-tenth of that in white areas.
For this reason, early-1990s plans for a cellular telephone network in rural and township areas, as well as the
creation of Telkom in 1991, assumed symbolic as well as economic importance as a means of black economic
empowerment. The two cellular operators, MTN and Vodacom, started operations in April 1994. Their licences
required them to deploy a community telephone service in areas under-provided with telephone services and
at a tariff less than the normal cellular tariff. In this way, they provided the first telephone service to many
rural areas, assisting local entrepreneurs for whom communication had often been a major obstacle in the
past. Within five years, the cellular phone industry has created at least 4 500 jobs directly, and it has also
contributed to the creation of some 40 000 or more jobs in related industries.
The continued phased liberalisation policy of Government culminated in the privatisation of Telkom in 1997.
From the perspective of promoting universality, the strategy to boost telephone penetration through
the granting of five-year exclusivity to Telkom in exchange for doubling the network, has not produced
the desired outcome. According to the Census Report (2001), 23.8 percent of households have fixed line
telephones in their dwellings.
At the time of its privatisation and granting of exclusivity in 1997, Telkom was given mandatory service
obligations to install 3 million new lines. During the next five years, Telkom installed 2.8 million new lines but
only about 670 000 of these lines remain connected to end users. This situation has resulted in a drop in the
overall fixed line network penetration during the three years of the exclusivity period up to 2002. To meet its
licence targets, Telkom installed a significant number of access lines that proved to be uneconomic and have
since been disconnected. Price increases way beyond those anticipated by the rate rebalancing price control
model regulated by ICASA, contributed to this dire situation. Charges have increased by an average of more
than 27 percent each year (Gillwald and Kane, 2003).
The government began allowing the private sector to provide data transmission services in 1994. The
plan was to allow companies to use Telkom facilities to provide customers with value-added services, such
as the electronic transfer of funds and messages, management of corporate data networks, and the remote
processing of corporate information. Telkom retained control over the independent telecommunications
services to continue the company’s statutory monopoly overall and to regulate competition in the field. Private
companies were able to lease facilities, such as data lines, from Telkom and charge customers only for value
added to these services. The Value-Added Network Services (VANS) market, which includes Internet Service
Providers in South Africa, is liberalised but its activities have been stunted by restrictions which stipulate that
it acquires facilities from Telkom SA (Gillwald and Kane, 2003).
Broadcasting
The South African Broadcasting Corporation (SABC) initiated a national television service in 1976, and enjoyed
a near-monopoly until the independent television company, M-Net, inaugurated its services in January 1991.
In 1993, the government placed SABC broadcasts under the supervision of the Independent Broadcasting
Authority (IBA), as a step toward greater media independence from political control. The television service in
the 1990s consisted of four channels broadcasting in English, Afrikaans and five African languages.
Residents of some of the former black homelands, and those near the border with Swaziland, received
separate broadcasts from other areas until 1994. After that, the television service in the former homelands
was incorporated into the nationwide system. A reorganisation of SABC was implemented in the mid-1990s
to cater for greater diversity in its broadcasting.
The SABC operates 300 frequency modulation (FM) and 14 amplitude modulation (AM) radio stations.
Before the early 1990s, programmes were primarily in English and Afrikaans, but several low-power FM
stations broadcast in at least a dozen African languages and the use of African languages was increasing.
One short-wave external service, Radio RSA, broadcasts worldwide, while several of the stations stream on
the Internet.
South Africa installed its first satellite earth station in 1975 to supplement existing undersea
telecommunication cables.
PART I CHAPTER 1
57
Postal services
The South African Post Office (SAPO) provides postal and money-transfer services, as well as operating postal
savings accounts, and has one of the most diffused network of post offices and presence in remote areas.
South Africa was readmitted to the Universal Postal Union in 1994, enabling it to participate in international
technical assistance programmes and accounting facilities within the Union.
Technology
The country had no infrastructure to broadcast, receive and distribute television signals until the late 1970s.
Private, emergency and security communication used radio bands. All other communication lines were
copper-based, with limited microwave links that required expensive infrastructure over long distances. These
microwave links are still operational today, but serve mainly as backup communication lines should the main
links, which are now optical fibre, be temporarily unavailable.
The era of the mainframe came to an abrupt downturn with the advent of the personal computer (PC),
which was introduced into the workplace towards the latter half of the 1980s. The advent of the facsimile
machine in the same period eroded the need for telex. PCs were not initially connected, but the first Local
Area Networking (LAN) infrastructure started to appear at the end of the 1980s (Botha, 2004). The World
Wide Web was introduced in 1989 by Tim Banners-Lee at CERN (European Centre for Nuclear Research) as a
way to connect information on computers at the global level. As a result of browser development, the Web
became available to the world in 1993. South Africa was not left behind and gained access to the Internet and
Web in 1994, first through the academic world (Rhodes University), and later in the corporate business and
government arenas. About 3.3 million South Africans had access to the Internet by the end of 2003.
Post-2000
Today, the telephone system includes a network of coaxial and fibre optic cable and radio-relay, three ground
stations that communicate with satellites over the Atlantic and Indian Oceans, and an undersea coaxial cable
between South Africa and the Canary Islands that joins other cables linking Europe with South America.
Mobile telephony - cellular networks (Global System for Mobile Communications, GSM) - is dominating
market penetration, whilst fixed networks lag behind. This is driven by the need to extend access to remote
areas, cheaper infrastructure in the home and office and the new mobile commerce services being developed.
WiFi (Wireless Fidelity) may be the preferred networking trend for the decade, but remains restricted for use
in company premises only and may not cross Telkom boundaries.
Satellites for communications, broadcasting, navigation and surveillance technologies will be used more
extensively for Internet linkages with the rest of the world, and eventually for downlinks to the subscriber.
Having decided not to go the analogue cable pay-TV route in the 1990s, South Africa now has a very
successful digital satellite TV (DStv) service, a decision that is paying off. MTN and Vodacom have established
independent agreements with satellite phone companies, allowing for the provision of satellite phone
services to the subscriber. South Africa has a small but successful mini-satellite building capability (SunSpace)
and exports this technology embedded in complete systems (Botha, 2004).
The licence for the Second National Operator (SNO) was approved in December 2005, and will bring the
long-awaited competition to the fixed-line market. This will remove Telkom’s monopoly and could lead to
more affordable telecommunications services.
South Africa currently has some 22 million mobile subscribers (BMI-TechKnowledge, 2005), which means
that one in every two South Africans has connectivity. Of the new connections currently being made,
88 percent are prepaid packages. The steep growth in mobile phones as compared with fixed lines, is
illustrated in Figure 12.
58
THE DBSA INFRASTRUCTURE BAROMETER
Figure 12: Comparison between fixed line and mobile telephones
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'JYFE-JOF
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Source: Botha, 2004
Vodacom and MTN, the two leaders in the cellular market, indicate that the market is worth about
R47.4 billion per annum. This was calculated by adding the revenues reported by Vodacom (R23.5 billion) and
MTN (R23.9 billion) for the financial year ending 31 March 2004.
The major data traffic is in SMS (Short Messaging Service). Third Generation (3G) technology is being tested
at present and may be the carrier of the future, providing larger bandwidth and mobile interconnectivity.
This decade may see a very small portable PC-cellular phone-multimedia recording, storage and transmission
device that works on the principle of the current generation cellular phones, but with much more processing
power. With peer-to-peer architecture and communications (e.g. Bluetooth), networking will be enabled that
will allow effective communication with other computers while mobile. Such a development may mean the
end of the PC as we know it (Botha, 2004).
Much of the rapid change in the ICT environment is due to the fact that numerous different technologies
converge to the same user platform. This has an impact on infrastructure in the sense that it requires
continuous improvement in performance, hardware and software upgrades and capacity expansion.
PART I CHAPTER 1
59
Spotlight on the New England Road Landfill, Msunduzi Municipality:
Landfill Gas Use Study
Landfill gas pumping trial underway at the Luuipaardsvlei Landfill in Mogale City to determine the sustainable yield of landfill gas.
Methane gas is generated by the decomposition of bio-degradable material deposited in municipal waste
landfill sites. South Africa generates more than 42 million cubic metres of solid waste every year (Department
of Environmental Affairs and Tourism, 1999). This is equivalent to approximately 0.7 kg per person per day.
About 40 percent of the waste is organic. Depending on climatic conditions, this organic material is converted
into landfill gas, which consists of about 55 percent methane. As a “greenhouse gas”, methane has severe
detrimental effects on the earth’s climate. It is 21 times more damaging to the ozone layer than carbon
dioxide.
In Msunduzi (Pietermaritzburg), the New England landfill site has been used for the disposal of various
forms of waste since the 1930s. As part of its commitment to the environment, the municipality installed
monitoring points for landfill gas in 1995. These indicated that a significant quantity of gas was being
generated and that the gas had been migrating within the waste body from the north to the west of the
site. A number of curtain wells were installed in 2000 to extract the gas, preventing it from escaping into the
atmosphere and eliminating the harmful effects on the health of the nearby community. The average volume
of gas yielded by these wells, which were flared to avoid environmental damage, has been measured at
260 m3 per hour. Pumping trials on other wells indicated a potential sustainable yield of about
2 400 m3 per hour which would have a potential energy value of 3 MW. This is sufficient energy to supply
more than 1 500 low-income houses with all their energy needs.
In order to gain a better understanding of the situation at the New England Road landfill site, the DBSA’s
Development Fund provided a grant for a study to be carried out. The objective of the study was to identify
60
THE DBSA INFRASTRUCTURE BAROMETER
and assess the options for the use of the gas generated at the landfill site while achieving sustainable
development objectives.
The study has considered various options for the utilisation of the gas and has quantified its value both
as a financial resource as well as its potential to generate carbon credits (Carbon Emission Reductions, CER).
Carbon credits are generated through the Clean Development Mechanism established in terms of the Kyoto
Protocol which set carbon dioxide emission reduction targets for industrialised nations. For developing
countries such as South Africa, the benefit of reducing greenhouse gas emissions is that carbon credits can
be sold to industrialised nations to achieve their own quotas of emission reduction. Landfill gas is particularly
attractive because, for every tonne of methane reduced, 21 CERs are generated. One CER is currently
(2005) worth about $3.50.
Technically, the main options for managing the landfill gas are flaring, electricity generation and direct
industrial gas utilisation. Meetings have been held with a number of stakeholders who could be potential
users of the gas, and financial analyses have been carried out on each of the options. Council still needs to
decide which option will be the most appropriate.
SPOTLIGHT ON NEW ENGLAND ROAD LANDFILL, MSUNDUZI MUNICIPALITY: LANDFILL GAS USE STUDY
61
CHAPTER 2
The Operating Environment
Chapter 2 describes the current reality
within which transport, energy, water and
sanitation, and ICT operate in South Africa.
What are the policies, the institutions, the
regulations and, last but not least, the financial
systems governing the operations of these four
economic infrastructure sectors?
Introduction
The four infrastructure sectors introduced in Chapter 1 operate
within a dynamic institutional and financial support system. Each
sector is regulated and strategically guided differently. This chapter
provides an overview of this operating environment for transport,
energy, water and sanitation, and ICT, and guides the reader through
the sometimes complex institutional and financial systems governing
the sector. Where possible, the chapter also highlights opportunities and weaknesses in the system and the
roles of the public and private sectors.
Transport
Introduction
The transport sector has been the focus of various reforms since 1994. This has involved the creation of agencies
at national government level, private sector involvement in national roads development and airports, and
re-orientation in the role of provinces. At local government level, the National Land Transport Transition Act
(NLTTA) provides scope for a change in functional responsibility which has the propensity to benefit transport
users considerably. In certain areas, such as regulation of the minibus “taxi” industry, restructuring of urban
bus routes and improvements in the functioning of commuter rail, there have been some changes but, for
the average commuter, very little has changed for the better. In the case of freight transport, the quality of
primary roads has certainly improved, the condition of provincial roads has slowly worsened, and railways
have lost considerable market share to the roads sector. From an air transport perspective, the quality of
airports has improved and the market has become more competitive.
The challenge for this sector remains the gap between policy and implementation, with regulatory and
institutional reform necessary in a range of areas, including the functioning of metropolitan transport, the
quality of road infrastructure and reform of the freight logistics industry.
Policy
Realising that it was necessary to become outward-looking and to focus on transport infrastructure that
would increase South Africa’s competitiveness in the world market, moves were put in place in the 1990s that
markedly changed the method of providing transport infrastructure.
The 1996 Transport White Paper aligned Government involvement in transport more closely with
GEAR (growth, employment and redistribution). The role of transport was seen as a potential catalyst for
development, the correction of spatial distortions and, through integration and operational improvements,
as a system-wide response to the needs of passenger and freight customers.
The White Paper (Department of Transport, 1996) provides the following policy objectives:
• Support by transport for basic needs development and growth of, and competition within,
the economy
• The development of a customer-aligned transport system for passenger and freight users
• Enhanced quality of transport services, including safety, security, reliability, speed and cost of service
provision, and
• Investment in infrastructure/transport systems so as to satisfy social, economic and strategic
investment criteria.
The mission for transport infrastructure is (Department of Transport, 1996):
“… to provide integrated, well-managed, viable and sustainable transport infrastructure meeting national
and regional goals into the 21st Century in order to establish a coherent base to promote accessibility and the
safe, affordable, reliable movement of people, goods and services.”
In the post-1994 era, “social” infrastructure received much attention, particularly the provision of local
streets and improvements in accessibility through road infrastructure development in and around townships.
More recently emphasis has been placed on investment planning for “commercial” infrastructure to sustain
and support economic growth, although little investment to this end has yet taken place.
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63
Box 8: Moving South Africa
Moving South Africa (MSA) stressed the need for
enhancing levels of sustainability in the transport
system. Four causes of poor sustainability were
identified:
• Insufficient financing
• Escalating externality costs
• Low levels of skill and capacity, and
• Poor drivers of operational efficiency.
The strategic framework developed by MSA
focused on three levels of action (National
Department of Transport, 1999):
1) Consolidate the scope of different parts of
the network: In both urban areas and along the
key freight routes, actions should be taken which
consolidate demand into key corridors. The objective
of this consolidation is to reduce the costs of
transport through increasing economies of scale
and the frequency with which services are provided.
A support network of services should supplement
this core corridor network and feed into the core
corridors at strategic nodes.
2) Role of modes: Actions to apply the appropriate
mix of modal technology to optimise the role of
modes on the network to achieve economies of scale
whilst sustaining high quality of services at optimal
cost, and
3) Firm-level competitiveness: Actions to enhance
the productivity and efficiency of transport providers.
Such actions would encourage competition based
on value to the customer and would encourage
innovation and increases in productivity.
These actions are consistent with best practice
elsewhere in the world, but require a complex array
of interventions at all levels of Government to make
the strategy a reality.
Shortly after the 1996 White Paper, a high-level implementation
framework was set out in the form of the Moving South Africa (MSA)
project (Box 8). This National Department of Transport strategy was
issued in 1998 and 1999. Progress towards achieving the MSA vision,
such that a discernable impact is noticed by users, has been slow and, in
some cases, interventions in the sector have not supported the strategy.
It could be that this was because of the lack of a clear implementation
agenda, a lack of capacity in the Department of Transport, conflicting
approaches within different sub-sectors of transport, a lack of a clear
institutional structure, entrenched interests by a number of both public
and private sector players, or a combination of these factors.
The National Land Transport Transition (NLTTA) Act of 2000 provides
supporting legislation for provincial and local government in the
promotion of public over private transport. The Act takes a regulatory
approach to the planning and provision of public transport. All public
transport services, including rail, bus and the routing of minibus “taxis”,
would be specified by government. Subsidy would be allocated where
necessary to sustain the network and to provide for the needs of the
poor. However, the Act provides little in the way of a clear funding
mechanism or an enforcement regime, and is focused on operational
specification rather than infrastructure development.
Some scope for the involvement of the private sector in the provision
of transport-related infrastructure has been created. This is particularly
true in the financing of primary roads under the responsibility of
the South African National Roads Agency (SANRAL). Mechanisms for
applying a user-pay principle for the use and provision of transport
infrastructure at provincial and metropolitan levels have yet to be
clarified by Treasury.
Transport infrastructure under the control of Transnet is particularly
well-suited to greater levels of private sector participation. Enhancing
the role of the private sector in both operational and infrastructure
responsibility in the rail and ports sector is currently under consideration
by Government policy makers.
The recently released National Freight Logistics Strategy (September 2005) provides a platform for
restructuring the freight logistics sector. It articulates a policy shift away from the current arrangements
which are regarded as a mix of intense competition such as found in the road freight sector, and monopoly
control such as found in rail and ports. The document describes a situation of poor overall government policy
and direction, ineffective regulation of the sector, poor operational performance and mediocre delivery to
customer requirements.
The objective of the strategy is to reduce the overall cost of logistics in South Africa and to enhance the
logistical interface between the 1st and 2nd economy. The mechanism for achieving this would be through
a process of re-alignment in the case of Transnet, the implementation of more effective and sector-wide
regulation, a clearer incentive – based approach to enhancing efficiency, and improvements in the asset base
of the freight logistics sector.
Government will retain majority ownership of critical infrastructure and remain responsible for network
management and development. Infrastructure and operations will be vertically separated where feasible.
Scope will be created for the private sector to compete on a level playing field and have equitable access to
infrastructure.
A user pays principle will be adhered to. Explicit allowance is however made for cross-subsidisation through
higher tariffs on the high-volume freight network. This will be used to provide infrastructure outside of this
64
THE DBSA INFRASTRUCTURE BAROMETER
core network and to sustain access by BEE and smaller operators.
The structure of the regulation of the sector will shift from a modal orientation to functional responsibility.
Three functional regulatory areas have been identified; safety and environment, economic and security.
Regulatory Environment
National (Primary) Roads
SANRAL is a wholly-owned state company registered in terms of the Companies Act. The South African
Government, represented by the Minister of Transport, is the sole shareholder and owner of the Agency. Its
mandate is to develop, maintain and manage South Africa’s 6 700 kilometre (2002) national road network,
comprising over R30 billion in assets, excluding land (www.nra.co.za). The Agency operates as a ring-fenced
commercial entity, able to focus on road management, maintenance, network expansion and private sector
involvement in the provision of infrastructure. Private sector capital and private risk share have become
commonplace in the construction and rehabilitation of primary roads. Freight-dominant routes are managed
by various concessionaires, for example, the concession on the N3, the country’s busiest inter-city corridor,
from Cedara, just north of Pietermaritzburg, through to Gauteng.
Rural Secondary and Tertiary Roads
The roads function within eight of the nine provinces operates on a traditional road authority structure
that typically includes roads branches within the Department of Transport (DOT) or Department of Public
Works. These branches are responsible for all road delivery functions such as policy formulation, planning and
design, construction and maintenance, primarily through the use of private sector resources. The Limpopo
Roads Agency and the Johannesburg Road Agency are examples of provincial- and municipal-level road
agencies. Limpopo combines the traditional road authority structure to handle maintenance activities with
a roads agency structure for the remainder of its functions. Other provinces are also investigating the road
agency concept for the provision of road infrastructure.
Municipal Roads and Streets
Municipal authorities have responsibility for municipal roads and streets within their administrative areas. In
smaller municipalities, the relationship between spheres of government is unambiguous with little conflict of
interest. In metropolitan areas, levels of congestion are high and there is a need for an integrated approach.
Unfortunately, effective planning and coordinated delivery is frequently hampered by a lack of integration.
Within these areas, various parts of the road network and public transport modes are under the jurisdiction
of metropolitan, provincial and national spheres of government.
Most municipal roads authorities have a traditional road authority structure under ownership of the
Council. Some have stronger maintenance teams that can also handle light construction activities, while
others outsource all but routine maintenance activities. The City of Johannesburg Metropolitan Municipality
has established a Roads Agency for its delivery arm, under the guidance of a Roads Agency Board. The
ownership of roads still resides with the City, but the Johannesburg Roads Agency is responsible for the
delivery of roads, based on a performance contract with the City’s contracting unit.
As congestion becomes more severe and impacts more on the economic functioning of cities, it is imperative
that coordination between national, provincial and particularly metropolitan institutions is improved.
Urban Transport Infrastructure
The provision of urban transport infrastructure under metropolitan or local government jurisdiction is
carried out in terms of the Urban Transport Act (Act No. 78 of 1977) (UTA), which provides for the “planning
and provision of urban transport facilities”, mainly the infrastructure component, and more recently, the
National Land Transport Transition Act (Act No. 22 of 2000) (NLTTA), which has a strong public transport
operations focus.
The UTA provides for a municipality, or a number of district or local municipalities, to voluntarily form
an agreement to undertake transport planning, including the infrastructure component. The provision of
PART I CHAPTER 2
65
localised urban transport infrastructure is thus in the hands of the metropolitan, local and district municipal
authorities, and has been so since the mid-1970s. However, a considerable proportion of roads, including
all primary and secondary roads, traverse local authorities which have no jurisdiction over them. There is
also no current jurisdictional control by metropolitan government over commuter railways. This makes
integrated provision of transport infrastructure difficult to achieve, particularly in South Africa’s larger cities.
It is the main movement corridors (primary and secondary roads and railway lines) where metropolitan
government is likely to have the greatest influence on improving transport, yet it is these very corridors that
frequently fall outside the jurisdictional or budgetary control of metropolitan government. This is despite
the fact that most of this infrastructure is local in orientation and is used on a daily basis by residents of
these areas.
Continued growth of separate urban nodes, usually at concentrations of commercial, retail or even
industrial activity some distance away from traditional Central Business Districts (CBD), has become a common
phenomenon in South African cities. The result is that urban residents often travel further and are more reliant
on a private car for their day-to-day travel requirements than in the past. This change in urban form creates
significant challenges for urban transport infrastructure. The transport impact of new land use development
needs to be better understood and the land use planning process should be better integrated with that of
transport. One way to achieve this is to ensure adequately resourced and empowered transport authorities to
manage all modes of transport within a specific geographical area. This is possible under the NLTTA.
The Transnet Monopoly
Transnet is a large transport operator and owner of infrastructure. While Transnet is now commercialised, it is
wholly-owned by the State and operates a range of natural monopoly businesses. Transnet provides strongly
centralised management control under a single Chief Executive. By 2000, the Transnet “stable” of operating
divisions and subsidiaries comprised:
Spoornet
Long distance rail services
Autonet
Road transport services
Portnet
Control and management of all commercial ports
Metrorail
Commuter rail services
South African Airways (SAA) Internal and external services
Petronet
Transport of petroleum products by pipeline
PX
Organisation for the consignment and distribution of containers.
While the unbundling and privatising of Transnet was considered both before and after 1994, the structure
and the operation of the company have remained more or less the same since April 1990. The exceptions
are PX, which was sold in 2001, and Portnet, which was split into South African Port Operations (SAPO) and
the National Ports Authority (NPA). More recently, further unbundling has been considered, with Transnet
retaining rail, ports and pipelines as the core elements of the business, certain divisions (e.g. SAA) separated
off and other divisions (e.g. Autonet) disposed of. It is proposed that the remaining entities be split into
operational and infrastructure functions, as illustrated in Figure 13.
66
THE DBSA INFRASTRUCTURE BAROMETER
Figure 13: The proposed structure of Transnet
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0QFSBUJPOT
"WJBUJPO
3BJM
*OGSBTUSVDUVSF
1PSU
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/FUXPSL
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Source: Transnet, 2005
In the case of ports, the separation between infrastructure and operations was implemented in 2000. It
was initially proposed in early versions of the National Ports Bill (2003) that the infrastructure component,
under the jurisdiction of the NPA, would be removed from Transnet and would operate as an independent
regulated state-owned entity. However, the poor financial position of Transnet is such that it relies on the
revenues generated by the NPA to support the organisation as a whole. For this reason, the most recent
amendments (2004/05) to the Bill retain NPA as a division within Transnet but with stronger regulatory
oversight functions (Department of Transport, 2005a).
Transnet’s performance remains an enormous challenge. In the 2003/04 financial year, Transnet posted a
loss of R6.3 billion (Transnet, 2005a). This could have meant liquidation if Transnet had not been state-owned.
The company is not only heavily indebted (gearing ratio of 83 percent), but the state of its assets is also poor;
rail wagons are, on average, 25 years old and cranes within the ports equally as old (Stander, 2004). A number
of studies by both Transnet and government have identified significant efficiency and performance problems
within the parastatal (Stander, 2004). In addition, many of the larger divisions of Transnet are overstaffed,
with skills levels that are low and poorly aligned to commercial best practice and a healthy customer focus.
More recent performance at Transnet has been more encouraging, with a return to profitability in 2004/05
and a reduction in the gearing ratio to 67 percent. This shift is in part driven by the initial success of a fourpoint turnaround strategy for the organisation (Transnet, 2005):
• Redirecting the business, including identifying operational synergies, establishing customer focus,
enhancing the quality of infrastructure and turning Spoornet around,
• Restructuring the balance sheet, including addressing the pension fund deficit, renegotiating contracts
with key customers, disposal of non-core assets and transfer of SAA to Government,
• Improving corporate governance, including a reformulated shareholder compact and establishing a
performance management framework,
• Improving risk management, by establishing appropriate risk procedures through a enterprise-wide risk
management framework.
Government’s intention in regard to the long-term future of Transnet now also seems clearer and provides
the policy base to support the turnaround strategy. The separation of infrastructure from operations creates
PART I CHAPTER 2
67
a mechanism for Government to sustain its role in infrastructure management, investment and delivery. The
current operating environment in rail, ports and pipeline is presently dominated by Transet. It seems clearer
now that these areas will slowly become open to participation by private sector players, beginning with the
opening up of branch lines to small railway operators.
Transnet’s CEO, Maria Ramos (Hill, 2005) recognises that many critical challenges remain. This includes the
ability of the organisation to implement a R40 billion capital investment plan as a means to grow its core
business. It also includes enhancing Transnet’s human resource capacity and skills base as a means to improve
operational performance, customer service and ultimately to reduce the cost of transport to businesses across
South Africa. More recent short-term challenges relate to labour action which has hampered progress with
non-core disposals and organisational restructuring.
Airports
Responsibility for the provision and operations of the infrastructure at the nine major state airports has, since
1993, resided with:
• The Airports Company of South Africa (ACSA), a commercial company
• The Air Traffic and Navigational Services Company (ATNS), and
• The State, as sole shareholder of ATNS and major shareholder of ACSA.
The Civil Aviation Authority (CAA) promotes, regulates and enforces civil aviation safety and security and
therefore has an indirect infrastructure responsibility.
The Constitution of South Africa assigns concurrent responsibility for a range of secondary airports to
the provinces and national government. Many of these smaller airports offer some regional or domestic
services and are often also the home of a range of smaller charter and leisure operators. The White Paper
on National Transport Policy (1996) makes no firm policy recommendation in respect to this situation, other
than requiring consultation by ACSA and ATNS with all stakeholders, including provinces, in the development
of air transport infrastructure.
Twenty percent of ACSA was sold in 1998 to a consortium led by Aeroporti di Roma, an Italian airport
operator. This represented the first significant departure from complete state ownership of core national
infrastructure. It was widely accepted that an even greater shareholding in ACSA would be sold to the
private sector, both through additional shareholding to Aeroporti di Roma and a public share offer, neither
of which has occurred.
In September 2005 the Public Investment Corporation (PIC) acquired the 20 percent stake owned by
Aeroporti di Roma. This ends an era of a strategic equity partner for ACSA and brings almost full control
of ACSA back into the hands of government. The sale is consistent with the Freight Logistics Strategy which
emphasises government’s role in strategic infrastructure provision. However, as described by Chalmers (2005)
this represents a shift in the policy of privatising large parts of the transport sector as was envisaged under
the GEAR strategy.
Coordination in the Provision of Transport Infrastructure (Primarily Road and Rail Infrastructure)
In the 1996 White Paper, the Department of Transport stated:
“The responsibility for infrastructure used by different transport modes is fragmented between different
government departments and parastatals and also between different levels of government. The absence
of a structure or mechanism for the coordination of the strategic planning for this infrastructure can lead,
and has led, to “mis-matches” in infrastructure provision, inefficiencies in operation, and duplication of
facilities with consequent sub-optimal utilisation. The country, with its scarce financial resources, cannot
afford such a situation and it is necessary to bring together public sector bodies (at all levels) and private
sector interests (including the construction industry) in an attempt to optimise resource usage as well as the
transport infrastructure system. This structure will need to be cascading in nature to address infrastructure
needs at the three levels of government as well as integrating the various elements of transport planning and
infrastructure. A process with appropriate structures to coordinate planning to meet identified needs will be
established to adequately respond to these needs.”
68
THE DBSA INFRASTRUCTURE BAROMETER
Nearly ten years after the White Paper was issued, the problem still persists, and in certain cases
may be regarded as a more significant issue than in the past, particularly in the case of infrastructure in
Metropolitan areas.
Institutional Environment
The Constitution (1996) assigns responsibility for the provision and maintenance of infrastructure to all three
spheres of government. This “concurrent” responsibility is necessary to empower delivery at the various
levels of government, but it complicates delivery and results in some disjointed and uncoordinated decisions
between different levels and arms of government. The new government inherited a centralist approach,
where National Government played a dominating role in the organisation and control of urban railways,
aviation and public transport subsidy, and had jurisdiction over most of the funding provided to the sector.
Within rail, aviation and ports, the National Government continues to play a significant role. Prior to 1994,
cities retained relatively low levels of control and provinces had jurisdiction only over secondary and rural
road infrastructure.
The 1996 White Paper provides a broad institutional and overall infrastructure management structure for
transport, as summarised below.
Roads
The 1996 White Paper suggested that efficiency in the provision, maintenance and operation of the primary
economic road infrastructure network will be facilitated by the establishment of a professionally-managed
Roads Agency, with a Board of Control consisting mainly of users from the private sector. The White Paper
is less clear about secondary, urban and rural roads where more traditional government management
approaches have tended to dominate.
Railways
Rail is seen as an essential long-term component of the network for both freight and passenger transport.
The White Paper identifies market need and commercial viability as the determinants of the provision and
operation of rail infrastructure for bulk and general cargo freight transport, and for inter-city passenger
transport. A national transport authority is identified as the owner of commuter rail infrastructure, rolling stock
and land associated with rail reserves, until such time as the provincial or metropolitan transport authorities
are able to take over this responsibility. The White Paper indicates that new commuter rail infrastructure will
be determined by a combination of market needs and social considerations.
Airports
ACSA provides and manages infrastructure at the nine state airports. The White Paper acknowledges the
existence of many smaller airports and recognises the need for a more holistic policy which provides direction
on the need for management of these smaller airports. Whilst some clarity is observed since the White Paper
process, no such policy has yet been provided.
Seaports
A port authority (or authorities) with specific responsibilities for the maintenance and development of port
infrastructure was identified by the White Paper. Since it will be a monopoly, an independent regulator
will regulate the port authority. The port authority will involve key role players in its strategic planning, for
example, the metropolitan government of a city with a large port. The port authority will be independent of
any port operating entity (or entities). The principle of competition within a port will be supported. The latest
version of the National Ports Bill currently before Parliament is consistent with this requirement.
Pipelines
The White Paper identifies a network of liquid and gas pipelines that will be developed based on needs,
operated as a utility and regulated by government. These continue to be owned and operated by Transnet.
PART I CHAPTER 2
69
Financing Framework
National, Provincial and Rural Road Infrastructure
National and provincial roads in South Africa were traditionally funded through central fiscal allocations, a
dedicated fuel “levy”, limited special allocations from government (generally for social development reasons),
and private and government sector loan funding, generally redeemed by toll income. From the inception of
the National Road Fund (NRF) in 1935, and up to April 1988, national roads were financed through this fund,
which was sourced by a levy on liquid fuel usage. However, this “levy” constituted only a small fraction of
the total taxes levied by government on liquid fuel, which has led to numerous debates on the difference
between a levy and a tax.
After government abolished the dedicated fuel levy on 1 April 1988, the NRF had to compete for funds
from the central Exchequer on a similar basis as other government functions. In 1991, the Department of
Finance introduced a system of multi-year planning of public expenditure, the purpose of which was to
ensure a three-year continuity of programmed expenditure. In terms of this system, the Department of
Transport was requested to develop a multi-year financial planning system for rural and inter-city roads.
The purpose was to coordinate expenditure on this road infrastructure, to motivate for the allocation of
an annual global sum for roads from the Exchequer, and to ensure an equitable allocation to the various
road authorities of the total budgeted funds for rural roads. This system was not successful, primarily
because the provinces were not amenable to executive, as opposed to political, decisions being made on
their roads budgets.
This system was discontinued in 1994 and replaced by a system through which provinces receive a global
allocation for all their functions, inclusive of roads. Funds allocated to the NRF by Treasury were based on
the (motivated) need for national roads and in relation to the total demands received by Treasury. This
system continued until the South African National Roads Agency (SANRAL) was created in 1998, when a
quasi-dedicated fuel levy approach was derived to fund its infrastructural (and other) activities. In terms of
this approach, the SANRAL and its Board, on which a Treasury representative sits, draw up an annual budget,
and this total sum is transformed into a cents/litre basis of fuel used for transport on the country’s roads.
An additional source of funding for national road infrastructure on toll routes is loan financing, redeemed
by toll charges levied on road users. This procedure was introduced in the early 1980s as a supplemental
funding source for the NRF. At the time of the inception of this approach, the National Transport Commission
(NTC) took a policy decision that not more than 15 percent of the national road network would be funded
in this way. However, this approach has changed significantly, and now also includes the granting of
long-term concessions (30 years or so) to private sector consortiums for the management (including
infrastructure provision) of certain national roads. This has resulted in considerably more than 15 percent of
the national road network being financed in this manner.
Provincial roads continue to be financed by annual allocations from Treasury. These allocations are split
into the various provincial functions based on the provinces’ own budgeting processes. The Reconstruction
and Development Programme (RDP) fund, initiated by government in 1994, has also made some, though
relatively small, allocations to rural road infrastructure.
Figure 14 provides a schematic representation of road funding financial flows. From a revenue generation
perspective, R15.9 billion is collected as a fuel levy and R1.7 billion is collected in the form of a vehicle licence
fee (either by the provinces or by municipalities on an agency basis). Less than half of this revenue finds
its way back to roads. Whilst fuel tax is a proxy for road usage, it is regarded as a general tax rather than
a true user charge, in the same way as utility charges for water and electricity. As fuel is directly related to
usage, it would be relatively easy to formulate a road user charge. However, similar to other countries, South
Africa collects this charge as a general tax for a variety of reasons, not least of which are its relative ease
of collection, the ability to target the relatively more wealthy, and the linkage between fuel use and the
environment, implying a certain externality cost associated with fuel.
70
THE DBSA INFRASTRUCTURE BAROMETER
Figure 14: Road funding financial flows, 2000/01 (Figures represent millions of Rand)
Source: National Department of Transport, 2002
The actual backlog requirement for roads (capital and maintenance) remains under debate, although a
2002 estimate of a further R4.6 billion per annum for surfaced roads and R6.4 billion per annum for gravel
and access roads is widely regarded as a reasonable estimate (Department of Transport, 2002). The ability
to use the current fuel tax as both a general tax and a dedicated road user charge would go a long way to
linking more closely the use of infrastructure with the budgetary allocation for creating and maintaining
such infrastructure. This should be explored as a principle.
The age of the road network has been steadily increasing, with more than 40 percent of national roads
now more than 20 years old (SANRAL, 2002). This places additional pressure on the maintenance and
rehabilitation backlog. An implication of delayed maintenance on roads is that preventative maintenance
through an effective lifecycle maintenance programme is absent, leading to additional maintenance and
rehabilitation costs. This situation is most acute at provincial level where 23 percent of roads are in “poor”
condition and 12 percent in “very poor” condition. Improvements in management at provincial level would
considerably enhance the effectiveness of lifecycle management, even within existing budgetary constraints
(National Department of Transport, 2002).
Urban Road and Street Infrastructure
Urban roads and streets under the administrative control of municipalities are funded from municipal rates
and taxes. The major sources of funds for municipal authorities are property taxes, loan funds for capital
projects, parking fees and the partial repayment by the provincial authority of vehicle registration, licence
fees and direct treasury allocations. In addition, national government may also provide funds to Transport
Authorities, to enable them to perform the functions laid out by the NLTTA (2000).
Rail, Ports and Pipeline Infrastructure
Until the advent (1 April 1990) of the commercialised public enterprise, Transnet, the funding of infrastructure
“owned” by South African Railways and Harbours (SAR&H) and South African Transport Services (SATS), was
provided for by public and private sector loans redeemed from operating revenue.
SAR&H and SATS were mandated by Acts of Parliament to operate their services on business principles,
PART I CHAPTER 2
71
but with due regard to the economic interests and total transport needs of the country. They were, however,
subjected to political interference. The consequence was that Transnet inherited a portfolio of divisions
in which some profitable divisions were used to cross-subsidise other loss-making divisions. This has led to
price distortions within the industry, with the generally very viable pipeline and port sectors subsidising the
rail sector.
The capital requirements for the provision of rail, port and pipeline infrastructure were funded from
a central pool until 1991. This pool was financed from a variety of sources, including retained earnings,
depreciation of assets, government loans, stock issues, export credits by supplier countries, bank facilities and
internal stock issues/debentures. During the 1980s, a marked swing took place through the sourcing of loan
funding, with government loans, accounting for 67 percent in 1978/79, reducing to 26 percent by 1982/83.
With the creation of the Transnet “stable” of companies, rail, port and pipeline infrastructure is provided
for within a divisionalised structure, and on a commercial basis, through loans and domestic bonds, listed on
the bond excange, these are redeemed by retained revenue from the operation of services. This fairly bland
statement masks the fact that Transnet inherited massive accumulated losses from SATS at the time of its
inception in 1990. These losses lay particularly in non-operational items such as the actuarial deficit in the
Pension Fund, as well as the inherited medical aid funds.
Although Transnet was able to post moderate profits through the 1990s, its financial situation has
declined significantly and, for some time, it has been unable to invest in the vast infrastructure network
under its control. This has been recognised as a significant challenge to South Africa’s competitiveness and, in
October 2004, the Minister of Public Enterprises announced a first-phase five-year capital investment strategy
for Transnet (excluding SAA) of R37 billion. This will be used to sustain ongoing maintenance and reliability
in service delivery. An additional R21 billion was identified for rail, port and pipeline network expansion. It
is expected that public private partnerships (PPP) will be used to supplement and enhance this investment
portfolio, with greater private sector involvement in traditional Transnet business areas than has been the
case in the past (Department of Public Enterprises, 2004).
Airport Infrastructure
Until the advent of the Airports Company in 1993, the funding of the infrastructure for the more than
250 airports of varying sizes in the country was achieved using various sources. The large international
and domestic airports were funded by the state, and the smaller ones by local authorities or
private sector interests.
Prior to 1993, the expenditure on infrastructure at the nine state-financed airports was provided by Treasury
allocations to the annual budgets of the DOT (civil engineering and navigational aids expenditure) and the
Departments of Public Works (buildings). Revenues generated at the state airports were traditionally not
used to partially defray the cost of infrastructure but were paid directly into the State Revenue Fund. Further,
state airports were not managed as financial units during this period, although information was available
about the profitability of the various airports. During the period 1970 to 1990, funds available for airport
infrastructure were considered inadequate by the Department of Transport (Mitchell, 2004), particularly in the
light of the need to upgrade navigational equipment regularly and to cater for the rapidly growing demand
for air transport facilities. Experience prior to 1993 was that, where facilities were necessary to stimulate
regional development (e.g. George airport) or to meet a strategic need (e.g. Upington airport), funds were
more readily available from the Department of Finance. Various large facilities, which were constructed
through the historic defence budget and the “homeland” budgets, remained on the government’s books,
and are proving increasingly difficult to maintain adequately.
Since the creation of the Airports Company in 1993, infrastructure provision has been on a commercial
company basis, with costs, including infrastructure costs, having to be met from revenue, loan financing and,
where necessary, state capital. The revenue-earning potential of the civilian airports in particular has also
grown substantially as freight and passenger demand has increased. This has created scope for ACSA to invest
substantially in airports over the last decade. In 2003/04, ACSA invested R471 million in a variety of programmes,
with more than half of these funds invested in the largest airport, Johannesburg International.
Restructuring and Privatisation of Transport Infrastructure
Since the 1996 White Paper, certain functions of the Department of Transport have been commercialised to
“take out of the public service” certain administrative tasks, with the aim of “reducing bureaucracy” and
improving efficiency and effectiveness in the delivery process. Referring only to the provision of transport
72
THE DBSA INFRASTRUCTURE BAROMETER
infrastructure, the Airports Company of South Africa (ACSA) was created in 1993 to manage state airports,
and the South African National Roads Agency Limited (SANRAL) was created in 1998 to manage national
roads on behalf of the Department. In both cases, the company owns the infrastructure, but government is
the majority shareholder (for national roads, the only shareholder).
The term “privatisation” is very loosely used in South Africa in the context of transport infrastructure
provision. Apart from the outsourcing of discrete design, construction and maintenance tasks, which has
been practised for a number of decades, particularly in the roads field, the word is also applied to concepts
such as commercialisation, concessioning and partnerships between the public and private sectors.
The “concessioning of national roads” debate was re-opened early in the 1990s and enabling legislation
was passed in 1996 for the concessioning of national roads to private sector consortiums. The first project
was a section of route N1 between the then Nylstroom and Pietersburg. This was followed by three further
concessions, totalling some 1 200 km. Proposals are before the NRA for a further group of such concessions
to be awarded.
Progress in privatisation has not been significant in regard to railway infrastructure. As a result of the
major administrative and efficiency problems facing commuter rail services and rail freight transport during
the 1990s, the DOT made proposals for the concessioning of both commuter rail and rail freight services,
neither of which has gone ahead.
Although a commercialised National Ports Authority (NPA) was created to separate port infrastructure
from operations, it does not now appear to represent any significant move towards private sector involvement
in port operations or infrastructure provision.
In summary, the only two elements of transport infrastructure where any significant movement towards
privatisation has occurred are in the provision of airport infrastructure and certain sections of national roads.
It might be coincidence, but these are the two elements of transport infrastructure that appear to be in best
shape and where significant new or rehabilitated infrastructure has been delivered during the last decade.
The Perpetual Problem of Funding Transport Infrastructure
During the past 50 years, transport infrastructure funding has originated from Treasury appropriations,
municipal rates and taxes, dedicated fuel levies, government and private sector loans, bank facilities, stock
issues and export credits by supplier countries. There is no effective coordination between modes, or between
spheres of government in respect to the financing of transport infrastructure. Further, no comprehensive,
overall transport infrastructure funding strategy has been prepared, matching financial resources with
identified needs to develop infrastructure in a rational, integrated and coherent fashion. There are various
possible reasons for this, but the prime reason appears to be the great degree of institutional fragmentation
and overlap that has traditionally existed within the South African transport milieu – as discussed earlier. In
addition, the non-availability of adequate funding levels to meet needs is a perpetual problem.
Energy
Introduction
The electricity sub-sector has a number of active stakeholders, both public and private, whereas the liquid
fuels and renewable energy sub-sectors are dominated by private players. Regulation presents a challenge in
the sector as new policies and institutions are being established to level the playing field and to encourage
greater participation by private players. The range of financial resources is limited as finance for electrification
remains in the hands of government and Eskom, and the private sector continues to be responsible for
developing the liquid fuels industry.
Policy
The policy is based on the 1998 White Paper on Energy Policy (refer Chapter 1). It has been expanded and
amended by a number of new Acts.
PART I CHAPTER 2
73
Institutional Structure and Ownership
The energy sector is a mix of the public sector (i.e. municipalities, town councils, Eskom and PetroSA) and
the private sector (i.e. independent power producers (IPP) and private companies) for liquid fuel, piped coal,
natural gas and renewable energy.
Electricity
A schematic representation of the electricity system is given in Figure 15. It indicates the three main components
of the system: generation, high voltage transmission and distribution to end-consumers.
Figure 15: National electricity system (2002)
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THE DBSA INFRASTRUCTURE BAROMETER
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Box 9: Energy and the Environment
In terms of environmental pollution, South Africa
ranks among the top ten countries in the world. The
main causes of pollution are from poor households
and from industry. The burning of wood, dung,
coal and paraffin in townships and rural areas is
responsible for most of the household pollution. It
is also a health hazard, causing respiratory illness on
a large scale, especially among children. Burning of
these fuels also leads to fires which claim many lives
annually. The National Electrification Programme was
part of Government’s strategy to overcome these
problems. Households have also been encouraged
to replace cheap paraffin stoves with improved stove
or LPG stoves. The improved stoves are expected to
comply with the South African Bureau of Standards
(SABS).
The DME started a low-smoke fuel programme to
replace domestic coal with low-smoke coal that can
be used in braziers or ‘mbaula’ for space heating.
Kyoto Protocol: South Africa is a signatory to
the Framework Convention on Climate Change
(FCCC) and therefore required to pursue options
for mitigating greenhouse gases (GHG). The Kyoto
Protocol also enables members to benefit from
the Clean Development Mechanism (CDM) where
countries that invest in “clean technologies” can
trade and earn carbon credits.
The liquid fuel industry is further encouraging the
use of clean technologies through its programme to
phase lead out of petrol and reduced the sulphur
content in diesel to 0.3% in 2002. Eventually, motor
vehicle emissions will be legislated. The installation
of catalytic converters in vehicle exhaust systems
will assist to reduce carbon monoxide emissions.
However, it is not mandatory for motor vehicle
manufacturers to comply with this mitigation.
Oil spills: In June 2000, a bulk ore carrier sank
10 km off the Western Cape coast just north of
Robben Island. The ship was carrying 1 300 tonnes
of fuel oil and most of it leaked into the ocean
and reached the coastline. The leak immobilised
tens of thousands of African Penguins. The event
was recorded as one of the world’s worst coastal
bird disasters by the International Fund for Animal
Welfare (IFAW). Fortunately, more than 40 000 birds
were rescued, cleaned, fed and returned to sea.
Power generation: Eskom has very high
environmental standards for its generation,
transmission and distribution systems. The
performance of power plant has been improved by
the installation of electrostatic precipitators to reduce
flue gas emissions, and air-cooling has replaced fresh
water cooling at some of its power stations, such as
Matimba and Kendal. The Koeberg Nuclear Power
Station at the coast uses sea water cooling. Radioactive
waste at Koeberg amounts to approximately
60 tonnes per annum. The waste is kept underwater
for about 10 years in order to reduce its radioactive
level by about 90%. Thereafter, the waste can be
stored on site in steel casks.
Power lines: For the past two decades, Eskom
has worked together with the Endangered Wildlife
Trust to monitor the preservation of endangered
birds that accidentally fly into power lines and are
electrocuted. By changing the design of the electrical
infrastructure and altering the position of the power
lines, bird mortality has been reduced significantly. It
also reduced electrical faults caused by birds.
Source: South Africa Energy Profile, 2003
The Department of Minerals and Energy (DME) has overall
responsibility for policy direction and orientation of the energy
sector in South Africa. It is also responsible for national programmes
and the management of regional and international coordination in
the sector. The DME has also been responsible for funding energy
research and will soon establish a National Energy Research Institute
(NERI). The DME reports to and advises the Minister of Minerals and
Energy.
Eskom Holdings Ltd (Eskom), created by the Eskom Conversion
Act (Act No. 13 of 2001), is a vertically-integrated operation that is
responsible for most (96 percent) of all electricity generated, all of
its transmission and about half of its distribution in South Africa.
The wholly-owned subsidiaries of Eskom Holdings include, amongst
others, Eskom Enterprises, which carries out all the non-regulated
activities, Eskom Finance Company (Pty) Ltd and Eskom Development
Foundation (a Section 21 Company). Eskom is owned by government
and pays dividends and company tax on profits declared. It reports
to the Department of Public Enterprises and is governed by a board
that is appointed by the Minister.
Eskom’s reserve generating capacity is nearing minimum safe
proportions and three mothballed power stations are being
recommissioned. Approximately 3 500 MW of generation capacity
will be recovered through de-mothballing. In addition, Government
(2004) has advertised for expressions of interest from independent
power producers (IPP) for two 500 MW open-cycle gas power
stations for peak load power production (Department of Minerals and
Energy, 2004).
In terms of Part B of Schedule 4 of the Constitution of the
Republic of South Africa, local governments are responsible for
“electricity and gas reticulation” within their boundaries (Republic
of South Africa, 1997, page 113). Electricity reticulation refers to the
distribution of about 43 percent of national electricity use to mainly
smaller consumers. In 2002, there were 188 licensed distributors
(NER, 2002a) which were mainly owned and operated by the
constituent local governments.
The distribution of electricity by the large number of relatively
small local government distributors has been extensively debated
since the early 1980s. The lack of scale and specialisation has
been seen as obstacles to efficiency and effectiveness. Since 1997,
Cabinet has made a number of decisions designed to restructure the
distribution sector to form a small number of regional distribution
systems. Regional Electricity Distributors (RED), registered companies
in terms of the Companies Act, would be formed and would absorb
the distribution functions of local governments and of Eskom. A
national restructuring company, EDI Holdings, was created in 2003
with the task of managing the restructuring process.
Indications are that the first RED, which will be based in the
Cape Town metropolitan area, will be up-and-running in July 2005
(Louw, 2005), with the second in Durban by the last quarter of 2005.
A bottom-up process is followed whereby local governments can
sign the Cooperative Agreement Pertaining to the Restructuring of
the EDI in South Africa (DME, 2002a). They can then be included in
the planning, analysis and negotiating activities. Progress has been
PART I CHAPTER 2
75
slow and many problems have had to be addressed, the main ones being the narrow interpretation of the
constitutional requirement that only local governments may reticulate electricity within their boundaries,
and the understandable fear by local governments of the consequences of the loss of the surplus income
that they earn on electricity sales, and that they use to cross-subsidise some of their other services.
A small number of licensed generators exist in the private sector, as indicated in Chapter 3 (NER, 2002a).
Most generate electricity for own use and do not supply power into the national grid. They are commercially
funded by their owners and have to obtain a licence from the National Electricity Regulator (NER) when
above a certain minimum size.
Liquid Fuels
The liquid fuel supply chain is illustrated in Figure 16. It indicates the activities of the acquisition and storage
of primary energy, conversion to the different petroleum products, transport and storage and retailing to
consumers. The sector consists of private oil companies, often related to international oil companies, local
production of liquid fuels from coal by Sasol Limited and a public component through the Central Energy
Fund (CEF). This component includes strategic stockpiles by the Strategic Fuel Fund (SFF) and production of
liquid fuels from natural gas by PetroSA, off the south Cape coast near Mossel Bay.
Figure 16: Schematic presentation of liquid fuel system
Storage
The strategic stocks of crude oil and the land and buildings that are used to hold the stock are state property.
These facilities are at Ogies, Saldanha and Milnerton. PetroSA has been responsible since 2001 for the
management of these strategic stocks and associated facilities. Each refinery includes tank farms for crude oil
and refined products storage, and they are owned, managed and financed as part of the refinery.
Refineries
The four conventional refineries are owned and operated by private sector oil companies, in some cases in
the form of a joint venture or partnership. Conventional private sector loan or equity financing is used for
the expansion or modification of these plants. The two coal-to-liquid fuel plants are owned and operated by
Sasol Limited, a listed private company on the Johannesburg Securities Exchange.
The State’s involvement in the production of liquid fuels is through PetroSA, a subsidiary of CEF (Pty) Ltd
that is governed by the CEF Act of 1977. Its refining operations convert gas and condensate to liquid fuels and
the production of petrochemicals. PetroSA currently produces 8 percent of South Africa’s local refined fuel
requirements and 5 percent of the national crude oil demand from local offshore oil fields. It is mandated to
act as a fully commercial oil company and funding is obtained from own resources or the capital market. The
Minister of Minerals and Energy appoints the Boards of CEF, SFF and PetroSA as stipulated in the relevant Act.
Transport
Pipelines and rail or road tankers transport crude oil and refined products. A 3 000 km high-pressure pipeline
network, owned and operated by Petronet (a subsidiary of Transnet) traverses five provinces from KwaZulu-
76
THE DBSA INFRASTRUCTURE BAROMETER
Natal to Gauteng, transporting crude oil from the coast to the Natref inland refinery and refined petroleum
products to inland depots. The pipeline network therefore belongs to the State and Petronet reports to the
Ministry of Public Enterprises. Rail tankers are owned and operated by Spoornet, also a subsidiary of Transnet.
Road tankers are owned and operated by the oil or independent companies.
Depots and Filling Stations
The oil companies are responsible for all liquid fuel wholesale activities, including transport, depots and
storage. The following companies were involved in 2002: Afric Oil, BP, Caltex, Engen, Exel, Sasol, Shell, Tepco,
Total and Zenex. As vertical integration is not allowed, independent fuel station operators, of which there
are about 5 000, carry out retail activities, often from premises that belong to oil companies and are leased
to the operator.
Natural Gas
Production
Sasol produces both hydrogen-rich and methane-rich gas from coal at Sasolburg and Secunda respectively.
In addition, it imports natural gas from the Pande and Temane gas fields in Mozambique. As previously
indicated, PetroSA operates an offshore natural gas field off the south-east coast of South Africa for the
production of liquid fuels at its refinery at Mossel Bay. Ownership, governance and financing follow private
sector and public sector principles respectively.
Pipelines
Sasol delivers pipeline gas through a 1 550 km pipeline network to more than 500 industrial and commercial
customers in Gauteng, Mpumalanga, Free-State and KwaZulu-Natal. The connection between the Gauteng
and KwaZulu-Natal systems is by means of a Petronet pipeline. In 2004, Sasol commissioned its 865 km pipeline
from the Pande and Temane gas fields to Secunda, for which it used commercial financing. Regulation of
the latter pipeline is by means of an agreement with government pending the setting up of the gas pipeline
regulator within the new National Energy Regulator of South Africa (NERSA). NERSA will be a body consisting
of the NER plus gas and liquid pipeline regulation, and is planned to be in operation later in 2005. It is
described later in the report.
The only gas system for the household market is eGoli Gas that serves about 12 000 households in
Johannesburg. Sasol supplies the gas from its Sasolburg plant (Central Energy Fund, 2005). The state has set
up a company within the CEF Group of Companies, named iGas (Pty) Ltd, with the intention of developing
the hydrocarbon gas industry in South Africa by introducing natural gas into the economy competitively
(Central Energy Fund, 2005). iGas has the right to 25 percent of the capacity of the Sasol pipeline from
Mozambique. The option of introducing liquefied natural gas (LNG) is presently being investigated.
Nuclear Energy
The Nuclear Energy Act of 1999 replaced the Atomic Energy Corporation with the South African Nuclear
Energy Corporation (NECSA), responsible for developing nuclear expertise, including the disposal and
management of nuclear waste. The only nuclear energy production facility is the Koeberg Power Station
close to Cape Town. It forms part of the portfolio of power stations owned and operated by Eskom.
The Pebble-Bed Modular Nuclear Reactor (PBMR) has been developed by an international consortium led
by Eskom and has been partly funded by the Department of Science and Technology (DST). This development
is apparently ready for full-scale demonstration, most probably by means of a 150 MW full-scale experimental
unit at the Koeberg site. Cabinet approval has been given and an Environmental Impact Assessment (EIA)
completed. This assessment has been referred back to the Department of Environmental Affairs for specific
revisions as a result of a court interdict that was obtained by an environmental group, also in terms of the
procedures that have been adopted.
Renewable Energy
As renewable energy, especially in its modern forms, is fairly new to South Africa, no database exists
that indicates the extent of infrastructure investment. It is understood that the DME is investigating the
development of such a database (DME, 2005b).
PART I CHAPTER 2
77
Wind
Apart from the one licensed wind energy installation (Klipheuwel Wind Project) initiated by Eskom, the other
installation of the same type and size is the Darling Wind Project. Both installations are in the Cape Province.
The Darling project is in the planning, approval and negotiation phase. This will be owned and operated by
a private sector company and it is understood that a power purchase agreement has been concluded with
the Cape Town Municipality. Funding will be a mix of grant funding by an aid organisation and a loan by the
DBSA and CEF through the Energy Development Corporation (EDC). This project is making slow progress and
a number of hurdles still have to be cleared.
Micro-Hydro
There are a small number of micro-hydro installations, some of them are experimental projects and others
developed by farmers for their own activities. New mini- and micro-hydro plants are currently being
developed.
Solar Photovoltaic
A number of photovoltaic systems have been installed, mostly in isolated locations. These are mainly:
• Systems for the telecommunication industry (Telkom, SABC, cell phone companies)
• Systems on remote farms and game reserves.
• Four concessionaires were contracted by the DME to install solar homes systems (SHS) in rural areas where
grid electricity is expensive. Almost the full capital cost of R3 500 was provided as a capital subsidy by
the DME. About 20 000 of these small systems have been installed at a total cost of about R70 million.
These systems produce a maximum of 50 W of electricity under rated conditions when the solar beam is
perpendicular to the solar panel.
In all cases, excluding the SHS concessionaire project, the developer supplied the funding. No formal
regulatory approach was followed, other than the registration by the NER of the licensed area allocated to
the four concessionaires.
Solar Water Heaters
Solar water heaters of various types and sizes have been marketed since the 1970s, mainly for medium-income
housing. They have only captured a small part of the market because of high costs in relation to the low cost
of electricity and lack of any form of government support. Financing is commercial at market rates, often
as part of the home loan. No national regulation is implemented although a number of SABS specifications
exist. Local authorities may require planning approval.
Regulatory Environment
Electricity Regulation
The National Electricity Regulator (NER) that was created by the Electricity Amendment Acts of 1994 and
1995 regulates the total electricity sector as a de facto monopoly. Regulation consists of the issue of licences
to operate specific plants, facilities and systems. The main purpose of regulation is not only to protect the
user against monopoly abuse but also to ensure that activities take place economically. A large component
of the regulatory regime is the approval of tariffs and price increases. Regulation has also recently included
additional requirements of incentivising improved business performance, a satisfactory quality of supply, the
use of integrated energy planning and the support by licensees of programmes for the efficient use of energy
by end-consumers.
Nuclear Regulation
Regulation of the power production component is undertaken by the NER, and by the National Nuclear
Regulator (NNR) in respect to safety and health. The NNR was created by means of the National Nuclear
Regulator Act (Act No. 47 of 1999). The NNR is responsible for the licensing of all nuclear operations.
Liquid Fuels Regulation
Over the years, a variety of approaches were used to regulate this sector, consisting of different approaches
to price control and regulating the location of retail facilities. At present, certain prices are controlled directly
78
THE DBSA INFRASTRUCTURE BAROMETER
by government, being the retail selling price of petrol and wholesale price of diesel and illuminating paraffin.
Retail facilities were regulated in terms of a quota system in the form of a compact with the fuel industry.
In terms of the Petroleum Products Amendment Act (Act No. 58 of 2003), the Controller of Petroleum
Products, a yet-to-be appointed official within the DME, will regulate the petroleum sector by the licensing of
persons/concerns for the manufacture or selling of these products. Past legislation did not require licensing
because order was maintained by an agreement between the oil companies and the DME in the form of a
quota system. These licences will include requirements for transformation and will prohibit specific activities.
Government’s policy is to prevent anti-competitive behaviour, including an embargo on vertical integration, so that
oil companies are not allowed to distribute liquid fuels (wholesaling) and sell them to consumers (retailing).
Steps are also being taken to regulate the pipeline component of the petroleum sector. The NER will
become the National Energy Regulator for South Africa (NERSA) when, among other responsibilities, it starts
implementing the Petroleum Pipelines Act (Act No. 60 of 2003) (NER News, 2005). This will regulate the
technical aspects of petroleum pipelines as well as tariffs, based on a return on investment approach. A
change management programme and communications strategy have been implemented and the intention
is to complete all that is necessary to create NERSA by the end of June 2005. This regulator will be funded in
part by a levy on the income earned by the pipeline network in terms of the Petroleum Pipelines Levies Act
(Act No. 28 of 2005).
Environmental Regulation
Environmental regulation is in terms of national legislation of the Department of Environmental Affairs as
implemented by local governments. Enviromental Impact Assessments (EIA) are required for all new facilities
in excess of a specific sub-minimum (refer Box 9).
Safety Regulation
Depending on the specific sector, the Factories Act, as administered by the Department of Labour, regulates
most safety aspects.
Licensed Renewable Energy Systems
The installation of small renewable energy systems is not regulated. In terms of the Electricity Act, renewable
energy systems that generate electricity for sale to others are regulated by the NER. The renewable energy
power stations (NER, 2002a) that have been licensed by the NER in terms of this requirement are given in
Table 7.
Table 7: Licensed renewable energy systems producing electricity
Type
Bagasse
Number
Capacity (MW)
Ownership
5
105
10
668
Wind energy
1
13
Biomass
1
17
17
803
Hydro
Total
PART I CHAPTER 2
Private, sugar industry
6 Eskom (661 MW),
3 municipal, 1 private
Eskom: Klipheuwel
experimental facility
Private, not yet under
construction
79
Financing Framework
Eskom finances its infrastructure by means of internal sources, borrowing on capital markets and issuing
long-term bonds. Eskom has a good credit rating and secures its borrowings on the strength of its
balance sheet.
Because of the extensive changes within local government, and in particular the impending restructuring
in the form of REDs, most of South Africa’s local governments will, or do, find it difficult to obtain funds for
energy infrastructure investment on the capital markets. National funds are allocated to local authorities
either in a non-earmarked manner (the “equitable share”) or for dedicated infrastructure projects under
the Municipal Infrastructure Grant (MIG) programme. The MIG targets the capital expenditure required to
address bulk infrastructure backlogs to low-income households in the four service areas: electricity, water,
sanitation and refuse removal. With respect to local sources of funding, there is a complex mix of budgetsharing between municipal responsibilities, characterised by inter-service subsidisation, intra-service crosssubsidisation and allocations to social responsibilities. This approach results in a “leakage” of the surpluses
on electricity distribution, in that these surpluses are used to part-fund other services in most, if not all,
municipalities.
The financing of electrification infrastructure by both Eskom and local governments is by way of Treasury
funds through the DME budget in terms of a national electrification plan that the DME develops and manages.
Some R1 126 million has been budgeted for the national electrification programme in 2005/06.
The financing of liquid fuel and pipeline gas infrastructure is handled by the liquid fuel industry. Funds
are obtained on the capital market on the strength of the balance sheet of the specific company. This applies
to the private sector elements as well as PetroSA and Petronet.
Funding for renewable energy installations is limited as these activities consist mainly of demonstration
projects, for which a mix of aid, commercial and governmental funding and grants is involved.
A summary of the funding for energy infrastructure is given in Table 8.
Table 8: Summary of energy infrastructure funding
Sector
Electricity
generation, Eskom
Transmission,
Eskom
Distribution,
Eskom
Distribution, local
government
Electrification of
townships
Crude refineries
and marketing
Sasol, refinery and
marketing
Sasol, gas pipeline
Oil pipelines
Renewable energy
Capital
expenditure in
2002 (R million)
Estimated
capital
expenditure
funding gap
(R million)
736
No gap at present
279
Small
1 275
Small
NA
9 300 total
899
12 400
Comment
From about 2008, R9 000 million per annum will have to be spent on additional
capacity, based on an assumed growth in electricity demand of 3% per annum
Future funding will most probably be the responsibility of the REDs
Based on 100% connections to households
668
8 000 to 10 000
Upgrade of refineries for clean fuel production
1 582
2 800
Small, NA
NA
Small
Pipeline completed in 2004
No investment as
yet announced
17 800
Over ten years to satisfy renewable energy target (Nassiep, 2004)
Note: Electrification is the reticulation of new townships, mainly at the voltage of supply of 250 Volt. It includes in-township medium voltage cabling,
mini-substations, house connections, metering and basic in-house wiring. Distribution comprises those activities at medium voltage, from
11 to 132 kV, that bring the main supply to larger customers and to townships.
Source: Basson, 2004
80
THE DBSA INFRASTRUCTURE BAROMETER
Water and Sanitation
Introduction
The entire water and sanitation sector has benefited from a complete overhaul by the new government
since 1994. Water services have been deliberately focussed on addressing those who have been underserved
in the past, and government grants have increased accordingly. Water resource policy and legislation is now
state-of-the-art and the envy of many water-stressed nations. However, building the human and institutional
capacity to implement all the new legislation will take considerable time.
Policy
Water Resources and Irrigation
Water resource policy and laws are set out in the 1997 White Paper and the National Water Act of 1998
(Act No. 36 of 1998). A very brief non-comprehensive and non-detailed summary is provided here (Eberhard,
2004).
Water Rights
Water rights are clearly spelled out in the National Water Act. This Act marked a significant departure in
the treatment of water rights. In terms of the Act, national government is custodian of water on behalf of
the people of South Africa. No rights to water are given in perpetuity. Water rights are separate from land
ownership. Water rights are given in terms of general authorisations for specific kinds of (limited) uses and
special authorisations. Special authorisations are given in terms of licences. In future, all water users will be
required to register and apply for water use licences. These licences are term limited (the length depending
on the nature of the use) and may contain other specific conditions of use. Forestry is regarded as a water
user and must apply for and obtain licences for water use. The implementation of compulsory licensing is
prioritised where catchments are declared to be water-stressed. The water licensing system is in its infancy
and it is too early to determine its effectiveness. Concerns have been raised relating to the availability of
adequate capacity to properly manage, administer and regulate the system. Such concerns could be addressed
through, for example, the development of secondary markets in licence allocation.
Catchment Management
In terms of the National Water Policy and National Water Act, the intention is to create 19 Catchment
Management Agencies (CMA) which will manage water resources within defined Water Management Areas
(WMA). Each WMA will be managed in terms of a Catchment Management Strategy (CMS) which is consistent
with the National Water Resource Strategy (NWRS) (DWAF, 2004a). DWAF is fulfilling the functions of the
CMAs until such time as they are created.
Water Services
A new policy framework, Strategic Framework for Water Services, was developed and approved by Cabinet
in September 2003 (DWAF, 2003). This is a comprehensive policy framework which draws together and
extends or revises the policies contained in the 1994 Water Supply and Sanitation Policy White Paper and the
Water Services Act (Act No. 108 of 1997). It also takes into account the new municipal policy and legislative
framework as set out in the Municipal Structures Act 117 of 1998 and the Municipal Systems Act 32 of 2000.
Key policies are summarised here.
Water Services Authorities
Water Services Authorities (WSA) are constitutionally responsible for the provision of water services. WSAs
have a right but not an obligation to provide industrial water to, and/or to accept industrial wastewater
from, industries within their area of jurisdiction.
A New Role for DWAF
DWAF will devolve its operational responsibilities with respect to water services and will become the sector
leader, supporter and regulator.
PART I CHAPTER 2
81
The Water Ladder
National Government is committed to eliminating the backlog in basic water services and to progressively
improving levels of service over time in line with the original aims of the Reconstruction and Development
Programme (RDP) of 1994. The first step up the water ladder is the provision of at least a basic water and
sanitation service to all people living in South Africa. This is the most important policy priority and government
will commit adequate funds to make this possible within the next few years. The next step is an intermediate
level of service, such as a tap in the yard. Water services authorities are expected to assist communities to
achieve intermediate and higher levels of service wherever practical, affordable and sustainable, but without
compromising the national policy priority of universal access to at least a basic level of service. National
Government will increase its commitment of grant funds over time to support households to step up the
water ladder.
Institutional Reform, Water Boards and the Private Sector
The capacity to provide services effectively and efficiently is a critical constraint in many areas of South Africa.
Government will play a leading role in promoting institutional reform to ensure that capacity is used optimally
and that efficient and sustainable water services providers are established. This process of institutional reform
will promote the regional integration of water services where appropriate. Water Boards will be transformed
as part of this process. The role of the private sector in the provision of water services is allowed, provided
that consumer interests are protected, but the policy expressly states a preference for public sector service
provision.
Sector Targets
Explicit sector targets are set out in the Strategic Framework. These include universal access to water by 2008
and universal access to sanitation by 2010.
Institutional Structure
Water Resources
The National Department of Water Affairs and Forestry (DWAF) is responsible for water resources
management in South Africa. The management of bulk water facilities, mainly dams and canals, is located
within a branch of DWAF which is being ring-fenced as a forerunner to the recently – approved national water
resource infrastructure agency, to be run as a stand-alone entity. It is intended to progressively decentralise
the responsibility and authority for water resource management by establishing Catchment Management
Agencies (CMA) in each of 19 major catchments, but this will take time. Only one CMA, for the Komati River,
has been established to date. Although it was established in March 2004, the Governing Board has yet to be
approved by the Minister (Sonjica, 2005). A further five CMAs are currently the subject of feasibility studies.
It is intended that these organisations must be representative of all water users and will facilitate effective
participation in water resource management. CMAs are statutory bodies and will have jurisdiction in defined
Water Management Areas (WMA) to manage water resources and to co-ordinate water-related activities.
Existing Irrigation Boards are required to be transformed to become Water User Associations (WUA), after
consultation with the “likely to be” affected individuals and organisations, and subject to the approval of the
Minister of Water Affairs and Forestry. WUAs fall under the authority of CMAs and are cooperative associations
of individual water users who undertake water-related activities for mutual benefit. They operate in terms of
a formal constitution and are expected to be financially self-supporting from income received through water
use charges. New WUAs may be established and the DWAF will support the process of building capacity of
subsistence and emerging farmers, enabling them to obtain subsidies in terms of the strategy for water user
charges (DWAF, 2004a) (Backeberg, 2005).
Water Services
Municipal
Both municipal water supplies and sanitation services are divided into wholesale or bulk (e.g. dams, treatment
works and major service reservoirs) and retail. Most towns arrange their own bulk water services, including
dams where necessary, but where there are limited resources and multiple users, it is common for a Water
Board to be responsible for the wholesale supply of potable water. In rural areas, extensive schemes serving
several communities are the norm.
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THE DBSA INFRASTRUCTURE BAROMETER
The Water Services Act (Act No. 108 of 1977) formally separates the roles of the Water Services Authority
(WSA) (the politically accountable council) and the Water Services Provider (WSP). The latter can be in the
form of a number of different entities, including municipal department, municipal entity (wholly-owned
utility), Water Board, neighbouring municipality, NGO, CBO or a private sector company. A small number
of private sector contracts exist in urban water services, including two 30-year concessions and several
management contracts. Recent determinations in terms of the Municipal Structures Act allocated the powers
and functions of the WSA to most local municipalities (category B), but where local capacity was deemed
to be inadequate, the authority function was allocated to the district municipality (category C). Of the 284
municipalities (metros, Bs and Cs), 170 are currently functioning as WSAs. It is still too soon to judge how
successful this allocation of responsibilities has been. It was a difficult exercise which might have generated
some anomalies. Some determinations have been challenged and are currently under review.
DWAF is in the process of transferring to municipalities schemes that it inherited from homeland
governments in 1994, plus those that it has constructed since 1994. A total of 317 water supply schemes are
to be transferred to 55 WSAs. 30 percent of schemes had been transferred by April 2005 (DWAF, 2005a). There
are also nearly 1 000 rudimentary supplies (e.g. spring protection, boreholes) to be transferred. DWAF, SALGA,
DPLG and National Treasury have agreed upon a Joint Transfer Policy to guide implementation. However, the
process has been slowed by municipalities’ lack of capacity to manage the schemes, as well as reluctance to
take over schemes that may have a variety of technical, administrative and financial problems.
Water Boards
Details of the 15 existing Water Boards, which vary in size, are given in Table 9. The one bulk sewage
treatment company, ERWAT on the East Rand, is owned by the municipalities it serves, otherwise almost all
municipalities run their own sewage treatment works.
Table 9: Details of Water Boards
Water Board
(In order of volume of
treated water
supplied)
Rand Water
Staff
Population
served 1
(‘000s)
Service
area
(km2)
No.
Water supplied
Percent
Treated
(million kl/y)
Raw
Percent
(million kl/y)
10 000
18 001
3 172
46.8
1 147
61.9
4 302
32 000
1 050
15.5
342
18.5
Sedibeng Water
1 600
86 000
595
8.8
79
4.3
Lepelle Northern
1 000
82 000
263
3.9
77
4.2
Mhlathuze Water
380
37 000
164
2.4
51
2.8
92
800
35 150
244
3.6
49
2.6
16
1 530
4 008
6
0.1
36
1.9
Umgeni Water
Bloem Water
Ikangala Water
Botshelo Water
821
49 858
388
5.7
19
1.0
Amatola Water
1 200
43 400
233
3.4
19
1.0
Bushbuck Ridge
1 200
12 320
282
4.2
14
0.8
Magalies Water
800
35 000
281
4.1
6.9
0.4
Overberg Water
2 070
6 700
70
1.0
5.0
0.3
Pelladrift Water
7
9 531
0
0.0
4.5
0.2
Namakwa Water
45
1 487
26
0.4
3.7
0.2
Albany Coast Water
10
6
0.1
0.4
0.0
24 235
6 780
TOTAL
1 853
6
114
Note 1: Figures for population served are provided by Water Boards and may not be accurate.
Source: South African Association of Water Utilities, 2003 figures (Eberhard, 2004)
PART I CHAPTER 2
83
Regulation
Water Resources and Irrigation
DWAF deals with water abstraction and storage allocations, and the authorisation of afforestation
development. It is currently designing and consulting on a strategy for compulsory water use licensing to
facilitate equitable access to water resources for previously disadvantaged communities. This will also enable
DWAF to enforce the ecological Reserve for each stream identified in the National Water Resource Strategy
(NWRS).
Water quality management in South Africa has evolved from a pollution control approach, which
concentrated on source-directed management measures, through a receiving water quality objectives
approach, which recognised the water quality requirements of receiving water users and the aquatic
ecosystem, to the current integrated source, remediation and resource-directed management approach as
contained in the National Water Act. The first regulations under the Act govern the use of water for mining
and related activities, and are aimed at protecting water resources. DWAF has also prepared and administers
minimum requirements for waste disposal in landfills, and the handling and disposal of hazardous waste.
The DWAF dam safety office registers all dams throughout the country and has a database of
6 000 dams of all sizes. It also reviews the design and performance of dams with a certain safety risk profile.
Current regulations require it to oversee dams with a height of more than 5 metres and a storage volume
exceeding 50 000 m3, or those with an abnormally high risk for other reasons. Refer to Chapter 3 for more
information on dams.
Water Services
Government is committed to developing and implementing a strategy to improve the regulation of water
services. This will take place within the Strategic Framework for Water Services (DWAF, 2003a). The key
elements of this framework are highlighted below and Figure 17 provides a schematic overview:
• The regulatory role to be played by Water Services Authorities will be supported by national government.
Municipal by-laws form the basis of local regulation
• National government will focus on three areas of regulation: compliance with national norms and
standards, contract oversight and economic regulation
• National government requires from each of the 170 WSAs an annual Water Services Development Plan
(WSDP) against which progress can be measured.
Figure 17: National Regulatory Framework for Water Services
Source: DWAF, 2003
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THE DBSA INFRASTRUCTURE BAROMETER
Financing Framework
Water Resources and Irrigation
The Trans Caledon Tunnel Authority (TCTA), which was originally set up to finance and manage the South
African side of the Lesotho Highlands Water Project, has recently been involved in raising the R1.5 billion
finance required for the new Berg River dam for Cape Town. The proposed National Water Resource
Infrastructure Agency, recently approved by Cabinet, will develop and manage the infrastructure identified
in the NWRS. The Strategy identified 18 major projects that may be required over the next 20 years at a cost
of at least R21 billion (Sonjica, 2005).
Water Tariffs
Water uses are defined in Section 21 of the National Water Act and include the following categories:
abstracting and storing water and stream flow reduction activities (only commercial forestry has so far been
declared a “flow reduction activity”); altering, impeding or diverting flows in a water course; and use of water
for recreational purposes. A national raw water pricing strategy has been developed in terms of Section 56
of the National Water Act. The strategy provides for charges for:
• Water resource management. This charge is levied to pay for the costs of water resource management.
The charge is typically a few cents per kilolitre.
• Paying for water resource related infrastructure. This is called a water resource development charge
when applied to government water schemes. The charge is based on a real return on assets of
4 percent (depreciated replacement value assets). A typical charge is 30 cents per kilolitre, but this can
exceed100c/kl.
• Waste discharge. A waste discharge charge system is under development.
• The right to use water. This is an “economic charge” related to the scarcity of water. The charge is to help
achieve the equitable and efficient allocation of water. The charge may be administratively determined
(based on opportunity cost of water) or be determined through public tender or auction, or possibly
through trading. The charge has not yet been implemented.
Financial Assistance
The areas under irrigation can be usefully categorised in terms of financial assistance received from government
for their water supply costs. The categories are:
• Private irrigation farms, comprising approximately 40 percent of the irrigated area. The costs of irrigation
development have been met by the owners of the land themselves.
• Irrigation Board Schemes, comprising about 30 percent of the irrigated area. Government has paid a one
third capital subsidy for Irrigation Board Schemes. There has been no government assistance to cover
the costs of operation and maintenance. Irrigation Boards have typically been established through local
initiatives in the commercial farming areas. There are more than 300 Irrigation Boards in South Africa.
• State Irrigation Schemes, comprising 30 percent of the irrigated area. These include the white settlement
schemes dating from the 1930s, and the former Bantustan schemes dating from the early 1950s. The full
capital cost of these schemes was paid by government. In addition, government has provided substantial
operational and maintenance subsidies (Vaughan, 1997).
Subsidies have also been made available to small-scale emerging farmers to establish irrigation
infrastructure. Subsidies amounting to more than R27 million were reported to have been provided in 2003/04
to some 630 emerging farmers in Mpumalanga and the Western Cape for almost 2 000 hectares of irrigated
land (National Treasury, 2004).
Water Services
The financial framework for water services reflects the consolidation of national funding to local government
through the municipal infrastructure grant (MIG) and the capacity-building grant. Municipalities also receive
a recurrent subsidy from the “equitable share” of nationally-raised revenue. This is constitutionally mandated
as an unconditional grant that is intended to assist with the provision of services to the poor. The formula for
its allocation is largely based on the number of poor households in a municipal area. There is some discussion
about whether the current and projected allocations are adequate for those areas where the numbers of
poor households predominate and the costs of water services are high.
PART I CHAPTER 2
85
Municipal Investments
Information on capital expenditure budgeted by municipalities for the year 2002/03 has been provided by
National Treasury. Municipalities have been divided into six groups so that the figures can be analysed (refer
table 46) (National Treasury, 2003):
• Metros (6 municipalities with 31 percent of households)
• B1: Secondary cities (top 21 local municipalities, with 18 percent of households)
• B2: Local municipalities with a medium-to-large town as core (31 municipalities with 9 percent
of households)
• B3: Local municipalities with a small town or several small towns as core and with a relatively small rural
population (119 municipalities, with 21 percent of households)
• B4: Largely rural municipalities (60 municipalities, with 23 percent of households)
• District municipalities (47).
Table 10 clearly indicates the low levels of capital budgeted by B4 local municipalities and districts. This
is of concern as these are the areas where the greatest backlogs occur. Using data from the same source, a
summary of the way municipalities anticipate financing their capital expenditure for all services (not just
water and sanitation) is given in Table 11.
Table 10: Water and sanitation, budgeted capital expenditure by municipal group, 2002/03
Water
Group
No. of
households
Capex
(R’000s)
Capex per
household
(R)
Sanitation
Percent
of all
municipal
capex
Capex
(R’000s)
Capex per
household
(R)
Percent
of all
municipal
capex
Total
capex (all
municipal
services)
(R’000s)
Metros
2 526 639
546 745
216.39
10
313 159
123.94
6
5 238 173
Group B1
1 473 426
202 266
137.28
17
72 891
49.47
6
1 169 721
Group B2
719 867
35 861
49.82
12
24 456
33.97
8
289 120
Group B3
1 697 044
113 567
66.92
18
4 809
29.35
8
616 490
Group B4
1 829 033
60 657
33.16
29
10 782
5.89
5
211 115
Districts
5 836 300
177 597
30.43
36
13 647
2.34
3
493 226
Total
8 246 000
1 136 693
80.72
14
484 745
34.42
6
8 017 845
Notes:
1. Figures from National Treasury database.
2. Household figures are from 1996 census.
3. Districts not included in count of total households as their population is included with ‘B’ municipalities.
4. An unknown part of these figures will be for local bulk water resources development, in addition to that recorded under DWAF and Water Boards.
Table 11 clearly shows the relative financial strength of the Metros and Group B1 (local) municipalities.
They are able to mobilise internal surpluses for capital expenditure and, with a strong balance sheet,
approach banks and other investors for loans and bonds. At the other extreme, the bottom three groups are
highly dependent on government grants. Further, and as spelled out by the analysis in Chapter 5, these same
under-resourced municipalities, serving large numbers of the poor - mostly rural - will struggle to raise
sufficient revenue and recurrent subsidies to meet regular operations and maintenance costs.
86
THE DBSA INFRASTRUCTURE BAROMETER
Table 11: Budgeted capital financing by source (all municipal services), 2002/03
Group
Capital financing (R millions)
Grants
National
Loans
Provincial
Internal
Other
Total
Total
Metros
292.40
657.53
949.93
788.20
2 578.07
921.97
5 238.17
Group B1
133.32
124.96
258.27
316.75
356.26
238.44
1 169.72
Group B2
49.02
37.25
86.27
32.57
128.86
41.42
289.12
Group B3
169.28
73.35
242.63
38.16
178.50
157.20
616.49
Group B4
124.43
5.27
129.70
0.20
24.48
56.74
211.11
Districts
162.97
92.21
255.18
5.22
88.69
144.13
493.23
Total
931.42
990.57
1 921.99
1 181.11
3 354.86
1 559.89
8 017.84
12
12
24
15
42
19
100
Distribution (%)
Water Boards
Information on capital expenditure by Water Boards has been abstracted from the cash flow statements
presented in their annual reports and are summarised in Table 12 (National Treasury, 2003).
Table 12: Capital expenditure by Water Boards
Water Board
Capital expenditure
2001/02 (R’000s)
Percent of total
Rand Water
265 642
62
Umgeni
120 024
28
28 007
7
Bloem
3 801
1
Amatola
3 225
1
Lepelle
2 116
0
Overberg
2 070
0
Sedibeng
570
0
Albany Coast
Mhlathuze
446
0
Ikangala
8
0
Magalies
3
0
Namakwa
0
0
0
0
Bushbuckridge
Pelladrift
No data
Botshelo
No data
Total
428 000
100
Capital expenditure by Water Boards for that year was thus of the order of R500 million, mostly for
water supply (including an unknown amount for water resource development), compared with R1.1 billion
in municipal budgets.
PART I CHAPTER 2
87
Information and Communications Technology (ICT)
Introduction
The telecommunications sector continues to be characterised by growth, super-profits, licensing delays and
only recently new foreign investment in the sector. Even with the advent of black economic empowerment
(BEE), Telkom and other telecommunication companies have experienced job losses. The high cost of
telecommunications remains one of the barriers to achieving the critical mass for telecommunications to
impact positively on development. Fixed-line call charges have escalated at a compound annual growth rate
of more than 21 percent since 1997, thwarting growth in vital new industries, such as call centres, with
potential new job opportunities (Gillwald and Esselaar, 2004).
Current problems include the failure to extend the roll-out of affordable fixed-line services and the high
costs of telecommunications services. But the policy regime reflects the realities of convergence between
mobile and fixed services, both between broadcasting and telecommunications and between production
and distribution. The evolving policy regime could enable more effective licensing and regulation and
create an environment more conducive to foreign investment. In the proposed convergence legislation, the
real challenge will be to ensure the continued extension of the network into those rural areas regarded as
commercially unattractive.
Telecommunications penetration continues to be extended through mobile telephony, with total
household penetration by both fixed-line and mobile telephone 47 percent (Statistics South Africa,
2003a; International Telecommunications Union, 2003; Gillwald and Esselaar, 2004). With the expansion
in telephone connectivity and cellular phones, around 90 percent of South African households are within
30 minutes walking distance of a telephone that they can access and use (Botha, 2004).
Policy
The Department of Communications (DOC) is the policy-making body for the post, telecommunications and
broadcasting services in South Africa. It influences the roll-out of telecommunications infrastructure. It faces the
challenges of correcting imbalances in communication services and preparing South Africa to take advantage
of the convergence in communication technologies. This will make it globally competitive by becoming a hub
of multi-media development and contributing towards an African communications strategy.
In 2004, the Minister of Communications announced a new policy that would drive to reduce the disparity
between urban and rural areas, to increase teledensity, and to grow the ICT sector in the economy, through
a process of managed liberalisation, as provided for in the Telecommunications Act.
The policy focuses on the need to reduce the cost of doing business in South Africa and poses the
challenge of creating a globally competitive telecommunications sector. To meet the challenges, the Minister
of Communications proposed a more competitive environment for the ICT sector, improved access to ICT
infrastructure and services, and affordable telecommunications services (DOC, 2004). The proposals should
provide a variety of choice on services offered by the ICT sector in order to meet those economic and social
needs of society that contribute to stimulating development.
Following a market study required by the Telecommunications Act (Act No. 103 of 1996), as amended
in December 2001, the Minister of Communications made recommendations on further managed
liberalisation of the ICT sector (DOC, 2004). A number of policy interventions were designed to accelerate
growth in the sector, remove constraints to growth and reduce the cost of telecommunications,
thus making provision for such managed liberalisation. These interventions came into effect on
1 February 2005 in the following areas:
• Self provision and greater choice for mobile operators
• Provision of public pay phones services to stimulate SMMEs
• Provision of voice by value-added network service (VANS) to allow growth of VANS and
promote SMMEs
• Choice in provision of VANS
• Cession of telecommunications services by VANS
• Optimising the use of private telecommunications network facilities
• Preparing the youth for the knowledge economy.
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THE DBSA INFRASTRUCTURE BAROMETER
The policy environment in the ICT sector is currently hotly debated. Policy and regulatory issues emerge with
the convergence of services across traditionally distinct delivery platforms. The Convergence Bill, introduced
to Parliament earlier this year, aims to create one legal framework for communications technologies that
are currently covered by a range of different laws (indicated in Chapter 1). The Bill would give the Minister
of Communications broader policy-making powers that would overlap with those of the Independent
Communication Authority of South Africa (ICASA), and that would remove the requirement that the Minister
consults with ICASA before making policy directions (Ensor, 2005b).
Key policy directives relate to the importance of increasing access to, and the use of, broadband. This
should contribute to higher rates of investment, which have been relatively slow in South Africa. Equally
critical is the need to increase competitiveness of the economy by reducing the cost of telecommunications.
The DOC is developing new policy directives in an attempt to achieve this. Other emerging policy issues relate
to the ICT BEE charter and a code of good practice that will be drawn up and published (Ensor, 2005a).
Institutional Structure
A brief overview is given of the institutional dynamics in the ICT sector, explaining how the sector operates
at government, state-owned enterprise and private levels.
South African Government
The DOC manages eight portfolio organisations. These are the South African Broadcasting Corporation
(SABC), Independent Communication Authority of South Africa (ICASA), Sentech, South African Post Office
Ltd, Telkom SA Ltd, the National Electronic Media Institute of South Africa (NEMISA), Universal Service Agency
(USA) and Institute for Satellite and Software Applications (ISSA).
The DOC carries two broadcasting responsibilities, SABC and Sentech. The focus of the SABC is to bring
content and coverage in line with the needs of the population. Sentech was given a multimedia and
international gateway licence to become the primary carrier in South Africa. The DOC also manages the postal
service through the South African Post Office (SAPO). SAPO is responsible for the roll-out of communications
infrastructure to rural areas using Multi-Purpose Community Centres (MPCC). SAPO is also rolling out Public
Information Terminals (PIT), which are located at post offices and link the public to government information,
e-mail facilities and internet browsing.
The Minister of Communications announced the formation of a working group consisting of industry
representatives, ICASA, consumers, business and government, to assist in the formulation of a national
strategy for the conversion of broadcasting systems from analogue to digital (Ensor, 2005a).
State-Owned Enterprises (SOE) (Parastatals)
Transtel, the transport, shipping and rail SOE corporation, is a division of Transnet and, after Telkom, is
the largest full-service private telecommunications network operator in the southern hemisphere. It is
interconnected with the infrastructure provided by Telkom. Transtel operates the only other International
Gateway for voice and data services in South Africa. It has developed a range of expertise that is now marketed
throughout Africa. It is known for its skills in the installation of telecoms infrastructure, offering voice, data,
wireless and satellite services.
Eskom has more than 250 000 km of high-voltage lines which are starting to be strung with fibre optic
cable for future telecom links. Eskom provided fibre-optic capacity for the second national operator (SNO).
It maintains an autonomous telecommunications network that services the communications requirements of
the whole of Eskom. Its backbone is currently based on microwave links, but it plans to run fibre optic cable
down all new cables laid (Botha, 2004). These initiatives should gain further impetus when the Convergence
Bill is enacted.
Sentech provides all broadcasters with their terrestrial and satellite broadcasting facilities. Sentech has
some 500 television transmitter towers as well as various FM, medium- and short-wave transmitters and
satellite services. Sentech also provides a wireless internet access service.
Satellite technologies are slowly opening up avenues for new licensed service providers to compete for
broadcasting, data, and lastly, voice traffic (Botha, 2005). The placement and regional distribution of satellite
earth stations and other infrastructure are given in Table 13.
PART I CHAPTER 2
89
Table 13: Distribution of satellite infrastructure in South Africa
Organisation
Estimated percentage of stock in region
Gauteng
Western Cape
KwaZulu-Natal
Telkom
50
30
20
Transtel
65
25
10
Sentech
60
30
10
Multichoice (broadcast)
70
20
10
Other
70
20
10
Source: Botha, 2004
Arivia.kom is a leading South African IT solutions and services provider. It is the strategic intent of
Arivia.kom to become the dominant ICT solutions provider in Africa, offering clients a national infrastructure,
a diversity of services and critical systems.
The Government Communication and Information Service (GCIS) is responsible for the roll-out of the
Multipurpose Community Centres (MPCC) in the rural areas, with the goals of skills development and
outsourcing of core technology requirements to the State Information Technology Agency (SITA). SITA is
mandated to focus on and ensure that all Government IT “talks to each other” (inter-operable or compatible
IT), operates in a secure environment (IT security), eliminates unnecessary IT duplications and is manageable.
SITA is responsible for IT procurement and issues and processes all IT tenders. IT policy for the government
is still the responsibility of the Department of Public Service and Administration.
The SABC has radio and television networks. The television networks attract more than 18 million adult
viewers each day, translating into 74 percent of all viewing adults. The national radio network comprises
18 radio stations, 13 of which are dedicated specifically to public service broadcasting. Of the estimated
29 million adults in South Africa, more than 22 million listen to the radio every day and more than 19 million
tune in to an SABC radio station.
The SA Post Office (SAPO) has grown its network to more than 2 500 outlets, offering millions of South
Africans access to postal services. Of particular importance is the fact that more than 500 000 South Africans
now receive their pension payouts through these outlets.
Private Companies
Telkom is an integrated communications operator that provides wire line and wireless services. Telkom has a
50 percent shareholding in Vodacom, the wireless service provider. Telkom had strategic equity partnerships
with SBC (USA) and Telekom Malaysia, and part of that shareholding was recently sold to a BEE consortium.
The South African Government holds a 39.3 percent shareholding. As of 31st March 2005 Telkom posted a
group operating revenue of R43.1 billion, with total assets of R57.6 billion. It reported a profit of R6.7 billion
attributable to equity shareholders.
Telkom offers international connectivity from two international switching centres to terrestrial, satellite
and submarine cable routes. The satellite earth station is situated at Hartebeeshoek, west of Tshwane. Further
international connectivity has been provided with the deployment of very small aperture terminals and other
satellite transmitters located at global and corporate customer premises throughout the country (Botha, 2005).
A submarine cable system, SAT-3, provides links between Cape Town, Western Africa, Europe and the
Far East. Telkom is the largest capacity owner on the SAT-3 submarine cable system with the right to use
approximately 65 percent of the combined capacity.
The MOC granted a licence to a Second National Operator (SNO) in December 2005. The establishment
of a second operator, and thereby the introduction of competition to Telkom, is key to the effort to
reduce telecommunications costs in South Africa. However, disputes have arisen within the preferred SNO
consortium over ownership and control. Together with the delays in the licensing of competitors such as the
Under-Serviced Area Licensees (USAL), this has not only allowed Telkom to continue to enjoy a de facto
monopoly, but also the business case of any future competitor has become increasingly marginal.
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THE DBSA INFRASTRUCTURE BAROMETER
South African Internet Exchange (SAIX) is South Africa’s largest commercial Internet Access Provider. Fifty
Internet Points of Presence (POP) have been established by SAIX throughout the country. The bandwidth
belonging to SAIX is approximately 14.5Mbps with an upstream link to the USA.
The Internet Service Providers (ISP) market in South Africa has been volatile, characterised by mergers and
acquisitions. Some of the larger ISPs were connected to international companies that faced severe turmoil
(e.g. Worldcom). The prominent first-tier ISPs include: Internet Solutions, UUNET, MWEB, MTN Network
Solutions and Telkom Internet. The IS national backbone is depicted in Figure 18.
Figure 18: Internet Solutions IS national backbone
Source: http://www.is.co.za/files/national_backbone.pdf
Computer Technology (Hardware, Software, Networks) Companies
The hardware and component, software and networking suppliers are supported by several major distributors.
Most of the hardware and software suppliers offer systems integration and consulting services, assisting their
clients in selecting the right products for their business environments and customising systems to deliver the
desired business solutions.
The network providers do not sell cellular phone handsets themselves, but team up with mobile phone
providers which are all multinationals operating in South Africa. Among these are: Nokia, Motorola,
Samsung, Panasonic, Sony, Ericsson, LG, etc. The networks have subsidiaries or associates that offer cell phone
contracts.
The fast change in business that the ICT revolution has brought about is supported by a broad spectrum
of consulting companies. International companies such as PricewaterhouseCoopers, KPMG, Deloitte and
Accenture are active in the South African market, while numerous smaller consulting enterprises have sprung
up to service clients.
Mobile Network Providers
There are three mobile network providers.
Vodacom is a private company, owned equally by Telkom and Vodafone UK. Vodacom has 5 199 cellular
base stations, covering 64 percent of the country’s land area. Vodacom currently enjoys a 54 percent share
of the South African mobile network market. In 2003/04, Vodacom had 11.2 million subscribers (of whom
9.7 million are in the country), an annual turnover of R23.5 billion and a net profit of R3 billion.
PART I CHAPTER 2
91
MTN, listed on the JSE Securities Exchange, provides cellular, satellite and internet access in South Africa
as well as, through MTN Network Solutions to 14 African countries. It has 3 912 base stations, covering 19
200 km of roads. In 2003/04, it reported a revenue of R23.9 billion, had 9.5 million subscribers (of whom 6.3
million are in South Africa), and a net profit of R4.3 billion. The number of SMS messages for the past year
was 5.4 billion. MTN currently enjoys a 36 percent share of the South African market.
Cell C is 100 percent owned by 3C Telecommunications, which in turn is owned by Oger Telecom South
Africa (60 percent), a division of Saudi Oger, and CellSAf (40 percent). It has more than 1 000 base stations.
Cell C currently enjoys about 6 to 10 percent market share.
Private Satellite or Terrestrial Television Broadcasters
There are two private television broadcasters. MNet, the first subscriber TV channel, was extended to
the Multichoice subscriber service. MultiChoice Africa has managed to grow a significant digital satellite
television (DStv) market and has more than 1 million subscribers in South Africa and about 255 000 subscribers
throughout Africa.
New technology developments in the pay-television industry will give MultiChoice Africa subscribers
unprecedented control over their viewing and enhanced experience. The convergence of broadcast media
and telecommunications is at the heart of the advancements which are happening on a global scale.
Industry Associations
The ICT industry has arranged itself into several industry associations, such as the Electronic Industries Federation
and the Computer Society of South Africa (CSSA). The Federation is the premier employer representative of
business entities operating within the ICT sector of the South African economy. CSSA focuses its activities on
community development, amongst other initiatives. The Information Technology Association is the official
trade and employer body of the IT industry in South Africa. The Black Information Technology Forum was
formed to address historical imbalances that have resulted in poor representation of blacks in the country’s
ICT industry, both as professionals and as business operators, and were the force behind the development of
a BEE charter for the ICT sector.
Regulatory Environment
Convergence
Traditional telecommunications has been concerned with carriage issues of accessibility, interconnection
and pricing. The cluster of ICT legislation passed over the last eight years will be pulled together by the
Convergence Bill. When these conventionally distinct areas converge, questions arise around the extent to
which universal access will be compounded with the introduction of initially high-cost devices and services
(Gillwald and Esselaar, 2004).
The high cost of the networks and their associated capital costs have resulted in greater consolidation of
the global communications market. Interconnection of networks will become more important than ever as
interconnectivity between different platforms will be central to seamless communications for consumers. It
raises further questions around ensuring the viability of older forms of communication during the transition
to this digital broadband era. Central to all of this is the creation of an enabling environment for innovative
content and carriage options for a developing economy in a highly competitive international economy.
ICASA has proposed that individual and class licences be granted in all licence categories, and is of the
opinion that the South African telecommunications market needs a sector-specific regulator to deal with
these issues (Ensor, 2005b).
Many of the infrastructure issues in ICT are driven by the convergence of the two technologies
(communication and IT) and by the fact that voice, data, image and sound are handled in a multi-media
environment. The imminent convergence is displayed in Figure 19 in a simplified form. The ICT infrastructure
is broken down logically into the branches for communication technology and information technology
(Botha, 2005).
92
THE DBSA INFRASTRUCTURE BAROMETER
Figure 19: The impact of convergence on the ICT sector
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Independent Communications Authority of South Africa (ICASA)
The Independent Communications Authority of South Africa (ICASA) is responsible to the DOC for
regulating the telecommunications and broadcasting sectors. Its mandate for telecommunications includes
the numbering plan for telecommunication operators, the development of spectrum policy and frequency
allocation, issuing fixed line and cellular licences, and VANS and PTNs regulations. Its projects for broadcasting
include broadcasting sports rights, ownership and control policies, licensing of private sound broadcasters,
terrestrial digital broadcasting and community television. For telecommunications, the ICASA mandate
includes ownership and control policies and the realisation of the SNO.
Regulating the South African telecommunications industry requires a sophisticated technological backbone.
PART I CHAPTER 2
93
Financing Framework
Financing of the ICT infrastructure is derived from a variety of sources, including government funding from
National Treasury, private investment, foreign direct investment and development funding. The main funding
comes from the private sector. Companies such as Telkom, MTN, Vodacom and Cell C are the major ICT
service providers and fund their own capital expenditure in terms of new infrastructure, expansion of existing
infrastructure and upgrades and replacements.
The financial flow and dynamics are depicted in Figure 20.
Figure 20: Institutions and their roles in ICT financing
Source: BMI - TechKnowledge, 2005c
The Private Sector
The value of capital expenditure over time is difficult to obtain as the information is seen as proprietary and
competitive. It is especially sensitive with the Second National Operator (SNO) becoming a reality. During
the five-year exclusivity period (1997–2002), the total fixed-line capital investment by Telkom in network
modernisation and line roll-out exceeded R27 billion.
According to BMI-TechKnowledge (2004), the capital expenditure of the three mobile network service
providers, MTN, Vodacom and Cell C, realised a cumulative R15 billion for the installed infrastructure base.
The envisaged equity investment by Tata Africa Holdings in the SNO should also be quite substantial.
The establishment of the SNO and the introduction of competition to Telkom is a key part of efforts to
reduce telecommunications costs in South Africa. The bidding process having taken place, the preferred SNO
is an entity that comprises a 15 percent shareholding each for Transtel and Eskom Enterprises, a 19 percent
shareholding for empowerment partner, Nexus Connexion, and a 51 percent strategic equity shareholding
held by Tata Africa Holdings (26 percent), CommuniTel (12.5 percent) and Two Consortium (12.5 percent).
The Public Sector
Development Finance Institutions
The DBSA helped finance the upgrading of telecoms links between South African and Mozambique and
became the executing agency for the African Connection project to help accelerate the development of
telecommunication infrastructure. The DBSA also loaned R300 million to Cell C.
The Industrial Development Corporation (IDC) supports ICT initiatives by providing finance to companies
in electronics and electrical industries. Financing instruments include equity investment (minimum of
R5 million) and commercial debt (minimum of R1 million). Finance is provided to techno-businesses as well as
for black economic empowerment (BEE).
94
THE DBSA INFRASTRUCTURE BAROMETER
The Government
The DOC does not fund infrastructure directly and is only responsible for policy relating to the voice and data
communications sector.
The Department of Public Enterprises is the national government department that is responsible for policy
on State-Owned Enterprises (SOE) such as Transnet and Eskom. Its role is to ensure policy certainty with the
responsible policy departments and to ensure a sustainable financing strategy and a move to implement
concessions, joint ventures and Public Private Partnerships (PPP) in various areas. Transtel and Eskom invested
R2 billion in very high network availability and the latest data-switching in preparation for the SNO, while
Eskom spent R850 million in fibre optic cable infrastructure which is to be made available to the SNO as part
of its consortium membership.
The Department of Science and Technology (DST) published the ICT roadmap for South Africa to set the
landscape for research and development in ICT and to guide the private sector. DST funds support research
and development in ICT through several programmes such as the Innovation Fund, university research via the
National Research Foundation (NRF) and Centres of Excellence.
Investment Outlook
Most of the ICT infrastructural capital investment in South Africa originates from private companies such as
Telkom, Vodacom, MTN and Cell C. BMI-TechKnowledge (2004) provided a medium to long-term outlook for
capital expenditure in the telecommunications market by South African companies, including their projected
investment elsewhere in Africa (Table 14).
Table 14: Outlook for telecoms sector capital investment, 2003 - 2012
Capital investment (R billion)
Operator
Telkom
3-year outlook
2003 - 2005
10-year outlook
2003 – 2012
17 - 23
55 - 65
3-4
10 - 14
10 - 14
45 - 50
Cell C
3-4
6-8
Other
2-3
6-9
32 - 45
105 - 130
SNO
Vodacom and MTN
(including Africa)
Total
Source: BMI - TechKnowledge, 2004
It should be noted that the investment in other African countries constitutes just over half of projected
Capex by MTN and Vodacom.
PART I CHAPTER 2
95
Spotlight on Restructuring of Urban Rail Systems
The Bangkok Skytrain, operated as a Public Private Partnership, has changed the face of public transport in Thailand’s capital city.
Many cities are grappling with the challenge of enhancing the contribution which rail can make as part of
an integrated urban public transport system. Lack of investment, unreliable service and inferior financial and
operational performance have emerged as common characteristics of state-owned railways in many cities
around the world (United Nations, 2003).
Such railways have often emerged from a history where large state deficits were used to supplement
relatively smaller fare box revenue contributions. As a result, railways have had little incentive to be costeffective or to respond flexibly to the needs of users.
Recent economic reforms, introduced in both developed and developing countries, have favoured
restructuring the relationship between the railway operators and the state. This often means that the railways
remain 100 percent state-owned, but within a clearer regulatory framework and the involvement of the
private sector. Usually, this involvement is operational but may also include responsibility for infrastructure.
Although there has been mixed success with respect to some of these initiatives, the private sector often
brings improved operational efficiency and aligns the product mix more closely to the needs of users. It can
also be used as a vehicle to invest in infrastructure and operational assets.
In urban environments, indirect forms of competition are favoured. This usually implies competition “for
the market” where a company retains the right to service a single route, a collection of routes or the whole
network (including the operation of other modes) for a limited period of time on the basis of a pre-defined
performance agreement. The selection of which private operator may provide services is based on a bidding
96
THE DBSA INFRASTRUCTURE BAROMETER
process in which operators compete for the “right to operate”. The performance agreement may specify
operational responsibility for the train services. It may additionally specify responsibility for the underlying
infrastructure, such as track, signals, etc. The agreement may also allow varying degrees of innovation and
almost always includes certain basic pre-conditions such as minimum service levels, on-time performance
requirements, etc. Typically, concessions at urban level favour integrating infrastructure and operations,
rather than separating them.
The commuter lines leading into Buenos Aires (Argentina) were concessioned in 1994 when the
monopoly control of the state-owned Ferrocarriles Argentinos was separated into seven vertically-integrated
concessions. Each concessionaire received full responsibility for commercialisation, maintenance, rolling stock
and infrastructure for ten years. A railway restructuring unit was set up by government to manage the
regulatory reform and bidding process. It specified maximum fares and minimum service levels and provided
concessionaires with a range of performance incentives (Kopicki and Thompson, 2000). In the period up to
2000, there was an approximately 80 percent increase in passenger kilometres across these seven concessions
(some increased far more than others), a slight reduction in staffing levels and an increase in rail fares
(World Bank, 2001).
Many other Metro services, such as Bangkok’s rail transit system, the Skytrain, are operated by the private
sector. In Bangkok’s case, a 30-year concession was granted to a private sector company known as Bangkok
Transit System Corporation (BTSC). All infrastructure and rolling stock are privately financed and BTSC receives
no operating subsidy. Construction was initiated in 1997 and the Skytrain began operating in 1999. In a city
plagued by some of the worst congestion in the world, this mass transit initiative has had an extremely
positive impact (International Railway Journal, 2000).
In Africa, the introduction of a private sector operator in Cameroon in 1996 has had mixed success. The
railway is both a passenger and freight railway and while the operator has shown commitment to passenger
services, it would like to eliminate the all-stations-stop services which are unprofitable but important for local
access. Delays in agreed investments have also characterised the concession. Both these problems point to
the need for clear up-front contractual conditions that would protect certain unprofitable services, and for
stronger government regulatory oversight to ensure that concession agreements are met (Murdoch, 2005).
The Gautrain, linking Johannesburg International Airport, Johannesburg and Tshwane, will be constructed
and operated by what will be the first Public Private Partnership (PPP) project in urban passenger rail in
South Africa. On 2 July 2005, Gauteng Province announced the successful bidder for the finance, construction
and operation of Gautrain (www.gautrain.co.za). It is clear that potential benefits would be significant and
provide a pilot case for integrated public transport in other parts of South Africa (Shaw, 2005). However, the
project has been critisised for costs which have escalated from an initial public sector estimate of R7 billion
to a post - bidding phase estimate of R12 billion (both measured in 2002 rands for comparative purposes).
National and provincial governments have agreed to jointly cover a large component of the construction
costs. As the successful consortium, Bombela, will provide the balance of funding and will build and then
operate the system for a 20-year period. During this time, the consortium will depend on revenue earned
through ticket sales as a performance incentive to maximise ridership (Venter, 2005).
SPOTLIGHT ON RESTRUCTURING OF URBAN RAIL SYSTEMS
97
CHAPTER 3
State of Infrastructure
Chapter 3 presents the location and condition
of the four infrastructure sectors. Transport,
energy, water and sanitation, and ICT
infrastructure are depicted visually using maps
and figures. The condition of these investments
is evaluated.
Introduction
Chapter 1 provided a comprehensive overview of the history and
sometimes chequered development of four of South Africa’s key
economic infrastructure sectors. This historic overview was further
enriched (Chapter 2) with information about the current operating
environment influencing and governing the four sectors. However,
of greatest importance are the physical location and condition of this
infrastructure. How many kilometres of road does South Africa have? What is the condition of these roads?
What is the generating capacity of Eskom? In what kind of shape are the power stations? These are a few of
the pertinent and interesting questions answered in this chapter.
As in the previous chapters, transport, energy, water and sanitation, and ICT are unpacked and presented
in a user-friendly manner, illustrated with maps showing the physical location of infrastructure investment.
Where available, the state or condition of this national-level infrastructure is presented, bearing in mind that
such information dates very fast.
Transport
Introduction
Transport infrastructure is crucial to the well-being of any nation. Unfortunately, the condition of transport
infrastructure in South Africa has on the whole been permitted to decline. This is particularly true in respect
of provincial roads and infrastructure in the rail and ports sectors. Some improvements have been evident in
respect to national roads and larger commercial airports. On a more positive note, however, budgets for new
capital works and for infrastructure rehabilitation have increased in the last few years. This includes Transnet
(rail, port and pipeline infrastructure), SANRAL and many of the provinces.
Road, Rail, Port and Pipeline Infrastructure
Roads of National Importance
Transport infrastructure, particularly roads, are pervasive across the entire country and the large majority of
roads lie in the rural access category, where little is known of condition and extent can only be estimated, as
shown in Chapters 2 and 5.
Figure 21 shows South Africa’s core network of both primary and strategic secondary roads. Less than
half of these roads, but generally those roads that constitute the most highly trafficked and commercially
significant part of the network, are currently under the direct management control of the South African
National Roads Agency Ltd (SANRAL). The commercially most significant part of the network includes the N3
from Gauteng to Durban, the N1 from Gauteng to Cape Town, the N1 from Gauteng to Beitbridge and the
N4 from Lobatse in Botswana, via Gauteng, to the Lebombo Border Post with Mozambique.
PART I CHAPTER 3
99
Figure 21: Road infrastructure in South Africa
Source: SANRAL, 2005
It is envisaged that SANRAL will take ownership, or at least management control, of a much larger
portion of the primary and strategic secondary road network. This would involve a process of expanding the
6 700 km of roads (shown in blue and red) to include the 13 000 km of roads (shown in purple), resulting in
a total primary road network under its control of approximately 20 000 km. There are sound reasons for this
proposal, including SANRAL’s objective of sustaining a comprehensive primary road network that links major
economic and social centres at both national and international level. This network is characterised by longer
travel distances and higher speeds, with minimum interference to free flow of traffic. Enhanced mobility
on this network would primarily be for economic reasons and would focus on supporting and sustaining
economic growth (SANRAL, 2002).
This process has resulted in the incremental incorporation of selected provincial roads into the primary
road network. Each of the dominant economic corridors in South Africa is served, in general, by parallel
and competing road and rail infrastructures. The potential for effective inter-modal competition, through
effective market-driven policies, especially in respect to freight traffic and mutual support between modes,
could assist in enhancing the integration and efficiency of both road and rail networks.
Indications are that the national road network and the road network of Gauteng Province remain in a
stable condition. However, the condition of the remainder of the provincial road network continues generally
to decline.
Figure 22 shows the visual classification index of all primary trunk routes in South Africa. The decline in the
condition of infrastructure is partly a result of the severe funding constraints experienced by the provinces
but is also a characteristic of the age of the network and implies the need for greater levels of maintenance
and rehabilitation than in the past. The decline in road quality over the period shown (1988 to 1999) has been
100
THE DBSA INFRASTRUCTURE BAROMETER
Figure 22: The visual classification of South African route conditions
Source: Sampson, 2002
acknowledged by National Treasury and the respective provinces and levels of funding have increased for
almost all provinces. Whilst this increased level of funding has been insufficient to reverse the decline in road
quality there is some evidence to suggest that the condition of roads in certain provinces is beginning to
stabilise.
Figure 23 demonstrates the relative change in provincial fund allocations for roads for the period from
2001 to 2005. KwaZulu–Natal was by 1999 characterised as having the lowest quality road infrastructure
as measured by the visual classification index. In subsequent years (2001 to 2005) it has been successful in
increasing nominal levels of fund allocation to roads by more than 50 percent. Other provinces, such as the
Free State also demonstrate lower than average road quality. Yet the Free State has shown no overall increase
in expenditure on roads over the five year period from 2001 to 2005 and in real terms road expenditure for
this province has declined. For most provinces the shifts in nominal fund allocation to provincial roads reflect
levels of growth that are above inflation.
Sustaining and improving the condition of provincial roads remains a challenge even though funding
levels have improved. Increases in traffic volumes, increased heavy vehicle usage, aging network condition
and climatic conditions in the western part of the country all continue to adversely affect the quality of the
network. A comprehensive approach to assessing the overall condition of roads within the country may
provide a mechanism to assist in better prioritising funding. More effective road management systems within
provinces would also offer the opportunity to prioritise spending more effectively. This would promote
sustained cycles of preventative maintenance which have, until now, been largely absent in many provinces.
Part of SANRAL’s success in sustaining the national road network is a result of the commercialisation of
large components of the primary road network, particularly that part which is highly trafficked (Figure 21,
indicated in red).
SANRAL also receives national budget allocations from Treasury through the Department of Transport
(DOT) for expenditure on national roads. Although less than the funding requirements that SANRAL has
identified as the minimum necessary, these fiscal allocations are used to maximise the service condition
provided by the network. This is achieved through maintenance and rehabilitation allocations to individual
roads based on SANRAL’s comprehensive roads management system.
Provinces generally have weaker management systems, with some provinces allocating funds for
PART I CHAPTER 3
101
maintenance and rehabilitation, despite having little information on likely future network condition.
Toll roads (as illustrated in Figure 21) fall into two categories, state-owned and concessioned (Build Operate
Transfer (BOT)) toll roads. State-owned toll roads are those funded directly by the State but managed by the
private sector. These are funded by loans raised directly by SANRAL through bond issues from capital markets.
For these parts of the network, toll operators bid to operate the toll road, including collecting tolls on behalf
of SANRAL and maintaining the quality of the asset.
Figure 23: Annual Provincial Road Expenditure for South African Provinces, 2001 to 2005
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Concession, or BOT, toll roads are provided through a concession for the initial construction cost, the
continued maintenance cost and the operational cost of providing toll services. The concessionaire takes risk
on these elements, as well as the toll revenue generated, and holds the asset for a set period of time, usually
30 years, before transferring it back to the State (SANRAL, 2004).
It is important to realise that there is a limit to which roads may be financed through tolling. Physical
restrictions on some parts of the network make tolling difficult. In urban areas, such restrictions coupled
with unwanted external impacts on other parts of congested urban networks, make such solutions difficult
to implement. In other areas, where traffic volumes are low, the financial case for toll roads becomes more
difficult. It is generally accepted that, for the South African model, volumes of less than 4 000 vehicles per day
cannot be commercially warranted for toll road development. As a consequence, the majority of the strategic
road network (Figure 21) will remain funded through direct government budgetary processes unless other
forms of user-pay approaches can be developed.
Urban and Rural Roads
Municipal urban and unproclaimed rural roads constitute a little more than half of the total road length
of South Africa (Chapter 1). These roads provide social accessibility and meet the mobility needs of the
population.
The condition of the urban roads system is described in the needs of urban infrastructure (Chapter 5).
The condition of the urban road network parallels that of the rural network, but with the added demand of
having to meet the needs of fairly rapid urbanisation. The challenge in rural areas is to sustain an effective
access road network, with the secondary rural road network largely in place. Much emphasis has been given
to this since 1994, but considerable challenges remain in improving, in particular, access in remote rural
locations. In urban areas, the challenge is somewhat different, with new capacity needing to be provided
to meet both spatial needs of expansion and economic growth within cities.
An added complication has been the re-demarcation of local government boundaries in 2000. Whilst
these are welcomed as entirely appropriate for addressing the overall needs of all citizens of the nation, it
102
THE DBSA INFRASTRUCTURE BAROMETER
does mean that there is a need for roads, which were historically the responsibility of provinces, to be taken
over by municipal government. This is a process which will take some time to see through and it is probable
that some roads will deteriorate substantially before being fully absorbed by municipal government.
Weather also has a significant influence on road condition, with roads in the more arid parts of South
Africa performing generally better than those in the wetter regions. This is particularly true of gravel roads
in hilly or mountainous terrain, roads which are more often than not in rural areas and under the control
of provincial government.
From a purely financial perspective, the estimated cost of bringing the rural system to “adequate” levels
is R38 billion, in addition to normal current allocations (National Department of Transport, 2002). The
additional amount required for the municipal network is estimated at R6 billion (derived from the analysis
provided in Chapter 5).
Institutional requirements to meet the need for ongoing management, investment and operational
expenditure of both the rural and municipal networks are described in the South African Strategic Investment
for Roads (National Department of Transport, 2002) produced by the DOT in cooperation with other national
departments and provincial and local road implementing institutions. This document indicates that only
about half the skilled resources required to address the issues involved are available, and it could take a
decade to develop the human resources necessary to address all the needs.
Rail and Ports
Figure 24 illustrates the extent of the rail network and the location of South Africa’s six largest ports.
Figure 24: Rail and port network of South Africa
Source: Adapted from Barnard, 2003 & National Ports Authority, 2004
The South African rail network comprises 20 451 km of track. Of this, 9 800 kilometres of track may
be regarded as the core network, while 4 400 km are more lightly used and 5 500 km may be regarded
as the low density part of the network (Stander, 2004).
PART I CHAPTER 3
103
The primary (or core) rail network (Figure 24, indicated in green) is operated by Spoornet’s General
Freight Business (GFB) division. This part of the network has a traffic density in excess of 5 mgt (million
gross tonnes) per line per annum. Cross-border rail links by the primary rail network are at Komatipoort
(into Mozambique), Beitbridge (into Zimbabwe) and Golela and Mhlume (into Swaziland). GFB freight
is concentrated in the following sectors: steel, mining, building construction, coal, timber, grain, fuel,
fertilisers, chemicals, containers and automotive (order of importance by volume).
The Orex and Coalink export lines are indicated in red in Figure 24. Orex serves the Sishen iron ore
mine in the Northern Cape and transports iron ore to the port of Saldanha. The Coalink network serves
the coal fields of Mpumulanga and transports coal to the port of Richards Bay.
The non-core network, also the responsibility of GFB, has a traffi c density of less than 5 mgt per line
per annum and many parts of this network have a traffic density of less than 0.2 mgt per line per annum.
These components of the network are often referred to as branch lines and continue to link the network
with smaller rural settlements. As freight has shifted from rail to road, the dependence of many of these
rural settlements on rail has tended to diminish and Spoornet tends to operate less frequently along
these lines than in the past. In addition to branch lines, there are also a number of redundant lines,
some of which are closed and others where the track has been removed. These were either provided in
the heyday of rail when they served a particular need that is no longer required, or were provided for
political rather than economic reasons.
An important element of the map is the reliance of mining on an effective rail service, with many
lines that are part of the core rail network having a strong mining focus. Examples of this are the
lines to Hotazel (mangenese, iron ore), Vryheid (coal), Phalaborwa (phosphate, copper, ferro-alloys)
and Grootgeluk and Ellisras (coal). A very small (almost inconsequential) part of the network has been
concessioned or leased, often for tourist services.
Of the ports, only Durban, Cape Town, Richards Bay, Saldanha and Port Elizabeth are connected to the core
rail network. Ports such as East London and Mossel Bay, which are much smaller, are considered to lie outside
the core network. This recognises the fact that the line from De Aar to East London port is fully electrified
and is currently under-capacity. Table 15 indicates the tonnages moved by GFB, Orex and Coalink and shows
financial performance of these three operating units. It should be noted that recent changes within Spoornet
have combined these three operating divisions and Spoornet is starting the process of vertical separation into
an infrastructure-related component and an operations component.
Table 15: Business performance of Spoornet’s three operating divisions, 2001/02
Business division
Spoornet: General Freight
Business (GFB)
General freight movements,
Business characteristics
mostly concentrated on core
network
Volume (million tonnes)
Revenue (income)
(R million)
Operating expenditure
(R million)
Operating profit (loss)
(R million)
Operating ratio (%)
Coalink
Orex
Bulk coal exports through
Bulk iron ore exports through
Richards Bay
Saldanha
85.38
64.8
25.8
7 607
2 489
892
8 076
988
375
(469)
1 501
517
106.2
39.7
42
Source: Spoornet, 2002
Figure 25 demonstrates the extent of capital expenditure by Transnet over the period 1989 to 2004. Capital
expenditure has averaged 15 percent of turnover over this period, but this has clearly been insufficient to
sustain the productive use of assets.
104
THE DBSA INFRASTRUCTURE BAROMETER
Figure 25: Capital expenditure as a proportion of turnover for Transnet
Source: Transnet, 2004
In the most recent financial year, Transnet has shown a significant loss, which has placed serious constraints
on the company’s ability to re-invest (Transnet, 2004):
“As a result of [Transnet’s] cash flow and gearing constraints, a number of key divisions have been
starved of the capital needed to maintain, modernise and grow operations. Transnet has consequently
built up a capital expenditure backlog and now faces requirements approaching R35 billion over the next
five years. This undermines our service competence and competitiveness, and therefore our earnings and
cash-generating potential.”
This is a significant constraint and is partly addressed by a rosier financial outlook and greater potential
for investment in the 2004/05 financial year. Given the enormity of its investment requirement and other
performance-related challenges, Transnet’s sustainability still has the ability to reduce South Africa’s potential
for growth. The more drastic approaches, such as partial or complete privatisation that have been applied
to port and rail ownership and operations in other countries, do not seem to be under consideration at
this stage.
The condition of Transnet’s rail and ports assets are indicated in Chapter 2. Locomotives are on average
25 years old (9 years older than international best practice) (Stander, 2004), and ports such as Durban are
close to capacity limits for many commodities. The lack of investment, particularly in rail rolling stock and
fixed infrastructure (e.g. track and signals), is inhibiting the effective utilisation of available rail capacity and
is also a significant barrier to improvements in rail service reliability. Management and overstaffing remain
additional constraints to improvements in productivity.
Table 16 gives the characteristics of South Africa’s seven main ports. Durban is the clear leader in container
and general freight (sometimes referred to as break-bulk) whilst Richards Bay and Saldanha are the bulk
terminals for coal and iron ore exports respectively. Cape Town retains a strong focus on fruit export. Port
Elizabeth and East London, while much smaller, tend to focus on general cargo and vehicle-related imports
and exports. The draught limitations of each port indicate the restrictions for access by larger vessels and the
ability of Richards Bay and Saldanha to accommodate much larger deeper-draught vessels.
PART I CHAPTER 3
105
Table 16: South African port characteristics
Port
Entrance
channel draught
(m)
Specialist
facilities and
terminals
catering for:
Container
capacity TEUs/
annum
(TEU = Twentyfoot Equivalent Unit as a
measure of a dry
cargo container)
Durban
12.8
Container dry
bulk, liquid bulk,
cars, sugar, fresh
produce, multipurpose general
cargo & variety
of specialist
private terminals
1 100 000
Cape
Town
Richards
Bay
15.9
Container, dry
bulk, fruit
multi-purpose
general cargo
Saldanha
14-19 (harbour
draught)
20.5 (harbour
draught)
Coal, dry bulk,
multi-purpose
general cargo
Iron ore, oil,
multi-purpose
general cargo
Port
Elizabeth
East
London
13
Container,
multi-purpose
general cargo
400 000
320 000
Mossel
Bay
10.4 (harbour
draught)
Grain, cars,
container
multi-purpose
general
freight
8
Petroleum
90 000
5 main exports
(Volume
in tonnes/
annum)
(2002/03)
Steel (2.04)
Petroleum
& gas (1.94)
Coal (1.92)
Chemicals (0.84)
Sugar (0.75)
Deciduous fruit
(0.68)
Petroleum
& gas (0.62)
Beverages
(0.36)
Citrus fruit,
(0.29)
Cement &
clinker (0.25)
Coal (68.55)
Woodchips
(2.94)
Ferro alloys
(1.31)
Chrome ore
(0.71)
Titanium slag
(0.55)
Iron ore
(24.97)
Steel (1.03)
Titanium slag
(0.19)
Zircon (0.09)
Pig iron (0.08)
Manganese ore
(1.66)
Citrus fruit (0.13)
Beverages (0.12)
Appliances &
spares (0.08)
Vehicle
components
(0.07)
Vehicles,
aircraft & boats
(0.24)
Ro Ro vehicles
(0.11)
Vehicle
components
(0.05)
Maize (0.03)
Steel (0.01)
Petroleum & gas
(0.02)
5 main
imports
(Volume
in tonnes/
annum)
(2002/03)
Petroleum & gas
(15.22)
Maize (0.93)
Wheat (0.89)
Chemicals
(0.87)
Fertilizers
(0.74)
Maize (0.35)
Barley (0.19)
Agricultural
products (0.2)
Fertilizer (0.2)
Household
products
(0.13)
Coal (1.36)
Alumina (1.18)
Sulphur (0.6)
Rock
phosphate
(0.36)
Chemicals
(0.28)
Petroleum & gas
(3.69)
Steel (0.51)
Coal (0.11)
Iron ore
(0.073)
Copper
(0.009)
Appliances &
spares (0.29)
Vehicles,
aircraft & boats
(0.26)
Vehicle
components
(0.21)
Rubber
products (0.11)
Paper (0.08)
Vehicle
components
(0.43)
Maize (0.21)
Vehicles, air
craft & boats
(0.09)
Wheat (0.04)
Sugar (0.01)
Petroleum & gas
(0.04)
Source: Maritime Handbook: Southern Africa, 2004
The two deepwater ports are soon to be joined by the Port of Ngqura which is under construction and
is expected to have a draught limitation of 15 metres (National Ports Handbook: Southern Africa, 2004).
Current capital investments by the National Ports Authority are at this stage largely focussed on completion
of the Port of Ngqura and expansion of the handling capacity of the Port of Durban. In the latter case, this
includes expansion of the harbour entrance, increasing the berthing and handling capacity requirements
of general freight, and, through South African Port Operations, SAPO, improving investments in crane
handling capacity. Three new-generation gantry cranes are now operational and will be used to enhance the
throughput of containers at the port.
Urban Rail
The previous section has focussed on rail infrastructure in general and has naturally implied a strong focus
on freight transport which remains by far the dominant use of rail in South Africa. The country has a
well-developed network of urban passenger trains. This is operated by Metrorail, a division of Transnet,
under the auspices of the South African Rail Commuter Corporation (SARCC), a wholly-owned subsidiary of
Government, reporting to the Minister of Transport. SARCC owns all commuter rail assets, including the large
majority of track and related fixed infrastructure used for commuter rail services. A cabinet memorandum
was formulated in 2002 proposing the merger of all passenger rail services, including long-distance services
(Shosholoza Meyl), SARCC and Metrorail, into a single institutional entity (SARCC, 2003). Competition from
road and particularly from the minibus “taxi” industry has led to a decline in commuter rail ridership, and a
concomitant decline in investment into urban rail systems. The average age of Metrorail train sets is 30 years,
and while little is known about the condition of track and signalling equipment, it is widely regarded as now
beyond its economic life.
There are a number of urban rail high-demand corridors where rail may enhance its role as a high
frequency people mover. There are also many low-demand corridors which are sustained with few commuter
rail services and very low patronage. The core high-demand corridors are starved of necessary investment and
are losing market share. These corridors should be given investment priority, while the role of rail in other
parts of the lower-demand commuter network should be re-assessed.
106
THE DBSA INFRASTRUCTURE BAROMETER
Airports
Figure 26 illustrates the location and physical characteristics of the 23 main airports in South Africa. Of these
airports, the largest are under the control of the Airports Company of Southern Africa (ACSA). The numbers
of aircraft landings, passenger departures and staffing at each of the ACSA airports are given in Table 17.
Johannesburg International Airport stands out in terms of not only the overall number of flights but also the
relative extent of international flights as a proportion of total flights.
Figure 26: Location and physical characteristics of South Africa’s 23 main airports
Table 17: ACSA airport statistics for the year ending March 2004
ACSA Airport
Aircraft landings
Departing
passengers (‘000s)
Staff (excluding
head office)
Johannesburg
International (JIA)
Cape Town
International (CIA)
Durban
International (DIA)
89 112
6 637
860
46 222
2 748
329
22 418
1 440
213
Port Elizabeth (PE)
16 950
488
81
6 226
201
46
George (GG)
11 085
199
49
Bloemfontein (BFN)
10 804
109
55
Kimberley (KIM)
4 600
46
33
Upington (UP)
Pilanesberg
International (PIA)
2 489
16
10
3 029
15
17
East London (EL)
Source : ACSA, 2005
The larger but non-ACSA airports are those which have air navigation services provided by Air Traffic
Navigation Services (ATNS). Other airports (e.g. Skukuza and Phalaborwa) operate scheduled services but do
not have ATNS services and are not shown on the map (Figure 25).
Pipelines
South Africa’s fuel transporting pipelines were introduced in the 1960s to augment rail carrying capacity in
PART I CHAPTER 3
107
transferring crude oil-based products from the coast to inland processing plants (initially Sasolburg, later
augmented with Secunda). Current national pipeline infrastructure is discussed in the Energy section of this chapter.
As a division of Transnet, Petronet operates this infrastructure. It plans to nearly double existing pipeline
capacity between Gauteng and Durban by 2010. This would be based on the construction of a new 400 mm
pipeline which would increase capacity to 6.24 billion litres per annum (Salgado, 2005). More recent additions
to the pipeline network have been made with greater private sector involvement (e.g. the Pande to Secunda
gas pipeline that is being funded and operated by SASOL).
Pipelines present themselves as ideal candidates for public private partnerships (PPP). They are simple to
ring-fence and are relatively easily regulated. Transnet and Petronet should consider this as a mechanism for
enhancing such infrastructure.
Conclusion
This section has provided a review of the major national economic infrastructure with respect to transport.
It has not focused on transport-related infrastructure in metropolitan areas, smaller cities and provinces. An
important characteristic of this infrastructure is that most of it is concentrated in areas of high economic
potential and not in deep rural areas. A further important perspective is the central and dominant role
played by Gauteng as the economic hub of the country. A great deal of the infrastructure focuses on
linking this hub with the major ports and the major corridors into the SADC region, indicating the strategic
importance of most national transport infrastructure. Data with respect to the condition of infrastructure is
poor. There would, however, seem to be a downward trend in the overall condition of infrastructure with
respect to roads, rail, ports and even selected smaller airports. This would seem to be recognised by the
various institutions involved in funding and providing infrastructure, including National Treasury. The result
is that some steps are in place to address the condition of infrastructure, including that within the dominant
parastatal, Transnet. One particular remaining challenge is ensuring that efficiency gains in the operation of
infrastructure are sufficient to warrant its upgrade. This is particularly true of rail and ports. In the case of
roads, strategic planning emphasising selective upgrading and rehabilitation to sustain long-term network
condition, should become the focus. This approach will require a sustained longer-term increase in funding.
Energy
Introduction
This section of Chapter 3 discusses the status of existing infrastructure in the energy sector - electricity, liquid
fuels, gas and renewable energy. The owners of this infrastructure include Eskom and other parastatals,
municipalities and the private sector. The location and extent of the infrastructure are described, as are its
age and condition, as far as is known.
Electricity
Generation
The installed and operational licensed electricity generating capacity is indicated in Tables 18, 19 and 20 for
Eskom, Municipal and private generation respectively. Most of this information has been obtained from the NER’s
publication, Electricity Supply Statistics for SA, 2002 (National Electricity Regulator, 2002a).
The following background information is important:
• The three mothballed Eskom power stations have a combined capacity of 3 541 MW and are currently
de - mothballed (Table 18).
• Eskom divides its plant into the three categories of base, mid-merit and peak load. Large efficient plants are
used for base load (those with high load factors). Older, more expensive and less efficient plants are used for
mid-merit applications. Specialised or expensive-to-operate plants are used for peak loads (e.g. gas turbines,
pumped storage) where the load factors are low.
• The Majuba power station is not yet fully operational as the Majuba colliery was permanently closed in 1993.
This was due to unforeseen geological problems and the consequent high cost of the mined coal (Eskom,
2002). Press reports have indicated Eskom’s plans to construct a dedicated railway line to a suitable coal mine.
• The gas-fired power stations (Table 18) consist of aircraft turbine engines that operate on aviation kerosene.
108
THE DBSA INFRASTRUCTURE BAROMETER
These plants are expensive to operate and have been installed for emergency use and peak power requirements.
This also applies to similar plants in Table 19.
• The gas turbine stations (Table 18), have been derated to 54 and 15 MW on technical grounds, but have not
been used since 2002, hence the zero load factor.
• Note in Table 18 that the total of the “Max. power produced” for Eskom is higher than the “Licensed capacity”.
This is indicative of good operation and maintenance and the upgrading and improvement of plant to
improve the initial ratings. The converse applies to Municipal plant in Table 19 where substantial derating of
the installed (licensed) capacity has taken place.
• Pumped storage cannot really be described as power stations as they consume more energy than they produce.
Conventional power stations are used to pump water to high-level reservoirs during off-peak periods. During
peak demand periods, the pumped storage stations then use this water to generate electricity. In effect, they
utilise surplus capacity in off-peak periods to satisfy peak demands, and therefore increase the peak demand
capacity.
• The data on the commissioning dates of the Eskom power stations has been obtained from an Eskom Statistical
Bulletin (Eskom, 1997).
• The year 1982 at the bottom of the last column in Table 18 is the average commissioning date of all of Eskom’s
power stations.
Table 18: Licensed Eskom power stations, 2002
Station
Type
Location
Licensed
capacity
(MW)
Max power
produced
(MW)
Load
factor (%)
Net
electricity
sent out
(GWh)
Year last unit
commissioned
Arnot
Coal
Middelburg
1 980
2 100
11 974
61.1
1975
Camden
Coal
Ermelo
1 520
Mothballed
n/a
n/a
1969
Duhva
Coal
Witbank
3 450
3 600
23 320
73.9
1984
Grootvlei
Coal
Balfour
1 130
Mothballed
n/a
n/a
1977
Hendrina
Coal
Hendrina
1 895
2 000
12 752
72.9
1977
Kendal
Coal
Witbank
3 840
4 116
26 006
72.1
1993
Komati
Coal
Bethal
891
Mothballed
n/a
n/a
1966
Kriel
Coal
Bethal
2 850
3 000
19 165
72.9
1979
Lethabo
Coal
Sasolburg
3 558
3 798
22 019
66.2
1990
Majuba
Coal
Volksrust
3 843
4 110
4 600
12.8
2001
Matimba
Coal
Ellisras
3 690
3 990
25 145
71.9
1991
Matla
Coal
Bethal
3 450
3 600
25 577
81.1
1983
Tutuka
Coal
Standerton
3 510
3 645
11 185
35
1990
Acacia
Gas turbine
Cape Town
171
54
0
0
1976
Port Rex
Gas turbine
East London
171
15
0
0
1976
Gariep
Hydro
Norvalspont
360
365
1 164
36.4
1976
Vanderkloof
Hydro
Petrusville
240
244
1 192
55.8
1977
Colleywobbles
Hydro
Mbashe
42
n/d
First Falls
Hydro
Umtata
6
1982
Second Falls
Hydro
Umtata
11
1982
Ncora
Hydro
2
n/d
Koeberg
Nuclear
West of Cape
Town
Drakensberg
Pumped
storage
Bergville
Pumped
storage
Grabouw
Palmiet
Total Eskom in
operation
1 800
1 930
11 961
70.8
1985
1 000
1 178
-581
11
1982
400
486
-159
14.1
1988
36 269
38 231
195 320
59.1
1982
PART I CHAPTER 3
109
Most municipal plants (Table 19) are old, have been derated (918 MW max power versus an installed
capacity of 1 203 MW) and, in many cases, are used for emergency and peak load applications, as is indicated
by the low average load factor of 18.6 percent. The total maximum power produced (column 5) of these
plants is low compared with those of Eskom (2.4 percent of the Eskom total), and is also less than private
sector generation (Table 20).
Other than the Kelvin Power Station (Table 20) that was sold by the Johannesburg Municipality to an
independent power producer (IPP) in the 1990s, all the private power stations produce electricity for use by
individual manufacturing concerns. The operating regime is mostly in combination with an Eskom supply,
with the objective of minimisation of own power expenditure. When the surplus Eskom capacity has been
absorbed by load growth, a power-purchasing tariff can be expected that may make it economically feasible
to sell surplus power to Eskom.
Table19: Licensed Municipal power stations, 2002
Station
Athlone
Type
Coal
Location
Cape Town
Licensed
capacity
(MW)
Max power
produced
(MW)
Net
electricity sent
out (GWh)
180
121
30
Not in
operation
240
Not in
operation
103
62
300
Not in
operation
Load factor
(%)
76.6
7.3
8 233
1.5
50.2
Kroonstad
Coal
Kroonstad
Swartkops
Coal
Port Elizabeth
Bloemfontein
Coal
Bloemfontein
Orlando
Coal
Orlando
Rooiwal
Coal
North of
Pretoria
300
216
949
Pretoria West
Coal
Pretoria West
170
136
167
14
Roggebaai
Gas turbine
Cape Town
50
66
3
0.5
Athlone
Gas turbine
Cape Town
40
38
1
0.3
40
Not in
operation
4
0.5
34.2
Port Elizabeth
Gas turbine
Port Elizabeth
Orlando
Gas turbine
Orlando
176
102
Pretoria West
Gas turbine
Pretoria West
24
Not in
operation
Lydenburg
Hydro
Lydenburg
2
2
6
Ceres
Hydro
Ceres
1
0
1
61.7
Piet Retief
Hydro
Piet Retief
1
1
4
50.7
Steenbras
Pumped
storage
North of Cape
Town
180
174
-75
18
1 203
918
9 369
18.6
Licensed
capacity (MW)
Max power
produced (MW)
Net electricity
sent out (GWh)
Load factor (%)
12
9
27
34
35.4
Total in
operation
Table 20: Licensed private power stations, 2002
Station
Tongaat Hulett
Bagasse/coal
Location
Amatikulu
Tongaat Hulett
Bagasse/coal
Darnall
12
7
22
Tongaat Hulett
Bagasse/coal
Felixton
32
24
67
31.6
Tongaat Hulett
Bagasse/coal
Maidstone Mill
29
20
67
38.5
Transvaal
Suiker
Bagasse/coal
Malelane
20
19
77
46.2
Kelvin
Coal
Isando
540
470
1 721
41.8
Sasol Synthetic
Fuels
Coal
Secunda
600
628
4 421
80.4
Sasol Chem
Industries
Coal
Sasolburg
139
117
808
78.8
Friedenheim
Hydro
Total
110
Type
3
2
15
85.7
1 387
1 296
7 225
63.6
THE DBSA INFRASTRUCTURE BAROMETER
The state of power stations is influenced by local conditions, the initial design, construction and materials
of the plant, age (wear and tear) and the quality of the operating and maintenance regime. The economic
life of power stations is generally taken as 30 to 50 years, depending on the above variables. No hard
information is to hand, but it is known that Eskom benchmarks its activities against other leading utilities.
Energy availability of 92 percent of generation plants against a benchmark of 90 percent was reported in
2001. In addition, an average of 1.5 unplanned automatic grid separations occurred in comparison with a
target of 1.7 (Eskom, 2002).
The average age of Eskom’s power stations is a little more than 20 years, which means that replacement will
become necessary from about 2020 onwards. This situation is indicated in Figure 27 in which the horizontal
scale extends from 1955 to 2060. The withdrawal of existing power stations over the 2020 to 2050 period is
also indicated in the Department of Minerals and Energy’s Integrated Energy Plan (DME, 2003). The inclined
blue line is the expected peak demand on the system. In addition to new power station investment to supply
the growth in electricity demand, Figure 26 indicates that a massive investment programme will need to
commence by about 2015 in order to replace existing power stations that will have reached the end of their
economic life. Generating companies will need to take steps to ensure that the economic life of their power
stations and equipment is as long as possible, for example, by applying the best maintenance programmes
and the replacement and upgrading of plant and materials where this is economically feasible.
Figure 27: Eskom’s current generating capacity
Note: The inclined blue line is the expected peak demand on the system.
Transmission
Eskom owns the national electricity transmission system and is responsible for its operation and maintenance.
Figure 28 illustrates the major transmission lines (International Energy Agency, 1996). Table 21 indicates the
components of the national transmission system, where transmission is defined as that part of the network
that operates at a voltage of 132 kV or more. In spite of the electricity supplied and transported increasing by
about 34 percent, the quantum of the physical components of the network either remained static or decreased
during the seven-year data period. These economies are due to better system information, operation and
maintenance.
As with generation, Eskom benchmarks its transmission system against other leading utilities, and
manages its systems in accordance with this comparable benchmark. A comparison of transformer capacity
with national peak demand shows that extensive redundancy is built into the system to cater for high loads in
parts of the system. This situation is monitored and upgrading takes place where high regional load growth
is experienced or expected.
With a view to it forming part of the second telephone operator consortium, Eskom took the commercial
risk of developing an optical fibre and microwave telecommunication system backbone along its transmission
PART I CHAPTER 3
111
system, especially in less densely populated areas (Kraft, 2005). As the consortium’s bid was not successful,
Eskom is negotiating the sale or lease of this system.
Figure 28: Major transmission lines
Table 21: Eskom transmission system
Component
Units
1995
2002
% change
1995 to 2002
112
Peak demand supplied
MW
25 133
33 724
34.2
Electricity transmitted
GWh
153 547
204 821
33.4
Energy loss
%
n/a
4
n/a
Transmission lines
km total
25 188
26 510
5.2
- 765 kV
km
1 153
870
-24.5
- 533 kV DC
km
1 031
1 031
0.0
- 400 kV
km
13 981
15 204
8.7
- 275 kV
km
7 148
7 254
1.5
- 220 kV
km
1 243
1 336
7.5
- 132 kV
km
632
815
29.0
Transformers
Number
453
362
-20.1
Transformer capacity
MVA
124 790
112 075
-10.2
THE DBSA INFRASTRUCTURE BAROMETER
Distribution
Distribution systems are used to connect the high voltage transmission system to final consumers. Both Eskom
and municipalities distribute to end users (Table 22) and the Eskom and municipal components of the system
are very similar, except for:
• On average, higher end use per customer by Eskom, caused by the high consumption of the large number
of industries and mines that Eskom supplies direct.
• Greater use of overhead distribution lines by Eskom, and underground cables by municipalities
(Table 22 ).
• Many more transformers used by Eskom, but with about the same total capacity as municipalities, as
Eskom has been responsible for the largest number of new low-income electrification connections. From
1995 to 2002, Eskom installed 2 134 514 of these connections and the municipalities installed 1 173 869
(National Electricity Regulator, 2002b).
Table 22: National electricity distribution system, 2002
Component
Units
Eskom
1999
Customers
1000s
2002
% change
Municipalities and others
Total
2002
2002
1999
% change
3 282
3 447
5.0
3 281
3 811
16.2
7 258
GWh
101 180
104 983
3.8
71 482
79 932
11.8
184 915
customer
kWh
30 829
30 456
-1.2
21 787
20 974
-3.7
51 430
Electricity losses
%
3.4
3.7
8.8
6.7
4.8
-28.4
5.6
Electricity sold, end
use
Electricity sold per
Distribution lines,
total
km total
331 928
277 568
-16.4
255 691
83 627
-67.3
361 195
- HV (44 to 132 kV)
km total
47 151
21 159
-55.1
44 764
2 508
-94.4
23 667
- MV (1 to 43.9 kV)
km total
229 259
256 409
11.8
210 927
19 910
-90.6
276 319
- LV (less than 1 kV)
km total
55 518
total
km total
180 845
7 239
-96.0
7 004
191 102
2 628.5
198 341
- HV (44 to 132 kV)
km total
1 114
240
-78.5
279
921
230.1
1 161
- MV (1 to 43.9 kV)
km total
53 926
6 999
-87.0
6 725
51 481
665.5
58 480
- LV (less than 1 kV)
km total
125 805
-100.0
n/d
138 700
Transformers
Number
328 258
269 777
-17.8
253 527
82 392
-67.5
352 169
MVA
250 863
192 873
-23.1
76 835
184 887
140.6
377 760
764
715
-6.4
303
2 244
640.4
1 073
61 209
61 209
Distribution cables,
138 700
Transformer
capacity
Average
transformer
capacity
kVA
Similar to the transmission system, Eskom benchmarks its distribution system against the distribution
systems of other leading utilities.
There is serious concern that the expenditure on upgrading and refurbishing of many municipal electricity
networks is not taking place at the rate that is required, and that this is leading to a decrease in the reliability
and quality of the supply of electricity in municipal areas. This was the purpose of the NER’s National Electricity
Distribution Industry Maintenance Summit held in November 2003, at which this concern was highlighted
by the Minister, policy makers, electricity distributors and users. In a brief NER study after the summit, it
was confirmed that there is a considerable backlog in the required maintenance and refurbishment. The
increasing occurrence of power failures in many towns and cities is indicative of this serious situation.
PART I CHAPTER 3
113
Electrification
The state of household electrification in 2002 is indicated in Figure 29 (NER, 2002b). It is evident that:
• Urban household electrification is understandably further advanced than rural electrification (80 percent
and 50 percent respectively).
• The Eastern Cape, KwaZulu-Natal and Limpopo Provinces have the largest remaining challenges.
• The least rural electrification occurs in the Eastern Cape, Gauteng and KwaZulu-Natal Provinces.
Figure 29: Households electrified, 2002
The trend over time of the extent of urban and rural household electrification is illustrated in Figure 30.
The lower line indicates an increase in households electrified in rural areas from 21 to 50 percent during the
period 1995 to 2002. The upper line indicates an increase in urban areas from 76 to 80 percent over the same
period. In the latter case, the actual number of households electrified has increased at a rapid rate but, due
to the fast rate of household establishment, the percentage increase in electrification is smaller.
Figure 30: Changes in the percentage of households electrified
1FSDFOUBHF
3VSBM
6SCBO
5PUBM
This data is presented in a slightly different format in Table 23 (NER, 2002b) and indicates the extensive
progress made in the increase in urban connections in the Eastern Cape, Limpopo, Mpumalanga and North
West Provinces, and in rural connections in the Eastern Cape, KwaZulu-Natal, Limpopo and North West
Provinces. That the percentage of urban households electrified has declined in three provinces, is due to
114
THE DBSA INFRASTRUCTURE BAROMETER
the high rate of construction of new dwellings as a result of extensive urbanisation in these provinces, as is
confirmed by the NER in its electrification publications. Household electrification has, in fact, proceeded at
a rapid pace.
Table 23: Change in status of electrification over time
% of urban households
% of rural households
% of total households
electrified
electrified
electrified
Connections
made
Province
1995
2002
%
1995
2002
change
%
1995
2002
change
1995 to 2002
%
change
Eastern Cape
67
95
42
6
38
533
28
60
114
580 663
Free State
68
83
22
33
51
55
53
73
38
266 142
Gauteng
78
73
-6
54
29
-46
77
71
-8
407 619
KwaZulu-Natal
79
69
-13
14
39
179
43
56
30
490 505
Limpopo
71
98
38
24
61
154
29
66
128
536 500
Mpumalanga
59
83
41
37
67
81
45
74
64
345 553
Northen Cape
76
80
5
47
62
32
66
74
12
71 113
North West
70
100
43
21
56
167
36
74
106
455 388
Western Cape
88
86
-2
47
65
38
82
84
2
221 815
Total
76
80
5
21
50
138
50
68
36
3 375 298
Annual new connections during the last six years are given in Table 24. The rate of installing new connections
declined year by year due to budgetary constraints. The government’s medium-term expenditure framework
indicates the following allocations from the DME’s budget for the National Electrification Programme:
2004/05, R1 067 million; 2005/06, R1 126 million; 2006/07, R920 million. These budgets are of the same order
of magnitude as past expenditure (Table 24).
Table 24: Annual new connections and annual expenditure
Year
1997
1998
1999
2000
2001
2002
% change
1997 to 2002
Rural
257 193
202 487
181 025
156 701
145 335
136 695
-46.9
Urban
242 118
224 939
262 265
242 918
195 083
201 877
-16.6
Total
499 311
427 426
443 290
399 619
340 418
338 572
-32.2
1 176
1 234
1 186
1 011
909
899
-23.6
2 355
2 887
2 675
2 530
2 670
3 655
12.7
Expenditure,
(R, million)
Cost per
connection (R)
Many of the connections made since 1990 utilise low-cost technologies and prepaid metering.
The Eskom systems in particular cover large areas that have to be maintained in difficult conditions, and
higher maintenance costs and lower reliability can be expected.
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115
Liquid Fuels
The liquid fuel industry is largely represented by the South African Petroleum Industry Association (SAPIA)
which collects data from its membership and publishes the information in its annual report. In 2002,
industry turnover was R86.9 billion, the value added R29.9 million, operating profit before interest and tax
R6.1 billion, and capital expenditure R2.9 billion. This performance was the result of a sales volume of
31.4 billion litres of liquid fuel (SAPIA, 2003).
Pipelines
Petronet operates a number of pipelines that transport crude oil and refined oil products from KwaZuluNatal to Gauteng (Petronet, 2005). The crude oil pipeline from Durban to the Natref refinery at Coalbrook
was commissioned in 1969. A refined products pipeline was added in 1971 and an additional products
pipeline in 1979. A shorter pipeline for the transport of jet fuel, was constructed from Natref to Johannesburg
International Airport in 1972. One of the crude oil pipelines was converted to transport coal gas from Sasolburg
to KwaZulu-Natal in 1996. Total product throughput is about 16 billion litres per annum. Gas throughput is
334 million cubic metres per annum. The pipelines are illustrated in Figure 31.
Figure 31: Petronet pipelines
Source: IEA, 1996
Petronet operates a detailed strategic maintenance plan that is monitored by a steering committee
to ensure that the culture of continuous improvement is upheld. The integrity of the pipeline network
is continually monitored by, amongst other methods, an internal inspection tool, commonly known as an
“Intelligent Pig”, which uses magnetic stray flux principles to determine and record any possible areas
of metal loss due to corrosion and/or other events. The pipelines are also cathodically protected against
electrolytic corrosion.
Some of the Petronet pipelines are ageing (35 years) and replacement will be necessary in the near
future. Although discussions on upgrading are ongoing, no investment has as yet been committed (Burger,
2005). It is likely that this investment will be held back until the new pipeline regulator is functioning and
clarity of the regulatory approach is available.
Refineries
The first refinery was erected in 1954 for crude oil. Between then and 1992, when the PetroSA natural gas to
liquid fuel refinery was commissioned, a further six were built, two of them for coal to liquid fuel, and one
for natural gas to liquid fuel. Upgrading of some of the refineries has ensured that national refining capacity
has kept ahead of local demand. Information on the operating refineries is given in Table 25 (SAPIA, 2003).
The capacities of the Sasol and PetroSA refineries are expressed in crude oil input equivalents.
116
THE DBSA INFRASTRUCTURE BAROMETER
Table 25: South African liquid fuel refineries
Refinery
Owner
Location
Feedstock
Year
commissioned
Capacity (kilolitres/day)
1992
% increase
1992 to 2002
2002
Sapref
BP/Shell
Durban
Crude oil
1963
19 080
28 620
50.0
Genref
Engen
Durban
Crude oil
1954
11 030
18 285
64.3
Calref
Caltex
Cape Town
Crude oil
1966
7 950
15 900
100.0
Natref
Sasol/Total
Sasolburg
Crude oil
1971
12 402
17 172
38.5
Sasol
Sasol
Secunda
Coal
1979, 1982
23 850
23 850
0.0
PetroSA
State
Mossel Bay
Natural gas
1992
7 155
7 155
0.0
81 567
110 982
36.1
Total
The overall percentage increase in national capacity during the ten-year period, 1992 to 2002, was
36 percent. Production is currently larger than local consumption and the surplus products are therefore
exported. No plans have been announced for the construction of new refineries. All refineries are being
upgraded to produce clean fuels by 2006, with a capital investment of about R10 billion (Basson, 2004).
Sasol reports an approved capital allocation of R4 300 million in 2005 for this purpose (Sasol, 2004a).
The average age of the refineries is 34 years (1971) but continuous upgrading and development is taking
place as dictated by competitive forces, environmental and safety requirements and contacts with overseas
principals. Their performance is not reported in the open literature, but it is known that they form part
of the international Solomon’s benchmark report. This report is prepared on behalf of the oil industry
internationally, and is not a public document. Sasol reports that, despite less-than-optimum throughput,
the Natref refinery performed well (Sasol, 2004b). It achieved a total product yield of 97.6 percent and a
white product yield of 92.3 percent. Unintended downtime was reduced from 0.94 percent to 0.52 percent
and no major unit interruptions occurred.
Road Transport
An extensive road and rail tanker infrastructure exists that is operated and maintained as dictated by market
conditions. No data exists on its size, age, cost or condition.
Depots and Filling Stations
The wholesale and retail sectors of the liquid fuel industry own and operate an extensive infrastructure for
the transport, storage and marketing of its products in all parts of the country, urban and rural. All of these
activities are within the domain of the private sector and no data currently exists on these facilities (Burger,
2005). The new regulatory regime of licensing all these activities by the DME, as prescribed by the Petroleum
Products Amendment Act, will make it possible to collect this data in future.
Gas
Production of Gas
Natural gas is obtained from two sources. The F-A offshore gas field off the Cape south coast has supplied
gas to the PetroSA refinery at Mossel Bay since 1992. Additional investment into exploration and expanding
the infrastructure for gas collection has taken place over the years. The gas reserve is sufficient for operation
until about 2009. Various other investigations are underway, one being the importation of liquefied natural
gas (LNG).
Sasol harvests gas from the Pande and Temane gas fields in Mozambique as a feedstock for its gas-toliquid fuel plants at Secunda. This system is new and was only commissioned in 2004.
Sasol produces both hydrogen-rich and methane-rich coal-based gases at its Sasolburg and Secunda
plants respectively, for its own use and marketing and distribution to industrial customers. A R40 million
extension to the gas plant at Sasolburg was added in 1981. Sasol indicates gas sales of 52.9 GJ in 2004,
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117
Box 10: Energy efficiency and Eskom’s
DSM programme
There is a growing concern to promote energy
efficiency as the prospects of an energy shortfall
and high prices associated with new developments
emerge. An estimated 10-20% energy consumed
could be saved through greater energy efficiency
with little or no capital cost and sometimes minor
technological interventions. The South African Energy
Management Association (SEMA) was established
in 2002 as a non-profit organisation to facilitate
dialogue between Government and the private sector
in promoting energy efficiency awareness. The South
African Association for Energy Efficiency (SAAEE)
also formed in the same year, serves to promote
energy efficiency and environmental management
in industry.
Government’s role:
The Government is committed to energy efficiency
and has tabled a strategy on energy efficiency which
sets a target for energy efficiency improvements
of 12% by 2014. Improvements will be achieved
by enabling instruments and interventions such as
legislation, audits, labels and performance standards.
The DME, together with Eskom, annually hosts an
‘Energy Efficiency Week’ in July to promote public
awareness through various media channels.
Some of the drawbacks related to limited efforts
in energy efficiency include: inappropriate economic
signals; lack of awareness; information and skills;
lack of efficient technologies; high economic return
criteria; and high capital costs.
Eskom’s DSM programme:
Eskom launched a Demand Side Management
(DSM) programme as an attempt to reduce total
power demand and specifically to reduce peak
demand by load shifting. Eskom set targets of
reducing demand by 180MW in 2002 and 233MW
in 2003. At a domestic level, the use of fluorescent
lighting (CFL) instead of inefficient incandescent light
bulbs was promoted through the Bonesa campaign.
In addition, households were advised to switch
geysers off during peak times. Large industries were
also encouraged to shut down for maintenance
during winter demand peaks by charging a higher
tariff during these periods.
representing about 2 percent of net energy use in South Africa, with
a turnover of R1 522 million per annum.
Johannesburg has a town gas system that supplies 12 000 domestic
customers.
Pipelines
The Sasol medium-pressure gas pipeline network was completed
in 1966. A 95 km connection from this network to the Sasol plants
at Secunda was added in 1981. Petronet was contracted by Sasol
to transport the coal gas produced at Sasolburg to KwaZulu-Natal
(pipeline included in Figure 30) in 1995. Sasol and Petronet employ
state-of-the-art technologies in the operation and maintenance of
these networks. Sasol reports that stable operation was obtained
and that gas leaks declined year-on-year despite the extension of
the network (Sasol, 2004b). The number of unscheduled supply
interruptions increased from 5 in 2003 to 9 in 2004 while the number
of gas leaks decreased from 5 to 2 respectively.
A twin undersea pipeline, one for gas and one for condensate,
delivers product from the F-A gas field to the onshore PetroSA refinery
at Mossel Bay.
Renewable Energy
No database exists for renewable energy infrastructure. Chapters 1 and
2 describe the renewable energy activities that are taking place. It is
understood that the DME is investigating the creation of a database of
renewable energy systems (Dawson, 2005). Renewable energy systems
are mostly small, diverse and widely spread, without a dedicated
infrastructure for operation and maintenance. Most projects are still
of an experimental or demonstration nature and many problems with
the state of the infrastructure have been reported over the years.
Conclusion
The electrical generation and transmission, liquid fuel conversion,
and transport elements of South Africa’s energy infrastructure are, on
average, three or even four decades old. The electricity distribution
industry is no where near as old because of the focus on household
electrification during the last decade.
Eskom is in the process of bringing back into service its old and
mothballed power stations in order to meet growing demand.
Transmission infrastructure is owned and maintained by Eskom, which
has an extremely robust maintenance regime. The state of electricity
distribution infrastructure varies, with maintenance being a challenge,
especially for the municipalities which have suffered from low
maintenance budgets and inadequate staff capacity. Further, many of
the municipalities have decided to wait for the establishment of the Regional Electricity Distributors (RED),
creating a considerable backlog for maintenance and refurbishment.
Pipelines in the liquid fuels industry are in the hands of the State (e.g. Petronet) and the private sector
(Sasol), and have been well maintained. The gas market is very small and pipeline infrastructure is basically
new and well maintained.
In general terms, where Eskom, state corporations (CEF, Petronet) and private players are involved, the
infrastructure has been well maintained, through rigorous maintenance programmes and attempts to
keep up with international best practice. This includes state-of-the-art refurbishments and adherence to
acceptable international standards.
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THE DBSA INFRASTRUCTURE BAROMETER
Water and Sanitation
Introduction
South Africa is a water-stressed country with a projected water deficit in the foreseeable future (DBSA, 2002).
The development and management of water resources are extremely important for economic growth and
South Africa has therefore invested heavily in the resource. Future capital investments are planned to keep
abreast of the demand for irrigation, industry and municipal requirements, and the management system is
being improved in order to manage that demand. The Department of Water Affairs and Forestry (DWAF,
2004a) asserts that:
“Provided that the water resources of South Africa are judiciously managed and wisely allocated and
utilised, sufficient water of appropriate quality will be available to sustain a strong economy, high social
standards and healthy aquatic ecosystems for many generations.”
The water services sector is characterised by much ageing infrastructure on the one hand and extensive
new infrastructure on the other hand, the latter being constructed during the last ten years in order to meet
service backlogs. The ownership of this infrastructure is more complex than that of water resources. Apart
from the specialist role of Water Boards, water services are generally managed by municipalities, all of which
have enormous backlogs, both in their provision and in their maintenance (see Chapters 4 and 5). In addition,
most municipalities outside the metropolitan areas suffer from serious financial and manpower constraints.
As a consequence, our knowledge of the state of their assets is, in general, weak.
Water Resources
South Africa is located in a predominantly arid part of the world and its rainfall patterns are among the
most variable in the world. The climate varies from desert and semi-desert in the west to sub-humid along
the eastern coastal area, with an annual rainfall of about 450 mm for the country as a whole, well below the
world average of about 860 mm per year. Some 60 percent of South Africa’s river flows are generated from
only 20 percent of the land. Mean annual rainfall distribution is illustrated in Figure 32. The need for careful
water management and extensive dam storage is further illustrated by the fact that, in the summer rainfall
region of the country, more than 80 percent of the rain falls within the six summer months.
Figure 32: Mean annual rainfall distribution in South Africa
Source: Enviro-Info, 2001
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119
South Africa has more than 500 large dams, of which 50 have a storage capacity exceeding
100 million m3. The twenty largest dams and their locations are indicated in Figure 33. The country’s reservoirs
store about 746 m3 of water per person - an order of magnitude higher than that for the rest of Africa.
Indeed, 60 percent of the large dams in Africa are situated in South Africa and Zimbabwe. The main purpose
of dams in South Africa is for irrigation and urban and industrial water supply. Less than 2 percent of the
country’s electricity is generated by hydropower (World Commission on Dams, 2000). Total dam storage is
approximately two-thirds of mean annual runoff. A portion of this runoff – the ecological Reserve - needs
to remain in the rivers to ensure sufficient flow to maintain the ecological health of the environment that is
dependent on that stream. Only part of the remaining flow can be practically and economically harnessed
for usable yield. The current provisional ecological Reserves average about 20 percent of total river flow, but
may vary between 12 and 30 percent, depending on the ecological needs of each catchment and riverine
environment (DWAF, 2004a).
Figure 33: The 20 largest dams in South Africa
Note: Areas of red circles represents surface areas of dams
Source: DWAF, 2005b
Groundwater is also extensively used, particularly in the rural and more arid areas. It is limited by the
geology of the country, much of which is hard rock, while large porous aquifers occur only in a few areas.
Some coastal settlements use desalinated water to supplement their supplies during short peak holiday
periods. Desalination running costs are high but it is cost-effective for short periods of high demand. Other
coastal towns are stepping up efforts to recycle waste water before discharging it into the sea, the largest
initiative is in Durban/eThekwini where a private sector company provides tertiary treatment and supplies
nearby industries.
As stated in Chapter 2, water resources are managed in 19 catchment-based Water Management Areas
(WMA). The Vaal and Orange catchments both have more than one WMA because of their size and significant
differences in climatic conditions and types of use along the length of the river. Figure 34 gives the location
of the WMAs and shows the number and volume of inter-WMA water transfers. Some of these are simply
run-of-the-river (e.g. between the Upper and Lower Orange), but others are major inter-basin transfers. These
include: a) from the Upper Orange to the Fish River, b) from Lesotho to the Upper Vaal, c) from the Tugela to
the Upper Vaal, and d) from the Upper Vaal to the Crocodile. The last named inter-basin transfer is of interest
because it is made up entirely of treated water which Rand Water pumps over the watershed for use in that
part of Gauteng that drains northwards. After it has been used, it then drains to the Crocodile catchment via
various municipal sewerage systems.
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THE DBSA INFRASTRUCTURE BAROMETER
Figure 34: Water Management Areas (WMA) and inter-WMA transfers
Source: Natural Water Resource Strategy, DWAF, 2004a
In the northern parts of the country, covered by WMAs 1 to 5 and 8 to 10, both surface and groundwater
resources are almost fully developed and utilised. Over-exploitation occurs in some localised areas. In the
well-watered south-eastern region of the country (WMAs 11, 12 and 13), however, there are still significant
undeveloped and little-used water resources (DWAF, 2004a).
Water Services
Municipal Services
Most water services infrastructure is located in, and under the management of, municipalities, except for
the bulk services provided by Water Boards and ERWAT (East Rand Watercare Company). ERWAT manages
20 wastewater treatment plants for Ekurhuleni Metropolitan Council and neighbouring municipalities. As a
result of this spread of ownership, little nationally-aggregated information is available for the state of this
infrastructure, its age, condition and spare capacity. The cost estimates for addressing infrastructure backlogs,
as provided in Chapter 5, include an allowance for refurbishing and replacing existing infrastructure. It is
acknowledged, however, that more information is needed in order to provide an accurate figure.
In her 2004 budget speech, the Minister of Water Affairs reported that water supply to 37 percent of
households was interrupted for more than one day during the previous year. That this was mainly for technical
reasons rather than for non-payment is probably a reflection of both the condition and the management of
the infrastructure (Sonjica, 2004). In her most recent budget speech, she explained that the monitoring of
service quality by DWAF is only just starting, but that already the results show how important it is to manage
infrastructure effectively. To illustrate her point, she stated that (Sonjica, 2005):
“I regret to say that 63 percent of municipalities could not confirm that they met the Drinking Water
Quality Guidelines. Many of them may be achieving the standard but their controls could not show it.”
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121
Another indication of the state of municipal infrastructure was the result of a survey, undertaken by
the CSIR, of a substantial number of the wastewater treatment works in Gauteng. The survey showed that
wastewater treatment by the three metros, Johannesburg, Tshwane and Ekurhuleni, and by one of the
local municipalities is meeting the standards laid down by DWAF. Their budgets are generally adequate,
and management staff, supervisors, works operators and laboratory staff are all competent, qualified and
experienced officials. However, many of the wastewater treatment works run by other municipalities in
Gauteng are producing effluent that does not meet national standards. The effluent from some works is barely
distinguishable from the raw sewage that flows into the works (Wall, 2005). It is possible that the Gauteng
municipalities are amongst the best resourced, whereas other parts of the country are less fortunate. A further
indication of the condition of sewage treatment works is based on a recent survey of 55 works operated by
DWAF in former homeland areas. In terms of age, 50 percent of the plants were constructed in the 1980s
and 33 percent in the 1960s and 1970s. Their physical condition was assessed as 31 percent in good working
condition and 51 percent in average working condition. Water quality monitoring is carried out daily in
42 percent of plants, while 25 percent of plants are never monitored for quality compliance (DWAF, 2003b).
Water Boards
In general, Water Board infrastructure is in better condition than that of the municipalities. Most Water
Boards are empowered to raise whatever funds they require to operate and maintain their systems through
tariffs charged for water sold to municipal and industrial clients. Income can also be used to service debt
raised to build new infrastructure for future demand. Water Boards are required to balance their books to
ensure financial viability and may raise tariffs as necessary, subject to DWAF approval. This has sometimes led
to criticism of over-investment at the expense of municipal consumers, but investment plans are now more
carefully reviewed by DWAF to minimise this eventuality.
Figure 35 illustrates the current official service areas of the Water Boards, although several have recently
expanded their activities into adjacent areas. Such activities include bulk supplies, managing rural schemes
and assisting municipalities with general operations and management. The latter includes retail operations
that entail direct interaction both with individual household customers and with large industrial consumers.
The number of municipalities served by each Water Board is given in Table 26.
Figure 35: Current Water Board service areas
Source: DWAF, 2005b
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THE DBSA INFRASTRUCTURE BAROMETER
Table 26: Water Boards and the populations and municipalities that they serve
Water Board
(In order of volume of treated water
supplied)
Population served
(‘000s)
Rand Water
No. of municipal
clients
10 000
18
Umgeni Water
4 302
7
Sedibeng Water
1 600
17
Lepelle Northern
1 000
7
Mhlathuze Water
380
3
Bloem Water
800
5
Ikangala Water
1 530
5
Botshelo Water
821
8
Amatola Water
1 200
3
Bushbuck Ridge
1 200
2
Magalies Water
800
6
Overberg Water
2 070
4
Pelladrift Water
7
1
Namakwa Water
45
3
Albany Coast Water
TOTAL
10
1
24 235
90
Source: Telephone interviews, June 2005
Irrigation
The irrigated area of South Africa is about 1.3 million hectares, 10 percent of the total cultivated area. There is
a wide range of types of irrigated farming. Medium- to large-scale irrigation farmers number approximately
15 000 and cover 1.2 million hectares (ha). It is estimated that there are some 40 000 small-scale irrigated
farmers covering some 50 000 ha. There are also an estimated 50 000 ha of micro-scale community gardens
and plots. Table 27 provides a summary of the types of irrigation scheme and their management.
Table 27: Distribution of irrigation capacity in South Africa
Type of scheme
Total area (ha)
Private schemes extracting water directly from weirs, boreholes and farm dams
Holdings range: 2 – 10 000 ha
Irrigation Board schemes, privately managed but often developed with government
grants and subsidised loans. Scheme size range: 20 – 60 000 ha
Government schemes, built and operated by government. Operating costs charged at
subsidised rates. Scheme size range: 36 – 120 000 ha. Farm average size: 40 ha
450 000
400 000
350 000
Small-scale farmers (ex Rural Development Programme): 40 000
50 000
Micro-scale schemes, gardens and community plots: 150 000 (estimate)
50 000
Source: Department of Agriculture, 1998; Food and Agriculture Organisation, 1995
Irrigation consumes 10.7 x 109 m3 of water each year, 54 percent of currently usable water resources.
Irrigated land contributes 25 to 30 percent of commercial agricultural production, ranging from 10 percent
for maize, 30 percent for wheat, and 90 percent for vegetable, grape, citrus and deciduous fruit production
for local and export markets. No information is currently available on the production of staple food crops
under irrigation for household consumption (Food and Agriculture Organisation, 2000).
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123
Conclusion
South Africa is generally well-endowed with water resources infrastructure and has plans to maintain a good
level of investment and improved management of the scarce resource. Due to the dispersed and decentralised
nature of municipal water services, substantive data is scarce on the condition of infrastructure assets, but the
indications are that they are not in good shape outside the metropolitan and other large urban areas.
Information and Communications Technology (ICT)
Introduction
This chapter provides a logical and visual overview of the ICT sector, indicating the place and size of stock by
sector and sub-sector. Tables, figures, graphs and commentary explain the age, condition and ownership of
these investments.
The most prominent ICT branches are investigated in terms of the current ICT infrastructure situation in
South Africa. Information is not readily available for all branches, and specifically not always for the same
years for the purpose of comparison. The latest available data compiled by Technoscene (Botha, 2005) was
used in this overview.
Two highly significant factors make the state of ICT infrastructure, and especially its condition and age,
very different from the state of transport, water, and even energy, infrastructure. These apply to South
Africa probably more than to much of the rest of the world.
The first factor is that delivery is mostly driven by the private sector, and customers demand a service
that is, at the very least, of a reliable standard and continuously available. The organisations that supply the
service and own the infrastructure are aware that, if they do not deliver, their customers will seek alternative
options if these are available (fixed line telephone operation being a notable sector where there is as yet
no competition), or will reduce their use of that service (less revenue accruing to the supplier). Suppliers are
therefore strongly motivated to keep their infrastructure in good condition.
The second factor is that the pace of technology transformation is rapid. In effect, the infrastructure
gets little chance to wear out, because the installed technology becomes obsolete within a few years, or
the capacity of the infrastructure is overwhelmed by increasing demand. In either event, the infrastructure
is generally replaced.
ICT differs from transport, energy and water in that there is little reference to the condition of the
infrastructure, simply because the infrastructure that is not performing is quickly repaired or replaced.
There is also little reference to infrastructure age as it is not worthwhile for the industry to collect such
statistics. An exception may be where the basic infrastructure components remain but have been upgraded
many times in order to keep up with technology transformation (e.g. satellite tracking infrastructure). In
the case of PCs, age is not an issue because the real price of equivalent PC capacity has declined so fast over
the years, and there is only a weak second-hand market. This has been especially significant during the past
two years with the strength of the rand and the declining real cost of a PC.
In this section therefore, statistics are rather presented as historical and projected growth of the volume
and capacity of infrastructure and the numbers of installations. If necessary, readers can infer infrastructure
age from this information, and from the rapid turnover of infrastructure.
Information Technology
Information technology investment (excluding communication technology) is discussed in terms of market
size, indicating annual investment in infrastructure. The total installed base could be viewed as being three to
five times the annual market, since this is a typical time slot for the replacement of IT hardware and software
according to the depreciation models used by most organisations.
Total spending in the South African IT industry is expected to reach R49 billion in 2005, mostly accounted
for by financial services, retail companies and government spending. It is projected to grow to R65 billion in
2009 (Walker, 2005). The South African IT market ranks 20th in the world in overall market size, and 8th in IT
spending as a proportion of GDP (Botha, 2005).
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THE DBSA INFRASTRUCTURE BAROMETER
South African IT Market in Terms of Hardware, Software and Services
Market growth to 2009 can be estimated by applying a compound annual growth rate (CAGR) of 7.5 percent
to the expected market size quoted for 2005.
The split in investment between hardware, software and services is based on the average real split for IT
market data in 2000 and 2001 (BMI-TechKnowledge, 2002). The split in the sub-market sectors – hardware
(43 percent), software (19 percent) and services (38 percent) - is graphically illustrated in Figure 36.
Figure 36: Composition of the South African IT market sub-sectors (percent)
Expenditure on services is forecast to grow fastest (12 percent), followed by software (10 percent) and
then hardware (5 percent) (BMI-TechKnowledge, 2005b). The effect of this growth on the infrastructure
value of the IT market sub-sectors is shown graphically in Figure 37.
Figure 37: Expected growth in South African IT market sub-sectors, 2004 – 2009
Software Spending Categories
According to a market forecast for 2006, undertaken in 2002, the split in software spending is as given in
Table 28 (BMI-TechKnowledge, 2002). It lists the main types of software which are systems infrastructure
software (including operating systems and networking software), application development and deployment
software (including programming language software) and application software (including office suites,
project management software, financial software, enterprise planning software, etc).
Table 28: Software spending categories
Software category
Percent
Systems infrastructure software
47.1
Application development and deployment software
25.4
Application software
27.5
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125
IT Infrastructure Spending by Economic Sector
The IT spend by economic sector is given in Figure 38 and covers government, telecommunications, retail,
wholesale, manufacturing, insurance and banking and financial services sectors. Spending by the financial
services (26 percent) and manufacturing (26 percent) sectors in 2002 was responsible for more than half of
total expenditure (BMI-TechKnowledge, 2004).
Figure 38: Distribution of IT expenditure by economic sector (percent)
According to Bryden (2005):
“The public sector IT market is seen by most vendors as an attractive market since it is large and
is characterised by extensive projects. It is also not as influenced by international fluctuations and other
economic changes as the commercial sector. It is, however, a difficult market that is strongly influenced by
political decision-making.”
Computers
Personal Computers (PC)
PC annual sales in South Africa are almost 1.2 million units, showing year-on-year growth of 34.2 percent.
Growth in monetary value is somewhat less, because the lower price of imported hardware has capped
revenue growth at 24 percent, with an overall value of R9.3 billion (Botha, 2005). A summary of PC sales for
2004 is given in Table 29.
Table 29: PCs sold in South Africa in 2004
Number of PCs sold
Investment in PCs
1 170 404
R9.372 billion
Corporate refresh cycles are typically four years, and IT investment has become part of a more positive
strategic process rather than a necessary process governed by the age of infrastructure. Most of the PCs sold
are still of the desktop type (77 percent), but mobile PCs are gaining market share (20 percent), the balance
being servers (3 percent) (Botha, 2005).
Networks
Computer network infrastructure consists of routers and switches and network connectors, mostly in the
form of cable. The backbones of the infrastructure are optical fibre in wide area networks (WAN) and copper
twisted pair in Local Area Networks (LAN). The new trend is towards wireless networking which could be
fixed line wireless where the data is conducted via an optical fibre, or copper line and then distributed
wirelessly via a wireless modem in a working environment (WLAN). Alternatively, data transmission could
be accommodated over long-range wireless networking as in third generation (3G) wireless that was first
introduced into South Africa at the end of 2004.
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THE DBSA INFRASTRUCTURE BAROMETER
The move to third-generation wireless
The cost of making a call
technology will build upon the numerous
Research published by the South Africa Foundation (2005) highlights
benefits of 2.5G wireless. 3G will also add
the discrepancy between South Africa and other comparable
streaming audio and video capabilities to
countries in terms of telecommunications costs. For example, the
wireless networks. Wireless networking can
cost of ADSL in South Africa is 139 percent more expensive than
the average price out of the 15 countries surveyed. Local call costs
increase efficiencies in just about any industry(peak) are 199 percent more expensive than the average price of all
specific market. The infrastructure is in place but
the countries surveyed. The supply of fixed line telephony is skewed
needs to be upgraded for 3G. The real advances
towards the business sector and the wealthy residential sector.
are likely to be in the software and hardware
The report found that there were clear indications that “Telkom’s
spaces.
pricing structure is excessive and that some sort of intervention
in the market may therefore be appropriate” (SA Foundation
Wireless availability of mobile office
2005. p.15). Gillwald (2005) indicates that the stalling of the
applications (e.g. e-mail, web access, messaging
second national fixed line operator and the de facto continuation
and intranet applications) will not only free
of Telkom’s monopoly is cause for concern. Local call prices have
staff to work away from their desks and
nearly doubled since the privatisation of Telkom despite significant
introduce a higher level of telecommuting, but
efficiency gains.
The SA Foundation research indicates that a few steps can
there are also very few robust, full-function
be taken to reduce the phone bills of most subscribers by up to
programmes available for wireless use. The
30 percent. Telkom should abolish minimum charges for phone
full promise of wireless networking will not
calls and charge fixed-to-mobile calls on a per second basis.
be fulfilled until there are powerful industryMinimum charges and per minute billing artificially inflate the
specific applications that can run on mobile
price by 10–20 percent. Also, implement regulations that require
the interconnection fee charged by the two largest mobile
systems.
phone companies to be priced at cost. Reducing the cost of
Mobile devices are the other weak link in
interconnection could take another 10-15 percent off the average
the wireless information chain. Personal digital
Telkom bill. Lastly, require Telkom to offer a residential tariff plan
assistants (PDA) and cell phones with data
comprising a flat monthly fee and free local calls, as is the case in
handling capacity cost about half as much to
many other countries. Dial-up internet subscribers, who make local
phone calls to internet service providers (ISPs), will benefit most
purchase and maintain as notebook PCs, and
from this change.
their convenience makes them far more likely
Source: Gillwald, 2005; SA Foundation, 2005
to be actually used in the field. High demand
coupled with recent advances in full-colour
displays and user interfaces means that PDAs and other mobile devices will continue to improve and
evolve. As laptops are now becoming available with embedded WLAN adapters, their ease of use will also
improve.
If 3G and later variations deliver on their promises, the future for mobile and wireless technologies will
be secured. It is possible that the time will come when all networks are wireless, replacing the hard-wired
networks which are the current standard.
It is expected that there will be 500 000 wireless LAN-capable PCs in South Africa by 2007; of these,
250 000 will be enabled. The leading market sectors that will use mobile data include banking, retail/wholesale,
communications, media, entertainment, security, education, private healthcare, business and legal services.
The Internet
The Internet comprises intranets, extranets, websites, e-mail and file transfer protocol. The value of the South
African Internet market was estimated at R2.5 billion in 2003, up by 9 percent from 2002. Telkom earned an
additional R820 million from Internet services in 2003, bringing the total investment in Internet usage to
R3.3 billion (BMI-TechKnowledge, 2004).
First-tier Internet Service Providers (ISP) are wholesale resellers of bandwidth, while second-tier ISPs
purchase international, and sometimes local, bandwidth from the first-tier ISPs. Internet services are supported
by an Internet backbone which consists of international and national links. The services are then provided by
ISPs and Value Added Network Suppliers (VANS). The services include connectivity between the end-user and
the backbone, and e-mail and website hosting. There were 200 ISPs and 124 VANS in South Africa in 2003.
The major impact on Internet use has been ADSL (Asynchronous Digital Service Line) services offered by
Telkom and fixed line wireless (MyWireless) provided by Sentech as broadband digital access channels. These
access technologies are popular for home and small business use, whilst ISDN and leased line are still popular
for business. ADSL lines cannot be used for website hosting, since dynamic rather than fixed domain numbering
allocation is used. The roll-out of wireless networking takes place as public and private access points, or
PART I CHAPTER 3
127
“hotspots”. Wireless LAN is referred to as WiFi (Wireless Fidelity). The estimated number of hotspots was 130 at
the end of 2003, but is increasing fast, with hotels, airports and coffee shops offering them to their clients.
The last three years have seen a dramatic slowdown in Internet access growth in South Africa. Growth
in Internet access in 2002 was about 7 percent, the slowest since the Internet became available to the South
African public in 1993, and the first time it had been below 20 percent. In 2003, growth was set to be only
6 percent, with 3.28 million South Africans having access to the Internet by the end of that year. This is only
1 in every 13 South Africans, marginally better than the 1 in 15 at the end of 2001. Growth in overall subscriber
numbers will initially be the main source of overall bandwidth demand growth, although in South Africa,
broadband penetration is now the major driver.
In a survey of small, medium and micro enterprise (SMME) usage of the Internet, almost half the SMMEs
surveyed reported e-mail as their primary use of the Internet, while a third cited banking as their primary
online activity.
On-line banking reached the 1 million mark in South Africa for the first time at the end of 2003. This
means that the number of on-line bank accounts in South Africa grew by 28 percent and the number was
expected to increase further, by more than 30 percent, during 2004 (Botha, 2005).
Communication Technology
Communication technology comprises fixed line and mobile communications for voice and data, as well as
radio, television and satellite. Convergence has brought digital satellite TV into the residential domain as
both an interactive and a data medium.
Fixed Line
Both voice and data services are available by fixed line. The major fixed line providers in South Africa
include Telkom (which holds 99 percent of the market), ESKOM and Transtel. The market share in fixed line
infrastructure by these major service providers over the period 1998 through 2004 is shown in Table 30 and
the capital investment by Telkom is given in Table 31.
Table 30: Fixed line service providers and their installed infrastructure base in South Africa, 1998 - 2004
Fixed line
service
provider
1998
1999
2000
2001
2002
2003
2004
Source
‘000s of fixed access lines
Telkom
4 645
5 075
5 493
4 926
4 924
4 884
4 821
Telkom Prospectus, 2003
BMI-T Telecommunications
Handbook, 2004
ESKOM
-
-
-
-
-
-
30
BMI-T Telecommunications
Handbook, 2004
Transtel
-
-
-
-
52
43.5
43
BMI-T Telecommunications
Handbook, 2004
4 645
5 075
5 493
4 926
4 976
4 927.5
4 894
Total
Table 31: Total fixed line capital expenditure by Telkom, 1998 - 2004
1998
1999
2000
2001
2002
2003
2004
Source
Rand, million
Total fixed line
capitalexpenditure
128
6 513
11 457
8 468
8 297
6 962
4 013
THE DBSA INFRASTRUCTURE BAROMETER
3 862
Telkom Prospectus, 2003
The growth in the fixed-line telecommunications market (earnings from data and voice services) has
been primarily due to increased fixed-line usage by Telkom’s global and corporate customer segment,
increased Internet traffic and the introduction of new value-added voice and data products and prepaid
fixed-line services. Telkom’s introduction of prepaid fixed-line services was the first prepaid fixed-line
service in the world to be made available to customers.
Long-term growth is expected to continue to be driven by increased Internet use, increased use of data
services and the development and adoption of new data products and services. Growth, however, may
level off due to a significant decrease in the roll-out of new fixed access lines, and the continued migration
of users from fixed-line services to mobile services (Botha, 2005).
Projections of Investment in Fixed Line in South Africa
The cumulative investment in fixed line infrastructure in South Africa is indicated in Table 32.
Table 32: Projection of fixed line infrastructure investment, 2004 - 2009
Fixed line investment in South Africa (R billion)
2004
Cumulative
investment
Capex per
annum
5.000
2005
2006
2007
2008
2009
5.109
5.192
5.252
5.293
5.318
0.109
0.083
0.060
0.041
0.025
CAGR
(%)
1
Source: Hurst, 2005
A slowdown in capital expenditure per annum is expected in fixed line infrastructure and is related to the
decline in the number of fixed-line subscribers.
The other fixed line providers, ESKOM and Transtel, will both form part of the second national operator (SNO).
Fixed Line International Connectivity
Telkom offers international connectivity from two international switching centres to terrestrial, satellite and
submarine cable routes. The satellite earth station is situated at Hartebeeshoek, west of Tshwane. Further
international connectivity has been provided with the deployment of very small aperture terminals and other
satellite transmitters located at global and corporate customer premises throughout the country.
A submarine cable system, SAT-3, connects Cape Town with Europe, Western Africa and the Far East. Telkom
is the largest capacity owner on SAT-3, with the right to use approximately 65 percent of the combined capacity.
Consistent with its strategy of increasing international carrier traffic on its network, Telkom has invested
approximately $85 million in submarine cable systems that provide fibre optic connectivity between South
Africa and international destinations. The cable systems utilise the latest technology available in order
to provide improved high-speed voice, data, video and other on-demand high-bandwidth services. These
systems have increased fibre optic bandwidth between Europe and Africa significantly.
A major concern of the fixed line operators in terms of being able to offer competitive and new services
has been access to affordable international connectivity. Local Internet exchanges are being implemented,
bringing local traffic back home, and a regional exchange which will eventually offer pan-African peering is
on the cards. At the same time, the shift from voice to data traffic continues unabated, and the regulatory
issues surrounding Voice over Internet Protocol (VoIP) are becoming more urgent.
Data Services
The data services sub-sector is diverse and structured with numerous licensed operators catering for a
considerable corporate market, comprising mining, financial and service-oriented industries. This market is
expected to reach R18 billion per annum during 2005, showing a compounded annual growth rate (CAGR) of
27 percent. With the eventual entry of a second national operator, data and Internet services are set to grow,
PART I CHAPTER 3
129
with long-term growth prospects lying in broadband access. Sweeping liberalisation measures announced in
September 2004, effective from February 2005, include the legalisation of VoIP, which is set to change the
country’s telecommunications landscape fundamentally.
Mobile Infrastructure
South Africa currently has about 22 million mobile subscribers (BMI-TechKnowledge, 2005b). By 2009, this
could increase to some 30 to 35 million subscribers, if gross subscriber numbers are included. The cumulative
investment in mobile infrastructure by the three cellular operators in South Africa is given in Figure 39. A
CAGR of 8 percent is evident.
Figure 39: Cumulative investment in mobile telephony infrastructure in South Africa, 2000 – 2009
Mobile Voice Compared to Data
The mobile data applications with the highest growth include financial services and related sectors, and
involve mobile operators, Wireless Application Service Providers (WASP) and content service providers. Mobile
data applications in the financial sector include CRM (customer relationship management), collaboration and
banking. Total mobile operator data revenue was R2.1 billion, 4.8 percent of revenue, in 2004.
Consumer applications still largely drive the mobile data market, especially the youth market. This
highlights opportunities for growth in certain types of early adopter applications that may be considered in
financial services and other related sectors (BMI-TechKnowledge, 2005b).
Third Generation (3G) cellular technology involves super-fast networks and provides an Internet connection
that continuously links the user through the mobile phone to global communications infrastructure. Both
Vodacom and MTN started to introduce 3G mobility in South Africa from 2004. This technology requires an
upgrade in infrastructure. Siemens is supplying Vodacom for the building of its South African 3G network
and will upgrade the existing GSM and GPRS network nationwide with 3G radio equipment and switches
(Botha, 2005).
Vodacom launched 3G in 2004 (its total subscriber base is estimated at 14 million users) and is hoping to
sign up 100 000 3G subscribers by the end of 2005. BMI-TechKnowledge (2005b) anticipates that the increased
availability of 3G handsets will accelerate adoption of this new technology. 3G has been pitched as a data
card that enables mobile Internet access from a notebook PC. Vodacom is rolling out an initial 470 3G base
stations at a cost of about R400 million and, by the end of 2004, had 3G services available in high-data-usage
metropolitan areas, such as Cape Town, Johannesburg, Pretoria, Port Elizabeth and Durban, as well as some
coastal holiday destinations (Mossel Bay, George, Plettenberg Bay and Hermanus).
MTN predicts that 10 percent of the population on the African continent will own a 3G handset by 2010,
with the greatest number of users per capita in South Africa. MTN is rolling out 3G in 2005 and has invested
more than R19.2 million in the testing of its 3G infrastructure.
Other Issues Affecting Fixed Line and Mobile Infrastructure
Under-Serviced Licences
According to BMI-TechKnowledge (2005b), some 21 of the 27 areas being nominated for under-serviced
licences (USAL) are to be licensed during 2005. USAL licences provide fast-track telecommunication services
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THE DBSA INFRASTRUCTURE BAROMETER
to areas that have traditionally been underserviced. This constitutes about 38 percent of the population
and 20 percent of the economic buying power. This licensing will have a huge effect on market size for
the incumbent and new telecommunications operators. The combined 27 designated USAL areas constitute
21.4 million of 44.8 million people, roughly 45 percent of the South African population.
SME Communications Technology Market
Small- and medium-sized enterprises in South Africa spent R32.7 billion on telecommunications in 2003. This
expenditure is expected to grow to R43.2 billion by 2007 (Botha, 2005).
Expenditure by sector shows that the retail and wholesale industry is expected to grow by R4 billion,
to reach R16.6 billion by 2008, while the financial, business and legal services sector is expected to grow by
R2 billion, to reach R7.3 billion over the next four years.
Satellite
There are 48 satellites with coverage over Africa, and these can be accessed to provide international and
national voice calls, broadcasting, data and Internet services. Africa’s vast inaccessible terrain and insufficient
energy infrastructure makes it difficult and costly to roll out fixed wire-line networks and fibre optic links in
the heartland areas. Low-cost satellite-based Internet therefore responds to the access crisis in the region,
and provides a potentially affordable opportunity for connectivity.
The satellite infrastructure situation in South Africa is estimated for GEO Commercial and Military Satellite
bandwidth usage, and cost and infrastructure investment as of 2005. This is shown in Table 33 (note that LEO
and MEO – e.g. Iridium and Thuraya - are not included). The earth segment infrastructure includes uplink
dishes, NMS equipment and terminals.
Table 33: South Africa’s satellite infrastructure
Organisation
Telkom
Sentech
Multichoice
(broadcast)
Others,
including
military
TOTAL
C-Band &
Ku-Band:
Bandwidth
(MHz)
540
180
Bandwidth
cost
(R million
per
annum)
107
53
Earth-segment
infrastructure
(R million)
Age of stock
Earth station reception
and transmission only
– no downstream
infrastructure included
Generations of technology, when
built, installed, duration of link via
service provider
Condition of stock
(replacement in
number of years)
389
First generation 40 years old.
Modernised and upgraded on
regular basis. Satellite links are
continuous with renewed satellites
provided by Intelsat and PANAMSAT.
Reasonable condition.
More than 10 years
before significant
renewals of groundbased stock is required.
202
VPN transmissions started 1992.
1993: Analog DTH–TV. IP satellite
links are continuous with renewed
satellites provided by PANAMSAT
and Intelsat.
Good. More than 20
years of life remaining.
Good. More than 20
years of life remaining.
Very Good. More than 25
years of life remaining.
324
119
59
Transmissions started 1994.
Equipment continuously upgraded
and renewed. Satellite links are
continuous with renewed
satellites provided by PANAMSAT
and Eutelsat.
97
28
64
Less than 2-3 years. Modern.
1 196
322
795
More than half of the satellite earth stations and other satellite infrastructure are located in Gauteng, about
one-third in the Western Cape, and the balance in KwaZulu-Natal.
PART I CHAPTER 3
131
Convergence
Many of the infrastructure issues in ICT are driven by convergence of the two technologies, IT and
communications, and the fact that voice, data, image and sound are all handled in a multi-media environment.
A few drivers for ICT infrastructure are discussed here, although it should be kept in mind that convergencebased services make use of the infrastructure already discussed and the data for such infrastructure is covered
in previous sections of the report.
VoIP
Probably the most dynamic driver following deregulation of the telecommunications industry is Voice
over Internet Protocol (VoIP). Voice can be transmitted over always-on data lines at no additional cost. The
integration of voice and IT makes it possible to use multi-media solutions such as videophones and to capture
voice files as a record of verbal transactions. This feature is already available through computer-telephony
integration switching as used in call centres.
Voice communications using Internet standards will be a fast-growing technology application among
South African corporations. Over and above the third that already use the technology, up to 50 percent of
corporations indicate their intention to use VoIP for the first time, with a dramatic uptake expected in 2005
(Botha, 2005). While the Internet Protocol can dramatically reduce cost, it is allowed for VANs and PTNs and
may not break out into the national telephone network, thus consumers who need cheaper access may not
necessarily benefit.
E-Government
Defined broadly, e-government uses Internet-driven technology to promote more efficient and effective
public administration, to provide access to information and to make government more accountable to
citizens. Essentially it embraces three areas:
• e-Administration (G2G): Projects that harness technology to improve government’s administration processes
and its ability to work efficiently by cutting costs, making better connections between civil servants and
departments, and empowering them to work smartly.
• e-Citizens (G2C): Initiatives that connect citizens and improve the relationship between government and
its people by improving the way government delivers public services to its citizens.
• e-Society (G2B): Building better interactions with broader society by leveraging technology to work more
closely with business, to procure government supplies more cheaply, to develop more efficient supply
chains, and to build partnerships with communities and third parties.
Flagship projects for the implementation of e-Government include:
• Government Gateway. Call-centre access to government information about life events.
• HANIS. The Department of Home Affairs’ national identification system which will convert 40 million
paper identity records to digital format (smart cards).
• SARS and its corporate partners will enable citizens and businesses to engage and transact with it online.
• DeedsWeb offers a web-based interface to the property Deeds Registration System (DRS).
• e-Justice has implemented new court processes, an electronic content management system in courtrooms
and shared information portals.
• A new National Traffic Information System houses vehicle registrations and drivers licence data and
manages the registration and licensing of vehicles.
National policies and approaches to e-government need to be replicated at provincial and local
government levels.
E-Commerce
E-Commerce entails business-to-business (B2B) and business-to-consumer (B2C) transactions, the latter often
termed e-tailing or e-retailing. The e-commerce retail (or e-tail) market is dominated by the top eight online
retailers who, between them, account for about 80 percent of all online retail sales in South Africa.
Online sales by retailers, excluding property, cars and travel, increased by 35 percent in 2003, but the
increase slowed to about 25 percent in 2004. A value total of R341 million in online retail sales was achieved
in 2003. This is a mere 0.14 percent of the overall retail market in South Africa. Of this amount, some
R66 million of sales, or 20 percent of online retail, was recorded over the November-December holiday shopping
season. It is clear that the online retail transactions still represented only a fraction of all retail transactions.
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THE DBSA INFRASTRUCTURE BAROMETER
Call Centres
South Africa offers outsource providers a higher quality, more culturally-aligned front-office and back-office
location, where labour costs are two-thirds of their USA or UK equivalent. The number of agent positions
(AP) will increase from 38 400 in 2003 to reach 69 600 APs in 2008, a CAGR of 13 percent. The number
of call centres is set to almost double, increasing from 494 in 2003 to 939 in 2008, a CAGR of 14 percent
(Botha, 2005).
Conclusion
This section provided information on ICT infrastructure based on a simplified logical breakdown of the ICT
market. A single source containing the infrastructure information could not be located, and this represents
the most complete view to date of ICT infrastructure and its breakdown.
PART I CHAPTER 3
133
Spotlight on the Tembisa/Kempton Park Electrification Programme
The National Government recognises electrification as a key contribution to improving the capabilities and
quality of life of communities in South Africa. The national electrification programme is funded through
Eskom and municipalities, and is viewed by observers as a major success. The target set by President Mbeki
in his State of the Nation address in 2004 was that each household in South Africa would have access to
electricity by 2012.
In Tembisa, a large urban and peri-urban settlement adjacent to Kempton Park, the Ekurhuleni
Municipality was contending with a backlog in electrification, poorly-maintained electrical infrastructure,
many illegal connections, and serious overloading of its distribution networks. The illegal connections to
the electricity distribution network posed grave environmental and safety risks to the community and loss
of revenue for the municipality. Other sources of energy widely used by domestic consumers were wood,
paraffin, coal, candles, dry and car batteries, diesel and LPG.
The Tembisa/Kempton Park Electrification Programme, which commenced in 1996, sought to address
the problems by rehabilitating electrical infrastructure, developing new infrastructure, and promoting
effective service delivery and efficient revenue collection and management. The project was undertaken
as an Agence Francaise de Developpement/DBSA partnership, at a total cost of R45 million spread over five
years. Of this amount, DBSA contributed R30 million. The borrower was the then Tembisa/Kempton Park
Metropolitan Substructure of the North East Rand Transitional Metropolitan Council (DBSA, 2004).
The community was initially opposed to the initiative. Community involvement in the project was thus
a priority. A consulting company was engaged to develop a marketing strategy that was informed by a
community survey. The community was involved at all stages of the project cycle through workshops,
meetings, street shows, billboards, pamphlets and radio shows broadcasting in the three main languages
used in Tembisa.
Based on experience gained from past problems, the municipality devised new methods of installation.
For example, as overhead cables were easy to tamper with, they were substituted with underground
cabling.
To address the problem of non-payment for services, the municipality introduced a high-tech prepayment
metering system instead of conventional meters. A protective system for the meters was also provided.
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THE DBSA INFRASTRUCTURE BAROMETER
This consisted of a heavy metal cover needing a hydraulic pump to lift it, as well as an alarm linked to the
municipality when there was unauthorised entry.
Customer Care Centres were established to assist consumers with payment procedures, with buying
electricity units and difficulties arising from the use of the meters. Consumer satisfaction continues to be
regularly monitored and measured by these centres.
Approximately 345 local residents were employed during the construction phase and small businesses,
such as welding, improved local income generation. The company that provided the metering kiosks makes
a special effort to employ local people, especially those with disabilities.
Eight thousand households in Tembisa have benefited from this programme. Thanks to the availability
of electricity, the quality of life of the residents has improved. For example, electric stoves can be used
instead of coal stoves that took a long time to heat, and children can do more homework as they no longer
have to read by candle-light. Women and children have more time to themselves as they no longer have
to fetch coal and wood. Local entrepreneurs have managed to increase sales of their products and services
significantly, thanks to operational efficiencies brought about by a reliable electricity service.
Due to the meter protection system and the introduction of the pre-payment system, no theft of
electricity through meter tampering has been recorded since 2000. The municipality now collects from
users far more of the revenue due. Previously, monthly revenue collection averaged R900 000, whereas the
average revenue collected is now R6 to R7 million per month. The increase in revenue is not due only to the
project, but also efficient cost recovery, through the prepayment meters. The improved service associated
with the project has enhanced efficiency and communication with the community, and could have led to
improved confidence by the community in the municipal revenue collection system.
Surveys now show that there is a high level of satisfaction with the electricity service. High payment
levels, almost 100 percent, and general acceptance of the prepayment method are also an indication of the
success of the project.
The Tembisa/Kempton Park Electricity Department, together with Intelligent Metering Systems, won the
Residential Category of the prestigious 2002 eta Award for promoting energy efficiency. The eta awards are
sponsored by Eskom and endorsed by the Department of Minerals and Energy, and recognise people and
companies who have made significant contributions to energy efficiency.
The programme is an excellent example of the success and benefits that can accrue to communities
from the provision of electricity. It is also an illustration of how a project can improve efficiency and service
delivery by a municipality.
SPOTLIGHT ON THE TEMBISA/KEMPTON PARK ELECTRIFICATION PROGRAMME
135
Part I: Conclusion
The historical overview of the growth and development of some of South Africa’s key infrastructure
sectors indicates how the country’s infrastructure development was both dependent on such infrastructure
development and, at the same time, has facilitated economic development. The history of the energy sector
illustrates how economic development hinged on this important resource, and similarly how the development
of the mining industry facilitated the overall development (and growth) of the nation. It also shows how
South Africa’s water scarcity has dictated development, and how successive governments have expended
much legislative effort and funds on establishing water use rights and building infrastructure to manage this
scarce resource and to support irrigation. Transport was, and still is, quite literally, the country’s “arteries”,
connecting people and enabling development. While the pre-1994 period was characterised by an emphasis
on transport for economic development, the post-1994 period has been increasingly devoted to transport as
a tool for social development.
This concluding note offers a synthesis of the key characteristics and challenges facing each of the sectors,
and attempts to discuss some institutional, regulatory, maintenance and environmental dynamics that restrict
infrastructure growth and development.
Each of the four sectors selected for in-depth discussion in Part I is unique and is characterised by its own
set of issues. From Chapters 1 to 3, it is clear that transport is a complex sector with many modes (roads, rail,
ports and airports and pipeline), several delivery agents and a vast array of delivery mechanisms. While ACSA
airports and the national road network are successfully reformed and are performing well, urban and freight
rail, metropolitan public transport and the renewal and maintenance of provincial roads are areas where
delivery has generally worsened over the last 10 years.
While most forms of energy are available in all parts of the country, coal has dominated. The abundant
resources of coal have enabled South Africa to enjoy one the cheapest sources of electricity in the world.
Since 1994, the main focus of national policy has been towards improving access to energy and the provision
of an environmentally-sustainable future for South Africa.
Given the uneven distribution and high seasonality of rainfall in most parts of the country, the availability
of a reliable source of water has always been an absolute priority for all residents of South Africa. Since
1994, the entire water sector has benefited from a policy and legislative overhaul, addressing the severe
inequities of the past and producing state-of-the-art water resources management. Water services have also
been addressed and the new policies have been accompanied by massive fiscal injections to speed up the
delivery of basic services throughout the country. This sector shows considerable achievements over the last
decade (refer Chapter 4) but many challenges still remain.
It is only during the past decade that the ICT sector really gained momentum. The World Wide Web
became available in 1993, and the first cellular networks were launched in 1994. ICT differs from the other
three sectors in that it is characterised by mostly private sector (and parastatal) service delivery providers.
In addition, ICT is not constrained by physical boundaries, although it must comply with local policies. As
indicated, ICT consists of information and communication technologies, radio, TV and broadcasting, mail
services and networks. Many of the typical ICT components are rapidly converging into smaller, user-friendly
mobile devices that transform the way we work, transact and play. The arrival of high speed wireless access
and the initiation of the new submarine cable have brought about the opportunity to connect more people.
More than 90 percent of Africa depends on satellite services for connectivity.
In considering the four sectors together, we can observe a number of common constraints.
• Delivery suffers as a result of institutional and capacity constraints. In regard to transport, metropolitan
areas are the epicentres of the “first” economy. They are also the location where much of the integration
between the first (developed) and second (under-developed) economies takes place. The optimal
functioning of these areas is critically dependent on transport system efficiency, but ever-growing levels
of congestion threaten the economic sustainability of these areas. The situation is worsening, partly as
a result of the complex institutional arrangements. The national sphere is responsible for primary roads,
rail and, through the provinces, some bus subsidies; the provincial sphere for secondary roads, some bus
subsidies and minibus “taxi” regulation; and the local sphere for some bus subsidies and some local road
infrastructure. Ideally, all these components should be integrated and devolved to Transport Authorities.
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THE DBSA INFRASTRUCTURE BAROMETER
The Transport Authorities (as defined in the NLTTA) are, however, slow in taking on their responsibilities
as local government delivery agents, with only eThekwini (Durban) (refer Box 2) being currently in place.
National government should provide support for the Transport Authorities, and assist metropolitan areas
to ensure that they are operational as soon as possible. This devolved responsibility should include most
infrastructure and all operational components of transport, including commuter rail, bus and minibus
“taxis”. The minibus “taxi” recapitalisation programme should also be aligned to achieve these objectives,
together with a more effectively enforced permit system.
The energy sector consists of a mix of both public and private sectors. In the public sector, there
are a small number of large and very effective public corporations (e.g. Eskom, CEF, PetroSA, Petronet),
as well as a large number of municipal electricity departments, both small and large. Many municipal
undertakings are not effective, and a process of converting the present diversified electricity distribution
system to a small number of Regional Electricity Distributors (RED) is well advanced.
Work is underway to establish the national water resources infrastructure agency to manage the future
construction and operation of dams and other infrastructure. This will still require careful structuring,
monitoring and regulation in order to ensure that the agency does not degenerate into an inefficient
parastatal. The plans to establish Catchment Management Agencies to manage water allocations
democratically will require careful attention to the capacity of those responsible for both the technical
and “political” aspects of their operations. In similar vein, those responsible for transforming Irrigation
Boards into Water User Associations will require much competence and wisdom.
• Infrastructure assets need to be maintained – is there sufficient capacity? It is clear that the quality of
provincial roads has declined over the past decade. Besides the challenge of funding, road maintenance
and rehabilitation and new road construction are hampered by a lack of necessary skills and an overly
broad mandate for delivery at provincial level. The current proposal to narrow the mandate of provinces by
devolving responsibility for rural access roads to District Councils, will partly solve this problem. However,
it will create further delivery challenges for already overstreched district councils. The establishment of
roads agencies, similar to that of Limpopo Province, could sharpen the delivery focus through enhanced
accountability, a focus on attracting and developing appropriate technical and management skills and
linking funding to performance criteria. The maintenance problem is aggravated by overloading, and
general traffic enforcement continues to remain a challenge. This is particularly true for provincial roads,
where the standard of infrastructure and maintenance is low and targeted enforcement is difficult to
achieve. While issues of accessibility dominate the public transport debate in rural areas, the quality of
rural roads and the safety of public transport operators remain the most important challenges.
Electricity operation and maintenance follow international best practice and benchmarks in some
sectors, and seem to be successful, but have lagged in several local government electricity departments
for a number of reasons. Expenditure on maintenance has been inadequate, and has resulted in increased
numbers of failures and brownouts. Much of the energy generation infrastructure is ageing and
replacement of large plants will need to commence within the next ten to twenty years. This programme
should be linked to future requirements for plants in terms of vastly improved emissions and greenhouse
gas releases. The global concern about greenhouse gas emissions and the possibility of trading greenhouse
permits create many opportunities for South Africa to invest in “clean technology”, albeit more expensive,
energy conversion facilities, including renewable energy.
The South African government has addressed the improvement of municipal water services with vigour.
While much has been achieved, the institutional challenges will be enormous over the next decade. Due to
the dispersed and decentralised nature of municipal water services, substantive data on the condition of
infrastructure assets is scarce, but the indications are that this infrastructure is not in good shape outside
the metropolitan and other large urban areas. This is largely due to the widespread lack of institutional
capacity, both technical and financial, to operate and maintain water services and to generate sufficient
revenue. The effects, such as the degeneration in effluent quality from many wastewater treatment
plants, are cause for concern. In particular, capacity problems are hampering efforts to transfer existing
rural water schemes to municipalities. Many of the smaller poorer municipalities, including some district
PART I CONCLUSION
137
municipalities, require assistance to build their capacity to operate as Water Services Authorities and
Water Service Providers. The evolution of Water Boards into regional water utilities is under discussion.
However, the management of the roll-out of water services is still seen, quite rightly, as the responsibility of
politically-accountable authorities and it will thus take time to develop. When Water Services Authorities
have matured, and they gain the competence and confidence to successfully delegate the water services
provider function to a range of organisations, there will be scope for regional water utilities – from both
public and private sectors.
A specific characteristic of the ICT sector is that, almost by definition, ICT infrastructure is continuously
renewed. Many of the infrastructure issues in ICT are driven first by the convergence (or combining) of
information and technology, and second by the fact that voice, data, image and sound are all handled
in a multi-media environment. The rapid change in the ICT environment is caused by the numerous
and different technologies that impact on infrastructure, in the sense that continuous improvement in
performance, hardware and software upgrades and capacity expansion are required.
• Regulation and efficiency. The South African rail and ports sector is characterised by some inefficiencies.
The country employs more wagons, cranes and fixed infrastructure to deliver the same output as that
delivered by operators in many developed and developing countries. In addition, fewer funds are
available for re-investment due to high cost structures and the low revenue-earning ability of Transnet.
The sharp upward shift in the proportion of freight carried by road versus rail (refer Figure 5) represents
a considerable challenge. While improved road quality between the major metropolitan centres,
economic shifts towards “just-in-time production” and greater trade by the manufacturing sector are
partly responsible for greater volumes being moved by road, this trend is also due to the poor quality
of rail infrastructure, the high cost base of Spoornet and reliability and efficiency problems. There is
some scope for levelling the playing fields between rail and road, but the use of regulatory intervention
to increase the cost base of road would be counter-productive to the economy and unlikely to shift
much freight to rail. It is vital that interventions first tackle the high cost base and the poor reliability
and inefficiency of rail and ports. While some of the problems may be immediately ameliorated by
investment, the ongoing inefficiencies will require sector structural reform, resulting in a) a clearly
defined role for the public sector, b) a critical review of where the private sector may bring efficiency,
and c) effective regulatory oversight of what will remain a natural monopoly industry. The challenge
of aligning South African ports to a hub-and-spoke strategy remains. Port restructuring, aligning each
one to particular market segments, will perhaps be made easier once the Port of Ngqura comes on
stream. Such port specialisation will naturally have knock-on implications for road and rail infrastructure
planning, which may require different product, mode and geographic orientations to support the ports
effectively.
The Department of Water Affairs is in the process of gearing up to play a regulatory role instead
of being a major implementer of schemes. This will occur in water resources and irrigation - after
formation of the proposed water resources infrastructure agency, and in water services - as all schemes
currently operated by them are transfered to municipalities and municipalities explore the range of
water services provider options. Much care and attention will be needed to ensure a balance of power
between the national water resources agency and the Catchment Management Agencies and Water
Users Associations which it will serve. For municipal water services DWAF must attain a balance between
the roles of policemen and coach, and apply the same rigour to public service providers as to private
service providers.
Challenges in the ICT sector relate to the failure to extend the roll-out of affordable fixed-line
services and the high cost of telecommunications services. This is partly due to the lack of competition
in the fixed-line sector, and the monopoly that Telkom has enjoyed since 2002 is not engendering the
best telecommunications service for South Africa. Using Eskom and Telkom infrastructure, the SNO
licence will remove Telkom’s monopoly and will bring much needed competition to the sector. A major
issue is the cost of bandwidth which is high by international standards. The cost of dial-up connectivity
is still prohibitive, not allowing subscribers to use the Internet fully and small businesses to compete
effectively. South Africa therefore differs from the rest of the world in that the demand for broadband
138
THE DBSA INFRASTRUCTURE BAROMETER
is still limited, partly due to the regulatory landscape and the lack of competition between national
carriers. Internet Service Providers are, however, driving for broadband connectivity with a view to
making the cost of doing business in South Africa more competitive.
• Environmental consequences. Investment in the energy sector has been dictated first by the demand
for the various sources of energy, and second, by the increasing global requirement to reduce emissions
and pollution and to produce clean energy products. The sector has been modernising with an extensive
increase in the use of electricity as a secondary, or refined, form of energy. This has been linked to the
government’s objective of universal access to electricity for all households by 2014 and the resulting large
electrification programme that is being undertaken by Eskom and municipalities. Since 1994, Eskom
and the municipalities have been responsible for 65 and 34 percent of electrification respectively. This
programme was initially internally funded by Eskom, but more recently has formed part of government
budgets. The energy policy calls for a diversification of energy supply in order to reduce the dominant
role of coal. The natural gas systems used by PetroSA to produce liquid fuels and the piping of gas from
Mozambique by Sasol are two initial steps in this process. In addition, government policies on energy
efficiency will lead to a decrease in existing energy demand, and the promotion of renewable energy will
support this policy of diversification.
Environment and energy use implications of transport are considerable. In urban areas these are
exacerbated by a situation of growing levels of car dependence. Public transport could be improved
through better integration, management and priority in certain high demand corridors. The difference
in externality costs between road and rail (freight) traffic is currently unknown. Rail is however likely to
exhibit lower overall externalities on the high demand corridors. Selective regulation to favour rail should
be considered, but only once rail efficiency and effectiveness improvements become evident.
Chapter 3 drew attention to the generally poor state of municipal wastewater treatment works. This is
an area of great concern since continuous poor maintenance can produce serious environmental problems
throughout the country. Municipalities must ensure that they have sufficient income and allocate the
funds to create and maintain the capacity needed to properly operate treatment plants.
PART I CONCLUSION
139
PART II
ACCESS TO INFRASTRUCTURE IN SOUTH AFRICA
CHAPTER 4
Infrastructure Service Backlogs
Chapter 4 describes household-level service
backlogs, or the lack of access by households
to selected municipal-provided services. The
services selected for in-depth analysis are:
water, sanitation, energy (mainly electricity),
telephones and transport. This chapter presents
backlog information at a provincial level. Part III
provides detailed information concerning access
to these services for each of South Africa’s 284
municipalities.
Background
South Africa celebrated 10 years of democracy in 2004. Notwithstanding
the country’s political transformation and socio-economic progress,
many problems persist. In particular, a large proportion of households
continue to lack access to basic services provision. The main purpose
of this chapter is to describe quantitatively what has happened with
regard to services provision between the years 1996 and 2001. These
dates reflect the years in which post-democracy population census
surveys were undertaken.
Introduction
Part I of this report focuses on the supply and availability of bulk infrastructure for economic purposes.
Part II addresses the demand for, availability of and consequent backlog supply in household infrastructure
and services.
The purpose of this chapter is to present a quantitative picture of the current situation with regard to
water and sanitation, energy, telephones and transport. Various sources of information have been used and
in so doing, the problems of interpretation, methodological compatibility and issues of definition need to
be noted.
The information presented (Census 1996 and 2001) compares household access to water, sanitation, energy
and telephones, as well as the mode of transport used by employed workers and scholars. Projections, based
on latest figures from the sectoral departments and information depicting estimates of a financial exercise
undertaken early in 2005 by the Department of Provincial and Local Government (DPLG) and DBSA, together
with the assistance of the Palmer Development Group (PDG), are also briefly referred to in this chapter, but
are described in more detail in Chapter 5.
The primary source of information for this chapter is Statistics South Africa: 2001 Census: Community
Profile database. However, it should be noted that, because the defining characteristics of the 1996 and 2001
census categories differed in many instances, it was not always possible to compare information. To mitigate
this problem and to facilitate a greater degree of comparability, information relating to “access to household
services” was grouped into two broad categories, namely, those “without access” and those “with access”.
The specific definitions attached to access to services for each sector are given in Table 34.
Table 34: 1996 and 2001 Census categories
Sector
Water
Service level
1996 Census category
2001 Census category
Without access to piped
water
Unspecified, other, dam/river/stream/ spring,
borehole/rainwater/tank/well,
water-carrier/tanker
Other, water vendor, river/ stream, dam/
pool/stagnant water, rainwater tank, spring,
borehole
Access to piped water
Piped water in the dwelling, piped water on
site, public tap
Piped water inside dwelling, piped water
inside yard, piped water on community stand:
distance less than 200m from dwelling, piped
water on community stand: distance greater
than 200m from dwelling
Without access
Unspecified, none, bucket latrine
None, bucket latrine
With access
Flush or chemical toilet, pit latrine
Flush toilet (connected to a sewerage system),
flush toilet (with septic tank), chemical toilet,
pit latrine with ventilation (VIP), pit latrine
without ventilation
Energy (utilising electricity
as a source of energy for
lighting purposes)
Not utilising electricity
Unspecified, other, candles, paraffin, gas
Other, candles, paraffin, gas
Utilising electricity
Electricity direct from authority, electricity
from other source
Electricity, solar
Telephone
No access or no nearby
access
Unspecified, dummy, hostel/ institution: No
telephone on premises, household: no access
to a telephone, household: at another
location not nearby
No access to a telephone, at another location:
not nearby
Access or nearby access
Household: in this dwelling/cell-phone,
household: at a neighbour nearby, household: at a public telephone nearby, household: at another location nearby, hostel/
institution: telephone on premises
Telephone in dwelling and cell-phone,
telephone in dwelling only, cell-phone only,
at a neighbour nearby, at a public telephone
nearby, at another location nearby
Sanitation
PART II CHAPTER 4
143
Nevertheless, the definitional, and thus the quantification, issues
remain. For example, adequate sanitation in the 1996 census included
chemical toilets and those households where there is sewerage
provision, while pit latrines were a separate category. It is generally
accepted that chemical toilets are rarely “adequate” and should be
phased out. Equally, a large number of pit latrines are also far from
“adequate” and, in any event, the exact number is unknown. Hence,
“access to adequate sanitation” is difficult to quantify accurately.
The information presented in this chapter has also been
supplemented with information obtained from:
• National sectoral departments, such as the Department of Water
Affairs and Forestry
• The National Electricity Regulator, and
• The annual General Household Survey by STATS SA. It should be
noted that, for this particular survey, household-level comparisons
should not be made between this report and the census reports
because of the differing data collection methodologies used.
In summary, it means that much of the information will not necessarily
correspond with that of either the DBSA or STATS SA, because different
methodologies and definitions were used in calculating the backlogs.
Box 11: Increase in access
The total number of households (including hostel
dwellers) has increased from 9.077 million in 1996 to
11.770 million in 2001, an increase of 2 693 million
households.
The number and percentage of households in
South Africa with access to services have increased
between 1996 and 2001:
• Water: Access increased from 7.2 million to
10 million households, or from 79.8% to 85.0%
of households.
• Sanitation: Access increased from 7.5 million
to 9.7 million households, or from 82.5% to
82.7% of households.
• Electricity: Access increased from 5.2 million to
8.3 million households, or from 57.5% to 70.4%
of households.
• Telephones: Access increased from 6.8 million
to 10.7 million households, or from 75.2% to
90.6% of households
Note: It is assumed that all infrastructure installed since
1994 is still operational.
Source: Development Information Unit: DBSA (Base data:
STATS SA).
Water
Nationally, the incidence of households without access to piped water has decreased from 20.2 percent in
1996 to 15 percent in 2001. However, the Eastern Cape Province recorded both the highest number and
percentage of households without access to piped water in 1996 and 2001. Conversely, the Western Cape
Province had the highest percentage of households with access to piped water, while Gauteng Province
recorded the highest number of households with piped water (Table 35 and Figures 40 and 41).
Table 35: South Africa and provinces: Households with access to piped water, 1996 and 2001
1996
Province
Total
number of
households
(demand)
Without
access
(backlog)
Number
Western Cape
2001
Total
number of
households
(demand)
With access
(available)
%
Number
%
Number
With access
(available)
%
Number
%
985 490
31 850
3.2
953 640
96.8
1 208 983
20 595
1.7
1 188 388
98.3
1 333 862
620 283
46.5
713 579
53.5
1 535 966
572 379
37.3
963 587
62.7
Northern Cape
187 596
16 710
8.9
170 886
91.1
219 981
7 249
3.3
212 732
96.7
Free State
626 339
37 610
6.0
588 729
94.0
757 261
32 201
4.3
725 060
95.7
1 665 299
561 876
33.7
1 103 423
66.3
2 200 429
570 148
25.9
1 630 281
74.1
721 652
134 149
18.6
587 503
81.4
977 950
129 724
13.3
848 226
86.7
1 967 597
79 554
4.0
1 888 043
96.0
2 836 334
68 514
2.4
2 767 820
97.6
Mpumalanga
605 110
107 886
17.8
497 224
82.2
783 003
100 826
12.9
682 177
87.1
Limpopo
984 457
241 496
24.5
742 961
75.5
1 250 363
264 823
21.2
985 540
78.8
9 077 402
1 831 414
20.2
7 245 988
79.8
11 770 270
1 766 459
15.0
10 003 811
85.0
Eastern Cape
KwaZulu-Natal
North West
Gauteng
South Africa
Source: Development Information Unit: DBSA (Base data: STATS SA)
144
Without
access
(backlog)
THE DBSA INFRASTRUCTURE BAROMETER
Figure 40: South Africa and provinces: Percentage of households without access to piped water, 1996 and 2001
1996
2001
33.7
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Figure 41: Provinces: Number of households without access to piped water, 1996 and 2001
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Census 2001 (STATS SA) recorded a national total of 3.8 million, or 32.4 percent, of households with
access to water in their dwellings. The Western Cape and Limpopo Provinces were in direct contrast, with
67.6 percent and 9.9 percent of households with water available in their dwellings respectively. In Limpopo
Province, almost a quarter (22.9 percent) had access to a communal standpipe located further than 200 metres
from the dwelling, while a further quarter (22.8 percent) accessed water from a river or stream. This
latter proportion is much higher than that found in other provinces. Only three provinces, Western Cape,
Gauteng and Northern Cape, achieved an above average rate for water accessed from within the dwelling
(Table 36 and Figure 42).
PART II CHAPTER 4
145
Table 36: South Africa and provinces: Main types of water source used by households (percent), 2001
Province
Piped
water
inside
dwelling
Piped
water
inside
yard
Community
standpipe:
distance
< 200m
from
dwelling
Community
standpipe:
distance
> 200m
from
dwelling
Borehole
Spring
Rainwater
tank
Dam/
pool/
stagnant
water
River/
stream
Water
vendor
Other
Total
Western
Cape
67.6
17.6
6.3
6.8
0.1
0.0
0.1
0.2
0.2
0.1
1.0
1 208 982
Eastern
Cape
18.1
19.3
11.9
13.4
1.7
6.6
2.3
2.0
22.8
0.3
1.6
1 535 968
Northern
Cape
40.7
41.3
7.6
7.0
0.6
0.0
0.1
0.3
1.0
0.1
1.1
219 981
Free State
23.4
47.7
13.4
11.2
0.6
0.2
0.1
0.3
0.1
0.2
2.8
757 259
KwaZuluNatal
29.9
20.9
10.2
13.1
4.1
3.3
0.8
2.0
12.5
0.8
2.5
2 200 430
North West
18.1
36.3
16.0
16.3
5.9
0.2
0.4
0.4
0.5
2.5
3.4
977 949
Gauteng
46.7
37.3
6.7
6.9
0.2
0.0
0.1
0.1
0.1
0.3
1.6
2 836 335
Mpumalanga
21.4
38.8
12.6
14.4
3.2
0.9
0.5
1.0
2.9
0.7
3.7
783 004
Limpopo
9.9
30.6
15.4
22.9
5.2
2.1
0.3
1.9
6.1
1.7
3.9
1 250 363
32.4
29.9
10.5
12.1
2.3
1.8
0.6
1.0
6.2
0.7
2.3
11 770 271
South
Africa
Source: STATISTICS SOUTH AFRICA: Census 2001: Community profile database
Figure 42: South Africa: Main types of water source used by households (percent), 2001
Source: STATISTICS SOUTH AFRICA: Census 2001: Community profile database
According to DWAF, some 92 percent of the population had access to improved water supply in 2004. This
compares very favourably with the 60 percent recorded in 1994. However, these figures reflect access to the
infrastructure provided and indicate nothing about the sustainability of the service.
Studies conducted on behalf of DBSA and DPLG by Palmer Development Group (PDG), indicated that some
74.3 percent of households had access to water in 2001. When comparing the DBSA Development Information
Unit (DIU) figure of 85 percent of households with access to piped water, and subtracting the 12.1 percent
of households with access to a public tap greater than 200m from the dwelling, the figures correlated well
146
THE DBSA INFRASTRUCTURE BAROMETER
(74.3 vs. 72.9 percent). Estimates undertaken by PDG indicated that some 18 percent of households were
without access to piped water in 2004.
Sanitation
Nationally, the percentage of households without access to sanitation decreased from 17.5 percent in 1996
to 17.3 percent in 2001. The Eastern Cape Province recorded both the highest number and percentage of
households without access to sanitation facilities in 1996 and 2001, while Gauteng Province ranked first in
terms of both number and percentage of households with access to sanitation. Seven provinces recorded a
higher percentage of households without access to sanitation in 2001 when compared with 1996. This could
be attributable to the high rate of household formation (Table 37).
Table 37: South Africa and provinces: Households with access to sanitation, 1996 and 2001
Province
1996
2001
Total number
Without access
With access
Total number
Without access
With access
of households
(backlog)
(available)
of households
(backlog)
(available)
(demand)
Western Cape
Eastern Cape
Number
%
Number
%
93 688
9.5
891 802
90.5
1 208 982
136 509
11.3
1 072 473
88.7
35.8
856 078
64.2
1 535 967
555 265
36.2
980 702
63.8
187 596
54 523
29.1
133 073
70.9
219 981
48 662
22.1
171 319
77.9
626 339
185 991
29.7
440 348
70.3
757 259
222 889
29.4
534 370
70.6
1 665 299
278 515
16.7
1 386 784
83.3
2 200 431
375 531
17.1
1 824 900
82.9
721 652
95 734
13.3
625 918
86.7
977 948
134 429
13.7
843 519
86.3
1 967 597
109 358
5.6
1 858 239
94.4
2 836 335
164 101
5.8
2 672 234
94.2
605 110
77 720
12.8
527 390
87.2
783 005
102 002
13.0
681 003
87.0
984 457
218 531
22.2
765 926
77.8
1 250 365
294 178
23.5
956 187
76.5
9 077 402
1 591 844
17.5
7 485 558
82.5
11 770 273
2 033 566
17.3
9 736 707
82.7
North West
Mpumalanga
Limpopo
South Africa
%
477 784
Free State
Gauteng
Number
985 490
Cape
Natal
%
1 333 862
Northern
KwaZulu-
Number
(demand)
Source: Development Information Unit: DBSA (Base data: STATS SA)
Figure 43: South Africa and provinces: Percentage of households without access to sanitation, 1996 and 2001
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PART II CHAPTER 4
147
Figure 44: Provinces: Number of households without access to sanitation, 1996 and 2001
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Nationally, almost half the total households (5.9 million or 49.9 percent) had access to a flush toilet
connected to a sewerage system. This was followed by a quarter of households (23.2 percent) with access to a
pit latrine. Some 13.3 percent of households indicated that they had no access to sanitation services. Gauteng
Province recorded the highest number of households with access to a flush toilet connected to a sewerage
system, while some 49.1 percent of households in Limpopo had to use a pit latrine (Table 38 and Figure 45).
Table 38: South Africa and provinces: Main types of toilet facility used by households (percent), 2001
Province
Sewerage
Flush toilet
Chemical
Pit latrine
Pit latrine
Bucket
connection
(with septic
toilet
with
without
latrine
ventilation
ventilation
tank)
None
Total
number of
households
(VIP)
Western Cape
80.7
5.6
0.3
0.8
1.3
3.7
7.6
1 208 982
Eastern Cape
30.9
2.2
2.0
5.6
23.1
5.6
30.6
1 535 967
Northern Cape
59.1
7.9
0.8
5.0
5.0
11.1
11.0
219 981
Free State
45.9
1.6
0.8
6.1
16.1
19.9
9.5
757 259
KwaZulu-Natal
39.0
3.7
5.2
8.9
26.2
1.2
15.9
2 200 431
North West
35.1
1.9
0.9
10.6
37.7
4.3
9.5
977 948
Gauteng
79.6
2.7
1.1
1.3
9.6
2.2
3.6
2 836 335
Mpumalanga
37.1
2.3
1.6
8.6
37.4
2.7
10.3
783 005
Limpopo
16.0
2.0
1.3
8.1
49.1
0.7
22.8
1 250 365
South Africa
49.9
3.0
1.9
5.6
22.3
3.9
13.3
11 770 273
Source: STATISTICS SOUTH AFRICA: Census 2001: Community profile database
148
THE DBSA INFRASTRUCTURE BAROMETER
Figure 45: South Africa: Main types of toilet used by households (percent), 2001
Source: STATISTICS SOUTH AFRICA: Census 2001: Community profile database
DWAF estimated that some 64 percent of the population had access to a basic or higher level of sanitation
in 2004, this is compared with 49 percent in 1994.
PDG indicated that the percentage of households with access to sanitation was 60.2 percent in 2001.
The Development Information Unit (DIU) figure of 82.7 percent (indicating adequate access) included the
percentage of households using a pit latrine. By subtracting the 22.3 percent of households using pit latrines
from the DIU figure, the DIU and PDG information are almost equal in terms of the percentage of households
with adequate access to sanitation (60.4 vs. 60.2 percent). PDG estimated that the percentage of households
without access to sanitation has decreased from 39.8 percent in 2001 to 31.7 percent in 2004.
Energy
Households in various parts of the country use different sources of energy. This is primarily determined by
the availability and cost of the energy, tradition and the availability of appliances. Paraffin and candles are
generally available through the commercial retail sector in all parts of the country. In some areas, liquefied
petroleum gas (LPG), coal and firewood are available as commercial products. In some places, firewood is
collected locally as a free good. Electricity is the generally preferred form of energy because of its ease
and convenience of use, cleanliness at the point of use and ability to power modern convenience and
communications technologies such as kitchen appliances, televisions and computers. Extensive efforts have
been made over the last ten years to supply electricity to the maximum number of households within the
prevailing budgetary and other constraints.
Nationally, households not using electricity as an energy source for lighting decreased from 42.3 percent in
1996 to 29.6 percent in 2001. The Eastern Cape Province recorded the highest number and highest percentage
of households not using electricity both in 1996 and 2001, while the Western Cape Province ranked best in
terms of the percentage of households using electricity as an energy source (Table 39 and Figures 46 and 47).
PART II CHAPTER 4
149
Table 39: South Africa and provinces: Households not using electricity as an energy source for lighting, 1996 and 2001
Province
1996
Total
number of
households
(demand)
2001
Not utilising
electricity (backlog)
%
Number
%
839 744
85.2
1 208 981
142 895
11.8
1 066 086
88.2
1 333 862
910 388
68.3
423 474
31.7
1 535 969
768 075
50.0
767 894
50.0
Northern
Cape
187 596
55 051
29.3
132 545
70.7
219 981
49 138
22.3
170 843
77.7
Free State
626 339
268 292
42.8
358 047
57.2
757 259
188 427
24.9
568 832
75.1
KwaZuluNatal
1 665 299
772 851
46.4
892 448
53.6
2 200 431
828 289
37.6
1 372 142
62.4
721 652
403 278
55.9
318 374
44.1
977 948
280 080
28.6
697 868
71.4
Gauteng
%
Number
Utilising electricity
(available)
14.8
North West
Number
Not utilising
electricity (backlog)
145 746
Eastern Cape
%
Total
number of
households
(demand)
985 490
Western Cape
Number
Utilising electricity
(available)
1 967 597
402 386
20.5
1 565 211
79.5
2 836 336
532 046
18.8
2 304 290
81.2
Mpumalanga
605 110
262 519
43.4
342 591
56.6
783 004
246 075
31.4
536 929
68.6
Limpopo
984 457
623 519
63.3
360 938
36.7
1 250 363
446 523
35.7
803 840
64.3
9 077 402
3 844 030
42.3
5 233 372
57.7
11 770 272
3 481 548
29.6
8 288 724
70.4
South Africa
Source: Development Information Unit: DBSA (Base data: STATS SA)
Figure 46: South Africa and provinces: Percentage of households not using electricity as an energy source for lighting, 1996 and 2001
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Figure 47: Provinces: Number of households not using electricity as an energy source for lighting, 1996 and 2001
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150
THE DBSA INFRASTRUCTURE BAROMETER
Census 2001 information indicated that, nationally and on average, some 8.3 million or 70.2 percent
of households used electricity for lighting purposes, followed by some 22.4 percent of households
that used candles. Some 2.3 million households in Gauteng Province used electricity, as compared with
169 000 households in the Northern Cape Province. The Western Cape Province recorded the highest
percentage of households (88.1 percent) using electricity, compared with slightly less than half (49.7 percent)
of households in the Eastern Cape Province. Some 756 000 (34.3 percent) of households in KwaZulu-Natal
used candles as a source of lighting (Table 40 and Figure 48).
Table 40: South Africa and provinces: Main types of energy source used by households for lighting (percent), 2001
Province
Electricity
LPG
Paraffin
Candles
Solar
Total number
Other
of households
Western Cape
88.1
0.3
7.0
4.4
0.1
0.1
1 208 982
Eastern Cape
49.7
0.3
23.3
25.9
0.3
0.5
1 535 968
Northern Cape
76.7
0.2
3.8
17.7
1.0
0.6
219 981
Free State
74.8
0.2
4.6
19.9
0.3
0.2
757 259
KwaZulu-Natal
62.1
0.4
2.5
34.3
0.2
0.4
2 200 430
North West
71.2
0.1
2.9
25.4
0.1
0.2
977 949
Gauteng
81.1
0.3
2.8
15.6
0.1
0.1
2 836 335
Mpumalanga
68.4
0.3
4.2
26.6
0.2
0.4
783 004
Limpopo
64.0
0.2
7.4
27.6
0.3
0.5
1 250 363
South Africa
70.2
0.3
6.6
22.4
0.2
0.3
11 770 271
Source: STATISTICS SOUTH AFRICA: Census 2001: Community profile database
Figure 48: South Africa: Main energy sources used by households for lighting (percent), 2001
Source: STATISTICS SOUTH AFRICA: Census 2001: Community profile database
Electricity is a favoured source of energy for domestic lighting because both the service cost and the cost
of the lamp are low when compared with other sources of energy. Cooking and space heating consume large
quantities of energy, making them concomitantly expensive. The latter is further exacerbated by the capital
cost of the appliance. STATS SA (2003a) information highlighted that electricity was the main source of energy
that was used for lighting, cooking and space heating, with lighting being the highest percentage. The use
of paraffin for cooking was higher than for heating, while the use of wood for heating was higher than for
cooking. The use of coal, which leads to increased air pollution levels, was higher for heating purposes than
for cooking purposes. Affordability is the main constraint in the conversion to more convenient electricity.
Information contained in the National Electricity Regulator publication entitled, Lighting up South Africa,
2002, indicated that 66 percent of households in 2001 had access to electricity.
PART II CHAPTER 4
151
This figure is corroborated in the studies conducted on behalf of DBSA and the DPLG by PDG, which also
indicated that some 66 percent of households had access to electricity in 2001. This category had increased
to 72 percent in 2004.
Telephones
The percentage of households with neither direct nor reasonably easy access to telephones has decreased
from 24.8 percent in 1996 to 9.4 percent in 2001. This means that 3.8 million more households gained direct
or reasonable access to the telephone system over this period.
Notwithstanding the fact that there was an improvement in connectivity between 1996 and 2001, the
Eastern Cape Province recorded the highest number and highest percentage of households with no direct
access and no access via telephones in close proximity, both in 1996 and 2001. A similar trend is discernable
in Limpopo Province. Gauteng Province again emerges on top in terms of the percentage and number of
households with access to telephones (Table 41 and Figures 49 and 50).
Table 41: South Africa and provinces: Households with access or nearby access to telephones, 1996 and 2001
Province
1996
Total
number of
households
(demand)
Western Cape
2001
No access / no nearby access (backlog)
Number
With access or nearby access(available)
%
Number
%
Total
number of
households
(demand)
No access / no nearby access (backlog)
Number
%
With access or nearby access(available)
Number
%
985 490
44 780
4.5
940 710
95.5
1 208 983
32 550
2.7
1 176 433
97.3
1 333 862
692 709
51.9
641 153
48.1
1 535 968
309 083
20.1
1 226 885
79.9
Northern
Cape
187 596
27 910
14.9
159 686
85.1
219 980
16 206
7.4
203 774
92.6
Free State
626 339
116 818
18.7
509 521
81.3
757 259
76 694
10.1
680 565
89.9
KwaZuluNatal
1 665 299
470 871
28.3
1 194 428
71.7
2 200 430
299 188
13.6
1 901 242
86.4
721 652
199 255
27.6
522 397
72.4
977 950
95 316
9.7
882 634
90.3
1 967 597
127 108
6.5
1 840 489
93.5
2 836 336
66 881
2.4
2 769 455
97.6
605 110
130 170
21.5
474 940
78.5
783 003
64 954
8.3
718 049
91.7
984 457
437 423
44.4
547 034
55.6
1 250 363
145 040
11.6
1 105 323
88.4
9 077 402
2 247 044
24.8
6 830 358
75.2
11 770 272
1 105 912
9.4
10 664 360
90.6
Eastern Cape
North West
Gauteng
Mpumalanga
Limpopo
South Africa
Source: Development Information Unit: DBSA (Base data: STATS SA)
Figure 49: South Africa and provinces: Percentage of households with no access or no nearby access to telephones, 1996 and 2001
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152
THE DBSA INFRASTRUCTURE BAROMETER
Box 12: Interpreting telecom data
A world telecommunications/ ICT indicators meeting
took place in Geneva, Switzerland, in February 2005
to discuss the standardisation of ICT indicators. The
use of ICT indicators can be misleading, and there is
no one single standard for use worldwide. Although
the world is still a long way from agreeing on a
common set of ICT access indicators, the measuring
tool used in South Africa (telephones indicated
as a percentage of households) is internationally
acceptable. Two measures are usually adopted
- universal service and universal access. Universal
service measures individual households connected
to the public telecommunications network while
universal access generally refers to a situation where
every person has a reasonable means of access to a
public telephone. Universal access can be misleading,
especially when the undefined “nearby” measure is
used.
Example: Measuring universal service and access
Telephone Service
Mobile only:
Telephone in dwelling:
Telephone and mobile:
18.1%
10.0%
13.8%
Total with
a Service
41.9%
Other forms of Access
At a neighbour nearby:
Public phone nearby:
Another location nearby:
Another location, not nearby:
6.6%
39.0%
3.1%
3.4%
Total with
Other
Access
52.1%
No access to telephone:
6%
6%
Source: Development Information Unit: DBSA (Base data: STATS SA)
Universal
access =
94.0%
(52.1+ 41.9)
6%
100%
Total:
Figure 50: Provinces: Number of households with no access or no nearby access to
telephones, 1996 and 2001
From this example it can be concluded that total
access to telecoms infrastructure is 94%. However,
only 41.9% of households have a direct connection
to the service. This leaves over 58% whose level
of access to a service would benefit from further
investments in telecoms infrastructure.
According to Census 2001, more than 2 million (18.1 percent)
households indicated that they had access to a cell phone, while
1.8 million households (13.8 percent) had access to a cell phone as
well as a telephone in the dwelling. The majority of households,
4.6 million or 39 percent, were still dependent on a nearby public
telephone for communication purposes. The remarkable growth in
telephone connectivity is evident in that only 6 percent of households
indicated that they had no access to a phone in the 2001 Census, as
compared with 18.9 percent in 1996. This means that 94 percent had
access to a phone in the dwelling, or a mobile phone, or had access
to another phone nearby, either private or public. Almost 200 000
households in the Eastern Cape Province indicated that they had no
access to a telephone. This represents about 13 percent of households
and was the highest amongst the provinces in this category (Table
42 and Figure 51). Other provinces recording a high percentage of
households with no access to a telephone included KwaZulu-Natal
(8.6 percent), Free State (7.5 percent) and North West (6.6 percent).
Table 42: South Africa and provinces: Main types of telephone used by households (percent), 2001
Province
Western
Cape
Eastern Cape
Northern
Cape
Telephone
in dwelling
and
cell-phone
28.5
Telephone
in dwelling
only
Cell-phone
only
At a
neighbour
nearby
At a public
telephone,
nearby
At another
location
nearby
21.6
12.8
7.0
25.5
1.9
7.7
7.8
13.8
10.2
35.2
13.5
15.8
11.6
13.7
34.1
At another
location, not
nearby
No access
to a
telephone
Total
number of
households
1.1
1.6
1 208 982
5.2
7.1
13.0
1 535 968
3.8
2.3
5.0
219 981
Free State
9.8
10.4
15.0
6.6
44.0
4.1
2.7
7.5
757 259
KwaZuluNatal
13.2
10.3
15.0
9.1
35.7
3.1
5.0
8.6
2 200 430
North West
7.1
6.5
20.4
5.0
47.7
3.6
3.2
6.6
977 949
20.5
10.8
23.6
3.8
37.8
1.2
0.7
1.7
2 836 335
Mpumalanga
8.6
6.1
22.2
4.8
46.5
3.4
3.1
5.2
783 004
Limpopo
4.4
3.1
20.2
4.3
51.2
5.1
5.1
6.5
1 250 363
13.8
10.0
18.1
6.6
39.0
3.2
3.4
6.0
11 770 271
Gauteng
South Africa
Source: STATISTICS SOUTH AFRICA: Census 2001: Community profile database
PART II CHAPTER 4
153
Figure 51: South Africa: Main types of telephone used by households (percent), 2001
Source: STATISTICS SOUTH AFRICA: Census 2001: Community profile database
One reason for the increased access to telephones in Limpopo Province is undoubtedly attributable to
private sector involvement. Refer to the Spotlight on ICT at the end of Chapter 5 for an example of a private
sector activity stimulating the demand for an improved service.
Mode of Travel in Urban and Rural Areas
Information on modes of transport used by employed persons (workers) and scholars was obtained from the
STATS SA Census 2001: Community Profile database and pertains to the mode used for the longest part of
the commuting distance. It is important to note that information contained in Census 2001 is not available
separately for rural and urban areas. In order to address this shortcoming, specific categories of area type
(as contained in Census 2001) were grouped together to estimate mode of travel information for rural
and urban areas. Rural areas include the following types of settlement: sparse (10 or fewer households),
tribal settlements, farms and smallholdings. Urban areas include the following types of settlement: urban
settlements, informal settlements, recreational areas, industrial areas, institutions and hostels.
In rural areas, some 71 percent of those employed (workers) and scholars travelled by foot, as compared with
29.4 percent in urban areas. The percentage of the employed and scholars who travelled to their workplace
or school by private car in urban areas was 33 percent, while it was substantially lower (10.9 percent) in rural
areas. In urban areas, minibus “taxi” was a favoured option (21 percent) whereas this accounted for only
7.5 percent in rural areas (Tables 43 and 44, and Figures 52 and 53).
Table 43: South Africa and provinces: Mode of travel in urban areas expressed as percentage of workers and scholars, 2001
Province
On foot
By bicycle
By motorcycle
By car as
a driver
By car as a
passenger
By
minibus
“taxi”
By train
Other
Total
Western Cape
23.6
1.3
0.6
26.1
12.6
13.2
8.1
12.7
1.8
1 509 212
Eastern Cape
42.1
0.8
0.5
17.3
9.9
21.5
5.9
1.2
0.8
745 825
Northern Cape
48.6
2.6
0.4
17.7
10.3
11.2
7.3
0.2
1.6
184 400
Free State
50.6
1.5
0.5
13.6
6.6
20.2
6.3
0.3
0.5
617 553
KwaZulu-Natal
25.7
0.6
0.6
21.8
12.5
21.9
12.4
3.4
1.0
1 428 414
North West
37.4
1.8
0.4
17.2
6.9
23.1
9.7
3.0
0.5
532 726
Gauteng
22.0
1.1
0.7
27.4
8.8
25.9
6.2
7.2
0.8
3 178 326
Mpumalanga
38.8
1.4
0.7
17.3
8.9
18.4
13.5
0.3
0.8
426 377
Limpopo
42.0
1.7
0.7
21.0
11.0
15.6
7.0
0.3
0.5
212 796
South Africa
29.4
1.1
0.6
23.0
10.0
21.2
8.1
5.6
1.0
8 835 629
Source: Development Information Unit: DBSA (Base data: STATS SA)
154
By bus
THE DBSA INFRASTRUCTURE BAROMETER
Figure 52: South Africa: Mode of travel of the employed and scholars in urban areas (percent), 2001
Source: Development Information Unit: DBSA (Base data: STATS SA)
Table 44: South Africa and provinces: Mode of travel in rural areas expressed as percentage of workers and scholars, 2001
Province
On foot
By
bicycle
By
motorcycle
By car as a
driver
Western Cape
68.9
0.8
0.4
Eastern Cape
82.9
0.4
0.5
2.9
Northern Cape
64.7
1.4
0.4
11.4
Free State
79.7
0.6
0.3
5.7
KwaZulu-Natal
71.4
0.6
0.7
3.4
North West
58.4
1.2
0.3
Gauteng
51.6
1.4
0.6
Mpumalanga
64.1
1.2
0.5
Limpopo
74.9
0.8
0.4
South Africa
71.0
0.8
0.5
5.1
By car as a
passenger
8.4
9.2
By minibus
“taxi”
By
bus
By
train
2.5
5.4
0.7
4.7
5.7
1.9
10.0
1.8
4.1
4.5
6.5
6.0
8.3
5.2
4.0
13.2
22.0
9.5
7.9
4.4
7.2
4.4
5.0
5.8
Other
Total
3.7
216 550
0.4
0.4
662 439
0.1
6.2
65 676
1.7
0.2
0.8
219 369
7.5
0.7
1.4
991 612
15.6
1.7
0.4
511 741
4.2
2.0
0.9
178 193
6.0
14.5
0.3
1.9
504 632
7.1
6.2
0.3
0.9
1 042 893
7.5
7.5
0.7
1.2
4 393 105
Source: Development Information Unit: DBSA (Base data: STATS SA)
Figure 53: South Africa: Mode of travel of the employed and scholars in rural areas (percent), 2001
Source: Development Information Unit: DBSA (Base data: STATS SA)
PART II CHAPTER 4
155
The dominance of the minibus “taxi” as a public transport mode (in comparison to bus and rail) is also
clearly evident. This is particularly true in the urban areas where minibus “taxis” are second only to private
cars as the mode of choice. The dominance of private cars is particularly evident in the urban areas of the
wealthier provinces of Western Cape and Gauteng. Both provinces exceed the national average of 33 percent,
the former by 5.7 percent and the latter by 3.2 percent. In the two provinces, rail also provides an important
mode of travel for 12.7 and 7.2 percent of travellers respectively. In the provinces of KwaZulu-Natal and
Limpopo, bus services provide an important mode of travel for 12.4 and 13.5 percent of travellers respectively.
Both are more than the national average of 8.1 percent. In the case of KwaZulu-Natal Province, this pattern is a
likely consequence of the dominance of many small bus operators in Durban, while in Limpopo Province, buses
provide an important mode of transport from rural areas to the small cities and towns in the province.
Unfortunately, Census 2001 gives little insight into income, travel time, travel frequency and the needs of
urban and rural travellers. This may be answered to some extent by the forthcoming results of the National
Travel Survey undertaken by the Department of Transport, but this is not yet publicly available.
Woman stopping minibus “taxi” in Soweto township outside Johannesburg. She wants to go to Orange Farm, so she pretends to be holding an
orange. Minibus “taxis” are the most important form of public transport in South Africa.
Other Surveys
STATISTICS SA also conducts an annual national survey entitled General Household Survey (GHS). Comparisons
at household level should not be made between Census 2001 and the General Household Survey 2003 (latest
available) because of the different data collection methodologies used.
The GHS 2003 found the following:
• 86.1 percent of households had access to either piped water inside the dwelling, piped water on site, a
neighbour’s tap or a public tap
• In respect to sanitation, some 55.5 percent of households had access to a flush toilet connected to a
sewerage system (either in the dwelling, on-site or off-site)
• Electricity as an energy source for lighting purposes was used by 78.9 percent of households.
• Nearly half the households (49.6 percent) indicated that they had access to a telephone in the dwelling or
access to a cell phone.
The results are tabulated in Table 45.
156
THE DBSA INFRASTRUCTURE BAROMETER
Table 45: South Africa: Access to services, number and percentage of households, 2003
Sector
Category
Main source of energy for
lighting purposes
Electricity from mains
Electricity from generator
Gas
Paraffin
Candles
Solar energy
Other
None
Unspecified
Sanitation facility
Flush toilet connected to a public
sewerage system (in dwelling)
Flush toilet connected to a septic tank
(in dwelling)
Flush toilet connected to a public
sewerage system (on site)
Flush toilet connected to a septic tank
(on site)
Chemical toilet (on site)
Pit latrine with ventilation pipe
(on site)
Pit latrine without ventilation (on site)
Bucket toilet (on site)
Flush toilet connected to a public
sewerage system (off site)
Flush toilet connected to a septic tank
(off site)
Chemical toilet (off site)
Pit latrine with ventilation pipe
(off site)
Pit latrine without ventilation (off site)
Bucket toilet (off site)
None
Unspecified
Total
\
Total
Telephone facility
Telephone in dwelling and/or cell-phone
for regular use: Yes
Telephone in dwelling and/or cell-phone
for regular use: No
Total
Main source of water
Piped (tap) water inside dwelling
Piped (tap) water on site or in yard
Neighbours tap
Borehole on site
Rain water tank on site
Public tap
Water carrier/tanker
Borehole off-site/communal
Flowing water/stream /river
Dam/pool/stagnant water
Well
Spring
Other
Unspecified
Total
No. of households (‘000s)
%
9 866
11
0
570
2 060
17
0
0
0
78.8
0.1
0.0
4.6
16.4
0.1
0.0
0.0
0.0
12 524
100.0
4 454
35.6
180
1.4
2 407
19.2
87
39
0.7
0.3
658
2 961
233
5.3
23.6
1.9
86
0.7
0
0
0.0
0.0
37
239
28
1 119
0
0.3
1.9
0.2
8.9
0.0
12 528
100.0
5 881
46.9
6 665
53.1
12 546
100.0
4 949
3 622
332
109
51
1 899
79
313
617
91
147
304
26
0
39.5
28.9
2.6
0.9
0.4
15.1
0.6
2.5
4.9
0.7
1.2
2.4
0.2
0.0
12 539
100.0
Note: Totals will not correspond due to rounding off.
Source: STATISTICS SOUTH AFRICA: General Household Survey, 2003b
PART II CHAPTER 4
157
Conclusion
Although the number of households with access to services in all sectors increased between 1996 and 2001,
the Eastern Cape Province continued to be the worst ranked in absolute numbers in terms of access to both
basic and higher levels of service with regard to water, sanitation and telephones. KwaZulu-Natal Province
was worst ranked for the number of households not using electricity for lighting purposes. The implication
seems to be that, if electricity is not used for lighting purposes, it is because there is no access, meaning that
the backlog of electricity distribution infrastructure is highest in KwaZulu-Natal Province.
Three provinces, Eastern Cape, KwaZulu-Natal and Limpopo, recorded totals less than the national average
percentage for access to a basic level of water. Four provinces, Eastern Cape, Northern Cape, Free State and
Limpopo, recorded less than the national average percentage for access to basic sanitation. Those provinces
that recorded less than the basic percentage for households that did not use electricity as an energy source for
lighting, are the Eastern Cape, KwaZulu-Natal, Mpumalanga and Limpopo. Five provinces, the Eastern Cape,
Free State, KwaZulu-Natal, North West and Limpopo, recorded less than the national average percentage for
access to a basic level of telephone service. It is thus clear that Eastern Cape, Limpopo and KwaZulu-Natal are
the provinces where backlogs in terms of percentage access are the highest.
Taking cognisance of these backlogs, Government’s programme of action included the setting of the
following targets with respect to service delivery:
• Clean running water to all households by 2008/09
• Decent and safe sanitation for all by 2010, and
• Electricity for all by 2012/13.
Chapter 5 explains these targets in more detail.
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THE DBSA INFRASTRUCTURE BAROMETER
Spotlight on the Somerspost Water Project
Somerspost residents collecting water from a standpipe
Somerspost is near Sasolburg, the home of the Sasol industrial complex, known worldwide for its petro-chemical
processes such as the production of liquid fuel from coal. The 120 hectare farm, Somerspost, adjacent to the
old black township of Zamdela, was bought for R1.4 million for the relocation of squatter camp families
whose breadwinners worked at Sasol.
The DBSA provided loan funding for water infrastructure, consisting of a 2 km pipeline costing
R0.6 million and reticulation to 1 111 stands costing R1.4 million. Construction of the reticulation was completed
in 1995. The evaluation was done in 2004 by using the logframe approach to measure the efficiency of the
activities and outputs and the effectiveness of the outcomes and impact.
The objective of the project was:
“To contribute towards sustaining and supplementing existing urban infrastructure to enhance the quality
of life of poor communities to the degree that they are included in a process of economic empowerment
and thereby contribute productively to the economic activities of the sub-region and to physically provide a
community with the basic necessity of water where no such facility exists.”
This objective, according to the DBSA evaluation report, was met effectively and the project activities as
well as the outputs were completed efficiently. All 1 111 stands were provided with an individual connection
and a water meter.
Once construction was completed and the infrastructure commissioned, issues of “ability to pay” and
“willingness to pay” became evident. Informal representatives declared that they were too poor, that water
is “from heaven” and that they were entitled to it without payment. As a result, the payment rate for water
by residents was extremely low. At one time, up to 90 percent of the residents refused to pay, the outstanding
160
THE DBSA INFRASTRUCTURE BAROMETER
debt for water provision was the highest of all services, and the average age of debt was 30 months which
made it unlikely that it would ever be recovered.
The municipality responded by carrying out house-to-house consultations to ascertain householders’
financial positions and willingness to manage their supply. By agreement, residents who were unable to pay
were classified as “indigents”, and water restrictors were installed in the inflow pipes to their houses. The
restriction washer has a small hole in it and only allows 6 000 to 10 000 litres of water to flow through per
month. This is a little more than the free basic water allowance of 6 000 litres per month, or 200 litres per
day per household. The originally installed water meters were left for control purposes. The negative effect
of the water restrictor is that many taps are not closed, and all available buckets are used to collect the free
water that is coming slowly through the pipe. The municipality now subsidises the cost of water supplied with
a portion of the “equitable share” of national revenue transferred from central government, supplemented
by a cross-subsidy from more affluent users.
The low rate of payment and the subsequent installation of water restrictors raise the question whether
the capital costs of this project should have been financed by DBSA, and the municipality burdened with loan
repayments, or whether only a basic level of service should have been installed, possibly with flow restrictors
instead of meters. In the latter case, the municipality could have approached government for the capital
costs. Note that the availability of water eased the running of households considerably, as evidenced by
changing behavioural patterns, permitting, for instance, washing to be done on each or any day. Women no
longer have to carry water over long distances, enabing them to engage in more productive activities.
The squatters who used to live on parts of Somerspost were all relocated to the newly serviced stands.
The provision of water to Somerspost also changed the appearance of Zamdela into a more attractive and
enjoyable place to live in. In addition, small businesses that could not function without running water have
appeared.
SPOTLIGHT ON THE SOMERSPOST WATER PROJECT
161
CHAPTER 5
Modelling the Financial Implications of Municipal
Service Delivery
Introduction
What are the financial implications for municipalities in meeting service level targets? It is necessary to predict
the cost to municipalities of their meeting the national targets set for the provision of at least a basic level of
service to all households. These targets are the result of policy decisions that are made by all three spheres of
government. The prediction of costs is a complex task and involves many variables. The process can however
be undertaken by means of financial modelling. This chapter describes such a model and then uses it to
analyse a scenario involving a selected set of service target levels.
The primary purpose of financial modelling exercises such as this is to assist decision-makers on service
delivery. These decisions will include physical infrastructure, financial mechanisms (e.g. capital, operating costs,
grants and subsidies) and the institutional arrangements necessary for the planning and implementation of
infrastructure investment programmes at municipal level.
This chapter deals with the financial implications of the provision of municipal infrastructure (mainly water,
sanitation, electricity, roads and solid waste) and the general administrative costs for which municipalities
must budget. The analysis is aggregated to a national level to represent overall costs irrespective of service
provider. It thus includes non-municipal undertakings such as the Water Boards and Eskom.
However, this process should take direction from the National Spatial Development Perspective (NSDP)
which provides a framework of principles envisaged to guide investment decisions and influence national
funding allocation priorities towards the effective exploitation of socio-economic potential and the
achievement of sustainable development.
This implies that much greater circumspection must be practiced by municipalities when planning for and
deciding upon infrastructure investment. Clearly the choice of service level is a prime determinant in this process.
The Municipal Infrastructure Investment Framework
The financial model has been developed in support of the Municipal Infrastructure Investment Framework
(MIIF). This Framework, which is administered by the Department of Provincial and Local Government (DPLG),
aims to create a financial environment in South Africa in which sufficient funds are available to construct,
rehabilitate and maintain municipal infrastructure. While the MIIF focuses on the capital account, it is also
significantly concerned with sustainability. This implies that sufficient funding must be available to operate
and maintain the infrastructure that municipalities are acquiring. A key responsibility of municipalities is to
ensure the ongoing maintenance and functionality of services and amenities to residential households and
non-residential consumers (i.e. commercial, business and industrial users) within their areas of jurisdiction.
Further, good governance (and legislation) requires that municipalities or other entities providing services
within a municipal area must do so in a way that the services are affordable to both the service provider (the
municipality) and its consumers (households).
The capital cost of providing services and amenities is met from a variety of sources, including municipal
own funds, borrowings and infrastructure grants from central and provincial government and district
municipalities. Private developers also construct infrastructure, the ownership of which is usually handed to
municipalities on completion (the principal exception being private estates).
The operating and maintenance cost of infrastructure, whether developed by the public or the private
sector, is met from the aggregate of charging consumers for consumptive services (e.g. water and electricity),
assessment rates levied on property and grants from national government (e.g. the “equitable share”).
In many municipalities, the application of capital funds for projects to meet service delivery needs has been
insufficient to allow any catching up with backlogs of unserviced households, not to mention the additional
funding needed for upgrading existing services. Equally distressing is that insufficient funds have been
provided in annual budgets for repairs, maintenance and asset management which, in many municipalities,
has resulted in poor performance or the collapse of existing service levels.
Over time, municipalities have developed a variety of tariff charges, taxation methods and crosssubsidisation of funds in an attempt to balance income with expenditure. In many cases, this has distorted the
true cost of providing services, making it extremely difficult to assess affordability. Municipal accounts and
PART II CHAPTER 5
163
services should be “ring-fenced” to allow transparency and the true costing of services. This is, in fact, now
a requirement of GAMAP (Generally Accepted Municipal Accounting Practice), GRAP (Generally Recognised
Accounting Practice) and the Municipal Finance Management Act.
With the exception of the former black local authorities, which inherited vast numbers of low-income
households, the consumer profile of formerly urban – based municipalities has, since 1994, changed from a
situation in which the majority of consumers were predominantly middle/high income households (more than R3
500 per month) to one in which most municipalities now have a predominantly low-income household profile.
The causes of this shift in household profile include: increased urbanisation through migration from areas of
low economic potential to perceived areas of increased economic potential; population growth; decreased
household size leading directly to increased household formation; and more recently, municipal demarcation
which has brought all rural households under the jurisdiction of municipalities (refer Chapter 6).
Coupled with low economic growth and high unemployment, this has resulted in many municipalities
having difficulty in providing acceptable levels of service that are economically affordable both to the
municipality and to its consumers. In recognition of this major task facing municipalities, government has,
since 1994, progressively developed policies that endeavour to specify: a) what levels of service can be
realistically provided by municipalities to low-income households, and b) what degree of fi nancial assistance
can (or should) be provided to assist municipalities to undertake their functions.
The MIIF has been used as an important source of reference for defining infrastructure needs, both backlog
and future, and for the resultant estimates of funding requirements. Its primary role is to guide government’s
infrastructure planning and multi-year budgeting requirements. The MIIF initiative commenced in the early
1990s and has been successively developed by various departments and agencies, and latterly by the DPLG.
DBSA has been involved in an advisory capacity and as a co-funder. The MIIF is currently being updated
through a joint DPLG / DBSA initiative.
The original broad objectives of the MIIF have remained unchanged. These are:
• To ensure that municipalities are able to deliver the levels of service needed for health and safety
• To enable municipalities to improve existing service levels
• To suggest how municipalities might structure investment in a manner that promotes economic
development
• To encourage municipalities to locate investment in infrastructure with a view to integrating previously
disadvantaged and rural communities into the recently demarcated municipal areas.
In recent revisions of the MIIF, more attention has been given to:
• Estimating services backlogs and future demand
• Assessing the capital costs and timeframes that are involved in removing the backlogs
• Estimating the multi-year recurrent costs of operating and maintaining services
• Proposing a framework for financing the capital and recurrent costs of municipal infrastructure
programmes
• Proposing methods for enhancing the institutional ability of municipalities to ensure that services are
delivered
• Suggesting how investment in, and the management of, municipal services can be used to promote
development objectives which meet national goals and objectives.
The analysis and estimation of addressing service delivery requires the formulation of an infrastructure
investment planning strategy. This is not only important at a national level but also at provincial level and
particularly municipal level. Such strategies should be essential inputs into the technical (service levels) and
financial (multi-year budgeting) elements of municipal Integrated Development Plans (IDP).
This chapter further explains the preliminary outcome of a financial modelling exercise undertaken in
early-2005 by DPLG in partnership with the DBSA and Palmer Development Group (PDG). Its objective was
to predict for South Africa as a whole the financial impact on municipalities of addressing municipal service
delivery backlogs. To test this approach, the indicative models developed for each type of municipality were
piloted in 14 municipalities (two for each type of municipality) (refer Table 46). These 14 municipalities were
also used for the purpose of gathering input data.
This exercise is complemented by a National Treasury review of the Municipal Fiscal Framework (MFF),
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THE DBSA INFRASTRUCTURE BAROMETER
which deals with the operating account and revenue-raising mechanisms for local government.
It is anticipated that these studies will form the basis of National Government’s ongoing review and
updating of policies relating to service delivery at the municipal level. Work continues on the financial
modelling exercise as fresh data becomes available and stakeholder inputs are received.
Building a Financial Model
Elements of the Model
The National Municipal Services Finance Model, which was developed during 2004/05, is an improved version
of the series of models developed in earlier years by the Water Research Commission (WRC) and DBSA in
conjunction with government and municipal stakeholders. To reiterate, its purpose is to model the future
costs of providing services.
The model is populated by a set of selected variables. Some of these are defined as “input variables”,
and include number of existing households, service backlogs, growth estimates and service levels. Others are
defined as “output variables”, and include multi-year capital and recurrent expenditure, cross-subsidy levels
and household affordability. The purpose of modelling is to determine the effect of changes to the input
variables on the output variables over a range of scenarios.
The next section summarises current levels of access to services and of backlogs. A later section presents
service delivery targets and their rate of delivery over time. A discussion of financial issues to be provided
for in the model follows, and the penultimate section gives the results of the modelling on a national scale.
Finally, conclusions are drawn and recommendations made.
Services Included in the Model
Traditionally, the following main service functions receive the most attention:
• Water supply and sanitation, referred to as “water services”
• Electricity
• Solid waste or refuse services
• Roads and stormwater.
Two further elements of municipal expenditure can also be significant expenditure items for municipalities,
and are thus incorporated in the model:
• Public services (community facilities). The concept of service levels for public services is currently poorly
defined in South Africa. It will always remain a difficulty due to the number and variability of the
individual services which make up this broad grouping of public services. Nevertheless, the model provides
a conceptual basis for accommodating public services.
• Governance and administration. The extent to which municipalities apply effective governance,
administration, planning and development (GAPD) facilitation functions is currently poorly understood.
However, research undertaken for the current study and for the Municipal Fiscal Framework (National
Treasury) indicates the importance of understanding this grouping. In poorly-capacitated municipalities,
levels of operating expenditure on GAPD can be disproportionately high when compared with service
delivery.
The combination of these functions is aggregated to obtain an overall view of municipal finances in a
National Municipal Services Finance Model.
Types of Municipality
The ability of municipalities to implement service delivery varies according their capacity and revenue-raising
ability. The model provides for different levels of municipality, and their circumstances, to be assessed by
adopting seven types of municipality. The case studies used in the modelling exercise are given in Table 46.
PART II CHAPTER 5
165
Table 46: Municipalities used in the modelling exercise
Municipality type *
A
B1
B2
B3
Metros
Secondary cities: the 21 local municipalities with the largest
budgets
Municipalities with a large town as core
Municipalities with a relatively small population and a significant
proportion of urban population but with no large town as core
Name
Province
Johannesburg Metro
Gauteng
Cape Town Metro
Western Cape
Buffalo City
Eastern Cape
Mhlatuze
KwaZulu-Natal
Breede Valley
Western Cape
Kokstad
KwaZulu-Natal
Cederberg
Western Cape
Umzimvubu
Eastern Cape
B4
Municipalities that are mainly rural communal areas with, at
most, one or two small towns in their area
Makhudutamaga
Mnquma
Limpopo
Eastern Cape
C1
District Municipalities that are not water services providers
Cape Winelands
Western Cape
Karoo
Western Cape
Amatole
Eastern Cape
Sekhukhune
Limpopo
C2
District Municipalities that are water services providers
Note: * Although not official, these municipality types have been used in previous policy initiatives of DPLG and National Treasury.
Current Access to Services
Base Data
A major difficulty with infrastructure analysis is the availability of reliable sector information. An example is
information relating to services at household level and associated socio-economic data regarding household
affordability. Such data can be sourced from the 1996 and 2001 Census figures, but it is understood that STATS
SA will only conduct a similar survey in 2011. In addition to establishing the baseline data for households
with or without basic levels of service, statistics for other key variables were needed for modelling purposes.
These included population and household growth, settlement types and local economic development growth
estimates.
During 2004, DPLG and its consultant PDG involved all national sector departments in an attempt to achieve
some consensus on the baseline data to be used in the model. The departments included the Department
of Water Affairs and Forestry (DWAF), Department of Minerals and Energy (DME), Electricity Distribution
Industry (EDI) Holdings, Department of Transport (DOT), STATISTICS SA and the National Department of
Housing. A working consensus was achieved. However it is evident that there are marked differences across
the sectors in respect to definitions and methodology regarding service delivery. As an aside, the adoption of
a common strategy by all stakeholders involved in the delivery of municipal services would be an important
contribution to achieving the goal of affordable and sustainable services for all.
The purpose of the consultation was therefore to establish and agree on new baseline data for 2004.
This was achieved by combining 2001 census data with projections based upon latest statistics from sector
departments, while revising some of the definitions in respect to what constitutes a backlog. DWAF has
undertaken considerable work in this regard, as has EDI Holdings as part of the Regional Electricity Distributors
(RED) electricity sector planning. Information on municipal roads and solid wastes remains difficult to access.
The 2004 baseline data used in the model therefore differs in certain major respects (other than just
updating from 2001 to 2004) from the 2001 Census data, as reported in Chapter 4.
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THE DBSA INFRASTRUCTURE BAROMETER
Summary Data of Access to Services
A summary by municipality type of the current backlog in access to water, sanitation and electricity services
is given in Table 47.
Table 47: Summary of water, sanitation and electricity access to services (2004 estimates)
Municipal
category
Total
households
(millions)
Water
Services
Total
households
(millions)
Energy
Households without access to adequate
service (No in millions)
Water
supply
Sanitation
Electricity
% of households without access to
adequate service
Water
supply
Sanitation
Electricity
A
4.76
4.76
0.39
0.67
0.80
8%
14%
17%
B1
2.16
2.17
0.31
0.57
0.45
14%
26%
21%
B2
0.61
1.12
0.06
0.14
0.26
9%
22%
24%
B3
1.09
1.65
0.13
0.36
0.44
12%
33%
27%
B4
0.39
2.81
0.12
0.25
1.30
31%
65%
46%
1.27
1.99
36%
56%
2.27
3.98
18%
32%
C1
C2
3.56
All
municipalities
12.56
12.51
3.26
26%
Source: PDG
Note:
1. Based on figures received from DWAF for December 2004.
2. The figures are given by DWAF for water service authority areas (WSAs). Therefore, for example, there are no figures for C1 municipalities
(ignoring very small numbers in DMAs) and the total number of households in B4s is very low as most of the households in these local
municipality areas have the district as their WSA.
3 Figures based on DME numbers for March 2004.
4. DME reports figures by metro and LM as these are predominant as the electricity authority.
The large backlogs in the Type B and C municipalities are clearly visible in Table 47 and Figure 54.
Figure 55 depicts progress in addressing backlogs.
Figure 54: Summary of number of households without access to adequate services, 2004
PART II CHAPTER 5
167
Figure 55: Progress in addressing backlogs, 2001 - 2004
Source: PDG, 2005
Service Level Targets
Setting the Targets
Having established the baseline data, it is then necessary to set targets for the progressive provision of
services to address backlogs over time.
The advantage of a predictive model is that the parameters important to policy can be selected or changed
to assess the impact on the financial position of municipalities and the resources required from National
Government. This can be achieved by setting up different scenarios.
The financial implications of addressing backlogs require levels of service to be set for the different
affordability levels. As an extreme, one scenario would be a high level of service for all. This would usually be
totally unaffordable. At the other extreme, another scenario would be a basic level of service for all. This would
usually be affordable but not practical. A third scenario could be a compromise, using a range of service levels.
It is the compromise scenario, now referred to as the “chosen scenario”, which is described in this chapter. A
recent DPLG publication describes the range of service levels and defines a basic level of service (DPLG, 2005).
The chosen scenario uses a selection of both basic and above-basic service-level targets. The view is taken
that municipalities will, at times, choose to provide higher levels of service than basic levels, even where
this is not government policy. Municipalities will elect to do this because they bow to pressures from their
constituents, and probably for other reasons. Targets selected for the chosen scenario include:
• 35 percent of rural households to have yard connections by the end of the 10-year period
• 43 percent of the urban informal population to have some form of on-site sanitation.
The selection of these service-level targets, which are higher than the “basic” levels for which national
funding is available to municipalities, introduces additional capital and operating costs for the service
provider. This may not be affordable.
For the purpose of illustrating the use of the model, the chosen scenario incorporates:
• Current service level targets as set by National Government; these must be achieved by service providers
through multi-year infrastructure investment programmes.
• In achieving service level targets, the best approximation of what municipalities will decide in terms of
selecting service levels (basic and above-basic).
• Unit cost information available from national departments and national agencies for capital (internal and
bulk reticulation) and operating costs, including estimations of asset management costs and household
growth.
• A “poverty level” definition of R800 per month or less (to be used, for example, in determining access to free
basic services). Although higher poverty levels can be modelled (e.g. R1 100 per month), R800 per month
168
THE DBSA INFRASTRUCTURE BAROMETER
was chosen as this is used by most municipalities in their indigent policy. Increasing the poverty level, and
thus access to free basic services for a larger number of households, can have a large negative impact on
affordability.
• A level of cross-subsidisation, benefiting households with an income of R3 500 per month or less, to be
derived from higher-income households and non-residential consumers being charged up to 35 percent
more than the actual cost of the service to those customers.
Service Level Targets - Summary
The delivery targets for the chosen scenario and their rate of delivery over time are summarised for each
service type in Figure 56. In the graphs, “adequate” relates to the level(s) selected for a particular scenario,
and in this case, to the basic and above-basic service-level targets described above.
Figure 56: Service delivery targets by service type
PART II CHAPTER 5
169
Financing
Capital Expenditure
Capital budget figures for all municipalities are collected by National Treasury annually. Figures for the year
2003/04 are used in this analysis.
Municipalities budgeted to spend approximately R12 billion in 2001/02 and approximately R17 billion
in 2003/04. This indicates a rapid increase in capital budget expenditure, which is perhaps unrealistic as
municipalities typically do not attain their budgeted capital expenditure targets. A budget of R15 billion
is probably more realistic for 2004/05. Expenditure by parastatal bodies needs to be added to this figure as
follows:
• Water Boards: approximately R500 million (PDG)
• Eskom: Approximately R1.5 billion (estimated proportion of expenditure attributable to municipal-related
infrastructure) (NER).
Allowing for some growth from 2003/04 to 2004/05, it is estimated that total capital expenditure on municipal
infrastructure, including municipalities and service providers, is of the order of R18 billion per annum.
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THE DBSA INFRASTRUCTURE BAROMETER
Sources of Capital
Capital subsidies provided by the national medium-term budget are summarised in Table 48.
Table 48: Capital grant allocations in national budget (R million, nominal)
Year
MIG
CMIP
DWAF
Housing
Total
Housing
infrastructure*
grants
total
2003/04
47
2 246
1 102
1 960
5 355
2004/05
4 446
-
160
2 013
6 619
4 355
4 474
2005/06
5 694
-
139
2 135
7 968
4 745
2006/07
7 453
-
-
2 264
9 717
5 030
2007/08
8 301
-
-
2 490
10 791
5 533
Note: * “Housing infrastructure” allocation is the estimated proportion of “Housing total” spent on township infrastructure, the balance being top
structure costs, as per current policy (which may change).
Source: Grant figures - National Treasury Budget Review, 2003
Based on recent information on aggregated municipal accounts, it is estimated that, in 2003/04,
municipalities borrowed some R2.4 billion per year and used their own capital sources (including capital
development funds) of some R3.7 billion per year. It is likely that borrowing will need to increase but that
an increase in the use of internal funds is unlikely. Based on this position, capital funding available to
municipalities for the coming years has been estimated (in real terms) and is detailed in Table 49.
Table 49: Sources of capital (R million, real, constant 2003/04 prices)
Year
Capital grants
Borrowing
Own sources
Total
2003/04
5 355
2 400
3 700
11 455
2004/05
6 288
2 622
3 339
12 250
2005/06
7 191
2 865
2 855
12 911
2006/07
8 331
3 130
2 441
13 901
2007/08
9 252
3 599
2 197
15 048
Average
7 283
2 923
2 906
13 113
Split (%)
56
22
22
100
Note: Estimates of “Borrowing” and use of “Own source” funding based on 2003/04 National Treasury figures for all municipalities. “Borrowing”
and “Own source” funding escalated at 10% and -5% respectively over the next three years.
Even after adding R2 billion for funding raised by parastatals, the capital amounts indicated (Table 49)
are considerably lower than the estimated R18 billion budgeted for municipal capital expenditure in 2004/05.
This implies that municipalities are being overambitious in what they believe they can raise as capital finance,
or they are expecting to increase borrowings at a much higher rates than provided for in Table 49.
Operating Expenditure
The 2003/04 aggregated operating budget for all municipalities is approximately R68.8 billion. There is a
lack of consensus as to what constitutes adequate provision for operations and maintenance, and more
comprehensive asset management. It is probable that most current operating budgets are therefore on the
low side, as evidenced by numerous examples of service reliability problems. Operating expenditure incurred
by other non-municipal service providers needs to be included, and is estimated as follows:
• Non-municipal water services providers (source - providers’ own estimate): R1.2 billion
• Eskom (source - EDIH): R20 billion.
Operating expenditure on municipal services (including all municipal overheads) is therefore of the order
of R90 billion per year.
Operating Revenue
Based on an assessment of aggregate municipal budgets from National Treasury, municipal operating revenue
estimates are given in Table 50.
PART II CHAPTER 5
171
Table 50: Estimates of municipal operating revenue sources (R billion)
Source
2002-03 IGFR*
Model
Estimate
Split
adjusted
2003/04
(%)
Property tax
12.5
12.5
15
21.7
Water and electricity tariffs
28.0
28.0
29
42.0
-
6.0
6
8.7
RSC levies
4.4
4.4
4
5.8
Inter-governmental grants **
6.7
6.7
7
10.1
Other
10.0
4.0
8
11.6
Total
61.6
61.6
69
100.0
Other tariffs
*IGFR Inter-Governmental Fiscal Review
** Equitable share and water services operating subsidy
In order to obtain total operating revenue, the revenue received by non-municipal service providers is
added to the municipal operating revenue. This should only include retailers, that is, those receiving revenue
direct from consumers. Non-municipal operating revenues are estimated as follows:
• Water services: R1.2 billion (PDG estimate)
• Eskom: R20 billion (NER).
Total operating revenue raised for municipal services for 2003/04 is therefore of the order of R91 billion,
split into tariffs (66 percent), grants (8 percent) and other (26 percent).
It should be noted that the municipal revenue of R91 billion exceeds expenditure of R90 billion. The
surplus of R1 billion represents an estimate, probably low, of an amount that is in Eskom accounts and not
available to municipalities.
Figure 57 illustrates the different levels of expenditure and revenue raised by the various municipality
types. The Metros and Type B1 municipalities are able to raise greater revenue and are thus able to provide
a larger range of municipal services. The ability of the other municipalities to render at least a basic level of
service, including municipal public services, needs to be investigated.
Figure 57: Operating account comparison for different types of municipality based on 2003/04 figures
(municipalities only, excluding non-municipal service providers)
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THE DBSA INFRASTRUCTURE BAROMETER
Subsidy Allocation to Local Government
The allocation of subsidies from the national fiscus to municipalities for the year 2004/05 was R8.1 billion. The
medium-term projection for subsidy allocation is given in Table 51.
Table 51: Subsidy allocations to local government (R billion)
Allocation
2004/05
2005/06
2006/07
Equitable share
7.3
8.6
9.4
Water services operating subsidy
0.8
0.9
1.0
Total in nominal terms
8.1
9.6
10.4
Assumed inflation (%)
6
6
6
8.1
8.5
8.7
Total in real terms (constant 2003/04)
It is evident that, in real terms and on average over the three years, the medium-term budget provisions
provide for relatively low levels of increase in “equitable share” and water services operating subsidy
allocations. For the chosen scenario, it is assumed that this trend continues and that there is a real increase
of 5 percent per annum. Subsidy allocations would then increase in real terms from R8.1 billion in 2003/04 to
R12.6 billion in 2014/15.
The model provides for revenue received by the municipalities as “equitable share” finance to be
allocated to each service individually. The allocation is based on an assessment of what it costs to provide
the service to poor consumers and how much the service is to be subsidised. Because economically weaker
municipalities currently use their “equitable share” to finance their GAPD and public services functions, some
of the “equitable share” is therefore allocated to these functions in the chosen scenario.
Cross-Subsidy Potential
The viability of the national municipal infrastructure programme is strongly dependent on the amount of
cross-subsidy that can be generated. This is achieved by charging high-income households and non-residential
consumers at above cost and then applying the surplus to fund services to the poor. Table 52 gives the
assumed maximum levels of cross-subsidisation in excess of actual cost of service, at which tariffs to high
income consumers will need to be set in order to generate a surplus in the chosen scenario.
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Table 52: Levels of surplus generated from high income consumers (percent)
Category
High income residential
Non-residential
Water
Sanitation
Electricity
Solid waste
Urban formal
30
30
30
30
Urban informal
10
10
30
10
Communal areas
10
10
30
10
Rural formal
10
10
30
10
Urban formal
20
20
34
20
Urban informal
10
10
34
10
Communal areas
10
10
34
10
Rural formal
10
10
34
10
Operating Account
Table 53 gives estimates in real terms (constant 2003/04 prices) of the average annual increases in municipal
accounts over the 10-year period that would be required to meet all recurrent and debt service costs.
Table 53: Relative trends relating to aggregated municipal services operating accounts (percent)
Percent
Income from user charges increasing at
3.2
Income from rates, levies and other sources increasing at (assumed)
2.5
Equitable share increasing at
5.0
Total revenue increasing at
3.2
Expenditure increasing at
4.5
Results on a National Scale
Capital Spending and Sources of Funding: Capital Grant Implications
The purpose of the modelling exercise is to determine whether or not the service levels selected and the
targets set for the delivery of services actually result in an affordable and sustainable investment programme.
The objective of modelling is thus to determine:
• If the multi-year capital projections are affordable, and how much funding municipalities will need to
secure once national capital grant subsidies are exhausted
• Annual operating costs, and how much income municipalities will need to raise over and above annual
national recurrent expenditure grants.
The model includes services irrespective of service provider, and thus incorporates the services provided
by municipal undertakings, Water Boards and Eskom. The results of modelling for capital expenditure and
capital finance using the chosen scenario are illustrated in Figures 58 and 59.
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THE DBSA INFRASTRUCTURE BAROMETER
Figure 58: Estimated capital expenditure for municipal infrastructure (R million at constant 2004/05 prices)
Note: 2005 relates to the financial year 2005/06 etc.
Figure 59: Predicted sources of capital required to cover estimated capital expenditure (R million at constant 2004/05 prices)
Note: Totals approximately R142 billion over ten years
The “givens” in the model are:
• Total capital grant allocations (MIG and the infrastructure component of housing subsidies) increase from
R9.4 billion in 2006 to R12 billion in 2008.
• There is a rapid increase in levels of spending, peaking at R21 billion in 2008, driven largely by the ambitious
water supply and sanitation targets.
The trends are summarised as follows:
• The estimated expenditure figures for 2005 may be somewhat low, only because the model uses an
“S-curve” to fit a consistent trend to the results. Expenditure closer to R15 billion is more realistic
• There is a rapid increase in levels of spending, peaking at R21 billion in 2008, driven largely by water and
sanitation national targets
• The use of municipal “own source” funding, assumed to be primarily through borrowing, is forced to increase
from R5.7 billion in 2005 to R9.1 billion in 2008. This may not be sustainable by many municipalities.
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175
Implications for MIG Subsidies
The model indicates that the levels of MIG subsidies currently being made available are of the right order,
with the predicted requirements for 2004/05 to 2007/08 being approximately R1 billion per year less than
currently allocated from the national budget. This is based on the assumption that portions of the housing
subsidy will continue to be used for infrastructure in accordance with current national policy.
Implications for Housing Subsidies
The model provides for housing subsidies to be used to cover internal infrastructure capital costs in urban
areas, to the current extent of R1.8 billion and increasing to R4.0 billion in 2008/09. This is based on the
assumption that R10 000 of each housing subsidy allocation made available to a poor household will be used
for infrastructure (excluding electricity).
Should this not be the case, and smaller amounts are allocated to infrastructure, then national grant
allocations would need to increase proportionately. Policies surrounding housing delivery are currently being
debated and the effect of any policy change will need to be evaluated in terms of the impact on municipal
infrastructure capital requirements. In order to meet targets, the numbers of housing subsidies allocated and
spent will need to increase from approximately 300 000 per year in 2005/06 to 600 000 per year in 2008/09.
Implications for the Use of Municipalities Own Capital Finance
Municipalities currently raise their own finance through both transfers from their operating accounts and
borrowings. The extent to which a balance is achieved between the use of grant funding and “own source”
funding (borrowing in particular) is a key consideration for the MIIF.
The model estimate of R5.7 billion per year for “own source” funding in 2005/06 (refer Figure 58) is not
inconsistent with what is currently being budgeted by municipalities, although there are questions as to
whether municipalities are actually raising this amount annually. The model indicates that the level of “own
source” funding will need to increase to R9.1 billion per year in 2008/09. The extent to which this is possible
would need to be tested.
National Treasury estimates that the total loan book of municipalities is currently about R20 billion.
Treasury analysis indicates that it is feasible for municipal loans to increase to within the range of R56 to
R128 billion. Based on the model estimates of “own source” funding, and assuming that 80 percent is derived
from loans, the model projects that the total loan book of municipalities will increase to R63 billion in 2014/15.
Assuming a real interest rate of 10 percent, interest payments will be required equivalent to 5.5 percent of
operating revenue for the combined municipalities of South Africa.
While this repayment schedule appears to be feasible as an aggregated figure, affordability by the different
types of municipality will differ substantially. Total capital expenditure and the financing requirement
predicted for each type of municipality is given in Table 54.
Table 54: Predicted capital expenditure over 10 years for each type of municipality (2005/06 to 2014/15)
Type
Capex
Capital finance (modelled)
(R billion for 10-year programme)
Housing Subsidies
MIG
Municipal own
source
A
45 352
13 500
11 230
20 622
B1
23 419
6 396
7 140
9 883
B2
13 813
2 925
4 695
6 193
B3
21 935
3 667
8 844
9 424
B4
36 884
2 552
14 109
20 223
141 403
29 030
46 018
66 346
Total model
Table 54 indicates great variation in the predicted capital expenditure by each type of municipality, and the
capital finance that each type of municipality will have to raise. In all municipalities, the extent of borrowing
will depend largely on their individual capacity and ability to raise the necessary revenue.
These trends are based on the same set of rules as the allocation of MIG grants to each service. It may well
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THE DBSA INFRASTRUCTURE BAROMETER
be possible for the metropolitan municipalities (Type A) to borrow funds of this magnitude. However, it is
unlikely that municipalities in other categories (Type B) will be able to borrow funds at the levels indicated,
especially the Type B4 municipalities.
Operating Budget Implications
The results of modelling for the operating account using the chosen scenario are summarised in Figures 60
and 61.
Figure 60: Operating expenditure results for chosen scenario (constant 2003/04 prices)
Figure 61: Predicted sources of revenue for chosen scenario (constant 2004/05 prices)
Operating expenditure, in real terms, including capital charges and net of inflation, is shown to increase
from R88 billion per year in 2004/05 to approximately R130 billion per year in 2013/14. This represents an
average increase of 4.5 percent per year in real terms, or typically about 10 percent in nominal terms at
current inflation rates. The dominance of electricity, including Eskom distribution activities, and “other
services” (public services and GAPD) is evident.
Although meeting national targets for addressing backlogs and providing service levels likely to be
acceptable to communities, the infrastructure programme under the chosen scenario is shown to be
non-viable. It is predicted that the operating revenue will be insufficient to meet operating expenditure,
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177
except in a few municipalities. It is clear therefore that other scenarios will need to be investigated in order
to reduce operating expenditure. In addition, municipalities themselves should undertake the necessary
infrastructure planning as part of their IDPs to determine their own affordability levels.
This inability to balance municipal revenue with expenditure is not a new phenomenon, and illustrates
the difficulty of providing moderate service levels to consumers linked with free basic service policies within
affordability constraints.
The situation regarding the nationally aggregated operating account for households is given in more
detail in Figure 62.
Figure 62: Operating account comparisons with detail of individual services (real terms, constant 2003/04)
The following should be noted:
• An increase in household spending from 2005 to 2013
• A shortfall in revenue for the chosen scenario
• A high level of spending on GAPD and public services.
It should be remembered that the aggregated national picture, as provided by the model, obscures the
situation that will arise in the different municipalities, due to their vastly different income-raising capacity
and infrastructure backlogs. Some municipalities may be faced with significantly higher levels of deficit under
this scenario while others will fare better than the national aggregate.
Conclusion
The real problem in South Africa is not so much the availability of initial capital to fund the national municipal
infrastructure programme, but rather the sustainability of the services provided. As described elsewhere many
municipalities lack the technical and institutional capacity to plan for, implement and operate infrastructure
services. Furthermore, the analysis indicates that municipalities should investigate reducing costs, providing
service levels that are more appropriate to municipal and household ability to pay for them, and improving
their ability to raise revenue.
As a first step in attempting to close the gap, further scenarios with the different municipality types need
to be tested, with the specific goal of discovering the gap between expenditure and revenue in the operating
account.
In urban areas, the ability to deliver housing represents a major constraint because much infrastructure
delivery is linked to the provision of housing. There are serious constraints on the ability to provide welllocated, well-planned housing for the poor. These constraints relate mostly to the process of land purchase,
planning, registration and transfer. Infrastructure targets will not be met unless the housing delivery process
is improved dramatically.
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THE DBSA INFRASTRUCTURE BAROMETER
In many municipalities, particularly those serving rural areas, and especially Types C2 and B4 municipalities,
there is insufficient capacity to manage the infrastructure provided. This relates primarily to the shortage of
personnel with strategic planning, engineering and technical qualifications.
There is an urgent need to encourage and support municipalities to engage in regular infrastructure
investment planning and to develop affordable and sustainable service delivery programmes, particularly by
matching the levels of service with affordability for both consumers and the municipality/service provider.A well
designed infrastructure investment plan and asset management strategy should achieve a workable balance
between an affordable capital programme and sustainable operating and maintenance expenditure.
Infrastructure asset information is seriously lacking in many municipalities. A particular example is
municipal roads. For asset management purposes, spending on municipal roads should be a major part of
municipal expenditure. There is, however, little information available on road length and road condition, and
the institutional responsibility for specific roads is often unclear. This situation makes it very difficult for DPLG
to allocate MIG grants to municipalities to finance road construction and rehabilitation.
The total national capital allocation of grant funding, as indicated in this report, appears to be at the
right level, but the allocation to different types of municipality may need to be adjusted to their individual
ability to raise own capital finance. The specific circumstances in each type of municipality require further
investigation to ensure that national targets for removing backlogs can be met in all circumstances.
In order to achieve national targets, the annual rate at which services are delivered needs to be carefully
monitored. In order to improve the quality of information and reporting, municipalities should be assisted
to enhance or develop easily-managed services backlog information systems, not only for their own IDP
and performance management purposes, but also to facilitate the regular roll-out of that information to
provincial and national levels.
Proposals in respect of a national backlogs information system and municipal asset management are part
of the current MIIF update exercise.
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Spotlight on ICT making a difference in the lives of poor communities
This case study demonstrates how ICT can create opportunities for poor communities that have not
previously been exposed to ICT. Hewlett-Packard (HP) South Africa, operating through business consortia,
was instrumental in setting up two community projects which illustrate how the deployment of ICT
infrastructure could serve poor communities and provide educational and economic opportunities to them.
The HP i-Community projects were launched at the WSSD by President Mbeki and the HP Chief Executive
in September 2002.
Dikhatole is a community in Gauteng that experiences large unemployment and is lacking running
water, electricity and basic housing. HP South Africa initiated a project into which basic computer, Internet
and business skills coaching were injected. The Dikhatole Digital Village was established with more than
90 Internet-enabled workstations.
The aim of the project is to improve living conditions of the community by connecting them with the rest
of the world. Members of the community are empowered through skills training, such as computer literacy,
CV writing, communications and presentation, and entrepreneurship. The target is to reach more than
1 000 unemployed youth and to provide them with skills to enhance employment possibilities. More than
500 women were trained to use the Internet for networking and support and in business start-up skills.
Schools are equipped with computers and teachers and children are trained in basic computer use. Training
in basic computer skills is extended to local government employees.
In a second ICT infrastructure project by HP South Africa, the community of Mogalakwena, close to
Mokopane in Limpopo Province, has been the beneficiary of a partnership between HP, the Limpopo Province
and the Mogalakwena Municipality. Models for sustainable development are being developed, using ICT
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THE DBSA INFRASTRUCTURE BAROMETER
infrastructure, community engagement, education, capacity building and training, economic development,
digital culture initiation and e-service delivery. Part of the infrastructure includes a remote satellite facility.
The project is aimed at building municipal ICT capacity; kick-starting an innovative Least-Developed Villages
initiative; transforming the project into a global model for a multi-purpose centre; establishing a centre of
excellence programme through schools; and addressing the daily challenges faced by the community in a
sustainable manner.
Building municipal ICT capacity enhances municipal ICT infrastructure, builds staff ICT capacity, and
improves service delivery to the public by optimising back- and front-office services and service access points.
Multi-purpose centres are created at municipal level to build sustainable service solutions to the community.
A major focus is communicating the massive potential that ICT holds in terms of improving government
electronic service delivery. A demonstration room showcases innovations in e-service delivery from around
the world that could be relevant for the municipality and its communities. A fully-fledged call centre has
been introduced where call centre agents study and work at the same time.
Innovative solutions are sought for least-developed villages which are defined by their lack of access
to clean water, electricity and telecommunications. The sustainable livelihoods initiative has introduced a
variety of ICT-enhanced solutions to meet the basic challenges of food security, water, sanitation, recycling,
alternative energy, and access to and training on ICT (an example is smart cards to enable pre-payment of
electricity). It can be seen that ICT infrastructure thus enables many other infrastructure activities. Progress at
the Mogalakwena i-community was reviewed personally by President Mbeki in September 2003 and a series
of specific objectives were defined. These included launching a project that addresses the daily challenges
faced by the community in a sustainable manner and building municipal ICT capacity, amongst others in the
“Sustainable Livelihoods” initiative, and also through communication and information-sharing.
Schools in the HP i-Community are provided with ICT and open source software specialists, promoting a
range of administrative, PC literacy, curricula and digital culture coursework. Open source software platforms
represent low-cost and flexible solutions for application interfaces in Sepedi, Afrikaans and other local
vernaculars, and are introduced to meet the specific needs of such an emerging economy. In conjunction
with the CSIR, and endorsed by Internet entrepreneur and astronaut Mark Shuttleworth, an Open Source
Centre was launched at the HP i-Community. The International Computer Driving Licence (ICDL) is recognised
internationally as the benchmark for measuring end-user computer skills and is being presented in the
community, including the world’s first ICDL training and testing centre for open source software. A community
computer camp is run at multiple public venues in order to reach the students. This approach has contributed
significantly to the total number of more than 3 000 residents who have been trained.
An HP multi-user desktop solution has been developed to allow four people to work simultaneously and
independently using a single computer. Each user has her/his own keyboard, monitor and mouse, and can use
software applications, browse the Internet or send e-mails as if s/he was working on a stand-alone PC.
The acceptance of a digital culture is enhanced by the introduction of multimedia equipment focusing on
Internet and broadcast radio, audio-video recording and editing, web site design and digital photography.
Projects include an initiative that provides soloists and/or groups of musicians, poets, writers and performers
the opportunity to have their material recorded professionally and cost-effectively. Emerging artists can
produce a CD or DVD of their performance which can then be used to market themselves.
An alternative technical approach to the challenges of rural connectivity has indeed been developed. And
today, the HP i-Community stands poised for a second Presidential Review.
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CHAPTER 6
Challenges for Municipal Infrastructure Service Delivery
in Marginal Communities
Introduction
In 1994, the incoming democratic government embarked on transforming the country. In pursuing this
goal, however, government was confronted with several serious challenges, one of which was the state of
infrastructure and services available to the largest and poorest sector of the population, a socio-economic
legacy of apartheid.
The deficiencies in infrastructure development in South Africa are particularly pronounced in
underdeveloped areas and marginalised communities, notably the historically black townships, informal
settlements and rural areas. Hence, large numbers of poor people have to make do with basic or no municipal
services.
The government committed itself to removing infrastructure services backlogs by 2014, with the role of
municipalities in providing these services being central to achieving this goal. Chapter 6 examines the reasons
for the ongoing infrastructure services backlogs in marginal rural and urban communities, focusing on the
challenges confronting municipalities in overcoming the backlogs, and in operating and maintaining the
services.
The chapter comprises four sections. Following this introduction, the first section shows where the marginal
communities are and presents the services delivery issues relating to them. The second section presents first
the overall social context of infrastructure requirements, and second, a review of the policy and legislative
environment guiding infrastructure service delivery in the context of local government’s developmental role.
The third section addresses the challenges for services delivery. These include the institutional and financial
challenges confronting municipalities in delivering services and overcoming services backlogs in marginal
communities, in particular the ability to finance both the cost of investing in service infrastructure and
operating and maintaining service delivery. The final section draws conclusions.
Similar to Chapters 4 and 5, this chapter draws on the findings of the 2001 Census and differentiates
between “urban formal”, “urban informal”, “rural formal” (commercial farms) and “tribal areas” (“communal
areas in former homelands”). It should be noted, however, that these areas do not fit neatly within either
municipal boundaries or the A, B and C categories of municipalities (refer Chapter 5, Table 46). Services
backlogs are presented as the number or proportion of households lacking basic levels of services.
Marginal Communities and Services Delivery
Three dimensions are used to explain the nature of marginalisation and its implications for services delivery:
1) service levels and backlogs, 2) household incomes, and 3) location of the community.
Service Levels and Services Backlogs
It is important to note that the extent of the services backlog depends on the definition of the service level. As
an example, compare a “below basic” pit latrine with a “basic” ventilated improved pit latrine and the “full”
services level of water-borne sanitation. In the RDP and subsequent government policy, and consequently in
the Municipal Infrastructure Investment Framework (MIIF), a backlog is defined in terms of a service level less
than that needed to ensure a household’s health and safety. Specific service levels are discussed in Chapters
4 and 5.
Based on the 2001 Census, services backlogs are shown to be considerably greater in communal areas and
urban informal settlements than in urban formal areas and commercial farm areas. As an example, 54 percent
of households in communal areas and 38 percent of households in urban informal areas lack access to basic
water. The comparable statistics for urban formal and commercial farm areas are 5 percent and 20 percent
respectively. As a further example, 77 percent of households in communal areas and 69 percent of households
in urban informal areas lack access to basic sanitation. This again is considerably worse than the 50 percent
for urban formal areas and commercial farms. Similar differences are evident for solid waste collection and
disposal (less relevant in rural areas) and roads and public transport.
Individual service backlogs differ markedly among provinces and between and within urban and rural
areas. For example, in the metros with the best-served population, the 2001 Census showed that 15 percent
of households lack access to basic water and 22 percent lack access to basic sanitation.
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183
Household Incomes
Table 55 shows that communal and urban informal areas have the highest proportion of low-income
households. For the purpose of this report, the measure of low-income is taken as households with an annual
income of less than R38 400 in 2001. This income is equivalent to R3 200 per household per month, this
amount being the census household income category closest to the R3 500 upper limit for eligibility for a
housing subsidy. It is striking that virtually the same proportion of households falls below R38 400 per annum
in both communal and urban informal areas, 94 and 95 percent respectively.
Table 55: Percentage of households per area type earning less than R38 400 per annum, 2001
Province
Communal
Urban informal
Urban formal
Commercial farms
Eastern Cape
96
97
72
86
Free State
96
98
81
92
N/A
95
62
85
KwaZulu-Natal
95
95
61
92
Limpopo
93
93
67
93
Mpumalanga
94
95
71
91
North West
93
94
74
90
Northern Cape
97
95
76
85
N/A
96
54
80
94
95
65
89
Gauteng
Western Cape
South Africa
Notes:
• Communal areas refer to village settlements in the former homelands (or “tribal” areas in Census 2001).
• Urban informal areas refer to informal settlements around cities.
• Urban formal areas include townships, inner cities and suburbs.
• Commercial farms are former non-homeland areas used for farming purposes and include areas around small towns (or “rural formal” in Census
2001).
Source: 2001 Census, information provided by DBSA.
There has been a change in the number of low-income households. Between 1996 and 2001, there was a
3.4 percent per annum decline in households with an income of less than R800 per month, but a 3.5 percent
per annum increase in households with an income of less than R3 500 (Tomlinson et al, 2003). It is expected
that the decline in households with an income of less than R800 per month is due to the availability of social
grants. It is also expected that the increase in households with an income of less than R3 500 per month is
due to a combination of a) the increase in numbers who no longer fall into the lowest income category and
have shifted into the next lowest because of social grants, and b) the number of people who have lost their
jobs due to increasing unemployment.
There have been far-reaching structural changes in the economy, including the shift out of low-skilled and
unskilled jobs, such as the loss of job opportunities in the farming, mining and manufacturing sectors. This
change has immediate implications for services delivery in municipalities which are directly affected by the
absorption of less skilled unemployed people.
Location of Marginal Communities
Table 56 indicates the location of marginal communities, which is closely linked to the low income patterns
shown in Table 55. This suggests a direct correlation between marginal communities and the type of service
delivery challenges that a municipality is likely to confront.
The grey shaded areas in Table 56 indicate where there are the following challenges:
• Across-the-board services backlogs
• The number of households living under these backlog conditions constitute the large majority of the
municipality’s population
• There is extensive poverty, and
• Institutional and financial capacities are highly constrained.
Marginality is therefore linked with profound challenges for municipal services delivery.
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THE DBSA INFRASTRUCTURE BAROMETER
Table 56: Percentage of households by area type, 2001
Province
Eastern Cape
Free State
Communal
Commercial farms
Total number of households
51
Urban informal
9
Urban formal
34
4
1 535 968
8
13
62
11
757 259
N/A
12
72
2
2 836 335
38
12
38
8
2 200 430
Limpopo
75
2
11
9
1 250 363
Mpumalanga
36
4
36
16
783 004
North West
44
6
35
10
219 981
1
4
68
22
977 949
N/A
10
78
9
1 208 982
28
9
50
8
11 770 271
Gauteng
KwaZulu-Natal
Northern Cape
Western Cape
South Africa
Source: 2001 Census, information provided by DBSA.
It is more difficult to generalise for the yellow shaded areas. Urban informal settlements are typically
found on the outer edges of many small and large towns in rural areas, large municipalities (e.g. Msunduzi,
the former Greater Pietermaritzburg) and metros (e.g. Johannesburg). These urban informal settlements
all suffer from across-the-board services backlogs and are the sites of extensive poverty. However, the
municipalities within which they are located differ in terms of the balance between economic activity, highand low-income households (the potential for cross-subsidy) and institutional and financial management
capacity. Marginality may or may not be associated with the capacity to deliver services.
In the case of the blue shaded areas, the number of households lacking basic services does not constitute
a large proportion of the municipality’s population. Nonetheless, a large number of households are lowincome and there are significant financial and institutional challenges to services delivery.
The unshaded areas include:
• Communal areas with services backlogs and low household incomes, but which constitute a relatively
small proportion of households in the province
• Commercial farms and urban informal settlements where these conditions also apply, and
• Urban formal settlements where services backlogs are least and where there is often potential for intrasector cross-subsidy.
It is apparent that the linkages between marginality and challenges to services delivery in communal areas
are quite different from those in urban informal settlements. Although government policies on delivery of
infrastructure services take these differences into account, implementation and achievement of policy intent
is nonetheless constrained by the social environment typical of marginal communities.
Social Environment for Infrastructure Service Delivery
Ridding the country of services backlogs by 2014 requires many interventions. A host of social limitations
remains. These include a) the rapid increase in the number of households requiring infrastructure services, b)
the increase in the number of low-income households that qualify for housing and services subsidies, c) the
rate of increase of low-income households in specific areas, d) the consequences of HIV and AIDS, and e) the
relationships between consumers, levels of service and affordability.
Increase in the Number of Households
Change in services backlogs is linked to the rate of increase in the number of households. South Africa’s
population in the 1996 Census was reported to be 40 583 570 persons, and 44 819 318 persons in the 2001
Census. This is an increase of 2.09 percent per annum. The proportion of the population that was found to be
urban was 53.7 percent in 1996 and 57.5 percent in 2001.
In terms of services backlogs, however, the more significant data relates not to the increase in number
of people but to the increase in number of households. Whereas the number of people indicates, say, the
amount of water required (bulk and connector infrastructure), the number of households indicates the
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185
number of services connections required for dwellings (and other shelter arrangements). Services connections
are generally provided, or are intended to be provided, by municipalities which are also responsible for
operating and maintaining services delivery.
Between 1996 and 2001, the number of households in South Africa increased from 9 077 402 to
11 770 270, an increase of 5.33 percent per annum. This is more than double the rate of population increase.
The urban proportion of households was 59.9 percent in 1996 and 62.5 percent in 2001. The discrepancy
between the urban proportion of households and the urban proportion of the country’s population is due to
the smaller household size in urban areas.
The change in household size accounts for the rapid increase in the number of households. Average
household size was 4.47 persons in 1996 and 3.8 persons in 2001. If household size had remained constant,
the increase in the number of households would have been about 1 million whereas the actual increase is
about 2.7 million households.
The rate of increase in the number of households is a critical issue for all policies associated with overcoming
services backlogs.
Changing Location of Low-Income Households
Populations are not static and they grow, contract, move and change their composition in response to a
myriad direct and indirect influences on individuals and household units.
The 2001 Census showed net migration to the more urban provinces of Gauteng and Western Cape.
More than 20 percent of the resident population of major metropolitan areas and some regional centres
and smaller towns are new migrants. In general, new migrants reside in informal settlements and other
overcrowded locations. Although the census did not reflect circulatory or seasonal migration, there is
evidence to suggest continued linkages between urban and rural localities. This poses a challenge for road
and transport infrastructure to provide efficient movement between the areas.
Not surprisingly, certain cities and towns are growing very rapidly. Table 57 shows that the number of
households in Gauteng is increasing at a rate of 7.59 percent per year. Johannesburg experienced an increase
of 8.05 percent per annum in the number of households between 1996 and 2001. Both the provincial and
Johannesburg’s growth rate are significantly larger than, say, the Eastern Cape and the Nelson Mandela
Metro where the rates of increase in the number of households were 2.84 and 3.84 percent respectively.
Table 57: Rate of increase in the number of households between 1996 and 2001
Province
Eastern Cape
Number of households
Number of households
% increase per annum in the
1996
2001
number of households
1 333 862
1 535 966
2.86
626 339
757 261
3.87
Gauteng
1 967 597
2 836 334
7.59
KwaZulu-Natal
1 665 299
2 200 429
5.73
Limpopo
984 457
1 250 363
4.9
Mpumalanga
605 110
783 003
5.29
North West
721 652
977 950
6.27
Northern Cape
187 596
219 981
3.24
Western Cape
985 490
1 208 983
4.17
9 077 402
11 770 270
5.33
Free State
South Africa
Source: Development Information Unit, DBSA (Base data: STATS SA)
The challenges for Gauteng begin with the 366 506 structures in informal settlements (Department of
Housing, 2005). Assuming that the increase in the number of households is disproportionately located in
informal settlements, the task for the province’s three metros is to catch up with the existing demand for
housing and services and then to remain ahead of the ever-increasing demand.
However, there has also been a rapid increase in the number of households in other areas that lack
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the institutional and financial capacity found in Gauteng. Many rural areas where housing and municipal
and social services are available and some large centres, such as Polokwane (former greater Pietersburg)
and Mbombela (former greater Nelspruit), have also experienced a rapid increase in household numbers.
Negative growth is largely found in the communal areas and the Northern Cape Province.
Demographic shifts have implications for fiscal allocations and, important for the longer term, the
approach to spatial development. The challenge is to decide where to target investment in order to achieve
the best developmental outcome. In order to achieve this, it is critical to be able to identify such issues as
areas of potential, concentrations of absolute poverty and migration “feeder” communities. Results from a
DBSA migration study (1998-2000) and studies undertaken during the development of the National Spatial
Development Perspective (1999-2002) suggest that access to infrastructure and public goods - long identified
as a major force behind movement within cities - is now also a major factor in rural-urban migration
decisions. In other words, migrants are attracted to areas which they believe will give them access to better
infrastructure and public goods.
The challenge in responding to these migration patterns is to determine the types of infrastructure
required in both recipient areas and feeder areas. In arriving at such decisions, it is pertinent to bear in mind
that most of those who migrate to or stay in recipient (mainly urban) areas are economically active, while
those remaining in “feeder” (mainly rural) areas are mostly the young and the old. One challenge is therefore
to provide infrastructure that will prepare the young to be more productive, whether in the original or
the recipient area, and the old to be able to maintain a dignified life. Some initiatives are emerging that
are already making a difference to the lives of poor communities (e.g. Information and Communications
Technology) (refer to the Spotlight on ICT case study after Chapter 5).
HIV and AIDS, Services Levels and the Ability to Pay for Services
HIV and AIDS has been described as one of the greatest development challenges, largely as a result of the
alarming increase and devastating impact of the pandemic on individuals, communities and society. There are
indications, for example, that HIV and AIDS will impact, among others, on the following:
• Demographic changes in the age and sex structure of the South African population, as adults from age 20
to 40, the most economically productive segment of the population, are hardest hit.
• Changes in household composition, as the numbers of pensioner and orphan-headed households, as well
as extended households, increase.
• Changes in income, expenditure and savings, as caregivers divert resources from savings to healthcare,
funeral costs and the sale of assets for survival.
• Changes in the demand for various services as households try to cope with the impact of HIV and AIDS.
Demands for services such as electricity, health, water, sanitation and housing may increase while the
ability to pay for the delivery and maintenance of such services decreases. There is an increasing demand
for municipal services such as cemeteries.
• Increasing poverty levels, as there are indications that poverty provides the context for the HIV and AIDS
pandemic, which exacerbates poverty. The poorest households are therefore more likely to feel the
pandemic’s greatest impact, resulting in increases in the extent, depth and distribution of poverty.
All these factors will lead to the reduced ability of communities to pay for municipal services. HIV and
AIDS also have the potential to exacerbate the situation by impacting negatively on municipal capability
to deliver sustainable services, first, as municipal personnel are infected or affected by HIV and AIDS, and
second, in municipal ability to respond to the increasing number of HIV and AIDS-related needs.
While all spheres of government are likely to experience the negative impact of the pandemic, local
government seems likely to be most affected, largely because it is closest to local communities. Municipalities
are primarily responsible for the delivery of essential services to local communities, such as water, sanitation,
housing, health, electricity and cemeteries. In addition, the payment of services charges, rates and taxes for
service delivery contributes towards the financial sustainability of municipalities.
Developments in the South African legislative and constitutional framework have resulted in the mandate
for the HIV and AIDS response by local government being indirectly defined and largely unfunded. Further,
local government has only become involved in HIV and AIDS policies and programmes at a late stage,
largely as a result of its long-term transformation, the demarcation process and various other factors such as
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187
capacity constraints. This has serious implications for the responses that municipalities can mount against the
pandemic.
Those municipalities not having the potential for cross-subsidisation may be unable to finance the
additional services that will be required to combat the impact of HIV and AIDS. Arrangements to establish
special infrastructures such as Voluntary Counselling and Testing Centres may also be required, but such
initiatives could be affected by the relatively limited mandate of local government in this regard.
As local government has the closest interaction with people on the ground, it is best positioned to prevent
and mitigate the impact of HIV and AIDS. Despite its late response to the pandemic, there is mounting
evidence that local government is increasing its political support for HIV and AIDS policies and programmes.
Various programmes have thus been introduced at local government level to help shape effective responses
to HIV and AIDS (van Rensburg et al, 2002).
Consumers, Levels of Service and Affordability in Marginal Communities
The heterogeneity of consumers of infrastructure services has a marked influence on prospects for sustaining
the provision of services. Many consumers lack information and knowledge about the services and support
that they can obtain from infrastructure providers. Recent protests suggest that there is insufficient interaction
between consumers and municipal service providers. The Integrated Development Plan (IDP) is supposed
to encourage broader participation by potential beneficiaries but, in many instances, only a few people
participate in the infrastructure service plan that informs the IDP. Many instances of top-down decisionmaking have caused serious problems, such as those described in Chapters 4 and 5.
For each infrastructure service provided by municipalities or their agents, a range of Level of Service
(LOS) is available from basic through to full, or high-level. Each has an associated capital, operations and
maintenance cost. All too frequently, decisions are made on the availability of sufficient capital funds,
secured through grants and perhaps supplemented by loans and customer contributions, with insufficient
attention being paid to the funding of recurrent costs. Any shortfall in income for recurrent costs can result
in the breakdown of the service, rapid deterioration of the infrastructure assets, and even environmental
degradation and health hazards.
The choice of LOS must be appropriate to the social and institutional environment in which it is placed.
The challenge is to determine which services are seen as priorities by the potential consumers and whether
the selected services will actually meet the needs of the people. As an example, should a water supply system
in a rural area provide for the needs of livestock and vegetable growing? What LOS is affordable? Who will
operate and maintain the service and will they have access to the technical skills that might be required?
What services can be provided in informal settlements when there is no security of tenure? All such issues
should influence the choice of an appropriate LOS.
It is clear that the social dynamics of marginal communities are complex. Nonetheless, municipalities are
required to deliver most of the infrastructure services, and policy guidelines are available to enable effective
delivery.
The Policy and Legislative Environment
Developmental Local Government and the Role of Municipalities
The need for local government to play a developmental role was pronounced in the RDP as early as 1994,
when government committed itself to meeting the basic needs of all South Africans and agreed that this
would be achieved through cooperative governance. Included under basic needs were the delivery of water
and sanitation, waste removal, energy and housing. The 1996 Constitution of the Republic of South Africa
called for developmental local government to:
• Provide democratic and accountable government for local communities
• Ensure the provision of services to communities in a sustainable manner
• Promote social and economic development
• Promote a safe and healthy environment, and
• Encourage the involvement of communities in the matters of local government.
These developmental outcomes were further articulated in the White Paper on Local Government (1998)
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which established the role and responsibilities for local government
in providing household infrastructure and services; the creation of
liveable, integrated cities, towns and rural areas; and the stimulation
of local economic development through employment and jobs
as well as special economic services. It was envisaged that these
activities would be put into operation by a variety of municipal
entities constituting the system and structure of local government.
Municipal Legislation for Infrastructure and Services
A municipality has the right to govern, on its own initiative, the
local government affairs of its community, subject to national and
provincial legislation (Section 151 (3) of the Constitution). A range
of legislation covering local government issues, with subsequent
amendments, guides municipalities’ operations.
• The Municipal Demarcation Act (1998) determines municipal
boundaries. It leaves no part of South Africa outside the
jurisdiction of a municipality. Unlike the past, there is therefore
parity and equity in entitlement to services.
• The Municipal Structures Act No. 117 (1998), in accordance with
Section 155 of the Constitution, provides for the establishment of
three categories of municipality and for the allocation of powers
and functions to and between these categories. The powers and
functions of the three levels have become more variable and
have created a plethora of challenges to certain municipalities.
A case study for a sub-category B2/B3 municipality is described in
Box 13. Examples are also drawn from the B3/B4 municipalities,
which Gibson (2004) refers to as the “forgotten municipalities”.
• The Municipal Systems Act (Act No 32 of 2000) provides for
systems of internal operations of municipalities to address the
objects of local government. The implications for infrastructure
are provided in Chapter 8 of the Act, addressing municipal
services, as well as in Chapters 4 and 5 addressing community
participation and integrated development planning.
• Other legislation includes the Municipal Finance Management
Act (2003) and Property Rates Act (2004), which provide guidance
to improve the management of finances and property revenues.
Policy Instruments for Infrastructure and Service Delivery
to Marginal Communities
Box 13: A case of a typical B2/B3
municipality
This chapter is supplemented by a case study of a
typical B2/B3 municipality (refer Table 46 for the
definition of categories). It is a study of an existing
municipality but, for reasons of confidentiality, the
name and some of the circumstances have been
changed. The study is spread through Chapter 6 in
Boxes 13, 14, 16 and 17. Box 13 (this box) provides a
general overview of the municipality. Box 13 presents
the institutional challenges and Box 16 the financial
challenges. Box 17 suggests interventions required to
meet these typical challenges.
The municipality is located in a predominantly
rural province and comprises two urban centres
and more than 50 rural villages. The total area of
the municipality is about 3 000 square kilometres.
The former municipal manager has been suspended
on some 100 counts of fraud. The municipality has
serious financial problems which have resulted in
its inability to pay salaries, medical aid and pension
contributions, as well as defaulting on creditors.
The total amount currently owed to creditors is in
excess of R35 million. Given the parlous institutional
and financial state of the municipality, provincial
government has appointed an administrator in terms
of Section 139 of the Constitution.
Despite housing a large number of government
administratitive functions, the municipality faces a
range of challenges. The total Gross Geographical
Product for one of its magisterial districts in 1999
was estimated to be R2.5 billion. The community
and social services sector (including government)
accounted for more than 52 percent of economic
production in the district. Other notable economic
sectors were the financial, insurance, real estate and
business sectors (12.1 percent), the wholesale and
retail trade sectors (11 percent), transport, storage
and communication sectors (7.8 percent) and the
manufacturing sector (6.6 percent).
According to the 2001 Census, the total population
for the area was more than 250 000 people. The
unemployment rate is estimated to be about
37 percent. A high concentration of professionals
resides in the area.
In the context of the legislation and cooperative governance,
municipalities have been expected to accelerate the provision of
infrastructure and services to marginal communities. Such efforts are
guided by various policy instruments.
• The Municipal Infrastructure Investment Framework (MIIF)
proposes appropriate levels of service in order to achieve affordable infrastructure investment plans
within the financial resources of each municipality.
• The Municipal Infrastructure Grant (MIG) consolidates a number of separate sectoral grants under one
administration. Sectoral components to the MIG do remain and they vary according to actual service
deficiencies, but municipalities can prioritise the use of MIG to fit their own roll-out plans. Government is
committed to increase MIG allocations each year for the foreseeable future.
• The Free Basic Services Policy, entitling all households to an agreed level of free basic services, was
introduced following the 2000 local government elections. The running costs of free basic services are
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189
Box 14: Institutional capacity and
governance of a typical B2/B3 municipality
Organisational structure and functioning
The suspension of the municipal manager has
created a divisive atmosphere within the municipality.
Senior managers are not cooperative and many
still pay allegiance to the suspended manager.
Management meetings have not been held for
several months.
There is a lack of communication within the
directorates as well as between senior management
and lower levels of staff. The organisational structure
is expensive and the salary bill is more than 53 percent
of total operational expenditure. Lack of financial
management and skills in the Financial Services
Department is a source of concern; and the head
of this department is also currently on suspension.
Other key positions within the Finance Directorate
that are vacant include Head of Income, Accountant
Billing, Accountant Debt Collection, Accountant
Property Assessment Rates and Ledgers.
Governance
None of the portfolio committees has terms of
reference. There is no delegation of authority in the
municipality as the policy adopted by Council has not
been implemented and all delegations of authority
were withdrawn after the municipal manager was
suspended. All decision-making is now vested in
the council and executive mayor. There is a lack of
trust between the chairpersons of the functional
responsibility portfolio committees and officials.
Attendance by members of the portfolio committees
at committee meetings is generally poor.
The lack of delegation has had a negative impact
on municipal operations, particularly with regard
to decision-making. In addition, there is no proper
interaction between politicians and officials within
Council, leading to a number of areas of conflict. There
is also a lack of bylaws to enforce the policy directives
approved by Council. Although most department
heads had signed performance agreements, all
agreements have had to be reviewed.
Human resources management
The municipality has no human resource policies
and no human resource development strategies in
place. The Human Resource Directorate is currently
under-staffed and there is a general lack of direction
and purpose and no commitment to the overall
mission and vision of the municipality.
The lack of commitment by senior staff members
has led to low morale and lack of motivation among
lower staff levels. Supervision, monitoring and control
are lacking. Consequently, employees behave as they
please with an overall adverse effect on productivity
and municipal delivery.
Change management workshops are poorly
attended by senior managers and the management
structure is too weak to drive transformation within
the institution.
intended to be met by a municipality’s “equitable share” of national
revenue, augmented by cross-subsidies and other local taxes levied
where necessary and possible. Free basic services are defined as:
• Water: 6 kilolitres per household per month
• Electricity: 50 kWh per household per month
• Rubbish removal: Own refuse dump in rural areas, a communal
refuse dump that is well-managed by the community, and
collection at least weekly in urban areas.
• The Housing Subsidy to lower income groups is rendered by a
housing programme offering both greenfield and new houses,
as well as upgrading opportunities. The basic subsidy is currently
R22 800 but there are a variety of permutations depending on
specific conditions. A key current point of contention is whether
the housing subsidy should be applied solely to the house
superstructure and not to the superstructure plus residential
infrastructure as is the existing practice.
Within this policy framework, municipalities are expected to
provide infrastructure services to marginal communities. However,
this has not always resulted in an increased rate of delivery as
municipalities face a range of institutional and financial challenges.
These are described in the following sections.
Institutional Challenges to Service Delivery
There are many kinds of institutional challenge to service delivery.
The first concerns the link between marginal communities and
the institutional and financial capacity of municipalities. Second,
the link between the delivery of services and housing means that
other infrastructure services cannot be delivered if housing is
not delivered. Third, while some infrastructure can be provided
to informal settlements, the settlements cannot receive other
municipal services because the areas are not properly planned.
Capacity Needed to Deliver Infrastructure
The Municipal Systems Act requires municipalities to prepare
Integrated Development Plans (IDP) in cooperation with their
communities so that inclusive future development requirements
can be projected. The process of developing IDPs has highlighted
serious institutional, capacity and capability constraints faced by
municipalities in their servicing of marginal communities. This
problem is compounded by the revised mandate introduced through
the National Department of Housing’s amended policy of Breaking
New Ground which will require “accredited municipalities” to
prepare Housing and Municipal Integrated Development Plans
as part of the process of gaining access to housing programme
funding.
Further, the capacity of most district and local municipalities to
function as authorities and providers of energy, water, sanitation,
transport and other municipal services is very limited. The 2003
Municipal Demarcation Board’s capacity assessment of district
and local municipalities revealed a range of institutional capacity
challenges confronting most district and local municipalities.
The following capacity constraints have been identified as
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THE DBSA INFRASTRUCTURE BAROMETER
hampering the provision of services at the local sphere of government:
• Sector planning (planning for service delivery and maintenance)
• Water
• Roads and transport
• Electricity
• Other economic and municipal infrastructures
• Financial management
• Project management
• Procurement and supply chain management
• Technical and engineering services
• Performance management systems
• Leadership and management
• Governance and decision-making (King II Report for the public sector).
For historical reasons, public utilities (e.g. Water Boards, Eskom) are directly involved in the provision of
infrastructure and services delivery for some municipalities. In the past, local authorities operated only in
urban centres. This situation continues because many of the new municipalities responsible for rural areas
still do not have the capacity to provide and regulate these services. A major challenge still facing most
municipalities is the allocation of existing limited capacity between economic and other municipal services.
The introduction of the Regional Electricity Distributors (RED) indicates that Government is taking the
efficient provision of infrastructure, such as electricity, very seriously. There are numerous debates both for
and against the introduction of REDs, and there is also ongoing debate concerning the creation of a water
distribution model similar to the REDs. The introduction of these institutional reforms will undoubtedly have
an impact on municipalities. The challenge is how to manage the impact in such a way that it does not
negatively affect services delivery.
Institutional Capacity and Governance
The most obvious challenge is institutional capacity and good governance, with a serious shortage of skills,
including managers, engineers, technicians and artisans. Most municipalities struggle to recruit and retain
skilled personnel who can often secure better paid employment in the private sector or other public sector
institutions. Municipalities thus face substantial responsibilities for services delivery with relatively limited
capacity and resources (Manning, 2003).
The problems typified by the “case study municipality”, as featured throughout this chapter, tend to occur
in most municipalities, with the exception of A and B1 municipalities. Conditions in the B4 municipalities may,
however, be worse than the case study. Gibson’s (2004) “forgotten municipalities” are worthy of attention
and are characterised by:
• No major town in the municipal area
• No significant industrial or commercial activity
• Large areas of communal land
• Many rural households
• High levels of poverty
• No previous municipal organisation to grow from.
At least 90 municipalities are typified by this description in various ways. They constitute nearly 50 percent
of B3 and B4 municipalities and almost one third of all municipalities. With such capacity constraints, it is clear
that major difficulties will be experienced in removing the services backlog by 2014.
Infrastructure Asset Management and Efficiency
Stated in simple terms, infrastructure asset management is a process to acquire or create, operate, maintain,
replace and dispose of assets cost effectively so that delivery of services can be sustained. In South Africa,
large annual capital expenditure results in an increasing number people enjoying basic (and other) services.
Unfortunately, this expansion has run ahead of the capacity to finance, maintain and manage this development.
The resulting problem can be found countrywide – capital works and infrastructure are falling into disrepair
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191
and collapsing, be they waste water plants, water purification works or municipal public services. Many
local authorities undertake little asset management and do not budget adequately for asset maintenance,
rehabilitation and replacement.
The result is that the quality of service provision to beneficiary communities is deteriorating. The
deterioration is not only evident in smaller municipalities. There is, for example, a growing body of evidence
from Johannesburg regarding the serious impact that electricity outages are having on the well-being of
the people and economy of the city. In other towns, there is evidence of a direct link between growing civic
unrest and the deterioration of service delivery.
This spiral into neglect and decline is clearly serious for sustainability in general. People say “no service,
no pay”, but if there is no revenue, a municipality’s ability to manoeuvre is severely reduced in respect to
initiating and undertaking improvements to the infrastructure networks and systems. Poor infrastructure
maintenance impacts negatively on both financial sustainability and productivity, and thus on economic
output and overall socio-economic well-being. In short, there is a direct link between sound, well-maintained
infrastructure assets, the services they deliver and assuring economic efficiency and sustainable growth.
Municipalities Servicing Marginal Communities
Four types of area were identified earlier in this chapter, based on Table 55 and in an attempt to define
marginal groups. These areas are not necessarily consistent with the municipality categories and subcategories. In reference to Table 56:
• In the grey shaded areas, there will generally be more communal areas in B4 municipalities
• In the blue shaded areas, there will be less urban formal population in sub-category B4 than in
sub-category B3, and
• In the yellow shaded areas, most of the urban informal settlement households are found in category A
municipalities.
It is readily accepted that, in general and with exceptions, institutional and financial capacity declines
from A to B4 municipalities. It is also accepted that government attention, whether intentionally or because
of “unintended consequences”, is focused largely on cities (A and B1) because they are the economic base
of the country, contain at least one half of the country’s population and, arguably, are where there is most
poverty (Atkinson, in publication). It is not surprising, therefore, that Gibson (2004) should refer to B3 and B4
municipalities - those with no major towns - as the “forgotten municipalities”.
The ability to address the needs of households living in marginal communities, mainly communal areas
and informal settlements, will differ according to the category and sub-category of municipality. In practice,
these differences are largely ignored within the policy environment.
Financial Challenges
There are many dimensions to the financial challenge for service delivery to marginalised communities. In this
section, two issues are addressed, the first concerning cost recovery (low household income and the ability
and willingness to pay for services) and the second relating to finance and risk.
Difficulties of Cost Recovery from Consumers in Marginal Communities
Sustainable and reliable ongoing services delivery requires sufficient funds to meet operating and maintenance
costs. Income may also be required to service loans for capital costs. Given the levels of poverty in marginalised
communities, many consumers of infrastructure services are seriously constrained in what they can afford to
pay. As a result, government has made significant budgetary provision to subsidise basic services in a way that
an agreed minimum of services is available free to poor consumers. The challenge at the service delivery level,
and for municipalities that are responsible for integrated service delivery, is in achieving a balance between
meeting the needs of the poor and securing sufficient income to ensure sustainable services delivery. As
previously discussed, this balance is, in part, related to the appropriate choice of LOS. It also depends on
functional subsidy and tariff policies together with accurate tariff setting to achieve the required income.
In South Africa, affordability continues to be a blend of consumers’ ability-to-pay, as related to income
levels, other calls on expenditure, willingness-to-pay based more on perceptions of the degree to which the
service is valued (at the LOS provided), political disposition toward the authorities, and a perception of the
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THE DBSA INFRASTRUCTURE BAROMETER
penalties for non-payment. A range of challenges emanates
from this scenario.
First, consumers need to be consulted on the choice and
cost of LOS, informed of their rights (such as a free basic
amount) and responsibilities, and helped to manage their
consumption. Once that has been undertaken, municipalities
then need to apply strict credit control. Second, the design
of subsidy and tariff structures must be responsive to the
needs of the poor, but at the same time assure sufficient
income for the ongoing operation of the services. Third,
service providers need to differentiate between those who
cannot pay and those who will not pay, applying sanctions
to the latter. Fourth, tariff structures and measurement
technologies need to encourage and assist people to
manage their consumption of services, thereby limiting
their liabilities and contributing to resource conservation.
The use of the “equitable share” of national revenue to
support the provision of basic services to the poor is highly
desirable, but there is always a danger of large subsidies
negatively influencing the behaviour of service providers.
Subsidy and tariff design needs to retain the link between
the customer and the service provider. If a service provider
relies more on recurrent subsidies from government than
on income from customers, it is likely to be less concerned
about rendering a good service to customers. Where this
happens, there is a strong case for instituting consumer
subsidies (e.g. a voucher system) to encourage service
providers to pay more attention to the needs of their
customers.
Finally, the need for successful cost recovery through
revenue management cannot be sufficiently emphasised.
Apart from the advantages of improved revenue
management to operations and maintenance budgeting,
revenue management will be one of the first considerations
to be examined by prospective providers of loan finance to
support new capital expenditure.
Finance and Risk
If infrastructure services provision is to be sustainable,
careful attention should be given to the raising and
managing of finance (refer Chapter 5). Capital expenditure
is typically funded through a) surpluses generated by the
municipality or service provider, b) government grants such
as the Municipal Infrastructure Grant (MIG), and c) raising
loans on the capital market. In the poorer municipalities,
the MIG and housing subsidies may be the only sources of
finance. However, many municipalities struggle to access
the MIG because they are required to have both an IDP
and a business plan for implementing and operating the
proposed infrastructure. In particular, the IDP should not
be considered complete unless it includes a comprehensive
and realistic infrastructure investment plan showing that
the municipality and its consumers can afford the proposed
PART II CHAPTER 6
Box 15: Challenges to generating revenue
The primary financial challenge facing municipalities is to
generate sufficient income to support the operations of the
municipality. The major operational responsibilities for which
income must be generated are:
• Electricity. Many of the larger municipalities generate
considerable income from this source. In our “forgotten
municipalities”, electricity is often supplied direct from
Eskom on a pre-payment system. It is difficult to understand
how a new municipality could claim any of this income
considering that it has provided no infrastructure and
plays no part in the service provision or payment collection
processes. The challenge is to ensure that the introduction
of the REDs does not weaken the ability of municipalities to
generate income.
• Rates and levies. The policy that rates do not apply to
properties with a value of less than R15 000 exempts a
considerable number of households from contributing to
rural-based municipalities. In addition, the low incidence
of industrial and commercial properties restricts the
municipality’s ability to collect sufficient rates and levies
from these sources to cover the shortfall.
• Water. 1) Where DWAF is, or recently has been, the de
facto water services provider, the water operating subsidy
exceeds the allocation from “equitable share”. Although
this is not reflected in municipal budgets, it is a municipal
responsibility and will become part of its expenditure and
income once the current transfer process is complete. The
planned reduction of this subsidy over the next seven years
without any commitment, at this stage, for it to be replaced
by any other form of funding, presents a major cause for
concern.
2) It is important that a municipality that is also a water
services authority implements appropriate arrangements for
the provision of the service as well as for ensuring that those
who are responsible for payment receive correct monthly
bills and statements and have credit control actions taken
against them in the event of non-payment. This approach
implies that every house connection must either be metered
or fitted with a flow restrictor device, or that the household
must fetch water from an off-site supply. The challenge is
how municipalities can increase their income flow from this
source.
• Sanitation. The cost of water-borne sewerage is high, both
to the municipality and to the customer. This includes the
cost of water used, and is estimated at a minimum of
R100 per month per house). The installation of such facilities
can only be financially justified when affordable. Most rural
and peri-urban areas are therefore likely to be served by
VIPs, chemical toilets or septic and conservancy tanks, none
of which generate significant income for the municipality.
• Refuse removal. Communities generally accept the need for
this service and the need for it to be paid for. It is, however,
difficult to enforce this payment, particularly as the level of
income that can be generated will always be threatened by
the area’s poverty.
Source: Gibson, 2004
193
Box 16: Financial management challenges of a typical
B2/B3 municipality
Financial management
The municipality has recently managed to prepare financial
statements with the help of consultants. Balance sheet figures for
30 June 2003 are now available. Financial management within the
municipality is very poor. The Head Office of the Financial Services
Department is short of financial management skills and experience.
Although an Acting Finance Director has been appointed, key
positions in the Finance Directorate are still vacant - Head of Income,
Accountant Debt Collection, Accountant Property and Assessment
Rates and Ledgers. Most financial policies are inadequate or nonexistent and the municipality requires assistance with treasury
activities. The municipal billing systems are not adequate because
of the lack of IT resources.
A second major issue is that the operational budget is not linked to
the IDP, and the budget is not cash funded as there is poor budgetary
control. Expenditure is still made against anticipated income and not
actual income received. The ratio of salaries to total income declined
in 2004, but remains much higher than the acceptable norm.
Municipal revenue
The major sources of the municipality’s revenue are assessment rates,
water sales and government contributions. The electricity supply is
provided by Eskom and thus no surplus revenue is generated from
this source. Ideally, a significant proportion of the municipality’s
revenue should be from trading activities such as water, sewage
and refuse collection. However, sewage and refuse collection only
contribute about 15 percent of municipal revenue and revenue from
water supply is insufficient because water losses reached a high level
in 2003. The municipality tends to depend more on government
contributions than on revenue from own sources.
Credit control
The municipality previously had no debt or credit control policies.
With the assistance of consultants, the revenue base is being
expanded, including the implementation of a credit control policy.
The payment level for services is currently 75 percent. The recovery
of arrears, however, remains a major problem, with the bulk of this
amount being owed by provincial government departments. The
Council has now realised that part of this amount is not recoverable
as consumers have proved that they were overcharged. It is estimated
that 50 percent of the debt is recoverable, with the balance to be
written off.
Assets and asset management
Although provision has been made in the 2005 budget for repairs
and maintenance, most of the assets are not well maintained
because there is no cash budget. Further, the municipality has no
investments which can be liquidated to supplement income.
Cross-subsidies and sustainability of the service
The sustainability of the service is often strongly dependent on the
amount of cross-subsidy that can be generated. This is achieved by
charging higher-income households and non-residential consumers
at above cost and applying the surplus to fund services to the poor.
There are limitations to this practice, with some municipalities only
having a few high income consumers in their jurisdiction. Moreover,
frequent hikes in tariffs for high-income consumers can result in
unintended consequences.
194
infrastructure. There is thus widespread need for basic
planning, budgeting and project management skills
within those municipalities that are responsible for
serving the poorest and most marginalised communities.
It is hoped that “Project Consolidate” will address these
needs in the least capacitated municipalities, but it is
still too early to assess its effectiveness.
Municipalities with strong balance sheets are
able to approach financial institutions to raise capital
for infrastructure investment. Potential lenders
routinely scrutinise and take a view on a municipality’s
creditworthiness in terms of its overall financial health,
its revenue performance and the risks associated
with servicing the loan. These risks include financial
aspects, such as a change in revenue or subsidy
streams, institutional aspects such as the loss of senior
management or the failure of administrative systems,
and technical risks such as inappropriate choice of
technology or poor operations and maintenance. If
there is any probability of a particular risk occurring,
and if the consequences are likely to be serious, then risk
mitigation measures, such as loan conditions with builtin safeguards to reduce the likelihood of the problem
occurring or some form of collateral or insurance,
would be introduced into the loan package.
There is growing recognition internationally
that efficiency in services delivery can be enhanced
through involvement of the private sector, although
this view is less supported in South Africa. A variety
of Public Private Partnership (PPP) models are
available to assist service providers. These range
from simple out-sourcing of activities such as meterreading, billing and credit control, through to
management contracts and long-term concessions.
Outsourcing can improve revenue performance.
Management contracts can improve technical and
administrative performance. Concessions enable the
private sector to raise finance for an efficient capital
investment programme, underwritten by the operator’s
own equity. South African government decisionmakers should maintain an open mind with regard to
private sector participation but, in order to achieve the
potential benefits, they should exercise control in the
context of clearly-defined roles and responsibilities. In
the same way, partnerships within the public sector
(PPP) also require a similar degree of control.
THE DBSA INFRASTRUCTURE BAROMETER
Conclusion
This chapter has examined the reasons for the ongoing services
backlogs among marginal rural and urban communities, and
considered the challenges confronting municipalities in overcoming
these backlogs, and in operating and maintaining the related
services.
The circumstances of marginal communities vary considerably
and impose different services delivery challenges on municipalities.
But even though the policy and regulatory environment is
comprehensive, it does not often consider differences between
marginal communities. In the same vein, while identifying some of
the differences between communities and their circumstances, it was
not possible to draw a direct link between specific service delivery
challenges and the different types of marginal community. The
line of reasoning thus focused on challenges to service delivery in
general without always trying to make the connection to marginal
communities. However, it is clear that marginal communities create a
more complex situation for providing infrastructure services.
It is concluded that the infrastructure requirements of marginal
communities are extensive and diverse, and that reducing the
backlogs is made complex by the communities’ fragile social and
economic setting. In addition, most of the municipalities responsible
for such communities are seriously hampered by both institutional
and financial capacity constraints.
In the light of this situation, several external interventions have
been forthcoming. Of particular note is that government, cognisant
of the institutional capacity challenges that local authorities face,
instituted “Project Consolidate” in 2004. This project provides handson support to local authorities through frequent and sometimes full
time technical assistance by experienced practitioners. A substantial
number of municipalities have been identified as beneficiaries of this
programme. In addition, the DBSA has instituted steps to address the
challenges faced by the typical B2/B3 municipality featured in this
chapter (refer Box 17), and similar approaches are used by the DBSA
in dealing with clients who have trouble in meeting debt servicing
obligations.
PART II CHAPTER 6
Box 17: Some interventions for a typical
B2/B3 municipality
The challenges confronting this municipality
are a result of local government amalgamation,
institutional transformation and its own particular
circumstances. Following the appointment of an
administrator by the province, the municipality will be
required to implement various measures to sustain its
operations. The major focus will be directed towards
the rationalisation of staff, improving the functionality
of the treasury department and adjusting tariffs.
Based on an analysis of the broad capacity-building
intervention plans to be undertaken by DBSA, the
DBSA will target its interventions (with support from
the Development Fund) on:
• Management and efficiency of the meter
reading process
• Assistance with collection of outstanding debts
from large debtors
• Customer database management
• Training of credit control staff
• Leadership training of both executive
management and council
• Development of maintenance plans, roads and
stormwater plans and environmental plans
• Information technology
• Explore placement of graduates in
municipalities.
The financial interventions pertain to two DBSA
loans; these should be consolidated and the total
book debt rescheduled over an agreed term.
In addition, the DBSA plans to appoint a consultant
to assist the municipality with debt collection.
Long term interventions to be implemented with
the assistance of the Development Fund include:
• Appointment of consultants to assist the
municipality with upgrading its treasury
activities
• Providing assistance to upgrade the
municipality’s IT resources.
195
Part II: Conclusion
Infrastructure provision is a means to an end rather than an end in itself. The introduction to this
report stated that good infrastructure is essential for growth and development, and that it can contribute
to the eradication of poverty. However, both depend on the institutional and financial capacity to roll out
and manage infrastructure in step with demand. They must also ensure that public investment reaches
poor people with the right mix of services to provide sustained improvement in their quality of life and to
contribute to their economic empowerment.
Part II of the report focused on access to municipal infrastructure services in general, and access by
the poor in particular. It reviews the available data, examines projections for infrastructure investment
and identifies many of the challenges of improving access, especially for the poor and marginalised
communities. These challenges are grouped into three areas: financial, social and institutional issues.
South Africa has, without doubt, made great strides in addressing the infrastructure dimensions of
the socio-economic legacy of apartheid. As described in Chapter 4, statistics vary between sources but
the general picture is overwhelmingly positive, as indicated by the changes recorded between the 1996
and 2001 censuses. National budget allocations have been consistently increased and backlogs are being
rapidly reduced, although some concern has been expressed over the sustainability of the municipal
infrastructure currently being installed. It is important to note that growth and development depend not
so much on the rapid roll-out of infrastructure itself, but rather on the sustainable delivery of the services
which that infrastructure makes possible.
The review of the infrastructure coverage statistics, which include two successive censuses and
references to other sources of data, highlights problems of definition, interpretation and methodological
incompatibility. It is hoped that all stakeholders will make a concerted effort to resolve these problems
when national statistics continue to be gathered into the future. In the meantime, the baseline data used
in the financial modelling for the Municipal Infrastructure Investment Framework (MIIF) represent an
approximate consensus position on infrastructure coverage and backlogs reached through consultation
with government departments. The coverage statistics also tell us much about the massive variation within
the country. As an example, in 2001, nearly 68 percent of Western Cape Province households had an inhouse water connection, as compared with only 10 percent in Limpopo Province.
In response to these infrastructure backlogs, government has committed itself to an ambitious
investment programme with specific targets and timeframes for water supply, sanitation and electricity.
Chapter 5 reported the interim results of the financial modelling for the proposed roll-out programme.
This study was undertaken jointly by the DPLG in partnership with the DBSA as part of a review of the
MIIF. This work aims to inform future budgetary allocations for the Municipal Infrastructure Grant (MIG)
and the “equitable share” of national revenue allocated to the municipal sphere. It will also inform
government policy and municipal decisions on levels of service (LOS) to be provided. The discipline of
financial modelling raises a number of important issues on which we comment below.
The first issue relates to input data. Although acceptable baseline data was obtained through broad
consultation, this was simply a snapshot. It highlights the need for municipalities to institute systems to
ensure that coverage data is kept up-to-date in order to facilitate their own planning processes. There is
also a dearth of reliable information on the true costs of installing and running infrastructure services.
It is hoped that implementation of the Municipal Finance Management Act (MFMA) will lead to ringfenced accounting of the various municipal services in order to provide accurate infrastructure costs. The
availability of true costs in a municipality will inform budget decisions, LOS decisions and the setting of
tariffs to avoid unintended distortions.
Secondly, it is clear that most municipalities face large challenges in providing new infrastructure to
address backlogs, and in operating and maintaining the services provided by that infrastructure. The
challenge is also that of providing acceptable and affordable services to consumers of municipal services,
especially where a large proportion of the consumers are poor. Both the MIG and “equitable share”
provide substantial financial support but, in most instances, these must be supplemented with municipal
own sources, borrowing for capital expenditure, and cross-subsidies from richer consumers to pay for
operating expenses. Table 46 gives a useful typology of municipalities (other details are provided in Tables
10 and 11), indicating the wide variation in key characteristics influencing municipal ability to address the
service delivery challenge. Financial modelling of municipal types with widely differing average revenue
per household demonstrates that own sources, borrowing and cross-subsidies will be difficult for many
196
THE DBSA INFRASTRUCTURE BAROMETER
municipalities, and particularly for the smaller and more rural municipality.
The scenario incorporating government’s current targets was modelled in detail. It shows a pronounced
investment peak in the middle part of the ten year scenario, largely due to the accelerated water supply
and sanitation programmes. This will require a significant increase in municipal borrowing which is
theoretically feasible but may prove unachievable for many smaller and rural municipalities and for those
with a higher proportion of poor communities associated with limited economic activity.
The financial modelling concludes that the proposed MIG budget allocations are adequate for at least
the next three years, but that there is a risk of insufficient funding if a policy change for housing subsidies
excludes infrastructure costs. Further, the current scenario also depends on acceleration of the housing
subsidy programme (including infrastructure) whereas there is a risk that proposed policy changes might
actually slow down the rate of housing development. However, the most significant conclusion is that,
even if the required amounts of capital can be mobilised, the real problem is the affordability of operations
and maintenance. Under the scenario selected for analysis, which represents government’s current targets,
the majority of municipalities will experience difficulty with recurrent costs. In the situation where budget
deficits affect operations and maintenance, this may lead to the premature deterioration (or collapse) of
expensive assets, environmental damage and, ultimately, a negative effect on local economic growth. Even
the modest levels of service proposed under this scenario would be difficult to sustain in an environment
of low affordability and an obligation to provide free basic services. This highlights the need to explore
other scenarios for national policy and for each municipality to undertake its own detailed infrastructure
investment planning to ensure the selection of the most appropriate and affordable levels of service.
These conclusions are carried through to Chapter 6 in a discussion on servicing marginalised communities.
The causes of marginalisation include a legacy of poor service delivery with extensive ongoing backlogs,
generally depressed incomes, and problems of location and migration. In addressing these problems in
marginalised areas, most municipalities face a number of financial, social and institutional challenges.
Many of the financial challenges are those described by the analysis in Chapter 5, only more acute. The
ability and willingness to pay of those in marginal communities has always been problematic. Consumers
should be involved in the choice of LOS to establish what they are willing to pay for. Tariff structures must
be pro-poor while at the same time ensuring sufficient income for the service provider. Subsidies must be
carefully managed to avoid unintended consequences. For example, there is always a risk that a supplyside subsidy, such as the “equitable share”, might cause service providers to concentrate more on securing
subsidies than actually serving consumers.
The social challenges in marginalised communities are many. Analysis of the last two censuses showed
that average household size has decreased and new household formation has accelerated rapidly. There
is considerable migration between rural and urban areas, some of which is seasonal and circulatory, thus
making planning difficult. The impact of HIV and AIDS is dire. The pandemic is having serious effects on
demographics, household characteristics and incomes, placing a strain on the demand for certain services
and reducing the skilled workforce and productivity of service providers.
A recurring theme throughout the report is the inadequate capacity of service providers to fulfil
their responsibilities. South Africa has completely overhauled its legislative, fiscal, regulatory and policy
environments to enhance service delivery to the poor and marginalised, but it is increasingly clear that
institutional capacity is the primary constraining factor. Delivering and operating new infrastructure are
complex activities and competent skilled persons are in short supply, especially at distance from the major
urban centres. Some elements of public-private partnerships (PPP) have been introduced to address this
problem but more could be done, provided they are adequately regulated. In addition, the technical
activities of municipalities are dependent on good governance, and this aspect is also suffering from a
lack of appropriate experience.
Addressing the capacity limitations of local government is thus the greatest challenge facing municipal
service delivery in South Africa today.
In summary, it is clear that the infrastructure requirements of marginal communities are extensive and
diverse, and that addressing the backlogs is made more complex by the communities’ fragile social and
economic setting. In addition, most of the municipal administrations responsible for such communities are
seriously hampered by both institutional and financial capacity constraints.
PART II CHAPTER 6
197
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207
PART III
KEY HOUSEHOLD SERVICES INDICATORS
Note on the Key Household Services Indicators
The purpose of this statistical annexure is to provide quantitative information on all the key household
services indicators. The information provides comparisons between 1996 and 2001 by quantifying access to
household services such as water, sanitation, energy and telephones. Information for publication is sourced
from STATISTICS SOUTH AFRICA: 1996 Population Census: Community profile database and 2001 Population
Census: Community profile database.
All sections in Part III consist of tabular and graphical views of access to household services, provided at
the different geographical levels, being provincial, metropolitan, district and local municipal levels.
Tables 1 to 4 depict this information on a provincial level. A comparison of the access to household services
on a metropolitan level is undertaken in Tables 5 to 8. The next geographical level of information includes
information on a district municipality level (Tables 9 to 12), while information on the local municipalities is
included in Tables 13 to 16. Information pertaining to District Management Areas is included in Tables 13 to
16.
The latter part of Part III consists of maps which depict the spatially uneven distribution of household
access to services on a local municipal level.
A special word of thanks is due to Frans Jacobs of the DBSA’s Development Information Unit (DIU) for his
assistance in compiling the maps.
While every care has been taken to ensure the accuracy of the information in this annexure, the DBSA
cannot take responsibility for any errors.
Andries Mouton
Editor: Household Services Indicators
PART III KEY HOUSEHOLD SERVICES INDICATORS
211
CONTENTS
List of tables:
Table 1
South Africa and provinces: Access to piped water, 1996 and 2001 ..............................................................215
Table 2
South Africa and provinces: Access to sanitation, 1996 and 2001 .................................................................216
Table 3
South Africa and provinces: Households not utilising electricity as an energy source, 1996 and 2001 .......217
Table.4
South Africa and provinces: Households with access or nearby access to telephones, 1996 and 2001 .......218
Table 5
Metropolitan municipalities: Access to piped water, 1996 and 2001 .............................................................219
Table 6
Metropolitan municipalities: Access to sanitation: 1996 and 2001 ................................................................220
Table 7
Metropolitan municipalities: Households not utilising electricity as an energy source, 1996 and 2001 .....221
Table 8
Metropolitan municipalities: Households with access or nearby access to telephones, 1996 and 2001......222
Table 9
District municipalities: Access to piped water, 1996 and 2001 .............................................................. 223-224
Table 10
District municipalities: Access to sanitation, 1996 and 2001 .................................................................. 226-227
Table 11
District municipalities: Households not utilising electricity as an energy source, 1996 and 2001 ........ 229-230
Table 12
District municipalities: Households with access or nearby access to telephones, 1996 and 2001 ........ 232-233
Table 13
Local municipalities: Access to piped water, 1996 and 2001 .................................................................. 235-245
Table 14
Local municipalities: Access to sanitation, 1996 and 2001 ...................................................................... 246-256
Table 15
Local municipalities: Households not utilising electricity as an energy source, 1996 and 2001 ........... 257-267
Table 16
Local municipalities: Households with access or nearby access to telephones, 1996 and 2001 ........... 268-278
List of figures:
Figure 1
Provinces: Number of households without access to piped water, 1996 and 2001 .......................................215
Figure 2
Provinces: Percentage of households without access to piped water, 1996 and 2001 .................................215
Figure 3
Provinces: Number of households without access to sanitation, 1996 and 2001 ..........................................216
Figure 4
Provinces: Percentage of households without access to sanitation, 1996 and 2001 .....................................216
Figure 5
Provinces: Number of households not utilising electricity as an energy source, 1996 and 2001 .................217
Figure 6
Provinces: Percentage of households not utilising electricity as an energy source, 1996 and 2001 ............217
Figure 7
Provinces: Number of households with no access or no nearby access to telephones,
1996 and 2001 ...................................................................................................................................................218
Figure 8
Provinces: Percentage of households with no access or no nearby access to telephones,
1996 and 2001 ...................................................................................................................................................218
Figure 9
Metropolitan municipalities: Number of households without access to piped water,
1996 and 2001 .............................................. ....................................................................................................219
Figure 10
Metropolitan municipalities: Percentage of households without access to piped water,
1996 and 2001 ...................................................................................................................................................219
Figure 11
Metropolitan municipalities: Number of households without access to sanitation, 1996 and 2001 ...........220
Figure 12
Metropolitan municipalities Percentage of households without access to sanitation, 1996 and 2001 ......220
Figure 13
Metropolitan municipalities: Number of households not utilising electricity as an energy source,
1996 and 2001 ...................................................................................................................................................221
Figure 14:
Metropolitan municipalities: Percentage of households not utilising electricity as an energy source,
1996 and 2001 ...................................................................................................................................................221
Figure 15:
Metropolitan municipalities: Number of households with no access or no nearby access to telephones,
1996 and 2001 ...................................................................................................................................................222
Figure 16
Metropolitan municipalities: Percentage of households with no access or no nearby access to
telephones,1996 and 2001 ................................................................................................................................222
Figure 17
District municipalities: Number of households without access to piped water, 2001 ...................................225
Figure 18
District municipalities: Number of households without access to sanitation, 2001 ......................................228
Figure 19
District municipalities: Number of households not utilising electricity as an energy source, 2001 .............231
Figure 20
District municipalities: Number of households with no access or no nearby access to
telephones, 2001 ...............................................................................................................................................234
212
THE DBSA INFRASTRUCTURE BAROMETER
List of Maps:
Map 1:
Western Cape: Number of households without access to piped water, 2001 ...............................................279
Map 2
Eastern Cape: Number of households without access to piped water, 2001 .................................................279
Map 3
Northern Cape: Number of households without access to piped water, 2001 ..............................................280
Map 4
Free State: Number of households without access to piped water, 2001 ......................................................280
Map 5
KwaZulu/Natal: Number of households without access to piped water, 2001 ..............................................281
Map 6
North West: Number of households without access to piped water, 2001....................................................281
Map 7
Gauteng: Number of households without access to piped water, 2001 ........................................................282
Map 8
Mpumalanga: Number of households without access to piped water, 2001 ................................................282
Map 9
Limpopo: Number of households without access to piped water, 2001 ........................................................283
Map 10
Western Cape: Number of households without access to sanitation, 2001 ...................................................283
Map 11
Eastern Cape: Number of households without access to sanitation, 2001 ....................................................284
Map 12
Northern Cape: Number of households without access to sanitation, 2001 .................................................284
Map 13
Free State: Number of households without access to sanitation, 2001 .........................................................285
Map 14
KwaZulu/Natal: Number of households without access to sanitation, 2001 .................................................285
Map 15
North West: Number of households without access to sanitation, 2001 .......................................................286
Map 16
Gauteng: Number of households without access to sanitation, 2001 ...........................................................286
Map 17
Mpumalanga: Number of households without access to sanitation, 2001....................................................287
Map 18
Limpopo: Number of households without access to sanitation, 2001 ...........................................................287
Map 19
Western Cape: Number of households not utilising electricity as an energy source, 2001 ..........................288
Map 20
Eastern Cape: Number of households not utilising electricity as an energy source, 2001............................288
Map 21
Northern Cape: Number of households not utilising electricity as an energy source, 2001.........................289
Map 22
Free State: Number of households not utilising electricity as an energy source, 2001.................................289
Map 23
KwaZulu/Natal: Number of households not utilising electricity as an energy source, 2001.........................290
Map 24
North West: Number of households not utilising electricity as an energy source, 2001 ..............................290
Map 25
Gauteng: Number of households not utilising electricity as an energy source, 2001 ...................................291
Map 26
Mpumalanga: Number of households not utilising electricity as an energy source, 2001 ...........................291
Map 27
Limpopo: Number of households not utilising electricity as an energy source, 2001...................................292
Map 28
Western Cape: Number of households with no access or no nearby access to telephones, 2001 ................292
Map 29
Eastern Cape: Number of households with no access or no nearby access to telephones, 2001 .................293
Map 30
Northern Cape: Number of households with no access or no nearby access to telephones, 2001 ..............293
Map 31
Free State: Number of households with no access or no nearby access to telephones, 2001 ......................294
Map 32
KwaZulu/Natal: Number of households with no access or no nearby access to telephones, 2001 ..............294
Map 33
North West: Number of households with no access or no nearby access to telephones, 2001 ....................295
Map 34
Gauteng: Number of households with no access or no nearby access to telephones, 2001 ........................295
Map 35
Mpumalanga: Number of households with no access or no nearby access to telephones, 2001.................296
Map 36
Limpopo: Number of households with no access or no nearby access to telephones, 2001 ........................296
Bibliography ............................................................................................................................................................................297
Addresses
............................................................................................................................................................................298
Photographic credits ...............................................................................................................................................................298
PART III KEY HOUSEHOLD SERVICES INDICATORS
213
Technical Note
The primary source of information for this chapter is Statistics South Africa: 2001 Census: Community Profile
database. However, it should be noted that, because the defining characteristics of the 1996 and 2001 census
categories differed in many instances, it was not always possible to compare information. To mitigate this
problem and to facilitate a greater degree of comparability, information relating to “access to household
services” was grouped into two broad categories, namely, those “without access” and those “with access”.
The specific definitions attached to access to services for each sector are as follows:
1996 and 2001 Census categories:
Sector
Service level
1996 Census category
2001 Census category
Water
Without access to piped water
Unspecified, other, dam/river/stream/
spring, borehole/rainwater/tank/well,
water-carrier/tanker
Piped water in the dwelling, piped
water on site, public tap
Other, water vendor, river/ stream,
dam/pool/stagnant water, rainwater
tank, spring, borehole
Piped water inside dwelling, piped
water inside yard, piped water on
community stand: distance less than
200m from dwelling, piped water on
community stand: distance greater than
200m from dwelling
Access to piped water
Sanitation
Without access
With access
Unspecified, none, bucket latrine
Flush or chemical toilet, pit latrine
None, bucket latrine
Flush toilet (connected to a sewerage system), flush toilet (with septic
tank), chemical toilet, pit latrine with
ventilation (VIP), pit latrine without
ventilation
Energy (utilising electricity as a source
of energy for lighting purposes)
Not utilising electricity
Unspecified, other, candles, paraffin,
gas
Electricity direct from authority, electricity from other source
Other, candles, paraffin, gas
Unspecified, dummy, hostel/ institution:
No telephone on premises, household:
no access to a telephone, household: at
another location not nearby
Household; in this dwelling/cell-phone,
household: at a neighbour nearby,
household: at a public telephone
nearby, household: at another location
nearby, hostel/ institution: telephone
on premises
No access to a telephone, at another
location not nearby
Utilising electricity
Telephone
No access or no nearby access
Access or nearby access
214
THE DBSA INFRASTRUCTURE BAROMETER
Electricity, solar
Telephone in dwelling and cell-phone,
telephone in dwelling only, cell-phone
only, at a neighbour nearby, at a public
telephone nearby, at another location
nearby
Table 1: South Africa and provinces: Access to piped water, 1996 and 2001
1996
Province
Total number
of
households
2001
Without access to piped
water
Number
%
With access to piped water
Number
Total number
of
households
%
Without access to piped
water
Number
%
With access to piped water
Number
%
Western Cape
985 490
31 850
3.2
953 640
96.8
1 208 983
20 595
1.7
1 188 388
98.3
Eastern Cape
1 333 862
620 283
46.5
713 579
53.5
1 535 966
572 379
37.3
963 587
62.7
Northern Cape
187 596
16 710
8.9
170 886
91.1
219 981
7 249
3.3
212 732
96.7
Free State
626 339
37 610
6.0
588 729
94.0
757 261
32 201
4.3
725 060
95.7
KwaZulu-Natal
1 665 299
561 876
33.7
1 103 423
66.3
2 200 429
570 148
25.9
1 630 281
74.1
721 652
134 149
18.6
587 503
81.4
977 950
129 724
13.3
848 226
86.7
1 967 597
79 554
4.0
1 888 043
96.0
2 836 334
68 514
2.4
2 767 820
97.6
Mpumalanga
605 110
107 886
17.8
497 224
82.2
783 003
100 826
12.9
682 177
87.1
Limpopo
984 457
241 496
24.5
742 961
75.5
1 250 363
264 823
21.2
985 540
78.8
9 077 402
1 831 414
20.2
7 245 988
79.8
11 770 270
1 766 459
15.0
10 003 811
85.0
North West
Gauteng
Total
Figure 1: Provinces: Number of households without access to piped water,
1996 and 2001
Figure 2: Provinces: Percentage of households without access to piped water,
1996 and 2001
PART III KEY HOUSEHOLD SERVICES INDICATORS
215
Table 2: South Africa and provinces: Access to sanitation, 1996 and 2001
1996
Province
Total number
of
households
2001
Without access
to sanitation
Number
With access
to sanitation
%
Number
Total number
of
households
%
Without access
to sanitation
Number
%
Number
%
Western Cape
985 490
93 688
9.5
891 802
90.5
1 208 982
136 509
11.3
1 072 473
88.7
Eastern Cape
1 333 862
477 784
35.8
856 078
64.2
1 535 967
555 265
36.2
980 702
63.8
187 596
54 523
29.1
133 073
70.9
219 981
48 662
22.1
171 319
77.9
Northern Cape
Free State
KwaZulu-Natal
North West
Gauteng
Mpumalanga
Limpopo
Total
626 339
185 991
29.7
440 348
70.3
757 259
222 889
29.4
534 370
70.6
1 665 299
278 515
16.7
1 386 784
83.3
2 200 431
375 531
17.1
1 824 900
82.9
721 652
95 734
13.3
625 918
86.7
977 948
134 429
13.7
843 519
86.3
1 967 597
109 358
5.6
1 858 239
94.4
2 836 335
164 101
5.8
2 672 234
94.2
605 110
77 720
12.8
527 390
87.2
783 005
102 002
13.0
681 003
87.0
984 457
218 531
22.2
765 926
77.8
1 250 365
294 178
23.5
956 187
76.5
9 077 402
1 591 844
17.5
7 485 558
82.5
11 770 273
2 033 566
17.3
9 736 707
82.7
Figure 3: Provinces: Number of households without access to sanitation,
1996 and 2001
Figure 4: Provinces: Percentage of households without access to sanitation,
1996 and 2001
216
With access
to sanitation
THE DBSA INFRASTRUCTURE BAROMETER
Table 3: South Africa and provinces: Households not utilising electricity as an energy source, 1996 and 2001
1996
Province
Total number
of
households
2001
Not utilising electricity
Number
%
Utilising electricity
Number
Total number
of
households
%
Not utilising electricity
Number
%
Utilising electricity
Number
%
Western Cape
985 490
145 746
14.8
839 744
85.2
1 208 981
142 895
11.8
1 066 086
88.2
Eastern Cape
1 333 862
910 388
68.3
423 474
31.7
1 535 969
768 075
50.0
767 894
50.0
187 596
55 051
29.3
132 545
70.7
219 981
49 138
22.3
170 843
77.7
Northern Cape
Free State
KwaZulu-Natal
North West
Gauteng
626 339
268 292
42.8
358 047
57.2
757 259
188 427
24.9
568 832
75.1
1 665 299
772 851
46.4
892 448
53.6
2 200 431
828 289
37.6
1 372 142
62.4
721 652
403 278
55.9
318 374
44.1
977 948
280 080
28.6
697 868
71.4
1 967 597
402 386
20.5
1 565 211
79.5
2 836 336
532 046
18.8
2 304 290
81.2
Mpumalanga
605 110
262 519
43.4
342 591
56.6
783 004
246 075
31.4
536 929
68.6
Limpopo
984 457
623 519
63.3
360 938
36.7
1 250 363
446 523
35.7
803 840
64.3
9 077 402
3 844 030
42.3
5 233 372
57.7
11 770 272
3 481 548
29.6
8 288 724
70.4
Total
Figure 5: Provinces: Number of households not utilising electricity as an
energy source, 1996 and 2001
Figure 6: Provinces: Percentage of households not utilising elctricity as an
energy source, 1996 and 2001
PART III KEY HOUSEHOLD SERVICES INDICATORS
217
Table 4: South Africa and provinces: Households with access or nearby access to telephones, 1996 and 2001
1996
Province
Total number
of
households
2001
No access/
no nearby access
Number
With access/
nearby access
%
Number
Total number
of
households
%
No access/
not nearby access
Number
%
Number
%
Western Cape
985 490
44 780
4.5
940 710
95.5
1 208 983
32 550
2.7
1 176 433
97.3
Eastern Cape
1 333 862
692 709
51.9
641 153
48.1
1 535 968
309 083
20.1
1 226 885
79.9
Northern Cape
187 596
27 910
14.9
159 686
85.1
219 980
16 206
7.4
203 774
92.6
Free State
626 339
116 818
18.7
509 521
81.3
757 259
76 694
10.1
680 565
89.9
KwaZulu-Natal
1 665 299
470 871
28.3
1 194 428
71.7
2 200 430
299 188
13.6
1 901 242
86.4
721 652
199 255
27.6
522 397
72.4
977 950
95 316
9.7
882 634
90.3
1 967 597
127 108
6.5
1 840 489
93.5
2 836 336
66 881
2.4
2 769 455
97.6
Mpumalanga
605 110
130 170
21.5
474 940
78.5
783 003
64 954
8.3
718 049
91.7
Limpopo
984 457
437 423
44.4
547 034
55.6
1 250 363
145 040
11.6
1 105 323
88.4
9 077 402
2 247 044
24.8
6 830 358
75.2
11 770 272
1 105 912
9.4
10 664 360
90.6
North West
Gauteng
Total
Figure 7: Provinces: Number of households with no access or no
nearby access to telephones 1996 and 2001
Figure 8: Provinces: Percentage of households with no access or no
nearby access to telephones, 1996 and 2001
218
With access/
nearby access
THE DBSA INFRASTRUCTURE BAROMETER
Table 5: Metropolitan municipalities: Access to piped water, 1996 and 2001
Province
Metropolitan
Municipality
1996
Total
number of
households
Without access to piped
water
Number
Western Cape
City of
Cape Town
2001
%
With access to piped
water
Number
Total
number of
households
%
Without access to piped
water
Number
%
With access to piped
water
Number
%
652 413
14 565
2.2
637 848
97.8
777 396
9 893
1.3
767 503
98.7
Kwazulu-Natal
Ethekwini
647 916
39 430
6.1
608 486
93.9
823 699
40 976
5.0
782 723
95.0
Gauteng
Ekurhuleni
543 296
18 683
3.4
524 613
96.6
776 551
12 702
1.6
763 849
98.4
Gauteng
City of
734 425
18 847
2.6
715 578
97.4
1 049 669
30 191
2.9
1 019 478
97.1
225 515
4 663
2.1
220 852
97.9
265 104
3 483
1.3
261 621
98.7
430 807
24 585
5.7
406 222
94.3
597 882
26 783
4.5
571 099
95.5
3 234 372
120 773
3.7
3 113 599
96.3
4 290 301
124 028
2.9
4 166 273
97.1
Johannesburg
Eastern Cape
Nelson
Mandela
Gauteng
City of
Tshwane
Total
Figure 9: Metropolitan municipalities: Number of households
without access to piped water, 1996 and 2001
Figure 10: Metropolitan municipalities: Percentage of households
without access to piped water, 1996 and 2001
PART III KEY HOUSEHOLD SERVICES INDICATORS
219
Table 6: Metropolitan municipalities: Access to sanitation, 1996 and 2001
Province
Metropolitan
Municipality
1996
Total
number of
households
Without access
Number
Western Cape
City of
2001
With access
%
Number
Total
number of
households
%
Without access
Number
With access
%
Number
%
652 413
54 409
8.3
598 004
91.7
777 396
90 231
11.6
687 165
88.4
823 699
43 048
5.2
780 651
94.8
Cape Town
Kwazulu-Natal
Ethekwini
647 916
27 101
4.2
620 815
95.8
Gauteng
Ekurhuleni
543 296
32 587
6.0
510 709
94.0
776 552
46 031
5.9
730 521
94.1
Gauteng
City of
734 425
48 867
6.7
685 558
93.3
1 049 670
68 969
6.6
980 701
93.4
225 515
33 079
14.7
192 436
85.3
265 104
46 915
17.7
218 189
82.3
430 807
8 548
2.0
422 259
98.0
597 883
21 871
3.7
576 012
96.3
3 234 372
204 591
6.3
3 029 781
93.7
4 290 304
317 065
7.4
3 973 239
92.6
Johannesburg
Eastern Cape
Nelson
Mandela
Gauteng
City of
Tshwane
Total
Figure 11: Metropolitan municipalities: Number of households
without access to sanitation 1996 and 2001
Figure 12: Metropolitan municipalities: Percentage of households
without access to sanitation, 1996 and 2001
220
THE DBSA INFRASTRUCTURE BAROMETER
Table 7: Metropolitan municipalities: Households not utilising electricity as an energy source, 1996 and 2001
Province
Western Cape
Metropolitan
Municipality
City of Cape
Town
1996
Total
number of
households
652 413
Not utilising electricity
Number
85 917
%
2001
Utilising electricity
Number
%
Total
number of
households
Not utilising electricity
Number
%
Utilising electricity
Number
%
13.2
566 496
86.8
777 397
86 542
11.1
690 855
88.9
Kwazulu-Natal
Ethekwini
647 916
170 059
26.2
477 857
73.8
823 698
161 028
19.5
662 670
80.5
Gauteng
Ekurhuleni
543 296
136 995
25.2
406 301
74.8
776 552
191 443
24.7
585 109
75.3
Gauteng
City of
734 425
110 873
15.1
623 552
84.9
1 049 669
155 984
14.9
893 685
85.1
225 515
65 763
29.2
159 752
70.8
265 104
65 624
24.8
199 480
75.2
430 807
95 754
22.2
335 053
77.8
597 882
119 614
20.0
478 268
80.0
3 234 372
665 361
20.6
2 569 011
79.4
4 290 302
780 235
18.2
3 510 067
81.8
Johannesburg
Eastern Cape
Nelson
Mandela
Gauteng
City of
Tshwane
Total
Figure 13: Metropolitan municipalities: Number of households
not utilising electricity as an energy source, 1996 and 2001
Figure 14: Metropolitan municipalities: Percentage of households
not utilising electricity as an energy source, 1996 and 2001
PART III KEY HOUSEHOLD SERVICES INDICATORS
221
Table 8: Metropolitan municipalities: Households with access or nearby access to telephones, 1996 and 2001
Province
Metropolitan
Municipality
1996
Total
number of
households
No access/ no nearby
access
Number
Western Cape
City of
Cape Town
Kwazulu-Natal
Ethekwini
Gauteng
Ekurhuleni
Gauteng
2001
%
With access/ nearby
access
Number
Total
number of
households
%
No access/ no nearby
access
Number
Number
%
652 413
19 860
3.0
632 553
97.0
777 396
14 640
1.9
762 756
98.1
647 916
49 753
7.7
598 163
92.3
823 700
42 537
5.2
781 163
94.8
543 296
43 199
8.0
500 097
92.0
776 550
17 325
2.2
759 225
97.8
City of
Johannesburg
734 425
39 877
5.4
694 548
94.6
1 049 670
23 928
2.3
1 025 742
97.7
Eastern Cape
Nelson
Mandela
225 515
12 539
5.6
212 976
94.4
265 104
8 466
3.2
256 638
96.8
Gauteng
City of
Tshwane
430 807
33 037
7.7
397 770
92.3
597 883
12 684
2.1
585 199
97.9
3 234 372
198 265
6.1
3 036 107
93.9
4 290 303
119 580
2.8
4 170 723
97.2
Total
Figure 15: Metropolitan municipalities: Number of households
with no access or no nearby access to telephones, 1996 and 2001
Figure 16: Metropolitan municipalities: Percentage of households
with no access or no nearby access to telephones, 1996 and 2001
222
%
With access/ nearby
access
THE DBSA INFRASTRUCTURE BAROMETER
Table 9: District municipalities: Access to piped water, 1996 and 2001
Province
District
Municipality
1996
2001
Total
Without access to piped
With access to piped
Total
Without access to piped
With access to piped
number of
water
water
number of
water
water
households
households
Number
Western Cape
DC1:
West Coast
Western Cape
DC2:
Boland
Western Cape
%
Number
%
Number
%
Number
%
56 422
2 059
3.6
54 363
96.4
77 673
1 497
1.9
76 176
98.1
131 461
5 302
4.0
126 159
96.0
159 440
3 070
1.9
156 370
98.1
DC3:
Overberg
41 174
2 213
5.4
38 961
94.6
58 566
761
1.3
57 805
98.7
Western Cape
DC4:
Eden
90 900
7 217
7.9
83 683
92.1
120 747
5 233
4.3
115 514
95.7
Western Cape
DC5:
Central Karoo
12 460
483
3.9
11 977
96.1
15 165
173
1.1
14 992
98.9
Northern Cape
DC6:
Namakwa
26 464
2 896
10.9
23 568
89.1
30 487
1 209
4.0
29 278
96.0
Northern Cape
DC7:
Karoo
39 021
3 392
8.7
35 629
91.3
41 761
1 207
2.9
40 554
97.1
Northern Cape
DC8:
Siyanda
43 785
5 601
12.8
38 184
87.2
55 901
2 653
4.7
53 248
95.3
Northern Cape
DC9:
Frances Baard
72 552
3 790
5.2
68 762
94.8
85 227
2 498
2.9
82 729
97.1
Eastern Cape
DC10:
Cacadu
83 582
11 304
13.5
72 278
86.5
102 739
7 600
7.4
95 139
92.6
Eastern Cape
DC12:
Amatole
361 986
140 738
38.9
221 248
61.1
424 339
129 572
30.5
294 767
69.5
Eastern Cape
DC13:
Chris Hani
170 702
86 822
50.9
83 880
49.1
189 772
73 551
38.8
116 221
61.2
Eastern Cape
DC14:
Ukhahlamba
71 104
36 965
52.0
34 139
48.0
85 904
36 357
42.3
49 547
57.7
Eastern Cape
DC15:
O.R.Tambo
306 948
248 292
80.9
58 656
19.1
343 696
247 612
72.0
96 084
28.0
Free State
DC16:
Xhariep
30 877
2 684
8.7
28 193
91.3
39 234
1 296
3.3
37 938
96.7
Free State
DC17:
Motheo
171 214
5 840
3.4
165 374
96.6
210 388
8 785
4.2
201 603
95.8
Free State
DC18:
Lejweleputswa
162 209
8 374
5.2
153 835
94.8
196 639
8 295
4.2
188 344
95.8
Free State
DC19: Thabo
Mofutsanyane
156 893
12 656
8.1
144 237
91.9
186 171
11 362
6.1
174 809
93.9
Free State
DC20: Northern
Free State
105 146
8 056
7.7
97 090
92.3
124 825
2 388
1.9
122 437
98.1
Kwazulu-Natal
DC21:
Ugu
122 388
76 855
62.8
45 533
37.2
158 305
78 877
49.8
79 428
50.2
Kwazulu-Natal
DC22:
UMgungundlovu
190 408
43 970
23.1
146 438
76.9
234 434
35 201
15.0
199 233
85.0
Kwazulu-Natal
DC23:
Uthukela
95 066
36 516
38.4
58 550
61.6
138 729
44 723
32.2
94 006
67.8
Kwazulu-Natal
DC24:
Umzinyathi
75 376
49 196
65.3
26 180
34.7
94 911
50 729
53.4
44 182
46.6
Kwazulu-Natal
DC25:
Amajuba
74 362
17 861
24.0
56 501
76.0
98 052
21 250
21.7
76 802
78.3
PART III KEY HOUSEHOLD SERVICES INDICATORS
223
Table 9: (continued) District municipalities: Access to piped water, 1996 and 2001
Province
District
Municipality
1996
2001
Total
Without access to piped
With access to piped
Total
Without access to piped
With access to piped
number of
water
water
number of
water
water
households
households
Number
Kwazulu-Natal
DC26:
Zululand
Kwazulu-Natal
DC27:
Umkhanyakude
Kwazulu-Natal
DC28:
Uthungulu
Kwazulu-Natal
DC29: iLembe
Mpumalanga
Number
%
Number
%
Number
%
107 581
65 094
60.5
42 487
39.5
150 859
73 107
48.5
77 752
51.5
73 208
60 468
82.6
12 740
17.4
105 649
59 178
56.0
46 471
44.0
122 956
82 303
66.9
40 653
33.1
189 617
78 377
41.3
111 240
58.7
108 174
64 785
59.9
43 389
40.1
129 935
59 454
45.8
70 481
54.2
DC30:
Gert Sibande
173 499
34 412
19.8
139 087
80.2
222 053
28 954
13.0
193 099
87.0
Mpumalanga
DC31:
Nkangala
208 221
30 738
14.8
177 483
85.2
257 255
28 135
10.9
229 120
89.1
Mpumalanga
DC32:
Ehlanzeni
176 529
31 392
17.8
145 137
82.2
240 163
29 436
12.3
210 727
87.7
Limpopo
DC33:
Mopani
183 123
27 625
15.1
155 498
84.9
237 504
35 857
15.1
201 647
84.9
Limpopo
DC34:
Vhembe
212 251
32 313
15.2
179 938
84.8
274 283
36 806
13.4
237 477
86.6
Limpopo
DC35:
Capricorn
208 252
53 148
25.5
155 104
74.5
284 968
65 944
23.1
219 024
76.9
Limpopo
DC36:
Waterberg
117 615
31 374
26.7
86 241
73.3
168 070
22 754
13.5
145 316
86.5
North West
DC37:
Bojanala
241 407
52 679
21.8
188 728
78.2
333 303
51 692
15.5
281 611
84.5
North West
DC38:
Central
137 890
33 054
24.0
104 836
76.0
184 588
40 510
21.9
144 078
78.1
North West
DC39:
Bophirima
87 450
21 113
24.1
66 337
75.9
106 707
12 483
11.7
94 224
88.3
North West
DC40:
Southern
126 589
7 389
5.8
119 200
94.2
174 698
3 690
2.1
171 008
97.9
Gauteng
DC42:
Sedibeng
182 116
10 506
5.8
171 610
94.2
229 992
3 651
1.6
226 341
98.4
Kwazulu-Natal
DC43:
Sisonke
47 802
25 338
53.0
22 464
47.0
76 240
28 184
37.0
48 056
63.0
Eastern Cape
DC44:
Alfred Nzo
113 601
91 488
80.5
22 113
19.5
124 416
74 481
59.9
49 935
40.1
Northern Cape/
North West
CBDC1:
Kgalagadi
35 417
9 071
25.6
26 346
74.4
43 765
7 699
17.6
36 066
82.4
Gauteng/
Mpumalanga
CBDC2:
Metsweding
29 393
6 271
21.3
23 122
78.7
49 959
2 975
6.0
46 984
94.0
Limpopo/
Mpumalanga
CBDC3:
Sekhukhune
171 471
80 381
46.9
91 090
53.1
204 710
85 636
41.8
119 074
58.2
Limpopo/
Mpumalanga
CBDC4:
Bohlabela
131 888
27 841
21.1
104 047
78.9
135 000
31 698
23.5
103 302
76.5
North West/
Gauteng
CBDC8:
West Rand
153 046
12 759
8.3
140 287
91.7
283 129
5 828
2.1
277 301
97.9
5 841 979
1 710 624
29.3
4 131 355
70.7
7 479 968
1 642 428
22.0
5 837 540
78.0
Total
224
%
THE DBSA INFRASTRUCTURE BAROMETER
Figure 17: District municipalities: Number of households without access to piped water, 2001
PART III KEY HOUSEHOLD SERVICES INDICATORS
225
Table 10: District municipalities: Access to sanitation, 1996 and 2001
Province
District
Municipality
1996
Total
number of
households
Number
226
Western Cape
DC1:
West Coast
Western Cape
DC2:
Boland
Western Cape
2001
Without access
With access
%
Number
Total
number of
households
%
Without access
Number
With access
%
Number
%
56 422
7 109
12.6
49 313
87.4
77 674
7 969
10.3
69 705
89.7
131 461
11 701
8.9
119 760
91.1
159 440
15 559
9.8
143 881
90.2
DC3:
Overberg
41 174
4 882
11.9
36 292
88.1
58 566
6 499
11.1
52 067
88.9
Western Cape
DC4:
Eden
90 900
12 131
13.3
78 769
86.7
120 747
14 821
12.3
105 926
87.7
Western Cape
DC5:
Central Karoo
12 460
3 296
26.5
9 164
73.5
15 164
1 534
10.1
13 630
89.9
Northern Cape
DC6:
Namakwa
26 464
10 503
39.7
15 961
60.3
30 489
7 451
24.4
23 038
75.6
Northern Cape
DC7:
Karoo
39 021
17 339
44.4
21 682
55.6
41 762
15 621
37.4
26 141
62.6
Northern Cape
DC8:
Siyanda
43 785
10 357
23.7
33 428
76.3
55 900
10 437
18.7
45 463
81.3
Northern Cape
DC9:
Frances Baard
72 552
14 764
20.3
57 788
79.7
85 227
14 082
16.5
71 145
83.5
Eastern Cape
DC10:
Cacadu
83 582
26 325
31.5
57 257
68.5
102 739
27 037
26.3
75 702
73.7
Eastern Cape
DC12:
Amatole
361 986
112 339
31.0
249 647
69.0
424 338
132 647
31.3
291 691
68.7
Eastern Cape
DC13:
Chris Hani
170 702
83 580
49.0
87 122
51.0
189 770
90 765
47.8
99 005
52.2
Eastern Cape
DC14:
Ukhahlamba
71 104
35 663
50.2
35 441
49.8
85 904
43 351
50.5
42 553
49.5
Eastern Cape
DC15:
O.R.Tambo
306 948
157 396
51.3
149 552
48.7
343 697
181 958
52.9
161 739
47.1
Free State
DC16:
Xhariep
30 877
11 667
37.8
19 210
62.2
39 234
9 077
23.1
30 157
76.9
Free State
DC17:
Motheo
171 214
45 194
26.4
126 020
73.6
210 387
57 390
27.3
152 997
72.7
Free State
DC18:
Lejweleputswa
162 209
57 883
35.7
104 326
64.3
196 640
74 040
37.7
122 600
62.3
Free State
DC19: Thabo
Mofutsanyane
156 893
41 277
26.3
115 616
73.7
186 171
53 632
28.8
132 539
71.2
Free State
DC20: Northern
Free State
105 146
29 970
28.5
75 176
71.5
124 822
28 172
22.6
96 650
77.4
Kwazulu-Natal
DC21:
Ugu
122 388
17 100
14.0
105 288
86.0
158 306
28 698
18.1
129 608
81.9
Kwazulu-Natal
DC22:
UMgungundlovu
190 408
11 913
6.3
178 495
93.7
234 432
17 080
7.3
217 352
92.7
Kwazulu-Natal
DC23:
Uthukela
95 066
19 346
20.4
75 720
79.6
138 730
26 610
19.2
112 120
80.8
Kwazulu-Natal
DC24:
Umzinyathi
75 376
34 882
46.3
40 494
53.7
94 911
40 720
42.9
54 191
57.1
Kwazulu-Natal
DC25:
Amajuba
74 362
3 606
4.8
70 756
95.2
98 051
7 152
7.3
90 899
92.7
THE DBSA INFRASTRUCTURE BAROMETER
Table 10: (continued) District municipalities: Access to sanitation, 1996 and 2001
Province
District
Municipality
1996
Total
number of
households
Number
Kwazulu-Natal
DC26:
Zululand
Kwazulu-Natal
DC27:
Umkhanyakude
Kwazulu-Natal
2001
Without access
With access
%
Number
Total
number of
households
%
Without access
Number
With access
%
Number
%
107 581
39 431
36.7
68 150
63.3
150 861
59 922
39.7
90 939
60.3
73 208
47 395
64.7
25 813
35.3
105 650
59 954
56.7
45 696
43.3
DC28:
Uthungulu
122 956
43 600
35.5
79 356
64.5
189 618
56 272
29.7
133 346
70.3
Kwazulu-Natal
DC29:
iLembe
108 174
28 039
25.9
80 135
74.1
129 935
26 362
20.3
103 573
79.7
Mpumalanga
DC30:
Gert Sibande
173 499
35 287
20.3
138 212
79.7
222 053
40 131
18.1
181 922
81.9
Mpumalanga
DC31:
Nkangala
208 221
12 898
6.2
195 323
93.8
257 255
15 683
6.1
241 572
93.9
Mpumalanga
DC32:
Ehlanzeni
176 529
26 086
14.8
150 443
85.2
240 164
39 648
16.5
200 516
83.5
Limpopo
DC33:
Mopani
183 123
59 792
32.7
123 331
67.3
237 503
83 191
35.0
154 312
65.0
Limpopo
DC34:
Vhembe
212 251
49 278
23.2
162 973
76.8
274 285
72 089
26.3
202 196
73.7
Limpopo
DC35:
Capricorn
208 252
37 163
17.8
171 089
82.2
284 968
50 243
17.6
234 725
82.4
Limpopo
DC36:
Waterberg
117 615
13 167
11.2
104 448
88.8
168 071
25 433
15.1
142 638
84.9
North West
DC37:
Bojanala
241 407
15 611
6.5
225 796
93.5
333 303
32 328
9.7
300 975
90.3
North West
DC38:
Central
137 890
14 405
10.4
123 485
89.6
184 590
21 558
11.7
163 032
88.3
North West
DC39:
Bophirima
87 450
19 499
22.3
67 951
77.7
106 708
25 305
23.7
81 403
76.3
North West
DC40:
Southern
126 589
38 820
30.7
87 769
69.3
174 698
41 715
23.9
132 983
76.1
Gauteng
DC42:
Sedibeng
182 116
8 399
4.6
173 717
95.4
229 991
10 884
4.7
219 107
95.3
Kwazulu-Natal
DC43:
Sisonke
47 802
6 046
12.6
41 756
87.4
76 240
9 753
12.8
66 487
87.2
Eastern Cape
DC44:
Alfred Nzo
113 601
29 397
25.9
84 204
74.1
124 416
32 736
26.3
91 680
73.7
Northern Cape/
North West
CBDC1:
Kgalagadi
35 417
6 322
17.9
29 095
82.1
43 764
9 217
21.1
34 547
78.9
Gauteng/
Mpumalanga
CBDC2:
Metsweding
29 393
1 708
5.8
27 685
94.2
49 959
5 592
11.2
44 367
88.8
Limpopo/
Mpumalanga
CBDC3:
Sekhukhune
171 471
36 390
21.2
135 081
78.8
204 709
35 930
17.6
168 779
82.4
Limpopo/
Mpumalanga
CBDC4:
Bohlabela
131 888
26 043
19.7
105 845
80.3
134 999
33 291
24.7
101 708
75.3
North West/
Gauteng
CBDC8:
West Rand
153 046
12 088
7.9
140 958
92.1
283 129
16 967
6.0
266 162
94.0
Total
5 841 979
1 387 087
23.7
4 454 892
76.3
7 479 970
1 716 506
22.9
5 763 464
77.1
PART III KEY HOUSEHOLD SERVICES INDICATORS
227
Figure 18: District municipalities: Number of households without access to sanitation, 2001
228
THE DBSA INFRASTRUCTURE BAROMETER
Table 11: District municipalities: Households not utilising electricity as an energy source, 1996 and 2001
Province
District
Municipality
1996
Total
number of
households
Not utilising electricity
Number
Western Cape
DC1:
West Coast
Western Cape
DC2:
Boland
Western Cape
%
2001
Utilising electricity
Number
Total
number of
households
%
Not utilising electricity
Number
%
Utilising electricity
Number
%
56 422
10 209
18.1
46 213
81.9
77 674
9 141
11.8
68 533
88.2
131 461
20 260
15.4
111 201
84.6
159 440
18 280
11.5
141 160
88.5
DC3:
Overberg
41 174
7 194
17.5
33 980
82.5
58 565
9 391
16.0
49 174
84.0
Western Cape
DC4:
Eden
90 900
19 332
21.3
71 568
78.7
120 747
17 301
14.3
103 446
85.7
Western Cape
DC5:
Central Karoo
12 460
2 668
21.4
9 792
78.6
15 165
2 085
13.7
13 080
86.3
Northern Cape
DC6:
Namakwa
26 464
8 587
32.4
17 877
67.6
30 489
6 201
20.3
24 288
79.7
Northern Cape
DC7:
Karoo
39 021
13 266
34.0
25 755
66.0
41 762
9 676
23.2
32 086
76.8
Northern Cape
DC8:
Siyanda
43 785
15 400
35.2
28 385
64.8
55 902
14 012
25.1
41 890
74.9
Northern Cape
DC9:
Frances Baard
72 552
17 031
23.5
55 521
76.5
85 226
18 489
21.7
66 737
78.3
Eastern Cape
DC10:
Cacadu
83 582
29 484
35.3
54 098
64.7
102 742
28 683
27.9
74 059
72.1
Eastern Cape
DC12:
Amatole
361 986
254 627
70.3
107 359
29.7
424 338
191 517
45.1
232 821
54.9
Eastern Cape
DC13:
Chris Hani
170 702
122 857
72.0
47 845
28.0
189 772
93 173
49.1
96 599
50.9
Eastern Cape
DC14:
Ukhahlamba
71 104
52 151
73.3
18 953
26.7
85 903
48 392
56.3
37 511
43.7
Eastern Cape
DC15:
O.R.Tambo
306 948
278 263
90.7
28 685
9.3
343 696
245 486
71.4
98 210
28.6
Free State
DC16:
Xhariep
30 877
8 313
26.9
22 564
73.1
39 233
9 083
23.2
30 150
76.8
Free State
DC17:
Motheo
171 214
64 722
37.8
106 492
62.2
210 389
33 227
15.8
177 162
84.2
Free State
DC18:
Lejweleputswa
162 209
51 996
32.1
110 213
67.9
196 640
54 973
28.0
141 667
72.0
Free State
DC19: Thabo
Mofutsanyane
156 893
93 367
59.5
63 526
40.5
186 170
67 134
36.1
119 036
63.9
Free State
DC20: Northern
Free State
105 146
49 894
47.5
55 252
52.5
124 824
23 575
18.9
101 249
81.1
Kwazulu-Natal
DC21:
Ugu
122 388
70 290
57.4
52 098
42.6
158 304
80 369
50.8
77 935
49.2
Kwazulu-Natal
DC22:
UMgungundlovu
190 408
76 139
40.0
114 269
60.0
234 432
61 162
26.1
173 270
73.9
Kwazulu-Natal
DC23:
Uthukela
95 066
53 645
56.4
41 421
43.6
138 728
57 997
41.8
80 731
58.2
Kwazulu-Natal
DC24:
Umzinyathi
75 376
61 891
82.1
13 485
17.9
94 912
69 958
73.7
24 954
26.3
Kwazulu-Natal
DC25:
Amajuba
74 362
20 529
27.6
53 833
72.4
98 051
26 915
27.5
71 136
72.5
PART III KEY HOUSEHOLD SERVICES INDICATORS
229
Table 11: (continued) District municipalities: Households not utilising electricity as an energy source, 1996 and 2001
Province
District
Municipality
1996
Total
number of
households
Not utilising electricity
Number
Kwazulu-Natal
DC26:
Zululand
Kwazulu-Natal
DC27:
Umkhanyakude
Kwazulu-Natal
Number
Total
number of
households
%
Not utilising electricity
Number
%
Utilising electricity
Number
%
107 581
78 719
73.2
28 862
26.8
150 859
91 697
60.8
59 162
39.2
73 208
64 412
88.0
8 796
12.0
105 649
82 496
78.1
23 153
21.9
DC28:
Uthungulu
122 956
74 659
60.7
48 297
39.3
189 617
84 502
44.6
105 115
55.4
Kwazulu-Natal
DC29:
iLembe
108 174
64 946
60.0
43 228
40.0
129 937
63 569
48.9
66 368
51.1
Mpumalanga
DC30:
Gert Sibande
173 499
96 740
55.8
76 759
44.2
222 053
91 595
41.2
130 458
58.8
Mpumalanga
DC31:
Nkangala
208 221
56 608
27.2
151 613
72.8
257 255
52 898
20.6
204 357
79.4
Mpumalanga
DC32:
Ehlanzeni
176 529
98 758
55.9
77 771
44.1
240 166
87 682
36.5
152 484
63.5
Limpopo
DC33:
Mopani
183 123
87 355
47.7
95 768
52.3
237 503
73 263
30.8
164 240
69.2
Limpopo
DC34:
Vhembe
212 251
147 414
69.5
64 837
30.5
274 285
105 123
38.3
169 162
61.7
Limpopo
DC35:
Capricorn
208 252
138 933
66.7
69 319
33.3
284 968
115 619
40.6
169 349
59.4
Limpopo
DC36:
Waterberg
117 615
64 036
54.4
53 579
45.6
168 071
58 319
34.7
109 752
65.3
North West
DC37:
Bojanala
241 407
145 878
60.4
95 529
39.6
333 304
85 075
25.5
248 229
74.5
North West
DC38:
Central
137 890
87 369
63.4
50 521
36.6
184 588
53 801
29.1
130 787
70.9
North West
DC39:
Bophirima
87 450
60 855
69.6
26 595
30.4
106 707
42 488
39.8
64 219
60.2
North West
DC40:
Southern
126 589
47 522
37.5
79 067
62.5
174 699
35 996
20.6
138 703
79.4
Gauteng
DC42:
Sedibeng
182 116
39 028
21.4
143 088
78.6
229 992
32 071
13.9
197 921
86.1
Kwazulu-Natal
DC43:
Sisonke
47 802
37 494
78.4
10 308
21.6
76 240
48 124
63.1
28 116
36.9
Eastern Cape
DC44:
Alfred Nzo
113 601
107 221
94.4
6 380
5.6
124 415
95 013
76.4
29 402
23.6
Northern Cape/
North West
CBDC1:
Kgalagadi
35 417
22 715
64.1
12 702
35.9
43 762
18 034
41.2
25 728
58.8
Gauteng/
Mpumalanga
CBDC2:
Metsweding
29 393
11 445
38.9
17 948
61.1
49 960
14 792
29.6
35 168
70.4
Limpopo/
Mpumalanga
CBDC3:
Sekhukhune
171 471
107 648
62.8
63 823
37.2
204 711
74 475
36.4
130 236
63.6
Limpopo/
Mpumalanga
CBDC4:
Bohlabela
131 888
87 930
66.7
43 958
33.3
134 999
32 764
24.3
102 235
75.7
North West/
Gauteng
CBDC8:
West Rand
153 046
48 693
31.8
104 353
68.2
283 128
65 698
23.2
217 430
76.8
5 841 979
3 178 493
54.4
2 663 486
45.6
7 479 972
2 701 314
36.1
4 778 658
63.9
Total
230
%
2001
Utilising electricity
THE DBSA INFRASTRUCTURE BAROMETER
Figure 19: District municipalities: Number of households not utilising electricity as an energy source, 2001
PART III KEY HOUSEHOLD SERVICES INDICATORS
231
Table 12: District municipalities: Households with access or nearby access to telephones, 1996 and 2001
Province
District
Municipality
1996
Total
number of
households
Number
232
Western Cape
DC1:
West Coast
Western Cape
DC2:
Boland
Western Cape
2001
No access/ no nearby
access
%
With access/ nearby
access
Number
Total
number of
households
%
No access/ no nearby
access
Number
%
With access/ nearby
access
Number
%
56 422
3 617
6.4
52 805
93.6
77 674
4 785
6.2
72 889
93.8
131 461
11 386
8.7
120 075
91.3
159 440
6 102
3.8
153 338
96.2
DC3:
Overberg
41 174
2 562
6.2
38 612
93.8
58 568
1 624
2.8
56 944
97.2
Western Cape
DC4:
Eden
90 900
5 449
6.0
85 451
94.0
120 747
4 478
3.7
116 269
96.3
Western Cape
DC5:
Central Karoo
12 460
1 903
15.3
10 557
84.7
15 165
1 073
7.1
14 092
92.9
Northern Cape
DC6:
Namakwa
26 464
2 864
10.8
23 600
89.2
30 488
1 638
5.4
28 850
94.6
Northern Cape
DC7:
Karoo
39 021
7 640
19.6
31 381
80.4
41 764
3 482
8.3
38 282
91.7
Northern Cape
DC8:
Siyanda
43 785
6 599
15.1
37 186
84.9
55 902
3 783
6.8
52 119
93.2
Northern Cape
DC9:
Frances Baard
72 552
10 222
14.1
62 330
85.9
85 227
6 062
7.1
79 165
92.9
Eastern Cape
DC10:
Cacadu
83 582
7 218
8.6
76 364
91.4
102 740
6 939
6.8
95 801
93.2
Eastern Cape
DC12:
Amatole
361 986
168 866
46.6
193 120
53.4
424 339
69 419
16.4
354 920
83.6
Eastern Cape
DC13:
Chris Hani
170 702
106 025
62.1
64 677
37.9
189 772
38 493
20.3
151 279
79.7
Eastern Cape
DC14:
Ukhahlamba
71 104
43 961
61.8
27 143
38.2
85 904
28 692
33.4
57 212
66.6
Eastern Cape
DC15:
O.R.Tambo
306 948
254 391
82.9
52 557
17.1
343 698
102 398
29.8
241 300
70.2
Free State
DC16:
Xhariep
30 877
6 724
21.8
24 153
78.2
39 232
5 979
15.2
33 253
84.8
Free State
DC17:
Motheo
171 214
26 410
15.4
144 804
84.6
210 388
13 190
6.3
197 198
93.7
Free State
DC18:
Lejweleputswa
162 209
24 634
15.2
137 575
84.8
196 640
20 761
10.6
175 879
89.4
Free State
DC19: Thabo
Mofutsanyane
156 893
39 165
25.0
117 728
75.0
186 170
25 194
13.5
160 976
86.5
Free State
DC20: Northern
Free State
105 146
19 885
18.9
85 261
81.1
124 823
11 224
9.0
113 599
91.0
Kwazulu-Natal
DC21:
Ugu
122 388
46 878
38.3
75 510
61.7
158 304
25 406
16.0
132 898
84.0
Kwazulu-Natal
DC22:
UMgungundlovu
190 408
48 776
25.6
141 632
74.4
234 432
30 506
13.0
203 926
87.0
Kwazulu-Natal
DC23:
Uthukela
95 066
36 327
38.2
58 739
61.8
138 728
20 687
14.9
118 041
85.1
Kwazulu-Natal
DC24:
Umzinyathi
75 376
37 704
50.0
37 672
50.0
94 911
28 324
29.8
66 587
70.2
Kwazulu-Natal
DC25:
Amajuba
74 362
16 596
22.3
57 766
77.7
98 051
8 709
8.9
89 342
91.1
THE DBSA INFRASTRUCTURE BAROMETER
Table 12: (continued) District municipalities: Households with access or nearby access to telephones, 1996 and 2001
Province
District
Municipality
1996
Total
number of
households
Number
Kwazulu-Natal
DC26:
Zululand
Kwazulu-Natal
DC27:
Umkhanyakude
Kwazulu-Natal
2001
No access/ no nearby
access
%
With access/ nearby
access
Number
Total
number of
households
%
No access/ no nearby
access
Number
%
With access/ nearby
access
Number
%
107 581
59 336
55.2
48 245
44.8
150 860
36 769
24.4
114 091
75.6
73 208
44 748
61.1
28 460
38.9
105 649
24 169
22.9
81 480
77.1
DC28:
Uthungulu
122 956
61 941
50.4
61 015
49.6
189 616
43 319
22.8
146 297
77.2
Kwazulu-Natal
DC29:
iLembe
108 174
48 283
44.6
59 891
55.4
129 936
21 192
16.3
108 744
83.7
Mpumalanga
DC30:
Gert Sibande
173 499
34 955
20.1
138 544
79.9
222 053
19 619
8.8
202 434
91.2
Mpumalanga
DC31:
Nkangala
208 221
33 090
15.9
175 131
84.1
257 254
11 969
4.7
245 285
95.3
Mpumalanga
DC32:
Ehlanzeni
176 529
47 897
27.1
128 632
72.9
240 164
26 365
11.0
213 799
89.0
Limpopo
DC33:
Mopani
183 123
89 692
49.0
93 431
51.0
237 503
25 652
10.8
211 851
89.2
Limpopo
DC34:
Vhembe
212 251
100 380
47.3
111 871
52.7
274 285
31 073
11.3
243 212
88.7
Limpopo
DC35:
Capricorn
208 252
70 167
33.7
138 085
66.3
284 968
23 643
8.3
261 325
91.7
Limpopo
DC36:
Waterberg
117 615
32 484
27.6
85 131
72.4
168 071
20 170
12.0
147 901
88.0
North West
DC37:
Bojanala
241 407
71 155
29.5
170 252
70.5
333 304
23 204
7.0
310 100
93.0
North West
DC38:
Central
137 890
54 011
39.2
83 879
60.8
184 588
30 696
16.6
153 892
83.4
North West
DC39:
Bophirima
87 450
32 093
36.7
55 357
63.3
106 706
15 813
14.8
90 893
85.2
North West
DC40:
Southern
126 589
15 960
12.6
110 629
87.4
174 697
12 426
7.1
162 271
92.9
Gauteng
DC42:
Sedibeng
182 116
11 002
6.0
171 114
94.0
229 992
7 384
3.2
222 608
96.8
Kwazulu-Natal
DC43:
Sisonke
47 802
20 510
42.9
27 292
57.1
76 239
17 242
22.6
58 997
77.4
Eastern Cape
DC44:
Alfred Nzo
113 601
99 672
87.7
13 929
12.3
124 416
55 142
44.3
69 274
55.7
Northern Cape/
North West
CBDC1:
Kgalagadi
35 417
12 690
35.8
22 727
64.2
43 765
8 757
20.0
35 008
80.0
Gauteng/
Mpumalanga
CBDC2:
Metsweding
29 393
3 255
11.1
26 138
88.9
49 962
2 412
4.8
47 550
95.2
Limpopo/
Mpumalanga
CBDC3:
Sekhukhune
171 471
95 931
55.9
75 540
44.1
204 710
36 142
17.7
168 568
82.3
Limpopo/
Mpumalanga
CBDC4:
Bohlabela
131 888
62 720
47.6
69 168
52.4
134 997
15 099
11.2
119 898
88.8
North West/
Gauteng
CBDC8:
West Rand
153 046
10 990
7.2
142 056
92.8
283 129
9 144
3.2
273 985
96.8
5 841 979
2 048 764
35.1
3 793 215
64.9
7 479 971
986 349
13.2
6 493 622
86.8
Total
PART III KEY HOUSEHOLD SERVICES INDICATORS
233
Figure 20: District municipalities: Number of households with no access or no nearby access to telephones, 2001
234
THE DBSA INFRASTRUCTURE BAROMETER
Table 13: Local municipalities: Access to piped water, 1996 and 2001
1996
Province
District
Municipality
Local
Municipality
Total
number of
households
2001
Without access to
piped water
Number
%
With access to piped
water
Number
Total
number of
households
%
Without access to
piped water
Number
%
With access to piped
water
Number
%
Western Cape
DC1:
West Coast
WC011:
Matzikama
9 956
327
3.3
9 629
96.7
14 466
476
3.3
13 990
96.7
Western Cape
DC1:
West Coast
WC012:
Cederberg
7 803
399
5.1
7 404
94.9
11 181
181
1.6
11 000
98.4
Western Cape
DC1:
West Coast
WC013:
Bergrivier
8 886
418
4.7
8 468
95.3
13 295
243
1.8
13 052
98.2
Western Cape
DC1:
West Coast
WC014:
Saldanha Bay
12 791
232
1.8
12 559
98.2
18 889
229
1.2
18 660
98.8
Western Cape
DC1:
West Coast
WC015:
Swartland
15 889
508
3.2
15 381
96.8
18 667
285
1.5
18 382
98.5
Western Cape
DC2:
Boland
WC022:
Witzenberg
16 124
555
3.4
15 569
96.6
20 382
229
1.1
20 153
98.9
Western Cape
DC2:
Boland
WC023:
Drakenstein
42 245
1 776
4.2
40 469
95.8
46 215
956
2.1
45 259
97.9
Western Cape
DC2:
Boland
WC024:
Stellenbosch
26 186
903
3.4
25 283
96.6
34 772
361
1.0
34 411
99.0
Western Cape
DC2:
Boland
WC025:
Breede Valley
29 190
891
3.1
28 299
96.9
35 004
806
2.3
34 198
97.7
Western Cape
DC2:
Boland
WC026:Breede
River/Winelands
16 122
991
6.1
15 131
93.9
21 154
638
3.0
20 516
97.0
Western Cape
DC3:
Overberg
WC031:
Theewaterskloof
18 057
451
2.5
17 606
97.5
24 302
222
0.9
24 080
99.1
Western Cape
DC3:
Overberg
WC032:
Overstrand
11 412
751
6.6
10 661
93.4
19 056
216
1.1
18 840
98.9
Western Cape
DC3:
Overberg
WC033:
Cape Agulhas
5 595
102
1.8
5 493
98.2
7 545
54
0.7
7 491
99.3
Western Cape
DC3:
Overberg
WC034:
Swellendam
6 098
909
14.9
5 189
85.1
7 597
266
3.5
7 331
96.5
Western Cape
DC4:
Eden
WC041:
Kannaland
4 855
861
17.7
3 994
82.3
6 137
369
6.0
5 768
94.0
Western Cape
DC4:
Eden
WC042:
Langeberg
9 743
1 015
10.4
8 728
89.6
12 623
409
3.2
12 214
96.8
Western Cape
DC4:
Eden
WC043:
Mossel Bay
15 420
817
5.3
14 603
94.7
20 195
549
2.7
19 646
97.3
Western Cape
DC4:
Eden
WC044:
George
25 700
1 549
6.0
24 151
94.0
36 114
2 022
5.6
34 092
94.4
Western Cape
DC4:
Eden
WC045:
Oudtshoorn
15 734
860
5.5
14 874
94.5
18 310
772
4.2
17 538
95.8
Western Cape
DC4:
Eden
WC047:
Plettenberg Bay
5 075
592
11.7
4 483
88.3
8 919
392
4.4
8 527
95.6
Western Cape
DC4:
Eden
WC048:
Knysna
11 498
1 172
10.2
10 326
89.8
14 901
513
3.4
14 388
96.6
Western Cape
DC5:
Central Karoo
WC051:
Laingsburg
1 461
122
8.4
1 339
91.6
1 942
48
2.5
1 894
97.5
Western Cape
DC5:
Central Karoo
WC052:
Prince Albert
2 132
125
5.9
2 007
94.1
2 604
37
1.4
2 567
98.6
Western Cape
DC5:
Central Karoo
WC053:
Beaufort West
7 309
198
2.7
7 111
97.3
9 062
71
0.8
8 991
99.2
PART III KEY HOUSEHOLD SERVICES INDICATORS
235
Table 13: (continued) Local municipalities: Access to piped water, 1996 and 2001
1996
Province
District
Municipality
Local
Municipality
Total
number of
households
Number
236
2001
Without access to
piped water
%
With access to piped
water
Number
Total
number of
households
%
Without access to
piped water
Number
%
With access to piped
water
Number
%
Eastern Cape
DC10:
Cacadu
EC101:
Camdeboo
9 388
141
1.5
9 247
98.5
10 465
81
0.8
10 384
99.2
Eastern Cape
DC10:
Cacadu
EC102:
Blue Crane Route
8 001
1 151
14.4
6 850
85.6
9 539
943
9.9
8 596
90.1
Eastern Cape
DC10:
Cacadu
EC103:
Ikwezi
2 329
246
10.6
2 083
89.4
2 747
36
1.3
2 711
98.7
Eastern Cape
DC10:
Cacadu
EC104:
Makana
16 329
1 144
7.0
15 185
93.0
18 153
875
4.8
17 278
95.2
Eastern Cape
DC10:
Cacadu
EC105:
Ndlambe
11 668
1 799
15.4
9 869
84.6
15 917
1 692
10.6
14 225
89.4
Eastern Cape
DC10:
Cacadu
EC106:
Sunday’s River Valley
9 411
2 732
29.0
6 679
71.0
10 516
2 178
20.7
8 338
79.3
Eastern Cape
DC10:
Cacadu
EC107:
Baviaans
3 106
493
15.9
2 613
84.1
3 888
208
5.3
3 680
94.7
Eastern Cape
DC10:
Cacadu
EC108:
Kouga
14 552
975
6.7
13 577
93.3
19 520
496
2.5
19 024
97.5
Eastern Cape
DC10:
Cacadu
EC109:
Kou-Kamma
6 856
2 099
30.6
4 757
69.4
9 961
1 072
10.8
8 889
89.2
Eastern Cape
DC12:
Amatole
EC121:
Mbhashe
48 880
45 821
93.7
3 059
6.3
53 172
46 783
88.0
6 389
12.0
Eastern Cape
DC12:
Amatole
EC122:
Mnquma
60 052
46 085
76.7
13 967
23.3
67 858
42 388
62.5
25 470
37.5
Eastern Cape
DC12:
Amatole
EC123:
Great Kei
8 408
2 062
24.5
6 346
75.5
11 507
1 863
16.2
9 644
83.8
Eastern Cape
DC12:
Amatole
EC124:
Amahlathi
29 176
11 795
40.4
17 381
59.6
34 875
11 273
32.3
23 602
67.7
Eastern Cape
DC12:
Amatole
EC125:
Buffalo City
160 779
15 261
9.5
145 518
90.5
194 063
11 957
6.2
182 106
93.8
Eastern Cape
DC12:
Amatole
EC126:
Ngqushwa
20 620
9 713
47.1
10 907
52.9
21 891
5 534
25.3
16 357
74.7
Eastern Cape
DC12:
Amatole
EC127:
Nkonkobe
28 637
9 585
33.5
19 052
66.5
34 361
9 179
26.7
25 182
73.3
Eastern Cape
DC12:
Amatole
EC128:
Nxuba
5 434
416
7.7
5 018
92.3
6 634
403
6.1
6 231
93.9
Eastern Cape
DC13:
Chris Hani
EC131:
Inxuba Yethemba
13 064
790
6.0
12 274
94.0
16 049
455
2.8
15 594
97.2
Eastern Cape
DC13:
Chris Hani
EC132:
Tsolwana
7 754
761
9.8
6 993
90.2
7 933
1 143
14.4
6 790
85.6
Eastern Cape
DC13:
Chris Hani
EC133:
Inkwanca
4 270
251
5.9
4 019
94.1
5 477
133
2.4
5 344
97.6
Eastern Cape
DC13:
Chris Hani
EC134:
Lukanji
37 447
5 944
15.9
31 503
84.1
44 908
3 258
7.3
41 650
92.7
Eastern Cape
DC13:
Chris Hani
EC135:
Intsika Yethu
44 194
36 033
81.5
8 161
18.5
45 172
29 122
64.5
16 050
35.5
Eastern Cape
DC13:
Chris Hani
EC136:
Emalahleni
25 512
14 179
55.6
11 333
44.4
26 066
12 213
46.9
13 853
53.1
Eastern Cape
DC13:
Chris Hani
EC137:
Engcobo
28 423
24 860
87.5
3 563
12.5
31 424
23 887
76.0
7 537
24.0
THE DBSA INFRASTRUCTURE BAROMETER
Table 13: (continued) Local municipalities: Access to piped water, 1996 and 2001
1996
Province
District
Municipality
Local
Municipality
Total
number of
households
2001
Without access to
piped water
Number
%
With access to piped
water
Number
Total
number of
households
%
Without access to
piped water
Number
%
With access to piped
water
Number
%
Eastern Cape
DC13:
Chris Hani
EC138:
Sakhisizwe
10 016
4 000
39.9
6 016
60.1
12 719
3 476
27.3
9 243
72.7
Eastern Cape
DC14:
Ukhahlamba
EC141:
Elundini
29 585
23 136
78.2
6 449
21.8
33 786
22 460
66.5
11 326
33.5
Eastern Cape
DC14:
Ukhahlamba
EC142:
Senqu
27 923
12 919
46.3
15 004
53.7
34 052
12 679
37.2
21 373
62.8
Eastern Cape
DC14:
Ukhahlamba
EC143:
Maletswai
7 007
553
7.9
6 454
92.1
9 790
771
7.9
9 019
92.1
Eastern Cape
DC14:
Ukhahlamba
EC144:
Gariep
6 589
357
5.4
6 232
94.6
8 267
297
3.6
7 970
96.4
Eastern Cape
DC15:
O.R.Tambo
EC151:
Mbizana
41 891
38 870
92.8
3 021
7.2
46 340
38 130
82.3
8 210
17.7
Eastern Cape
DC15:
O.R.Tambo
EC152:
Ntabankulu
22 984
20 705
90.1
2 279
9.9
27 171
21 831
80.3
5 340
19.7
Eastern Cape
DC15:
O.R.Tambo
EC153:
Qaukeni
44 358
37 947
85.5
6 411
14.5
51 215
40 014
78.1
11 201
21.9
Eastern Cape
DC15:
O.R.Tambo
EC154:
Port St Johns
27 286
25 272
92.6
2 014
7.4
29 317
23 608
80.5
5 709
19.5
Eastern Cape
DC15:
O.R.Tambo
EC155:
Nyandeni
50 742
42 969
84.7
7 773
15.3
56 490
43 678
77.3
12 812
22.7
Eastern Cape
DC15:
O.R.Tambo
EC156:
Mhlontlo
39 076
30 863
79.0
8 213
21.0
42 910
28 416
66.2
14 494
33.8
Eastern Cape
DC15:
O.R.Tambo
EC157:
King Sabata
Dalindyebo
80 611
51 666
64.1
28 945
35.9
90 249
51 616
57.2
38 633
42.8
Eastern Cape
DC44:
Alfred Nzo
EC05b1:
Umzimkhulu
31 517
27 239
86.4
4 278
13.6
36 643
23 588
64.4
13 055
35.6
Eastern Cape
DC44:
Alfred Nzo
EC05b2:
Umzimvubu
82 084
64 249
78.3
17 835
21.7
87 762
50 852
57.9
36 910
42.1
Northern Cape
DC6:
Namakwa
NC061:
Richtersveld
3 038
300
9.9
2 738
90.1
2 873
42
1.5
2 831
98.5
Northern Cape
DC6:
Namakwa
NC062:
Nama Khoi
9 688
661
6.8
9 027
93.2
12 063
325
2.7
11 738
97.3
Northern Cape
DC6:
Namakwa
NC064:
Kamiesberg
2 597
802
30.9
1 795
69.1
3 229
438
13.6
2 791
86.4
Northern Cape
DC6:
Namakwa
NC065:
Hantam
5 078
538
10.6
4 540
89.4
5 492
85
1.5
5 407
98.5
Northern Cape
DC6:
Namakwa
NC066:
Karoo Hoogland
3 276
250
7.6
3 026
92.4
3 146
54
1.7
3 092
98.3
Northern Cape
DC6:
Namakwa
NC067:
KhGi-Ma
2 223
140
6.3
2 083
93.7
3 345
204
6.1
3 141
93.9
Northern Cape
DC7:
Karoo
NC071:
Ubuntu
4 237
449
10.6
3 788
89.4
4 245
163
3.8
4 082
96.2
Northern Cape
DC7:
Karoo
NC072:
Umsombomvu
5 454
240
4.4
5 214
95.6
5 882
90
1.5
5 792
98.5
Northern Cape
DC7:
Karoo
NC073:
Emthanjeni
8 540
402
4.7
8 138
95.3
8 805
69
0.8
8 736
99.2
Northern Cape
DC7:
Karoo
NC074:
Kareeberg
2 733
227
8.3
2 506
91.7
2 424
44
1.8
2 380
98.2
PART III KEY HOUSEHOLD SERVICES INDICATORS
237
Table 13: (continued) Local municipalities: Access to piped water, 1996 and 2001
1996
Province
District
Municipality
Local
Municipality
Total
number of
households
Number
238
2001
Without access to
piped water
%
With access to piped
water
Number
Total
number of
households
%
Without access to
piped water
Number
%
With access to piped
water
Number
%
Northern Cape
DC7:
Karoo
NC075:
Renosterberg
2 372
156
6.6
2 216
93.4
2 464
21
0.9
2 443
99.1
Northern Cape
DC7:
Karoo
NC076:
Thembelihle
2 836
289
10.2
2 547
89.8
3 478
48
1.4
3 430
98.6
Northern Cape
DC7:
Karoo
NC077:
Siyathemba
4 546
312
6.9
4 234
93.1
4 164
69
1.7
4 095
98.3
Northern Cape
DC7:
Karoo
NC078:
Siyancuma
7 013
1 095
15.6
5 918
84.4
9 216
552
6.0
8 664
94.0
Northern Cape
DC8:
Siyanda
NC081:
Mier
1 315
267
20.3
1 048
79.7
1 575
209
13.3
1 366
86.7
Northern Cape
DC8:
Siyanda
NC082:
!Kai! Garib
11 087
2 140
19.3
8 947
80.7
18 485
1 274
6.9
17 211
93.1
Northern Cape
DC8:
Siyanda
NC083:
Khara Hais
15 462
1 434
9.3
14 028
90.7
17 185
349
2.0
16 836
98.0
Northern Cape
DC8:
Siyanda
NC084:
!Kheis
2 939
417
14.2
2 522
85.8
3 949
418
10.6
3 531
89.4
Northern Cape
DC8:
Siyanda
NC085:
Tsantsabane
6 544
152
2.3
6 392
97.7
7 359
206
2.8
7 153
97.2
Northern Cape
DC8:
Siyanda
NC086:
Kgatelopele
3 898
612
15.7
3 286
84.3
4 106
39
0.9
4 067
99.1
Northern Cape
DC9:
Frances Baard
NC091:
Sol Plaatje
45 155
489
1.1
44 666
98.9
51 005
323
0.6
50 682
99.4
Northern Cape
DC9:
Frances Baard
NC092:
Dikgatlong
7 663
974
12.7
6 689
87.3
9 724
756
7.8
8 968
92.2
Northern Cape
DC9:
Frances Baard
NC093:
Magareng
5 252
482
9.2
4 770
90.8
5 812
335
5.8
5 477
94.2
Northern Cape
CBDC1:
Kgalagadi
NC01B1:
Gamagara
4 185
193
4.6
3 992
95.4
5 137
60
1.2
5 077
98.8
Free State
DC16:
Xhariep
FS161:
Letsemeng
8 962
1 170
13.1
7 792
86.9
12 084
611
5.1
11 473
94.9
Free State
DC16:
Xhariep
FS162:
Kopanong
13 132
786
6.0
12 346
94.0
17 611
438
2.5
17 173
97.5
Free State
DC16:
Xhariep
FS163:
Mohokare
8 783
728
8.3
8 055
91.7
9 540
195
2.0
9 345
98.0
Free State
DC17:
Motheo
FS171:
Naledi
6 300
252
4.0
6 048
96.0
7 672
217
2.8
7 455
97.2
Free State
DC17:
Motheo
FS172:
Mangaung
153 408
4 557
3.0
148 851
97.0
188 657
7 938
4.2
180 719
95.8
Free State
DC17:
Motheo
FS173:
Mantsopa
11 506
1 031
9.0
10 475
91.0
14 070
580
4.1
13 490
95.9
Free State
DC18:
Lejweleputswa
FS181:
Masilonyana
15 032
1 273
8.5
13 759
91.5
20 491
517
2.5
19 974
97.5
Free State
DC18:
Lejweleputswa
FS182:
Tokologo
6 619
633
9.6
5 986
90.4
8 965
418
4.7
8 547
95.3
Free State
DC18:
Lejweleputswa
FS183:
Tswelopele
11 377
1 338
11.8
10 039
88.2
12 533
329
2.6
12 204
97.4
Free State
DC18:
Lejweleputswa
FS184:
Matjhabeng
110 705
3 156
2.9
107 549
97.1
128 640
6 008
4.7
122 632
95.3
THE DBSA INFRASTRUCTURE BAROMETER
Table 13: (continued) Local municipalities: Access to piped water, 1996 and 2001
1996
Province
District
Municipality
Local
Municipality
Total
number of
households
2001
Without access to
piped water
Number
%
With access to piped
water
Number
Total
number of
households
%
Without access to
piped water
Number
%
With access to piped
water
Number
%
Free State
DC18:
Lejweleputswa
FS185:
Nala
18 476
1 974
10.7
16 502
89.3
25 986
989
3.8
24 997
96.2
Free State
DC19: Thabo
Mofutsanyane
FS191:
Setsoto
26 299
2 211
8.4
24 088
91.6
33 562
1 571
4.7
31 991
95.3
Free State
DC19: Thabo
Mofutsanyane
FS192:
Dihlabeng
25 459
2 643
10.4
22 816
89.6
33 401
1 979
5.9
31 422
94.1
Free State
DC19: Thabo
Mofutsanyane
FS193:
Nketoana
14 749
2 298
15.6
12 451
84.4
15 021
406
2.7
14 615
97.3
Free State
DC19: Thabo
Mofutsanyane
FS194:
Maluti a Phofung
80 792
3 193
4.0
77 599
96.0
92 101
6 540
7.1
85 561
92.9
Free State
DC19: Thabo
Mofutsanyane
FS195:
Phumelela
9 475
2 268
23.9
7 207
76.1
12 025
1 016
8.4
11 009
91.6
Free State
DC20: Northern
Free State
FS201:
Moqhaka
37 545
3 062
8.2
34 483
91.8
43 835
816
1.9
43 019
98.1
Free State
DC20: Northern
Free State
FS203:
Ngwathe
29 613
2 129
7.2
27 484
92.8
32 508
709
2.2
31 799
97.8
Free State
DC20:Northern
Free State
FS204:
Metsimaholo
25 669
874
3.4
24 795
96.6
33 701
418
1.2
33 283
98.8
Free State
DC20: Northern
Free State
FS205:
Mafube
12 319
1 991
16.2
10 328
83.8
14 782
400
2.7
14 382
97.3
Kwazulu-Natal
DC21:
Ugu
KZ211:
Vulamehlo
17 023
14 907
87.6
2 116
12.4
16 798
11 437
68.1
5 361
31.9
Kwazulu-Natal
DC21:
Ugu
KZ212:
Umdoni
12 659
4 080
32.2
8 579
67.8
16 466
2 272
13.8
14 194
86.2
Kwazulu-Natal
DC21:
Ugu
KZ213:
Umzumbe
27 885
24 618
88.3
3 267
11.7
38 871
29 976
77.1
8 895
22.9
Kwazulu-Natal
DC21:
Ugu
KZ214:
uMuziwabantu
14 305
11 939
83.5
2 366
16.5
19 501
10 244
52.5
9 257
47.5
Kwazulu-Natal
DC21:
Ugu
KZ215:
Ezingoleni
8 058
7 005
86.9
1 053
13.1
11 430
6 806
59.5
4 624
40.5
Kwazulu-Natal
DC21:
Ugu
KZ216:
Hibiscus Coast
42 458
14 306
33.7
28 152
66.3
55 233
18 216
33.0
37 017
67.0
Kwazulu-Natal
DC22:
UMgungundlovu
KZ221:
uMshwathi
25 144
16 745
66.6
8 399
33.4
27 189
8 820
32.4
18 369
67.6
Kwazulu-Natal
DC22:
UMgungundlovu
KZ222:
uMngeni
15 771
1 718
10.9
14 053
89.1
22 659
1 644
7.3
21 015
92.7
Kwazulu-Natal
DC22:
UMgungundlovu
KZ223:
Mooi Mpofana
4 567
1 320
28.9
3 247
71.1
10 496
2 412
23.0
8 084
77.0
Kwazulu-Natal
DC22:
UMgungundlovu
KZ224:
Impendle
6 040
2 399
39.7
3 641
60.3
7 456
1 744
23.4
5 712
76.6
Kwazulu-Natal
DC22:
UMgungundlovu
KZ225:
Msunduzi
117 519
10 249
8.7
107 270
91.3
135 180
8 304
6.1
126 876
93.9
Kwazulu-Natal
DC22:
UMgungundlovu
KZ226:
Mkhambathini
8 949
4 578
51.2
4 371
48.8
15 415
5 513
35.8
9 902
64.2
Kwazulu-Natal
DC22:
UMgungundlovu
KZ227:
Richmond
12 266
6 883
56.1
5 383
43.9
16 001
6 766
42.3
9 235
57.7
Kwazulu-Natal
DC23:
Uthukela
KZ232:
Ladysmith
33 900
8 313
24.5
25 587
75.5
51 878
10 193
19.6
41 685
80.4
PART III KEY HOUSEHOLD SERVICES INDICATORS
239
Table 13: (continued) Local municipalities: Access to piped water, 1996 and 2001
1996
Province
District
Municipality
Local
Municipality
Total
number of
households
Without access to
piped water
Number
240
Kwazulu-Natal
DC23:
Uthukela
KZ233:
Indaka
Kwazulu-Natal
DC23:
Uthukela
KZ234:
Umtshezi
Kwazulu-Natal
DC23:
Uthukela
Kwazulu-Natal
%
2001
With access to piped
water
Number
Total
number of
households
%
Without access to
piped water
Number
%
With access to piped
water
Number
%
15 043
6 822
45.3
8 221
54.7
21 470
8 135
37.9
13 335
62.1
9 038
2 223
24.6
6 815
75.4
13 953
3 210
23.0
10 743
77.0
KZ235:
Okhahlamba
19 441
10 333
53.2
9 108
46.8
27 924
13 028
46.7
14 896
53.3
DC23:
Uthukela
KZ236:
Imbabazane
17 569
8 819
50.2
8 750
49.8
23 270
10 275
44.2
12 995
55.8
Kwazulu-Natal
DC24:
Umzinyathi
KZ241:
Endumeni
9 279
935
10.1
8 344
89.9
13 107
944
7.2
12 163
92.8
Kwazulu-Natal
DC24:
Umzinyathi
KZ242:
Nqutu
19 873
11 971
60.2
7 902
39.8
25 962
10 085
38.8
15 877
61.2
Kwazulu-Natal
DC24:
Umzinyathi
KZ244:
Msinga
27 564
25 345
91.9
2 219
8.1
32 879
27 830
84.6
5 049
15.4
Kwazulu-Natal
DC24:
Umzinyathi
KZ245:
Umvoti
18 660
10 945
58.7
7 715
41.3
22 948
11 805
51.4
11 143
48.6
Kwazulu-Natal
DC25:
Amajuba
KZ252:
Newcastle
55 291
7 640
13.8
47 651
86.2
71 923
9 096
12.6
62 827
87.4
Kwazulu-Natal
DC25:
Amajuba
KZ253:
Utrecht
3 496
1 998
57.2
1 498
42.8
6 659
3 199
48.0
3 460
52.0
Kwazulu-Natal
DC25:
Amajuba
KZ254:
Dannhauser
15 575
8 223
52.8
7 352
47.2
19 471
8 880
45.6
10 591
54.4
Kwazulu-Natal
DC26:
Zululand
KZ261:
eDumbe
10 199
4 837
47.4
5 362
52.6
15 811
5 730
36.2
10 081
63.8
Kwazulu-Natal
DC26:
Zululand
KZ262:
uPhongolo
15 988
8 975
56.1
7 013
43.9
26 938
10 596
39.3
16 342
60.7
Kwazulu-Natal
DC26:
Zululand
KZ263:
Abaqulusi
27 362
9 598
35.1
17 764
64.9
37 017
13 199
35.7
23 818
64.3
Kwazulu-Natal
DC26:
Zululand
KZ265:
Nongoma
26 170
21 836
83.4
4 334
16.6
32 436
22 205
68.5
10 231
31.5
Kwazulu-Natal
DC26:
Zululand
KZ266:
Ulundi
27 862
19 848
71.2
8 014
28.8
38 648
21 235
54.9
17 413
45.1
Kwazulu-Natal
DC27:
Umkhanyakude
KZ271:
Umhlabuyalingana
18 770
16 006
85.3
2 764
14.7
26 661
17 965
67.4
8 696
32.6
Kwazulu-Natal
DC27:
Umkhanyakude
KZ272:
Jozini
22 126
18 678
84.4
3 448
15.6
34 738
17 513
50.4
17 225
49.6
Kwazulu-Natal
DC27:
Umkhanyakude
KZ273: The Big
5 False Bay
3 739
3 246
86.8
493
13.2
7 071
4 354
61.6
2 717
38.4
Kwazulu-Natal
DC27:
Umkhanyakude
KZ274:
Hlabisa
21 855
19 906
91.1
1 949
8.9
27 266
17 614
64.6
9 652
35.4
Kwazulu-Natal
DC27:
Umkhanyakude
KZ275:
Mtubatuba
5 106
1 177
23.1
3 929
76.9
8 637
1 336
15.5
7 301
84.5
Kwazulu-Natal
DC28:
Uthungulu
KZ281:
Mbonambi
14 080
11 797
83.8
2 283
16.2
20 434
13 582
66.5
6 852
33.5
Kwazulu-Natal
DC28:
Uthungulu
KZ282:
uMhlathuze
38 375
10 121
26.4
28 254
73.6
73 234
7 895
10.8
65 339
89.2
Kwazulu-Natal
DC28:
Uthungulu
KZ283:
Ntambanana
10 270
9 138
89.0
1 132
11.0
13 829
9 235
66.8
4 594
33.2
THE DBSA INFRASTRUCTURE BAROMETER
Table 13: (continued) Local municipalities: Access to piped water, 1996 and 2001
1996
Province
District
Municipality
Local
Municipality
Total
number of
households
Number
Kwazulu-Natal
DC28:
Uthungulu
KZ284:
uMlalazi
Kwazulu-Natal
DC28:
Uthungulu
KZ285:
Mthonjaneni
Kwazulu-Natal
DC28:
Uthungulu
Kwazulu-Natal
2001
Without access to
piped water
%
With access to piped
water
Number
Total
number of
households
%
Without access to
piped water
Number
%
With access to piped
water
Number
%
35 421
29 096
82.1
6 325
17.9
44 600
25 663
57.5
18 937
42.5
5 301
4 118
77.7
1 183
22.3
12 647
5 880
46.5
6 767
53.5
KZ286:
Nkandla
19 509
18 033
92.4
1 476
7.6
24 867
16 179
65.1
8 688
34.9
DC29:
iLembe
KZ291:
eNdondakusuka
24 479
12 611
51.5
11 868
48.5
30 999
10 398
33.5
20 601
66.5
Kwazulu-Natal
DC29:
iLembe
KZ292:
KwaDukuza
36 841
9 933
27.0
26 908
73.0
45 897
9 726
21.2
36 171
78.8
Kwazulu-Natal
DC29:
iLembe
KZ293:
Ndwedwe
25 452
21 362
83.9
4 090
16.1
30 630
19 820
64.7
10 810
35.3
Kwazulu-Natal
DC29:
iLembe
KZ294:
Maphumulo
21 402
20 879
97.6
523
2.4
22 391
19 755
88.2
2 636
11.8
Kwazulu-Natal
DC43:
Sisonke
KZ5a1:
Ingwe
17 445
11 879
68.1
5 566
31.9
21 926
10 772
49.1
11 154
50.9
Kwazulu-Natal
DC43:
Sisonke
KZ5a2:
Kwa Sani
3 632
1 335
36.8
2 297
63.2
4 655
1 120
24.1
3 535
75.9
Kwazulu-Natal
DC43:
Sisonke
KZ5a3:
Matatiele
2 497
151
6.0
2 346
94.0
5 703
265
4.6
5 438
95.4
Kwazulu-Natal
DC43:
Sisonke
KZ5a4:
Greater Kokstad
8 729
1 408
16.1
7 321
83.9
20 535
961
4.7
19 574
95.3
Kwazulu-Natal
DC43:
Sisonke
KZ5a5:
Ubuhlebezwe
15 188
10 520
69.3
4 668
30.7
23 087
15 124
65.5
7 963
34.5
North West
DC37:
Bojanala
NW371:
Moretele
32 669
16 464
50.4
16 205
49.6
43 166
9 998
23.2
33 168
76.8
North West
DC37:
Bojanala
NW372:
Madibeng
76 065
17 300
22.7
58 765
77.3
97 226
14 830
15.3
82 396
84.7
North West
DC37:
Bojanala
NW373:
Rustenburg
75 722
12 297
16.2
63 425
83.8
119 580
19 713
16.5
99 867
83.5
North West
DC37:
Bojanala
NW374:
Kgetlengrivier
7 718
1 457
18.9
6 261
81.1
10 484
832
7.9
9 652
92.1
North West
DC37:
Bojanala
NW375:
Moses Kotane
49 137
5 159
10.5
43 978
89.5
62 710
6 260
10.0
56 450
90.0
North West
DC38:
Central
NW381:
Setla-Kgobi
17 642
2 998
17.0
14 644
83.0
22 714
7 512
33.1
15 202
66.9
North West
DC38:
Central
NW382:
Tswaing
17 687
3 226
18.2
14 461
81.8
25 622
2 473
9.7
23 149
90.3
North West
DC38:
Central
NW383:
Mafikeng
51 658
18 378
35.6
33 280
64.4
67 505
22 217
32.9
45 288
67.1
North West
DC38:
Central
NW384:
Ditsobotla
26 611
4 921
18.5
21 690
81.5
36 387
6 366
17.5
30 021
82.5
North West
DC38:
Central
NW385:
Zeerust
24 292
3 531
14.5
20 761
85.5
32 363
2 122
6.6
30 241
93.4
North West
DC39:
Bophirima
NW391:
Kagisano
18 871
8 429
44.7
10 442
55.3
23 391
6 709
28.7
16 682
71.3
North West
DC39:
Bophirima
NW392:
Naledi
12 414
1 684
13.6
10 730
86.4
15 223
228
1.5
14 995
98.5
PART III KEY HOUSEHOLD SERVICES INDICATORS
241
Table 13: (continued) Local municipalities: Access to piped water, 1996 and 2001
1996
Province
District
Municipality
Local
Municipality
Total
number of
households
Number
242
North West
DC39:
Bophirima
NW393:
Mamusa
North West
DC39:
Bophirima
NW394:
Greater Taung
North West
DC39:
Bophirima
North West
2001
Without access to
piped water
%
With access to piped
water
Number
Total
number of
households
%
Without access to
piped water
Number
%
With access to piped
water
Number
%
9 142
1 287
14.1
7 855
85.9
10 748
361
3.4
10 387
96.6
35 663
8 422
23.6
27 241
76.4
41 994
4 698
11.2
37 296
88.8
NW395:
Molopo
3 584
730
20.4
2 854
79.6
3 791
216
5.7
3 575
94.3
DC39:
Bophirima
NW396:
Lekwa-Teemane
7 776
561
7.2
7 215
92.8
11 571
359
3.1
11 212
96.9
North West
DC40:
Southern
NW401:
Ventersdorp
6 860
824
12.0
6 036
88.0
11 428
437
3.8
10 991
96.2
North West
DC40:
Southern
NW402:
Potchefstroom
29 089
1 985
6.8
27 104
93.2
33 965
673
2.0
33 292
98.0
North West
DC40:
Southern
NW403:
Klerksdorp
77 825
2 875
3.7
74 950
96.3
112 023
1 384
1.2
110 639
98.8
North West
DC40:
Southern
NW404:
Maquassi Hills
12 815
1 705
13.3
11 110
86.7
17 293
1 127
6.5
16 166
93.5
North West
CBDC1
xxx
Kgalagadi
NW1a1:
Moshaweng
16 176
6 483
40.1
9 693
59.9
18 370
5 904
32.1
12 466
67.9
Gauteng
CBDC2:
Metsweding
GT02b1:
Nokeng tsa
Taemane
11 149
2 532
22.7
8 617
77.3
16 404
889
5.4
15 515
94.6
Gauteng
CBDC8:
West Rand
GT411:
Mogale City
61 551
4 786
7.8
56 765
92.2
89 497
2 076
2.3
87 421
97.7
Gauteng
CBDC8:
West Rand
GT412:
Randfontein
27 504
3 420
12.4
24 084
87.6
40 471
578
1.4
39 893
98.6
Gauteng
CBDC8:
West Rand
GT414:
Westonaria
23 219
2 109
9.1
21 110
90.9
51 487
1 358
2.6
50 129
97.4
Gauteng
DC42:
Sedibeng
GT421:
Emfuleni
148 889
5 211
3.5
143 678
96.5
190 157
2 087
1.1
188 070
98.9
Gauteng
DC42:
Sedibeng
GT422:
Midvaal
17 726
3 510
19.8
14 216
80.2
20 831
909
4.4
19 922
95.6
Gauteng
DC42:
Sedibeng
GT423:
Lesedi
15 501
1 785
11.5
13 716
88.5
18 999
670
3.5
18 329
96.5
Mpumalanga
DC30:
Gert Sibande
MP301:
Albert Luthuli
35 486
12 289
34.6
23 197
65.4
41 194
9 700
23.5
31 494
76.5
Mpumalanga
DC30:
Gert Sibande
MP302:
Msukaligwa
25 029
4 470
17.9
20 559
82.1
30 264
3 177
10.5
27 087
89.5
Mpumalanga
DC30:
Gert Sibande
MP303:
Mkhondo
18 816
6 209
33.0
12 607
67.0
28 899
9 436
32.7
19 463
67.3
Mpumalanga
DC30:
Gert Sibande
MP304:
Seme
14 560
4 642
31.9
9 918
68.1
18 392
3 157
17.2
15 235
82.8
Mpumalanga
DC30:
Gert Sibande
MP305:
Lekwa
20 479
2 904
14.2
17 575
85.8
26 172
785
3.0
25 387
97.0
Mpumalanga
DC30:
Gert Sibande
MP306:
Dipaleseng
9 454
1 521
16.1
7 933
83.9
9 572
600
6.3
8 972
93.7
Mpumalanga
DC30:
Gert Sibande
MP307:
Govan Mbeki
49 675
2 377
4.8
47 298
95.2
67 581
2 013
3.0
65 568
97.0
Mpumalanga
DC31:
Nkangala
MP311:
Delmas
12 355
2 133
17.3
10 222
82.7
13 953
942
6.8
13 011
93.2
THE DBSA INFRASTRUCTURE BAROMETER
Table 13: (continued) Local municipalities: Access to piped water, 1996 and 2001
1996
Province
District
Municipality
Local
Municipality
Total
number of
households
2001
Without access to
piped water
Number
%
With access to piped
water
Number
Total
number of
households
%
Without access to
piped water
Number
%
With access to piped
water
Number
%
Mpumalanga
DC31:
Nkangala
MP312:
Emalahleni
56 469
3 079
5.5
53 390
94.5
82 241
5 096
6.2
77 145
93.8
Mpumalanga
DC31:
Nkangala
MP313:
Middelburg
33 644
3 936
11.7
29 708
88.3
37 040
1 491
4.0
35 549
96.0
Mpumalanga
DC31:
Nkangala
MP314:
Highlands
9 302
2 271
24.4
7 031
75.6
10 901
954
8.8
9 947
91.2
Mpumalanga
DC31:
Nkangala
MP315:
Thembisile
48 099
5 583
11.6
42 516
88.4
58 802
4 655
7.9
54 147
92.1
Mpumalanga
DC31:
Nkangala
MP316:
Dr JS Moroka
48 347
13 732
28.4
34 615
71.6
54 327
15 142
27.9
39 185
72.1
Mpumalanga
DC32:
Ehlanzeni
MP321:
Thaba Chweu
20 128
1 760
8.7
18 368
91.3
26 559
1 273
4.8
25 286
95.2
Mpumalanga
DC32:
Ehlanzeni
MP322:
Mbombela
91 615
14 703
16.0
76 912
84.0
121 951
16 039
13.2
105 912
86.8
Mpumalanga
DC32:
Ehlanzeni
MP323:
Umjindi
11 681
1 948
16.7
9 733
83.3
15 854
2 306
14.5
13 548
85.5
Mpumalanga
DC32:
Ehlanzeni
MP324:
Nkomazi
53 105
12 981
24.4
40 124
75.6
75 556
9 896
13.1
65 660
86.9
Limpopo
DC33:
Mopani
NP331:
Greater Giyani
42 183
2 565
6.1
39 618
93.9
52 860
7 166
13.6
45 694
86.4
Limpopo
DC33:
Mopani
NP332:
Greater Letaba
41 465
8 198
19.8
33 267
80.2
53 735
6 683
12.4
47 052
87.6
Limpopo
DC33:
Mopani
NP333:
Greater
Tzaneen
73 898
14 662
19.8
59 236
80.2
97 376
20 387
20.9
76 989
79.1
Limpopo
DC33:
Mopani
NP334:
Ba-Phalaborwa
25 577
2 200
8.6
23 377
91.4
33 530
1 503
4.5
32 027
95.5
Limpopo
DC34:
Vhembe
NP341:
Musina
8 401
1 077
12.8
7 324
87.2
13 955
1 158
8.3
12 797
91.7
Limpopo
DC34:
Vhembe
NP342:
Mutale
13 113
3 639
27.8
9 474
72.2
17 644
3 848
21.8
13 796
78.2
Limpopo
DC34:
Vhembe
NP343:
Thulamela
101 760
14 078
13.8
87 682
86.2
129 155
19 073
14.8
110 082
85.2
Limpopo
DC34:
Vhembe
NP344:
Makhado
88 977
13 519
15.2
75 458
84.8
113 524
12 689
11.2
100 835
88.8
Limpopo
DC35:
Capricorn
NP351:
Blouberg
28 016
7 967
28.4
20 049
71.6
35 166
8 400
23.9
26 766
76.1
Limpopo
DC35:
Capricorn
NP352:
Aganang
27 584
7 239
26.2
20 345
73.8
32 523
5 910
18.2
26 613
81.8
Limpopo
DC35:
Capricorn
NP353:
Molemole
22 668
2 978
13.1
19 690
86.9
28 927
7 349
25.4
21 578
74.6
Limpopo
DC35:
Capricorn
NP354:
Polokwane
85 611
17 772
20.8
67 839
79.2
135 433
23 403
17.3
112 030
82.7
Limpopo
DC35:
Capricorn
NP355:
Lepele-Nkumpi
44 373
17 192
38.7
27 181
61.3
52 904
20 690
39.1
32 214
60.9
Limpopo
DC36:
Waterberg
NP361:
Thabazimbi
14 466
3 450
23.8
11 016
76.2
25 022
221
0.9
24 801
99.1
Limpopo
DC36:
Waterberg
NP362:
Lephalale
21 218
7 082
33.4
14 136
66.6
28 334
1 221
4.3
27 113
95.7
PART III KEY HOUSEHOLD SERVICES INDICATORS
243
Table 13: (continued) Local municipalities: Access to piped water, 1996 and 2001
1996
Province
District
Municipality
Local
Municipality
Total
number of
households
Number
244
Limpopo
DC36:
Waterberg
NP364:
Mookgopong
Limpopo
DC36:
Waterberg
Limpopo
2001
Without access to
piped water
%
With access to piped
water
Number
Total
number of
households
%
Without access to
piped water
Number
%
With access to piped
water
Number
%
5 019
1 293
25.8
3 726
74.2
9 565
377
3.9
9 188
96.1
NP365:
Modimolle
12 031
2 928
24.3
9 103
75.7
20 934
1 337
6.4
19 597
93.6
DC36:
Waterberg
NP366:
Bela-Bela
11 165
2 148
19.2
9 017
80.8
14 159
487
3.4
13 672
96.6
Limpopo
DC36:
Waterberg
NP367:
Mogalakwena
53 716
14 473
26.9
39 243
73.1
70 081
19 178
27.4
50 903
72.6
Limpopo
CBDC3:
Sekhukhune
NP03A2:
49 943
27 710
55.5
22 233
44.5
54 205
29 033
53.6
25 172
46.4
Limpopo
CBDC3:
Sekhukhune
NP03A3:
Fetakgomo
17 360
6 927
39.9
10 433
60.1
19 000
7 865
41.4
11 135
58.6
Limpopo
CBDC4:
Bohlabela
NP04A1:
Maruleng
18 364
4 660
25.4
13 704
74.6
23 031
3 267
14.2
19 764
85.8
Northern Cape/
North West
CBDC1:
Kgalagadi
CBLC1:
Ga-Segonyana
13 174
2 015
15.3
11 159
84.7
17 763
1 625
9.1
16 138
90.9
Gauteng/
Mpumalanga
CBDC2:
Metsweding
CBLC2:
Kungwini
18 244
3 739
20.5
14 505
79.5
33 559
2 178
6.5
31 381
93.5
Limpopo/
Mpumalanga
CBDC3:
Sekhukhune
CBLC3: Greater
Marble Hall
19 388
7 357
37.9
12 031
62.1
26 538
8 688
32.7
17 850
67.3
Limpopo/
Mpumalanga
CBDC3:
Sekhukhune
CBLC4: Greater
Groblersdal
42 245
18 668
44.2
23 577
55.8
48 747
19 242
39.5
29 505
60.5
Limpopo/
Mpumalanga
CBDC3:
Sekhukhune
CBLC5:
Greater Tubatse
42 526
19 715
46.4
22 811
53.6
56 218
20 796
37.0
35 422
63.0
Limpopo/
Mpumalanga
CBDC4:
Bohlabela
CBLC6:
Bushbuckridge
112 986
23 089
20.4
89 897
79.6
109 663
28 441
25.9
81 222
74.1
Northern Cape/
North West
DC9:
Frances Baard
CBLC7:
Phokwane
13 406
1 411
10.5
11 995
89.5
17 078
956
5.6
16 122
94.4
North West/
Gauteng
CBDC8:
West Rand
CBLC8:
Merafong City
39 801
2 100
5.3
37 701
94.7
99 651
1 795
1.8
97 856
98.2
Western Cape
DC1:
West Coast
WCDMA01:
West Coast
1 097
175
16.0
922
84.0
1 178
93
7.9
1 085
92.1
Western Cape
DC2:
Boland
WCDMA02:
Breede River
1 594
186
11.7
1 408
88.3
1 931
45
2.3
1 886
97.7
Western Cape
DC3:
Overberg
WCDMA03:
Overberg
12
0
0.0
12
100.0
80
0
0.0
80
100.0
Western Cape
DC4:
Eden
WCDMA04:
South Cape
2 875
351
12.2
2 524
87.8
3 551
211
5.9
3 340
94.1
Western Cape
DC5:
Central Karoo
WCDMA05:
Central Karoo
1 558
38
2.4
1 520
97.6
1 568
33
2.1
1 535
97.9
Eastern Cape
DC10:
Cacadu
ECDMA10:
Aberdeen Plain
1 942
524
27.0
1 418
73.0
2 015
48
2.4
1 967
97.6
Eastern Cape
DC13:
Chris Hani
ECDMA13:
Mountain Zebra
National Park
22
4
18.2
18
81.8
18
0
0.0
18
100.0
Eastern Cape
DC14:
Ukhahlamba
ECDMA14:
Oviston Nature
Reserve
0
0
0.0
0
0.0
3
0
0.0
3
100.0
Eastern Cape
DC44:
Alfred Nzo
ECDMA44:
O’Conners
Camp
0
0
0.0
0
0.0
0
0
0.0
0
0.0
Makhuduthamaga
THE DBSA INFRASTRUCTURE BAROMETER
Table 13: (continued) Local municipalities: Access to piped water, 1996 and 2001
1996
Province
District
Municipality
Local
Municipality
Total
number of
households
Number
Northern Cape
DC6:
Namakwa
NCDMA06:
Namaqualand
Northern Cape
DC7:
Karoo
Northern Cape
2001
Without access to
piped water
%
With access to piped
water
Number
Total
number of
households
%
Without access to
piped water
Number
%
With access to piped
water
Number
%
564
205
36.3
359
63.7
342
34
9.9
308
90.1
NCDMA07:
Bo Karoo
1 290
222
17.2
1 068
82.8
1 097
118
10.8
979
89.2
DC8:
Siyanda
NCDMA08:
Benede Oranje
2 540
579
22.8
1 961
77.2
3 241
76
2.3
3 165
97.7
Northern Cape
DC9:
Frances Baard
NCDMA09:
Diamondfields
1 076
434
40.3
642
59.7
1 613
65
4.0
1 548
96.0
Northern Cape
CBDC1:
Kgalagadi
NCDMACB1:
Kalahari
1 882
380
20.2
1 502
79.8
2 488
43
1.7
2 445
98.3
Free State
DC19:
Thabo
Mofutsanyane
FSDMA19:
Golden Gate
Highlands
National Park
119
43
36.1
76
63.9
59
0
0.0
59
100.0
Kwazulu-Natal
DC22:
UMgungundlovu
KZDMA22:
Highmoor/
Kamberg Park
152
78
51.3
74
48.7
12
0
0.0
12
100.0
Kwazulu-Natal
DC23:
Uthukela
KZDMA23:
Gaints Castle
Game Reserve
75
6
8.0
69
92.0
217
79
36.4
138
63.6
Kwazulu-Natal
DC27:
Umkhanyakude
KZDMA27:
St Lucia Park
1 612
1 455
90.3
157
9.7
1 284
375
29.2
909
70.8
Kwazulu-Natal
DC43:
Sisonke
KZDMA43:
Mkhomazi
Wilderness Area
311
45
14.5
266
85.5
330
21
6.4
309
93.6
North West
DC37:
Bojanala
NWDMA37:
Pilansberg
National Park
96
2
2.1
94
97.9
121
0
0.0
121
100.0
Gauteng
CBDC8:
West Rand
GTDMA41:
West Rand
971
344
35.4
627
64.6
2 009
78
3.9
1 931
96.1
Mpumalanga
DC31:
Nkangala
MPDMA31:
Mdala Nature
Reserve
5
4
80.0
1
20.0
0
0
0.0
0
0.0
Mpumalanga
DC32:
Ehlanzeni
MPDMA32:
Lowveld
0
0
0.0
0
0.0
263
12
4.6
251
95.4
Limpopo/
Mpumalanga
CBDC3:
Sekhukhune
CBDMA3:
Schuinsdraai
Nature Reserve
9
4
44.4
5
55.6
0
0
0.0
0
0.0
Limpopo/
Mpumalanga
CBDC4:
Bohlabela
CBDMA4:
Kruger Park
538
92
17.1
446
82.9
2 294
24
1.0
2 270
99.0
5 841 979
1 710 624
29.3
4 131 355
70.7
7 479 935
1 642 125
22.0
5 837 810
78.0
Total
Note: 0 (zero) households: information is not available
PART III KEY HOUSEHOLD SERVICES INDICATORS
245
Table 14: Local municipalities: Access to sanitation, 1996 and 2001
1996
Province
District
Municipality
Local
Municipality
Total
number of
households
Number
246
2001
Without access
With access
%
Number
Total
number of
households
%
Without access
Number
With access
%
Number
%
Western Cape
DC1:
West Coast
WC011:
Matzikama
9 956
1 669
16.8
8 287
83.2
14 466
2 400
16.6
12 066
83.4
Western Cape
DC1:
West Coast
WC012:
Cederberg
7 803
1 798
23.0
6 005
77.0
11 182
1 721
15.4
9 461
84.6
Western Cape
DC1:
West Coast
WC013:
Bergrivier
8 886
1 024
11.5
7 862
88.5
13 295
943
7.1
12 352
92.9
Western Cape
DC1:
West Coast
WC014:
Saldanha Bay
12 791
709
5.5
12 082
94.5
18 889
533
2.8
18 356
97.2
Western Cape
DC1:
West Coast
WC015:
Swartland
15 889
1 332
8.4
14 557
91.6
18 667
1 934
10.4
16 733
89.6
Western Cape
DC2:
Boland
WC022:
Witzenberg
16 124
1 684
10.4
14 440
89.6
20 382
2 282
11.2
18 100
88.8
Western Cape
DC2:
Boland
WC023:
Drakenstein
42 245
3 272
7.7
38 973
92.3
46 216
4 459
9.6
41 757
90.4
Western Cape
DC2:
Boland
WC024:
Stellenbosch
26 186
2 682
10.2
23 504
89.8
34 773
2 866
8.2
31 907
91.8
Western Cape
DC2:
Boland
WC025:
Breede Valley
29 190
1 679
5.8
27 511
94.2
35 003
3 292
9.4
31 711
90.6
Western Cape
DC2:
Boland
WC026: Breede
River/Winelands
16 122
1 892
11.7
14 230
88.3
21 154
2 382
11.3
18 772
88.7
Western Cape
DC3:
Overberg
Theewaterskloof
18 057
2 353
13.0
15 704
87.0
24 303
3 584
14.7
20 719
85.3
Western Cape
DC3:
Overberg
WC032:
Overstrand
11 412
1 240
10.9
10 172
89.1
19 057
1 502
7.9
17 555
92.1
Western Cape
DC3:
Overberg
WC033:
Cape Agulhas
5 595
686
12.3
4 909
87.7
7 544
758
10.0
6 786
90.0
Western Cape
DC3:
Overberg
WC034:
Swellendam
6 098
603
9.9
5 495
90.1
7 597
700
9.2
6 897
90.8
Western Cape
DC4:
Eden
WC041:
Kannaland
4 855
1 235
25.4
3 620
74.6
6 136
1 399
22.8
4 737
77.2
Western Cape
DC4:
Eden
WC042:
Langeberg
9 743
1 045
10.7
8 698
89.3
12 623
1 102
8.7
11 521
91.3
Western Cape
DC4:
Eden
WC043:
Mossel Bay
15 420
898
5.8
14 522
94.2
20 196
1 075
5.3
19 121
94.7
Western Cape
DC4:
Eden
WC044:
George
25 700
3 285
12.8
22 415
87.2
36 114
5 215
14.4
30 899
85.6
Western Cape
DC4:
Eden
WC045:
Oudtshoorn
15 734
2 920
18.6
12 814
81.4
18 312
2 374
13.0
15 938
87.0
Western Cape
DC4:
Eden
WC047:
Plettenberg Bay
5 075
376
7.4
4 699
92.6
8 920
1 042
11.7
7 878
88.3
Western Cape
DC4:
Eden
WC048:
Knysna
11 498
1 210
10.5
10 288
89.5
14 902
1 802
12.1
13 100
87.9
Western Cape
DC5: Central
Karoo
WC051: Laingsburg
1 461
264
18.1
1 197
81.9
1 943
218
11.2
1 725
88.8
Western Cape
DC5: Central
Karoo
WC052: Prince
Albert
2 132
1 264
59.3
868
40.7
2 604
440
16.9
2 164
83.1
Western Cape
DC5:
Central Karoo
WC053:
Beaufort West
7 309
853
11.7
6 456
88.3
9 062
622
6.9
8 440
93.1
WC031:
THE DBSA INFRASTRUCTURE BAROMETER
Table 14: (continued) Local municipalities: Access to sanitation, 1996 and 2001
1996
Province
District
Municipality
Local
Municipality
Total
number of
households
Without access
Number
%
2001
With access
Number
Total
number of
households
%
Without access
Number
%
With access
Number
%
Eastern Cape
DC10:
Cacadu
EC101:
Camdeboo
9 388
3 461
36.9
5 927
63.1
10 464
1 744
16.7
8 720
83.3
Eastern Cape
DC10:
Cacadu
EC102
Blue Crane
Route
8 001
4 180
52.2
3 821
47.8
9 538
3 546
37.2
5 992
62.8
Eastern Cape
DC10:
Cacadu
EC103:
Ikwezi
2 329
1 494
64.1
835
35.9
2 747
1 740
63.3
1 007
36.7
Eastern Cape
DC10:
Cacadu
EC104:
Makana
16 329
7 511
46.0
8 818
54.0
18 155
7 544
41.6
10 611
58.4
Eastern Cape
DC10:
Cacadu
EC105:
Ndlambe
11 668
1 384
11.9
10 284
88.1
15 917
2 358
14.8
13 559
85.2
Eastern Cape
DC10:
Cacadu
EC106:
Sunday’s River
Valley
9 411
1 388
14.7
8 023
85.3
10 513
2 132
20.3
8 381
79.7
Eastern Cape
DC10:
Cacadu
EC107:
Baviaans
3 106
1 577
50.8
1 529
49.2
3 888
1 176
30.2
2 712
69.8
Eastern Cape
DC10:
Cacadu
EC108:
Kouga
14 552
3 199
22.0
11 353
78.0
19 521
4 822
24.7
14 699
75.3
Eastern Cape
DC10:
Cacadu
EC109:
Kou-Kamma
6 856
1 353
19.7
5 503
80.3
9 961
1 506
15.1
8 455
84.9
Eastern Cape
DC12:
Amatole
EC121:
Mbhashe
48 880
36 110
73.9
12 770
26.1
53 173
39 723
74.7
13 450
25.3
Eastern Cape
DC12:
Amatole
EC122:
Mnquma
60 052
32 898
54.8
27 154
45.2
67 858
36 925
54.4
30 933
45.6
Eastern Cape
DC12:
Amatole
EC123:
Great Kei
8 408
4 991
59.4
3 417
40.6
11 506
7 687
66.8
3 819
33.2
Eastern Cape
DC12:
Amatole
EC124:
Amahlathi
29 176
5 650
19.4
23 526
80.6
34 876
6 437
18.5
28 439
81.5
Eastern Cape
DC12:
Amatole
EC125:
Buffalo City
160 779
19 589
12.2
141 190
87.8
194 063
26 614
13.7
167 449
86.3
Eastern Cape
DC12:
Amatole
EC126:
Ngqushwa
20 620
2 493
12.1
18 127
87.9
21 892
3 113
14.2
18 779
85.8
Eastern Cape
DC12:
Amatole
EC127:
Nkonkobe
28 637
6 940
24.2
21 697
75.8
34 360
8 373
24.4
25 987
75.6
Eastern Cape
DC12:
Amatole
EC128:
Nxuba
5 434
3 668
67.5
1 766
32.5
6 634
3 862
58.2
2 772
41.8
Eastern Cape
DC13:
Chris Hani
EC131: Inxuba
Yethemba
13 064
5 169
39.6
7 895
60.4
16 048
4 151
25.9
11 897
74.1
Eastern Cape
DC13:
Chris Hani
EC132:
Tsolwana
7 754
4 569
58.9
3 185
41.1
7 934
4 139
52.2
3 795
47.8
Eastern Cape
DC13:
Chris Hani
EC133:
Inkwanca
4 270
2 913
68.2
1 357
31.8
5 477
2 652
48.4
2 825
51.6
Eastern Cape
DC13:
Chris Hani
EC134:
Lukanji
37 447
8 710
23.3
28 737
76.7
44 909
10 068
22.4
34 841
77.6
Eastern Cape
DC13:
Chris Hani
EC135:
Intsika Yethu
44 194
25 218
57.1
18 976
42.9
45 172
27 470
60.8
17 702
39.2
Eastern Cape
DC13:
Chris Hani
EC136:
Emalahleni
25 512
15 341
60.1
10 171
39.9
26 066
16 727
64.2
9 339
35.8
Eastern Cape
DC13:
Chris Hani
EC137:
Engcobo
28 423
19 128
67.3
9 295
32.7
31 425
21 361
68.0
10 064
32.0
PART III KEY HOUSEHOLD SERVICES INDICATORS
247
Table 14: (continued) Local municipalities: Access to sanitation, 1996 and 2001
1996
Province
District
Municipality
Local
Municipality
Total
number of
households
Number
248
2001
Without access
With access
%
Number
Total
number of
households
%
Without access
Number
With access
%
Number
%
Eastern Cape
DC13:
Chris Hani
EC138:
Sakhisizwe
10 016
2 532
25.3
7 484
74.7
12 719
4 135
32.5
8 584
67.5
Eastern Cape
DC14:
Ukhahlamba
EC141:
Elundini
29 585
16 671
56.3
12 914
43.7
33 786
19 144
56.7
14 642
43.3
Eastern Cape
DC14:
Ukhahlamba
EC142:
Senqu
27 923
12 483
44.7
15 440
55.3
34 052
14 632
43.0
19 420
57.0
Eastern Cape
DC14:
Ukhahlamba
EC143:
Maletswai
7 007
2 358
33.7
4 649
66.3
9 791
4 504
46.0
5 287
54.0
Eastern Cape
DC14:
Ukhahlamba
EC144:
Gariep
6 589
4 151
63.0
2 438
37.0
8 265
4 813
58.2
3 452
41.8
Eastern Cape
DC15:
O.R.Tambo
EC151:
Mbizana
41 891
15 563
37.2
26 328
62.8
46 340
18 335
39.6
28 005
60.4
Eastern Cape
DC15:
O.R.Tambo
EC152:
Ntabankulu
22 984
15 533
67.6
7 451
32.4
27 169
18 201
67.0
8 968
33.0
Eastern Cape
DC15:
O.R.Tambo
EC153:
Qaukeni
44 358
19 973
45.0
24 385
55.0
51 213
24 254
47.4
26 959
52.6
Eastern Cape
DC15:
O.R.Tambo
EC154:
Port St Johns
27 286
20 136
73.8
7 150
26.2
29 318
21 987
75.0
7 331
25.0
Eastern Cape
DC15:
O.R.Tambo
EC155:
Nyandeni
50 742
29 100
57.3
21 642
42.7
56 490
35 234
62.4
21 256
37.6
Eastern Cape
DC15:
O.R.Tambo
EC156:
Mhlontlo
39 076
20 407
52.2
18 669
47.8
42 910
22 557
52.6
20 353
47.4
Eastern Cape
DC15:
O.R.Tambo
EC157:
King Sabata
Dalindyebo
80 611
36 684
45.5
43 927
54.5
90 248
41 479
46.0
48 769
54.0
Eastern Cape
DC44:
Alfred Nzo
EC05b1:
Umzimkhulu
31 517
2 878
9.1
28 639
90.9
36 642
3 408
9.3
33 234
90.7
Eastern Cape
DC44:
Alfred Nzo
EC05b2:
Umzimvubu
82 084
26 519
32.3
55 565
67.7
87 762
29 375
33.5
58 387
66.5
Northern Cape
DC6:
Namakwa
NC061:
Richtersveld
3 038
573
18.9
2 465
81.1
2 873
250
8.7
2 623
91.3
Northern Cape
DC6:
Namakwa
NC062:
Nama Khoi
9 688
3 978
41.1
5 710
58.9
12 064
2 751
22.8
9 313
77.2
Northern Cape
DC6:
Namakwa
NC064:
Kamiesberg
2 597
1 449
55.8
1 148
44.2
3 230
918
28.4
2 312
71.6
Northern Cape
DC6:
Namakwa
NC065:
Hantam
5 078
2 106
41.5
2 972
58.5
5 492
1 460
26.6
4 032
73.4
Northern Cape
DC6:
Namakwa
NC066:
Karoo Hoogland
3 276
1 611
49.2
1 665
50.8
3 146
1 334
42.4
1 812
57.6
Northern Cape
DC6:
Namakwa
NC067:
KhGi-Ma
2 223
619
27.8
1 604
72.2
3 344
625
18.7
2 719
81.3
Northern Cape
DC7:
Karoo
NC071:
Ubuntu
4 237
2 364
55.8
1 873
44.2
4 245
2 020
47.6
2 225
52.4
Northern Cape
DC7:
Karoo
NC072:
Umsombomvu
5 454
2 732
50.1
2 722
49.9
5 882
2 655
45.1
3 227
54.9
Northern Cape
DC7:
Karoo
NC073:
Emthanjeni
8 540
3 958
46.3
4 582
53.7
8 804
2 693
30.6
6 111
69.4
Northern Cape
DC7:
Karoo
NC074:
Kareeberg
2 733
1 332
48.7
1 401
51.3
2 424
1 110
45.8
1 314
54.2
THE DBSA INFRASTRUCTURE BAROMETER
Table 14: (continued) Local municipalities: Access to sanitation, 1996 and 2001
1996
Province
District
Municipality
Local
Municipality
Total
number of
households
Without access
Number
%
2001
With access
Number
Total
number of
households
%
Without access
Number
With access
%
Number
%
Northern Cape
DC7:
Karoo
NC075:
Renosterberg
2 372
1 270
53.5
1 102
46.5
2 464
1 117
45.3
1 347
54.7
Northern Cape
DC7:
Karoo
NC076:
Thembelihle
2 836
992
35.0
1 844
65.0
3 479
1 308
37.6
2 171
62.4
Northern Cape
DC7:
Karoo
NC077:
Siyathemba
4 546
1 537
33.8
3 009
66.2
4 166
1 054
25.3
3 112
74.7
Northern Cape
DC7:
Karoo
NC078:
Siyancuma
7 013
2 649
37.8
4 364
62.2
9 217
3 159
34.3
6 058
65.7
Northern Cape
DC8:
Siyanda
NC081:
Mier
1 315
638
48.5
677
51.5
1 575
673
42.7
902
57.3
Northern Cape
DC8:
Siyanda
NC082:
!Kai!Garib
11 087
3 118
28.1
7 969
71.9
18 485
3 402
18.4
15 083
81.6
Northern Cape
DC8:
Siyanda
NC083:
Khara Hais
15 462
2 390
15.5
13 072
84.5
17 186
2 405
14.0
14 781
86.0
Northern Cape
DC8:
Siyanda
NC084:
!Kheis
2 939
1 089
37.1
1 850
62.9
3 951
1 310
33.2
2 641
66.8
Northern Cape
DC8:
Siyanda
NC085:
Tsantsabane
6 544
1 489
22.8
5 055
77.2
7 357
1 309
17.8
6 048
82.2
Northern Cape
DC8:
Siyanda
NC086:
Kgatelopele
3 898
696
17.9
3 202
82.1
4 104
575
14.0
3 529
86.0
Northern Cape
DC9:
Frances Baard
NC091:
Sol Plaatje
45 155
6 061
13.4
39 094
86.6
51 005
6 709
13.2
44 296
86.8
Northern Cape
DC9:
Frances Baard
NC092:
Dikgatlong
7 663
4 318
56.3
3 345
43.7
9 722
3 611
37.1
6 111
62.9
Northern Cape
DC9:
Frances Baard
NC093:
Magareng
5 252
1 876
35.7
3 376
64.3
5 812
824
14.2
4 988
85.8
Northern Cape
CBDC1:
Kgalagadi
NC01B1:
Gamagara
4 185
720
17.2
3 465
82.8
5 137
307
6.0
4 830
94.0
Free State
DC16:
Xhariep
FS161:
Letsemeng
8 962
1 653
18.4
7 309
81.6
12 084
3 109
25.7
8 975
74.3
Free State
DC16:
Xhariep
FS162:
Kopanong
13 132
3 974
30.3
9 158
69.7
17 611
3 218
18.3
14 393
81.7
Free State
DC16:
Xhariep
FS163:
Mohokare
8 783
6 040
68.8
2 743
31.2
9 540
2 780
29.1
6 760
70.9
Free State
DC17:
Motheo
FS171:
Naledi
6 300
3 349
53.2
2 951
46.8
7 672
2 373
30.9
5 299
69.1
Free State
DC17:
Motheo
FS172:
Mangaung
153 408
36 610
23.9
116 798
76.1
188 656
47 984
25.4
140 672
74.6
Free State
DC17:
Motheo
FS173:
Mantsopa
11 506
5 235
45.5
6 271
54.5
14 070
7 014
49.9
7 056
50.1
Free State
DC18:
Lejweleputswa
FS181:
Masilonyana
15 032
9 509
63.3
5 523
36.7
20 490
11 575
56.5
8 915
43.5
Free State
DC18:
Lejweleputswa
FS182:
Tokologo
6 619
3 644
55.1
2 975
44.9
8 965
6 085
67.9
2 880
32.1
Free State
DC18:
Lejweleputswa
FS183:
Tswelopele
11 377
6 658
58.5
4 719
41.5
12 531
8 066
64.4
4 465
35.6
Free State
DC18:
Lejweleputswa
FS184:
Matjhabeng
110 705
29 449
26.6
81 256
73.4
128 640
32 528
25.3
96 112
74.7
PART III KEY HOUSEHOLD SERVICES INDICATORS
249
Table 14: (continued) Local municipalities: Access to sanitation, 1996 and 2001
1996
Province
District
Municipality
Local
Municipality
Total
number of
households
Number
With access
%
Number
Total
number of
households
%
Without access
Number
With access
%
Number
%
Free State
DC18:
Lejweleputswa
FS185:
Nala
18 476
8 623
46.7
9 853
53.3
25 985
15 389
59.2
10 596
40.8
Free State
DC19: Thabo
Mofutsanyane
FS191:
Setsoto
26 299
15 348
58.4
10 951
41.6
33 563
21 750
64.8
11 813
35.2
Free State
DC19: Thabo
Mofutsanyane
FS192:
Dihlabeng
25 459
6 034
23.7
19 425
76.3
33 402
10 714
32.1
22 688
67.9
Free State
DC19: Thabo
Mofutsanyane
FS193:
Nketoana
14 749
9 738
66.0
5 011
34.0
15 021
10 229
68.1
4 792
31.9
Free State
DC19: Thabo
Mofutsanyane
FS194: Maluti
a Phofung
80 792
5 749
7.1
75 043
92.9
92 102
5 208
5.7
86 894
94.3
Free State
DC19: Thabo
Mofutsanyane
FS195:
Phumelela
9 475
4 403
46.5
5 072
53.5
12 027
5 477
45.5
6 550
54.5
Free State
DC20: Northern
Free State
FS201:
Moqhaka
37 545
10 442
27.8
27 103
72.2
43 835
8 468
19.3
35 367
80.7
Free State
DC20: Northern
Free State
FS203:
Ngwathe
29 613
9 855
33.3
19 758
66.7
32 507
9 789
30.1
22 718
69.9
Free State
DC20: Northern
Free State
FS204:
Metsimaholo
25 669
5 101
19.9
20 568
80.1
33 701
4 976
14.8
28 725
85.2
Free State
DC20: Northern
Free State
FS205:
Mafube
12 319
4 572
37.1
7 747
62.9
14 783
4 939
33.4
9 844
66.6
Kwazulu-Natal
DC21:
Ugu
KZ211:
Vulamehlo
17 023
3 110
18.3
13 913
81.7
16 796
4 332
25.8
12 464
74.2
Kwazulu-Natal
DC21:
Ugu
KZ212:
Umdoni
12 659
764
6.0
11 895
94.0
16 468
1 573
9.6
14 895
90.4
Kwazulu-Natal
DC21:
Ugu
KZ213:
Umzumbe
27 885
4 524
16.2
23 361
83.8
38 871
7 035
18.1
31 836
81.9
Kwazulu-Natal
DC21:
Ugu
KZ214:
uMuziwabantu
14 305
2 273
15.9
12 032
84.1
19 502
3 194
16.4
16 308
83.6
Kwazulu-Natal
DC21:
Ugu
KZ215:
Ezingoleni
8 058
2 247
27.9
5 811
72.1
11 428
3 984
34.9
7 444
65.1
Kwazulu-Natal
DC21:
Ugu
KZ216:
Hibiscus Coast
42 458
4 182
9.8
38 276
90.2
55 232
8 714
15.8
46 518
84.2
Kwazulu-Natal
DC22:
KZ221:
uMshwathi
25 144
4 550
18.1
20 594
81.9
27 192
4 401
16.2
22 791
83.8
KZ222:
uMngeni
15 771
820
5.2
14 951
94.8
22 659
993
4.4
21 666
95.6
KZ223:
Mooi Mpofana
4 567
1 089
23.8
3 478
76.2
10 496
2 584
24.6
7 912
75.4
KZ224:
Impendle
6 040
140
2.3
5 900
97.7
7 456
351
4.7
7 105
95.3
KZ225:
Msunduzi
117 519
2 037
1.7
115 482
98.3
135 180
4 172
3.1
131 008
96.9
8 949
2 404
26.9
6 545
73.1
15 414
3 205
20.8
12 209
79.2
UMgungundlovu
Kwazulu-Natal
DC22:
UMgungundlovu
Kwazulu-Natal
DC22:
UMgungundlovu
Kwazulu-Natal
DC22:
UMgungundlovu
Kwazulu-Natal
DC22:
UMgungundlovu
Kwazulu-Natal
DC22:
UMgungundlovu
Kwazulu-Natal
Kwazulu-Natal
250
2001
Without access
DC22:
KZ226:
Mkhambathini
UMgungundlovu
KZ227:
Richmond
12 266
868
7.1
11 398
92.9
16 000
1 312
8.2
14 688
91.8
DC23:
Uthukela
KZ232:
Ladysmith
33 900
2 883
8.5
31 017
91.5
51 877
5 136
9.9
46 741
90.1
THE DBSA INFRASTRUCTURE BAROMETER
Table 14: (continued) Local municipalities: Access to sanitation, 1996 and 2001
1996
Province
District
Municipality
Local
Municipality
Total
number of
households
Number
Kwazulu-Natal
DC23:
Uthukela
KZ233:
Indaka
Kwazulu-Natal
DC23:
Uthukela
KZ234:
Umtshezi
Kwazulu-Natal
DC23:
Uthukela
Kwazulu-Natal
2001
Without access
With access
%
Number
Total
number of
households
%
Without access
Number
With access
%
Number
%
15 043
8 350
55.5
6 693
44.5
21 471
8 460
39.4
13 011
60.6
9 038
1 655
18.3
7 383
81.7
13 952
3 145
22.5
10 807
77.5
KZ235:
Okhahlamba
19 441
3 192
16.4
16 249
83.6
27 925
6 950
24.9
20 975
75.1
DC23:
Uthukela
KZ236:
Imbabazane
17 569
3 258
18.5
14 311
81.5
23 271
2 930
12.6
20 341
87.4
Kwazulu-Natal
DC24:
Umzinyathi
KZ241:
Endumeni
9 279
609
6.6
8 670
93.4
13 107
950
7.2
12 157
92.8
Kwazulu-Natal
DC24:
Umzinyathi
KZ242:
Nqutu
19 873
8 474
42.6
11 399
57.4
25 965
9 828
37.9
16 137
62.1
Kwazulu-Natal
DC24:
Umzinyathi
KZ244:
Msinga
27 564
20 921
75.9
6 643
24.1
32 881
23 232
70.7
9 649
29.3
Kwazulu-Natal
DC24:
Umzinyathi
KZ245:
Umvoti
18 660
4 878
26.1
13 782
73.9
22 948
6 688
29.1
16 260
70.9
Kwazulu-Natal
DC25:
Amajuba
KZ252:
Newcastle
55 291
1 372
2.5
53 919
97.5
71 922
3 293
4.6
68 629
95.4
Kwazulu-Natal
DC25:
Amajuba
KZ253:
Utrecht
3 496
1 630
46.6
1 866
53.4
6 660
2 577
38.7
4 083
61.3
Kwazulu-Natal
DC25:
Amajuba
KZ254:
Dannhauser
15 575
604
3.9
14 971
96.1
19 471
1 380
7.1
18 091
92.9
Kwazulu-Natal
DC26:
Zululand
KZ261:
eDumbe
10 199
3 660
35.9
6 539
64.1
15 812
4 917
31.1
10 895
68.9
Kwazulu-Natal
DC26:
Zululand
KZ262:
uPhongolo
15 988
7 095
44.4
8 893
55.6
26 938
12 369
45.9
14 569
54.1
Kwazulu-Natal
DC26:
Zululand
KZ263:
Abaqulusi
27 362
6 091
22.3
21 271
77.7
37 017
10 078
27.2
26 939
72.8
Kwazulu-Natal
DC26:
Zululand
KZ265:
Nongoma
26 170
15 164
57.9
11 006
42.1
32 436
18 173
56.0
14 263
44.0
Kwazulu-Natal
DC26:
Zululand
KZ266:
Ulundi
27 862
7 421
26.6
20 441
73.4
38 647
14 349
37.1
24 298
62.9
Kwazulu-Natal
DC27:
Umkhanyakude
KZ271:
Umhlabuyalingana
18 770
13 406
71.4
5 364
28.6
26 660
18 481
69.3
8 179
30.7
Kwazulu-Natal
DC27:
Umkhanyakude
KZ272:
Jozini
22 126
16 547
74.8
5 579
25.2
34 738
21 851
62.9
12 887
37.1
Kwazulu-Natal
DC27:
Umkhanyakude
KZ273: The Big
5 False Bay
3 739
2 920
78.1
819
21.9
7 070
3 847
54.4
3 223
45.6
Kwazulu-Natal
DC27:
Umkhanyakude
KZ274:
Hlabisa
21 855
11 910
54.5
9 945
45.5
27 267
13 344
48.9
13 923
51.1
Kwazulu-Natal
DC27:
Umkhanyakude
KZ275:
Mtubatuba
5 106
1 511
29.6
3 595
70.4
8 636
1 815
21.0
6 821
79.0
Kwazulu-Natal
DC28:
Uthungulu
KZ281:
Mbonambi
14 080
6 471
46.0
7 609
54.0
20 435
8 598
42.1
11 837
57.9
Kwazulu-Natal
DC28:
Uthungulu
KZ282:
uMhlathuze
38 375
3 725
9.7
34 650
90.3
73 234
7 052
9.6
66 182
90.4
Kwazulu-Natal
DC28:
Uthungulu
KZ283:
Ntambanana
10 270
5 737
55.9
4 533
44.1
13 828
7 127
51.5
6 701
48.5
PART III KEY HOUSEHOLD SERVICES INDICATORS
251
Table 14: (continued)Local municipalities: Access to sanitation, 1996 and 2001
1996
Province
District
Municipality
Local
Municipality
Total
number of
households
Number
252
Kwazulu-Natal
DC28:
Uthungulu
KZ284:
uMlalazi
Kwazulu-Natal
DC28:
Uthungulu
KZ285:
Mthonjaneni
Kwazulu-Natal
DC28:
Uthungulu
Kwazulu-Natal
2001
Without access
With access
%
Number
Total
number of
households
%
Without access
Number
With access
%
Number
%
35 421
16 544
46.7
18 877
53.3
44 599
19 973
44.8
24 626
55.2
5 301
1 987
37.5
3 314
62.5
12 647
2 899
22.9
9 748
77.1
KZ286:
Nkandla
19 509
9 136
46.8
10 373
53.2
24 867
10 682
43.0
14 185
57.0
DC29:
iLembe
KZ291:
eNdondakusuka
24 479
6 615
27.0
17 864
73.0
31 001
4 713
15.2
26 288
84.8
Kwazulu-Natal
DC29:
iLembe
KZ292:
KwaDukuza
36 841
6 777
18.4
30 064
81.6
45 897
6 922
15.1
38 975
84.9
Kwazulu-Natal
DC29:
iLembe
KZ293:
Ndwedwe
25 452
6 804
26.7
18 648
73.3
30 631
7 604
24.8
23 027
75.2
Kwazulu-Natal
DC29:
iLembe
KZ294:
Maphumulo
21 402
7 843
36.6
13 559
63.4
22 391
7 215
32.2
15 176
67.8
Kwazulu-Natal
DC43:
Sisonke
KZ5a1:
Ingwe
17 445
2 270
13.0
15 175
87.0
21 927
2 443
11.1
19 484
88.9
Kwazulu-Natal
DC43:
Sisonke
KZ5a2:
Kwa Sani
3 632
140
3.9
3 492
96.1
4 656
231
5.0
4 425
95.0
Kwazulu-Natal
DC43:
Sisonke
KZ5a3:
Matatiele
2 497
399
16.0
2 098
84.0
5 705
485
8.5
5 220
91.5
Kwazulu-Natal
DC43:
Sisonke
KZ5a4:
Greater Kokstad
8 729
1 689
19.3
7 040
80.7
20 534
3 288
16.0
17 246
84.0
Kwazulu-Natal
DC43:
Sisonke
KZ5a5:
Ubuhlebezwe
15 188
1 540
10.1
13 648
89.9
23 088
3 323
14.4
19 765
85.6
North West
DC37:
Bojanala
NW371:
Moretele
32 669
527
1.6
32 142
98.4
43 168
1 080
2.5
42 088
97.5
North West
DC37:
Bojanala
NW372:
Madibeng
76 065
4 198
5.5
71 867
94.5
97 226
9 610
9.9
87 616
90.1
North West
DC37:
Bojanala
NW373:
Rustenburg
75 722
6 181
8.2
69 541
91.8
119 582
16 206
13.6
103 376
86.4
North West
DC37:
Bojanala
NW374:
Kgetlengrivier
7 718
2 393
31.0
5 325
69.0
10 483
1 758
16.8
8 725
83.2
North West
DC37:
Bojanala
NW375:
Moses Kotane
49 137
2 309
4.7
46 828
95.3
62 712
3 799
6.1
58 913
93.9
North West
DC38:
Central
NW381:
Setla-Kgobi
17 642
1 392
7.9
16 250
92.1
22 714
3 670
16.2
19 044
83.8
North West
DC38:
Central
NW382:
Tswaing
17 687
4 314
24.4
13 373
75.6
25 624
4 882
19.1
20 742
80.9
North West
DC38:
Central
NW383:
Mafikeng
51 658
2 033
3.9
49 625
96.1
67 505
3 635
5.4
63 870
94.6
North West
DC38:
Central
NW384:
Ditsobotla
26 611
5 032
18.9
21 579
81.1
36 387
6 356
17.5
30 031
82.5
North West
DC38:
Central
NW385:
Zeerust
24 292
1 634
6.7
22 658
93.3
32 364
3 113
9.6
29 251
90.4
North West
DC39:
Bophirima
NW391:
Kagisano
18 871
4 304
22.8
14 567
77.2
23 391
5 805
24.8
17 586
75.2
North West
DC39:
Bophirima
NW392:
Naledi
12 414
1 576
12.7
10 838
87.3
15 222
2 895
19.0
12 327
81.0
THE DBSA INFRASTRUCTURE BAROMETER
Table 14: (continued) Local municipalities: Access to sanitation, 1996 and 2001
1996
Province
District
Municipality
Local
Municipality
Total
number of
households
Number
North West
DC39:
Bophirima
NW393:
Mamusa
North West
DC39:
Bophirima
NW394:
Greater Taung
North West
DC39:
Bophirima
North West
2001
Without access
With access
%
Number
Total
number of
households
%
Without access
Number
With access
%
Number
%
9 142
3 361
36.8
5 781
63.2
10 748
5 905
54.9
4 843
45.1
35 663
4 715
13.2
30 948
86.8
41 994
5 791
13.8
36 203
86.2
NW395:
Molopo
3 584
852
23.8
2 732
76.2
3 791
1 817
47.9
1 974
52.1
DC39:
Bophirima
NW396:
Lekwa-Teemane
7 776
4 691
60.3
3 085
39.7
11 570
3 244
28.0
8 326
72.0
North West
DC40:
Southern
NW401:
Ventersdorp
6 860
2 564
37.4
4 296
62.6
11 428
1 745
15.3
9 683
84.7
North West
DC40:
Southern
NW402:
Potchefstroom
29 089
2 879
9.9
26 210
90.1
33 963
3 669
10.8
30 294
89.2
North West
DC40:
Southern
NW403:
Klerksdorp
77 825
25 532
32.8
52 293
67.2
112 023
27 611
24.6
84 412
75.4
North West
DC40:
Southern
NW404:
Maquassi Hills
12 815
7 845
61.2
4 970
38.8
17 292
8 720
50.4
8 572
49.6
North West
CBDC1:
Kgalagadi
NW1a1:
Moshaweng
16 176
3 376
20.9
12 800
79.1
18 370
5 209
28.4
13 161
71.6
Gauteng
CBDC2:
Metsweding
GT02b1:
Nokeng tsa
Taemane
11 149
581
5.2
10 568
94.8
16 405
1 868
11.4
14 537
88.6
Gauteng
CBDC8:
West Rand
GT411:
Mogale City
61 551
2 380
3.9
59 171
96.1
89 496
6 000
6.7
83 496
93.3
Gauteng
CBDC8:
West Rand
GT412:
Randfontein
27 504
1 184
4.3
26 320
95.7
40 471
1 611
4.0
38 860
96.0
Gauteng
CBDC8:
West Rand
GT414:
Westonaria
23 219
5 301
22.8
17 918
77.2
51 488
5 339
10.4
46 149
89.6
Gauteng
DC42:
Sedibeng
GT421:
Emfuleni
148 889
3 864
2.6
145 025
97.4
190 157
5 885
3.1
184 272
96.9
Gauteng
DC42:
Sedibeng
GT422:
Midvaal
17 726
996
5.6
16 730
94.4
20 832
1 674
8.0
19 158
92.0
Gauteng
DC42:
Sedibeng
GT423:
Lesedi
15 501
3 539
22.8
11 962
77.2
19 001
3 131
16.5
15 870
83.5
Mpumalanga
DC30:
Gert Sibande
MP301:
Albert Luthuli
35 486
4 069
11.5
31 417
88.5
41 194
4 695
11.4
36 499
88.6
Mpumalanga
DC30:
Gert Sibande
MP302:
Msukaligwa
25 029
4 959
19.8
20 070
80.2
30 263
3 346
11.1
26 917
88.9
Mpumalanga
DC30:
Gert Sibande
MP303:
Mkhondo
18 816
5 480
29.1
13 336
70.9
28 899
7 276
25.2
21 623
74.8
Mpumalanga
DC30:
Gert Sibande
MP304:
Seme
14 560
3 856
26.5
10 704
73.5
18 394
2 929
15.9
15 465
84.1
Mpumalanga
DC30:
Gert Sibande
MP305:
Lekwa
20 479
4 701
23.0
15 778
77.0
26 172
7 105
27.1
19 067
72.9
Mpumalanga
DC30:
Gert Sibande
MP306:
Dipaleseng
9 454
3 100
32.8
6 354
67.2
9 572
2 577
26.9
6 995
73.1
Mpumalanga
DC30:
Gert Sibande
MP307:
Govan Mbeki
49 675
9 122
18.4
40 553
81.6
67 581
12 439
18.4
55 142
81.6
Mpumalanga
DC31:
Nkangala
MP311:
Delmas
12 355
1 537
12.4
10 818
87.6
13 952
1 660
11.9
12 292
88.1
PART III KEY HOUSEHOLD SERVICES INDICATORS
253
Table 14: (continued) Local municipalities: Access to sanitation, 1996 and 2001
1996
Province
District
Municipality
Local
Municipality
Total
number of
households
Number
254
2001
Without access
With access
%
Number
Total
number of
households
%
Without access
Number
With access
%
Number
%
Mpumalanga
DC31:
Nkangala
MP312:
Emalahleni
56 469
3 478
6.2
52 991
93.8
82 241
6 581
8.0
75 660
92.0
Mpumalanga
DC31:
Nkangala
MP313:
Middelburg
33 644
2 872
8.5
30 772
91.5
37 041
2 909
7.9
34 132
92.1
Mpumalanga
DC31:
Nkangala
MP314:
Highlands
9 302
1 571
16.9
7 731
83.1
10 899
1 575
14.5
9 324
85.5
Mpumalanga
DC31:
Nkangala
MP315:
Thembisile
48 099
1 264
2.6
46 835
97.4
58 803
1 702
2.9
57 101
97.1
Mpumalanga
DC31:
Nkangala
MP316:
Dr JS Moroka
48 347
2 176
4.5
46 171
95.5
54 328
1 395
2.6
52 933
97.4
Mpumalanga
DC32:
Ehlanzeni
MP321:
Thaba Chweu
20 128
1 205
6.0
18 923
94.0
26 559
1 456
5.5
25 103
94.5
Mpumalanga
DC32:
Ehlanzeni
MP322:
Mbombela
91 615
6 860
7.5
84 755
92.5
121 950
14 288
11.7
107 662
88.3
Mpumalanga
DC32:
Ehlanzeni
MP323:
Umjindi
11 681
2 683
23.0
8 998
77.0
15 855
1 959
12.4
13 896
87.6
Mpumalanga
DC32:
Ehlanzeni
MP324:
Nkomazi
53 105
15 338
28.9
37 767
71.1
75 555
22 091
29.2
53 464
70.8
Limpopo
DC33:
Mopani
NP331:
Greater Giyani
42 183
23 984
56.9
18 199
43.1
52 861
29 314
55.5
23 547
44.5
Limpopo
DC33:
Mopani
NP332:
Greater Letaba
41 465
9 801
23.6
31 664
76.4
53 735
16 266
30.3
37 469
69.7
Limpopo
DC33:
Mopani
NP333:
Greater
Tzaneen
73 898
16 708
22.6
57 190
77.4
97 376
24 952
25.6
72 424
74.4
Limpopo
DC33:
Mopani
NP334:
Ba-Phalaborwa
25 577
9 299
36.4
16 278
63.6
33 532
12 581
37.5
20 951
62.5
Limpopo
DC34:
Vhembe
NP341:
Musina
8 401
1 246
14.8
7 155
85.2
13 955
4 279
30.7
9 676
69.3
Limpopo
DC34:
Vhembe
NP342:
Mutale
13 113
5 573
42.5
7 540
57.5
17 644
7 813
44.3
9 831
55.7
Limpopo
DC34:
Vhembe
NP343:
Thulamela
101 760
31 196
30.7
70 564
69.3
129 155
40 402
31.3
88 753
68.7
Limpopo
DC34:
Vhembe
NP344:
Makhado
88 977
11 263
12.7
77 714
87.3
113 525
19 506
17.2
94 019
82.8
Limpopo
DC35:
Capricorn
NP351:
Blouberg
28 016
12 245
43.7
15 771
56.3
35 166
13 502
38.4
21 664
61.6
Limpopo
DC35:
Capricorn
NP352:
Aganang
27 584
5 704
20.7
21 880
79.3
32 523
6 746
20.7
25 777
79.3
Limpopo
DC35:
Capricorn
NP353:
Molemole
22 668
3 223
14.2
19 445
85.8
28 926
5 277
18.2
23 649
81.8
Limpopo
DC35:
Capricorn
NP354:
Polokwane
85 611
9 896
11.6
75 715
88.4
135 434
18 673
13.8
116 761
86.2
Limpopo
DC35:
Capricorn
NP355:
Lepele-Nkumpi
44 373
6 095
13.7
38 278
86.3
52 904
6 150
11.6
46 754
88.4
Limpopo
DC36:
Waterberg
NP361:
Thabazimbi
14 466
1 957
13.5
12 509
86.5
25 021
5 243
21.0
19 778
79.0
Limpopo
DC36:
Waterberg
NP362:
Lephalale
21 218
3 987
18.8
17 231
81.2
28 336
5 388
19.0
22 948
81.0
THE DBSA INFRASTRUCTURE BAROMETER
Table 14: (continued) Local municipalities: Access to sanitation, 1996 and 2001
1996
Province
District
Municipality
Local
Municipality
Total
number of
households
Number
Limpopo
DC36:
Waterberg
NP364:
Mookgopong
Limpopo
DC36:
Waterberg
Limpopo
2001
Without access
With access
%
Number
Total
number of
households
%
Without access
Number
With access
%
Number
%
5 019
637
12.7
4 382
87.3
9 563
1 264
13.2
8 299
86.8
NP365:
Modimolle
12 031
1 533
12.7
10 498
87.3
20 934
3 904
18.6
17 030
81.4
DC36:
Waterberg
NP366:
Bela-Bela
11 165
815
7.3
10 350
92.7
14 160
1 457
10.3
12 703
89.7
Limpopo
DC36:
Waterberg
NP367:
Mogalakwena
53 716
4 238
7.9
49 478
92.1
70 081
7 977
11.4
62 104
88.6
Limpopo
CBDC3:
Sekhukhune
Makhuduthamaga
49 943
9 966
20.0
39 977
80.0
54 203
8 905
16.4
45 298
83.6
Limpopo
CBDC3:
Sekhukhune
NP03A3:
Fetakgomo
17 360
6 713
38.7
10 647
61.3
19 001
5 043
26.5
13 958
73.5
Limpopo
CBDC4:
Bohlabela
NP04A1:
Maruleng
18 364
7 835
42.7
10 529
57.3
23 032
8 270
35.9
14 762
64.1
Northern Cape/
North West
CBDC1:
Kgalagadi
CBLC1:
Ga-Segonyana
13 174
1 890
14.3
11 284
85.7
17 761
3 436
19.3
14 325
80.7
Gauteng/
Mpumalanga
CBDC2:
Metsweding
CBLC2:
Kungwini
18 244
1 127
6.2
17 117
93.8
33 558
3 772
11.2
29 786
88.8
Limpopo/
Mpumalanga
CBDC3:
Sekhukhune
CBLC3: Greater
Marble Hall
19 388
2 093
10.8
17 295
89.2
26 539
3 554
13.4
22 985
86.6
Limpopo/
Mpumalanga
CBDC3:
Sekhukhune
CBLC4: Greater
Groblersdal
42 245
3 310
7.8
38 935
92.2
48 747
3 604
7.4
45 143
92.6
Limpopo/
Mpumalanga
CBDC3:
Sekhukhune
CBLC5:
Greater Tubatse
42 526
14 308
33.6
28 218
66.4
56 217
14 883
26.5
41 334
73.5
Limpopo/
Mpumalanga
CBDC4:
Bohlabela
CBLC6:
Bushbuckridge
112 986
18 105
16.0
94 881
84.0
109 666
24 987
22.8
84 679
77.2
Northern Cape/
North West
DC9:
Frances Baard
CBLC7:
Phokwane
13 406
1 881
14.0
11 525
86.0
17 077
2 360
13.8
14 717
86.2
North West/
Gauteng
CBDC8:
West Rand
CBLC8:
Merafong City
39 801
3 140
7.9
36 661
92.1
99 652
4 100
4.1
95 552
95.9
Western Cape
DC1:
West Coast
WCDMA01:
West Coast
1 097
577
52.6
520
47.4
1 178
530
45.0
648
55.0
Western Cape
DC2:
Boland
WCDMA02:
Breede River
1 594
492
30.9
1 102
69.1
1 932
308
15.9
1 624
84.1
Western Cape
DC3:
Overberg
WCDMA03:
Overberg
12
0
0.0
12
100.0
80
3
3.8
77
96.3
Western Cape
DC4:
Eden
WCDMA04:
South Cape
2 875
1 162
40.4
1 713
59.6
3 549
906
25.5
2 643
74.5
Western Cape
DC5: Central
Karoo
WCDMA05:
Central Karoo
1 558
915
58.7
643
41.3
1 568
255
16.3
1 313
83.7
Eastern Cape
DC10:
Cacadu
ECDMA10:
Aberdeen Plain
1 942
778
40.1
1 164
59.9
2 016
590
29.3
1 426
70.7
Eastern Cape
DC13:
Chris Hani
ECDMA13:
Mountain Zebra
National Park
22
0
0.0
22
100.0
18
0
0.0
18
100.0
Eastern Cape
DC14:
Ukhahlamba
ECDMA14:
Oviston Nature
Reserve
0
0
0.0
0
0.0
3
0
0.0
3
100.0
Eastern Cape
DC44:
Alfred Nzo
ECDMA44:
O’Conners
Camp
0
0
0.0
0
0.0
0
0
0.0
0
0.0
NP03A2
PART III KEY HOUSEHOLD SERVICES INDICATORS
255
Table 14: (continued) Local municipalities: Access to sanitation, 1996 and 2001
1996
Province
District
Municipality
Local
Municipality
Total
number of
households
Number
Northern Cape
DC6:
Namakwa
NCDMA06:
Namaqualand
Northern Cape
DC7:
Karoo
Northern Cape
2001
Without access
With access
%
Number
Total
number of
households
%
Number
With access
%
Number
%
564
167
29.6
397
70.4
342
119
34.8
223
65.2
NCDMA07:
Bo Karoo
1 290
505
39.1
785
60.9
1 097
559
51.0
538
49.0
DC8:
Siyanda
NCDMA08:
Benede Oranje
2 540
937
36.9
1 603
63.1
3 241
782
24.1
2 459
75.9
Northern Cape
DC9:
Frances Baard
NCDMA09:
Diamondfields
1 076
628
58.4
448
41.6
1 612
660
40.9
952
59.1
Northern Cape
CBDC1:
Kgalagadi
NCDMACB1:
Kalahari
1 882
336
17.9
1 546
82.1
2 489
247
9.9
2 242
90.1
Free State
DC19:
Thabo
Mofutsanyane
FSDMA19:
Golden Gate
Highlands
National Park
119
5
4.2
114
95.8
59
0
0.0
59
100.0
DC22:
UMgungundlovu
KZDMA22:
Highmoor/
Kamberg Park
152
5
3.3
147
96.7
12
0
0.0
12
100.0
Kwazulu-Natal
DC23:
Uthukela
KZDMA23:
Gaints Castle
Game Reserve
75
8
10.7
67
89.3
217
0
0.0
217
100.0
Kwazulu-Natal
DC27:
Umkhanyakude
KZDMA27: St
Lucia Park
1 612
1 101
68.3
511
31.7
1 284
419
32.6
865
67.4
Kwazulu-Natal
DC43:
Sisonke
KZDMA43:
Mkhomazi
Wilderness Area
311
8
2.6
303
97.4
330
15
4.5
315
95.5
North West
DC37:
Bojanala
NWDMA37:
Pilansberg
National Park
96
3
3.1
93
96.9
121
3
2.5
118
97.5
Gauteng
CBDC8:
West Rand
GTDMA41:
West Rand
971
83
8.5
888
91.5
2 011
108
5.4
1 903
94.6
Mpumalanga
DC31:
Nkangala
MPDMA31:
Mdala
Nature Reserve
5
0
0.0
5
100.0
0
0
0.0
0
0.0
Mpumalanga
DC32:
Ehlanzeni
MPDMA32:
Lowveld
0
0
0.0
0
0.0
263
12
4.6
251
95.4
Limpopo/
Mpumalanga
CBDC3:
Sekhukhune
CBDMA3:
Schuinsdraai
Nature Reserve
9
0
0.0
9
100.0
0
0
0.0
0
0.0
Limpopo/
Mpumalanga
CBDC4:
Bohlabela
CBDMA4:
Kruger Park
538
103
19.1
435
80.9
2 294
39
1.7
2 255
98.3
5 841 979
1 387 087
23.7
4 454 892
76.3
7 479 961
1 717 195
23.0
5 762 766
77.0
Kwazulu-Natal
Total
Note: 0 (zero) households: information is not available
256
Without access
THE DBSA INFRASTRUCTURE BAROMETER
Table 15: Local municipalities: Households not utilising electricity as an energy source, 1996 and 2001
Province
District
Municipality
Local
Municipality
1996
Total
number of
households
Not utilising
electricity
Number
2001
Utilising
electricity
%
Number
Total
number of
households
%
Not utilising
electricity
Number
Utilising
electricity
%
Number
%
Western Cape
DC1:
West Coast
WC011:
Matzikama
9 956
2 194
22.0
7 762
78.0
14 465
2 363
16.3
12 102
83.7
Western Cape
DC1:
West Coast
WC012:
Cederberg
7 803
1 887
24.2
5 916
75.8
11 182
1 842
16.5
9 340
83.5
Western Cape
DC1:
West Coast
WC013:
Bergrivier
8 886
1 637
18.4
7 249
81.6
13 295
1 155
8.7
12 140
91.3
Western Cape
DC1:
West Coast
WC014:
Saldanha Bay
12 791
1 842
14.4
10 949
85.6
18 888
1 595
8.4
17 293
91.6
Western Cape
DC1:
West Coast
WC015:
Swartland
15 889
2 178
13.7
13 711
86.3
18 666
1 642
8.8
17 024
91.2
Western Cape
DC2:
Boland
WC022:
Witzenberg
16 124
3 261
20.2
12 863
79.8
20 382
3 080
15.1
17 302
84.9
Western Cape
DC2:
Boland
WC023:
Drakenstein
42 245
6 983
16.5
35 262
83.5
46 216
5 819
12.6
40 397
87.4
Western Cape
DC2:
Boland
WC024:
Stellenbosch
26 186
2 910
11.1
23 276
88.9
34 772
2 785
8.0
31 987
92.0
Western Cape
DC2:
Boland
WC025:
Breede Valley
29 190
3 209
11.0
25 981
89.0
35 004
3 681
10.5
31 323
89.5
Western Cape
DC2:
Boland
WC026: Breede
River/Winelands
16 122
3 099
19.2
13 023
80.8
21 154
2 377
11.2
18 777
88.8
Western Cape
DC3:
Overberg
WC031:
Theewaterskloof
18 057
2 953
16.4
15 104
83.6
24 303
4 727
19.5
19 576
80.5
Western Cape
DC3:
Overberg
WC032:
Overstrand
11 412
1 924
16.9
9 488
83.1
19 056
3 184
16.7
15 872
83.3
Western Cape
DC3:
Overberg
WC033:
Cape Agulhas
5 595
819
14.6
4 776
85.4
7 545
654
8.7
6 891
91.3
Western Cape
DC3:
Overberg
WC034:
Swellendam
6 098
1 498
24.6
4 600
75.4
7 597
889
11.7
6 708
88.3
Western Cape
DC4:
Eden
WC041:
Kannaland
4 855
1 415
29.1
3 440
70.9
6 136
1 161
18.9
4 975
81.1
Western Cape
DC4:
Eden
WC042:
Langeberg
9 743
2 552
26.2
7 191
73.8
12 625
1 764
14.0
10 861
86.0
Western Cape
DC4:
Eden
WC043:
Mossel Bay
15 420
1 848
12.0
13 572
88.0
20 195
1 811
9.0
18 384
91.0
Western Cape
DC4:
Eden
WC044:
George
25 700
4 387
17.1
21 313
82.9
36 114
4 834
13.4
31 280
86.6
Western Cape
DC4:
Eden
WC045:
Oudtshoorn
15 734
3 051
19.4
12 683
80.6
18 309
2 715
14.8
15 594
85.2
Western Cape
DC4:
Eden
WC047:
Plettenberg Bay
5 075
1 321
26.0
3 754
74.0
8 919
1 680
18.8
7 239
81.2
Western Cape
DC4:
Eden
WC048:
Knysna
11 498
3 723
32.4
7 775
67.6
14 901
2 920
19.6
11 981
80.4
Western Cape
DC5:
Central Karoo
WC051:
Laingsburg
1 461
492
33.7
969
66.3
1 942
452
23.3
1 490
76.7
Western Cape
DC5:
Central Karoo
WC052:
Prince Albert
2 132
620
29.1
1 512
70.9
2 602
465
17.9
2 137
82.1
Western Cape
DC5:
Central Karoo
WC053:
Beaufort West
7 309
1 197
16.4
6 112
83.6
9 063
1 024
11.3
8 039
88.7
PART III KEY HOUSEHOLD SERVICES INDICATORS
257
Table 15: (continued) Local municipalities: Households not utilising electricity as an energy source, 1996 and 2001
Province
District
Municipality
Local
Municipality
1996
Total
number of
households
Not utilising
electricity
Number
258
2001
Utilising
electricity
%
Number
Total
number of
households
%
Not utilising
electricity
Number
Utilising
electricity
%
Number
%
Eastern Cape
DC10:
Cacadu
EC101:
Camdeboo
9 388
2 232
23.8
7 156
76.2
10 466
1 559
14.9
8 907
85.1
Eastern Cape
DC10:
Cacadu
EC102:Blue
Crane Route
8 001
4 521
56.5
3 480
43.5
9 539
3 297
34.6
6 242
65.4
Eastern Cape
DC10:
Cacadu
EC103:
Ikwezi
2 329
852
36.6
1 477
63.4
2 747
747
27.2
2 000
72.8
Eastern Cape
DC10:
Cacadu
EC104:
Makana
16 329
4 625
28.3
11 704
71.7
18 155
4 855
26.7
13 300
73.3
Eastern Cape
DC10:
Cacadu
EC105:
Ndlambe
11 668
4 586
39.3
7 082
60.7
15 917
5 330
33.5
10 587
66.5
Eastern Cape
DC10:
Cacadu
EC106:
Sunday’s River
Valley
9 411
3 410
36.2
6 001
63.8
10 514
3 622
34.4
6 892
65.6
Eastern Cape
DC10:
Cacadu
EC107:
Baviaans
3 106
1 748
56.3
1 358
43.7
3 887
1 164
29.9
2 723
70.1
Eastern Cape
DC10:
Cacadu
EC108:
Kouga
14 552
3 919
26.9
10 633
73.1
19 521
4 692
24.0
14 829
76.0
Eastern Cape
DC10:
Cacadu
EC109:
Kou-Kamma
6 856
2 542
37.1
4 314
62.9
9 961
2 378
23.9
7 583
76.1
Eastern Cape
DC12:
Amatole
EC121:
Mbhashe
48 880
46 814
95.8
2 066
4.2
53 173
44 691
84.0
8 482
16.0
Eastern Cape
DC12:
Amatole
EC122:
Mnquma
60 052
52 218
87.0
7 834
13.0
67 858
45 070
66.4
22 788
33.6
Eastern Cape
DC12:
Amatole
EC123:
Great Kei
8 408
6 137
73.0
2 271
27.0
11 507
3 302
28.7
8 205
71.3
Eastern Cape
DC12:
Amatole
EC124:
Amahlathi
29 176
22 304
76.4
6 872
23.6
34 875
11 276
32.3
23 599
67.7
Eastern Cape
DC12:
Amatole
EC125:
Buffalo City
160 779
85 533
53.2
75 246
46.8
194 062
71 168
36.7
122 894
63.3
Eastern Cape
DC12:
Amatole
EC126:
Ngqushwa
20 620
15 852
76.9
4 768
23.1
21 891
6 837
31.2
15 054
68.8
Eastern Cape
DC12:
Amatole
EC127:
Nkonkobe
28 637
22 258
77.7
6 379
22.3
34 361
8 046
23.4
26 315
76.6
Eastern Cape
DC12:
Amatole
EC128:
Nxuba
5 434
3 511
64.6
1 923
35.4
6 634
1 345
20.3
5 289
79.7
Eastern Cape
DC13:
Chris Hani
EC131: Inxuba
Yethemba
13 064
4 392
33.6
8 672
66.4
16 049
2 770
17.3
13 279
82.7
Eastern Cape
DC13:
Chris Hani
EC132:
Tsolwana
7 754
4 238
54.7
3 516
45.3
7 933
1 014
12.8
6 919
87.2
Eastern Cape
DC13:
Chris Hani
EC133:
Inkwanca
4 270
966
22.6
3 304
77.4
5 477
1 487
27.1
3 990
72.9
Eastern Cape
DC13:
Chris Hani
EC134:
Lukanji
37 447
16 540
44.2
20 907
55.8
44 908
12 381
27.6
32 527
72.4
Eastern Cape
DC13:
Chris Hani
EC135:
Intsika Yethu
44 194
42 030
95.1
2 164
4.9
45 171
31 296
69.3
13 875
30.7
Eastern Cape
DC13:
Chris Hani
EC136:
Emalahleni
25 512
20 318
79.6
5 194
20.4
26 066
13 778
52.9
12 288
47.1
Eastern Cape
DC13:
Chris Hani
EC137:
Engcobo
28 423
26 857
94.5
1 566
5.5
31 424
25 054
79.7
6 370
20.3
THE DBSA INFRASTRUCTURE BAROMETER
Table 15: (continued) Local municipalities: Households not utilising electricity as an energy source, 1996 and 2001
Province
District
Municipality
Local
Municipality
1996
Total
number of
households
Not utilising
electricity
Number
2001
Utilising
electricity
%
Number
Total
number of
households
%
Not utilising
electricity
Number
Utilising
electricity
%
Number
%
Eastern Cape
DC13:
Chris Hani
EC138:
Sakhisizwe
10 016
7 509
75.0
2 507
25.0
12 719
5 384
42.3
7 335
57.7
Eastern Cape
DC14:
Ukhahlamba
EC141:
Elundini
29 585
27 212
92.0
2 373
8.0
33 785
29 506
87.3
4 279
12.7
Eastern Cape
DC14:
Ukhahlamba
EC142:
Senqu
27 923
19 809
70.9
8 114
29.1
34 054
12 773
37.5
21 281
62.5
Eastern Cape
DC14:
Ukhahlamba
EC143:
Maletswai
7 007
3 298
47.1
3 709
52.9
9 791
4 210
43.0
5 581
57.0
Eastern Cape
DC14:
Ukhahlamba
EC144:
Gariep
6 589
1 832
27.8
4 757
72.2
8 266
2 040
24.7
6 226
75.3
Eastern Cape
DC15:
O.R.Tambo
EC151:
Mbizana
41 891
38 777
92.6
3 114
7.4
46 340
34 291
74.0
12 049
26.0
Eastern Cape
DC15:
O.R.Tambo
EC152:
Ntabankulu
22 984
22 252
96.8
732
3.2
27 170
22 994
84.6
4 176
15.4
Eastern Cape
DC15:
O.R.Tambo
EC153:
Qaukeni
44 358
43 071
97.1
1 287
2.9
51 213
43 771
85.5
7 442
14.5
Eastern Cape
DC15:
O.R.Tambo
EC154:
Port St Johns
27 286
26 081
95.6
1 205
4.4
29 318
24 144
82.4
5 174
17.6
Eastern Cape
DC15:
O.R.Tambo
EC155:
Nyandeni
50 742
48 378
95.3
2 364
4.7
56 492
38 013
67.3
18 479
32.7
Eastern Cape
DC15:
O.R.Tambo
EC156:
Mhlontlo
39 076
36 274
92.8
2 802
7.2
42 910
29 843
69.5
13 067
30.5
Eastern Cape
DC15:
O.R.Tambo
EC157:
King Sabata
Dalindyebo
80 611
63 430
78.7
17 181
21.3
90 247
52 291
57.9
37 956
42.1
Eastern Cape
DC44:
Alfred Nzo
EC05b1:
Umzimkhulu
31 517
30 023
95.3
1 494
4.7
36 642
25 149
68.6
11 493
31.4
Eastern Cape
DC44:
Alfred Nzo
EC05b2:
Umzimvubu
82 084
77 198
94.0
4 886
6.0
87 762
69 883
79.6
17 879
20.4
Northern Cape
DC6:
Namakwa
NC061:
Richtersveld
3 038
1 066
35.1
1 972
64.9
2 872
193
6.7
2 679
93.3
Northern Cape
DC6:
Namakwa
NC062:
Nama Khoi
9 688
2 754
28.4
6 934
71.6
12 063
1 694
14.0
10 369
86.0
Northern Cape
DC6:
Namakwa
NC064:
Kamiesberg
2 597
1 317
50.7
1 280
49.3
3 229
1 386
42.9
1 843
57.1
Northern Cape
DC6:
Namakwa
NC065:
Hantam
5 078
1 435
28.3
3 643
71.7
5 491
1 130
20.6
4 361
79.4
Northern Cape
DC6:
Namakwa
NC066:
Karoo Hoogland
3 276
1 160
35.4
2 116
64.6
3 146
924
29.4
2 222
70.6
Northern Cape
DC6:
Namakwa
NC067:
KhGi-Ma
2 223
459
20.6
1 764
79.4
3 345
773
23.1
2 572
76.9
Northern Cape
DC7:
Karoo
NC071:
Ubuntu
4 237
1 418
33.5
2 819
66.5
4 245
928
21.9
3 317
78.1
Northern Cape
DC7:
Karoo
NC072:
Umsombomvu
5 454
1 344
24.6
4 110
75.4
5 882
1 150
19.6
4 732
80.4
Northern Cape
DC7:
Karoo
NC073:
Emthanjeni
8 540
3 128
36.6
5 412
63.4
8 805
1 421
16.1
7 384
83.9
Northern Cape
DC7:
Karoo
NC074:
Kareeberg
2 733
911
33.3
1 822
66.7
2 423
462
19.1
1 961
80.9
PART III KEY HOUSEHOLD SERVICES INDICATORS
259
Table 15: (continued) Local municipalities: Households not utilising electricity as an energy source, 1996 and 2001
Province
District
Municipality
Local
Municipality
1996
Total
number of
households
Not utilising
electricity
Number
260
2001
Utilising
electricity
%
Number
Total
number of
households
%
Not utilising
electricity
Number
Utilising
electricity
%
Number
%
Northern Cape
DC7:
Karoo
NC075:
Renosterberg
2 372
782
33.0
1 590
67.0
2 464
683
27.7
1 781
72.3
Northern Cape
DC7:
Karoo
NC076:
Thembelihle
2 836
983
34.7
1 853
65.3
3 478
1 107
31.8
2 371
68.2
Northern Cape
DC7:
Karoo
NC077:
Siyathemba
4 546
981
21.6
3 565
78.4
4 165
580
13.9
3 585
86.1
Northern Cape
DC7:
Karoo
NC078:
Siyancuma
7 013
3 017
43.0
3 996
57.0
9 217
2 897
31.4
6 320
68.6
Northern Cape
DC8:
Siyanda
NC081:
Mier
1 315
1 041
79.2
274
20.8
1 577
684
43.4
893
56.6
Northern Cape
DC8:
Siyanda
NC082:
!Kai! Garib
11 087
4 677
42.2
6 410
57.8
18 484
4 160
22.5
14 324
77.5
Northern Cape
DC8:
Siyanda
NC083:
Khara Hais
15 462
4 042
26.1
11 420
73.9
17 185
4 232
24.6
12 953
75.4
Northern Cape
DC8:
Siyanda
NC084:
!Kheis
2 939
1 151
39.2
1 788
60.8
3 950
1 508
38.2
2 442
61.8
Northern Cape
DC8:
Siyanda
NC085:
Tsantsabane
6 544
1 356
20.7
5 188
79.3
7 358
1 163
15.8
6 195
84.2
Northern Cape
DC8:
Siyanda
NC086:
Kgatelopele
3 898
1 484
38.1
2 414
61.9
4 105
720
17.5
3 385
82.5
Northern Cape
DC9:
Frances Baard
NC091:
Sol Plaatje
45 155
7 935
17.6
37 220
82.4
51 006
8 856
17.4
42 150
82.6
Northern Cape
DC9:
Frances Baard
NC092:
Dikgatlong
7 663
2 995
39.1
4 668
60.9
9 723
3 616
37.2
6 107
62.8
Northern Cape
DC9:
Frances Baard
NC093:
Magareng
5 252
1 302
24.8
3 950
75.2
5 813
1 150
19.8
4 663
80.2
Northern Cape
CBDC1:
Kgalagadi
NC01B1:
Gamagara
4 185
495
11.8
3 690
88.2
5 138
308
6.0
4 830
94.0
Free State
DC16:
Xhariep
FS161:
Letsemeng
8 962
2 213
24.7
6 749
75.3
12 083
3 344
27.7
8 739
72.3
Free State
DC16:
Xhariep
FS162:
Kopanong
13 132
3 236
24.6
9 896
75.4
17 612
3 164
18.0
14 448
82.0
Free State
DC16:
Xhariep
FS163:
Mohokare
8 783
2 864
32.6
5 919
67.4
9 541
2 530
26.5
7 011
73.5
Free State
DC17:
Motheo
FS171:
Naledi
6 300
1 653
26.2
4 647
73.8
7 671
1 655
21.6
6 016
78.4
Free State
DC17:
Motheo
FS172:
Mangaung
153 408
59 444
38.7
93 964
61.3
188 656
28 107
14.9
160 549
85.1
Free State
DC17:
Motheo
FS173:
Mantsopa
11 506
3 625
31.5
7 881
68.5
14 070
3 486
24.8
10 584
75.2
Free State
DC18:
Lejweleputswa
FS181:
Masilonyana
15 032
4 100
27.3
10 932
72.7
20 491
4 807
23.5
15 684
76.5
Free State
DC18:
Lejweleputswa
FS182:
Tokologo
6 619
3 002
45.4
3 617
54.6
8 963
2 366
26.4
6 597
73.6
Free State
DC18:
Lejweleputswa
FS183:
Tswelopele
11 377
4 308
37.9
7 069
62.1
12 533
4 077
32.5
8 456
67.5
Free State
DC18:
Lejweleputswa
FS184:
Matjhabeng
110 705
30 305
27.4
80 400
72.6
128 640
38 240
29.7
90 400
70.3
THE DBSA INFRASTRUCTURE BAROMETER
Table 15: (continued) Local municipalities: Households not utilising electricity as an energy source, 1996 and 2001
Province
District
Municipality
Local
Municipality
1996
Total
number of
households
Not utilising
electricity
Number
2001
Utilising
electricity
%
Number
Total
number of
households
%
Not utilising
electricity
Number
Utilising
electricity
%
Number
%
Free State
DC18:
Lejweleputswa
FS185:
Nala
18 476
10 281
55.6
8 195
44.4
25 985
5 289
20.4
20 696
79.6
Free State
DC19: Thabo
Mofutsanyane
FS191:
Setsoto
26 299
9 586
36.5
16 713
63.5
33 563
9 323
27.8
24 240
72.2
Free State
DC19: Thabo
Mofutsanyane
FS192:
Dihlabeng
25 459
9 150
35.9
16 309
64.1
33 402
10 808
32.4
22 594
67.6
Free State
DC19: Thabo
Mofutsanyane
FS193:
Nketoana
14 749
6 668
45.2
8 081
54.8
15 021
3 459
23.0
11 562
77.0
Free State
DC19: Thabo
Mofutsanyane
FS194: Maluti
a Phofung
80 792
62 361
77.2
18 431
22.8
92 100
39 141
42.5
52 959
57.5
Free State
DC19: Thabo
Mofutsanyane
FS195:
Phumelela
9 475
5 561
58.7
3 914
41.3
12 026
4 189
34.8
7 837
65.2
Free State
DC20: Northern
Free State
FS201:
Moqhaka
37 545
15 466
41.2
22 079
58.8
43 835
6 959
15.9
36 876
84.1
Free State
DC20: Nortern
Free State
FS203:
Ngwathe
29 613
19 576
66.1
10 037
33.9
32 508
5 126
15.8
27 382
84.2
Free State
DC20: Northern
Free State
FS204:
Metsimaholo
25 669
8 389
32.7
17 280
67.3
33 701
7 457
22.1
26 244
77.9
Free State
DC20: Northern
Free State
FS205:
Mafube
12 319
6 463
52.5
5 856
47.5
14 783
4 053
27.4
10 730
72.6
Kwazulu-Natal
DC21:
Ugu
KZ211:
Vulamehlo
17 023
14 583
85.7
2 440
14.3
16 797
12 759
76.0
4 038
24.0
Kwazulu-Natal
DC21:
Ugu
KZ212:
Umdoni
12 659
3 871
30.6
8 788
69.4
16 468
5 559
33.8
10 909
66.2
Kwazulu-Natal
DC21:
Ugu
KZ213:
Umzumbe
27 885
23 154
83.0
4 731
17.0
38 871
27 296
70.2
11 575
29.8
Kwazulu-Natal
DC21:
Ugu
KZ214:
uMuziwabantu
14 305
12 129
84.8
2 176
15.2
19 501
14 078
72.2
5 423
27.8
Kwazulu-Natal
DC21:
Ugu
KZ215:
Ezingoleni
8 058
5 773
71.6
2 285
28.4
11 430
6 949
60.8
4 481
39.2
Kwazulu-Natal
DC21:
Ugu
KZ216:
Hibiscus Coast
42 458
10 780
25.4
31 678
74.6
55 233
13 756
24.9
41 477
75.1
Kwazulu-Natal
DC22:
UMgungundlovu
KZ221:
uMshwathi
25 144
19 201
76.4
5 943
23.6
27 190
12 425
45.7
14 765
54.3
Kwazulu-Natal
DC22:
UMgungundlovu
KZ222:
uMngeni
15 771
5 527
35.0
10 244
65.0
22 659
6 051
26.7
16 608
73.3
Kwazulu-Natal
DC22:
UMgungundlovu
KZ223:
Mooi Mpofana
4 567
2 350
51.5
2 217
48.5
10 496
4 804
45.8
5 692
54.2
Kwazulu-Natal
DC22:
UMgungundlovu
KZ224:
Impendle
6 040
4 722
78.2
1 318
21.8
7 456
2 908
39.0
4 548
61.0
Kwazulu-Natal
DC22:
UMgungundlovu
KZ225:
Msunduzi
117 519
31 821
27.1
85 698
72.9
135 181
19 083
14.1
116 098
85.9
Kwazulu-Natal
DC22:
UMgungundlovu
KZ226:
Mkhambathini
8 949
6 298
70.4
2 651
29.6
15 414
8 700
56.4
6 714
43.6
Kwazulu-Natal
DC22:
UMgungundlovu
KZ227:
Richmond
12 266
6 132
50.0
6 134
50.0
16 001
7 061
44.1
8 940
55.9
Kwazulu-Natal
DC23:
Uthukela
KZ232:
Ladysmith
33 900
13 185
38.9
20 715
61.1
51 877
16 621
32.0
35 256
68.0
PART III KEY HOUSEHOLD SERVICES INDICATORS
261
Table 15: (continued) Local municipalities: Households not utilising electricity as an energy source, 1996 and 2001
Province
District
Municipality
Local
Municipality
1996
Total
number of
households
Not utilising
electricity
Number
262
Kwazulu-Natal
DC23:
Uthukela
KZ233:
Indaka
Kwazulu-Natal
DC23:
Uthukela
KZ234:
Umtshezi
Kwazulu-Natal
DC23:
Uthukela
Kwazulu-Natal
2001
Utilising
electricity
%
Number
Total
number of
households
%
Not utilising
electricity
Number
Utilising
electricity
%
Number
%
15 043
10 927
72.6
4 116
27.4
21 472
11 405
53.1
10 067
46.9
9 038
4 483
49.6
4 555
50.4
13 953
5 019
36.0
8 934
64.0
KZ235:
Okhahlamba
19 441
14 544
74.8
4 897
25.2
27 925
16 738
59.9
11 187
40.1
DC23:
Uthukela
KZ236:
Imbabazane
17 569
10 505
59.8
7 064
40.2
23 271
8 374
36.0
14 897
64.0
Kwazulu-Natal
DC24:
Umzinyathi
KZ241:
Endumeni
9 279
3 123
33.7
6 156
66.3
13 107
4 248
32.4
8 859
67.6
Kwazulu-Natal
DC24:
Umzinyathi
KZ242:
Nqutu
19 873
18 830
94.8
1 043
5.2
25 964
21 377
82.3
4 587
17.7
Kwazulu-Natal
DC24:
Umzinyathi
KZ244:
Msinga
27 564
27 037
98.1
527
1.9
32 881
29 856
90.8
3 025
9.2
Kwazulu-Natal
DC24:
Umzinyathi
KZ245:
Umvoti
18 660
12 901
69.1
5 759
30.9
22 947
14 490
63.1
8 457
36.9
Kwazulu-Natal
DC25:
Amajuba
KZ252:
Newcastle
55 291
7 175
13.0
48 116
87.0
71 923
11 398
15.8
60 525
84.2
Kwazulu-Natal
DC25:
Amajuba
KZ253:
Utrecht
3 496
2 369
67.8
1 127
32.2
6 660
4 625
69.4
2 035
30.6
Kwazulu-Natal
DC25:
Amajuba
KZ254:
Dannhauser
15 575
10 985
70.5
4 590
29.5
19 471
11 024
56.6
8 447
43.4
Kwazulu-Natal
DC26:
Zululand
KZ261:
eDumbe
10 199
7 056
69.2
3 143
30.8
15 812
10 651
67.4
5 161
32.6
Kwazulu-Natal
DC26:
Zululand
KZ262:
uPhongolo
15 988
9 374
58.6
6 614
41.4
26 938
12 657
47.0
14 281
53.0
Kwazulu-Natal
DC26:
Zululand
KZ263:
Abaqulusi
27 362
17 433
63.7
9 929
36.3
37 017
20 779
56.1
16 238
43.9
Kwazulu-Natal
DC26:
Zululand
KZ265:
Nongoma
26 170
22 732
86.9
3 438
13.1
32 436
24 030
74.1
8 406
25.9
Kwazulu-Natal
DC26:
Zululand
KZ266:
Ulundi
27 862
22 124
79.4
5 738
20.6
38 648
23 622
61.1
15 026
38.9
Kwazulu-Natal
DC27:
Umkhanyakude
KZ271:
Umhlabuyalingana
18 770
18 348
97.8
422
2.2
26 660
24 515
92.0
2 145
8.0
Kwazulu-Natal
DC27:
Umkhanyakude
KZ272:
Jozini
22 126
21 271
96.1
855
3.9
34 739
30 317
87.3
4 422
12.7
Kwazulu-Natal
DC27:
Umkhanyakude
KZ273: The Big
5 False Bay
3 739
3 306
88.4
433
11.6
7 070
5 554
78.6
1 516
21.4
Kwazulu-Natal
DC27:
Umkhanyakude
KZ274:
Hlabisa
21 855
17 798
81.4
4 057
18.6
27 266
19 281
70.7
7 985
29.3
Kwazulu-Natal
DC27:
Umkhanyakude
KZ275:
Mtubatuba
5 106
2 180
42.7
2 926
57.3
8 637
2 064
23.9
6 573
76.1
Kwazulu-Natal
DC28:
Uthungulu
KZ281:
Mbonambi
14 080
9 480
67.3
4 600
32.7
20 435
9 692
47.4
10 743
52.6
Kwazulu-Natal
DC28:
Uthungulu
KZ282:
uMhlathuze
38 375
8 839
23.0
29 536
77.0
73 234
9 648
13.2
63 586
86.8
Kwazulu-Natal
DC28:
Uthungulu
KZ283:
Ntambanana
10 270
8 049
78.4
2 221
21.6
13 829
9 436
68.2
4 393
31.8
THE DBSA INFRASTRUCTURE BAROMETER
Table 15: (continued) Local municipalities: Households not utilising electricity as an energy source, 1996 and 2001
Province
District
Municipality
Local
Municipality
1996
Total
number of
households
Not utilising
electricity
Number
Kwazulu-Natal
DC28:
Uthungulu
KZ284:
uMlalazi
Kwazulu-Natal
DC28:
Uthungulu
KZ285:
Mthonjaneni
Kwazulu-Natal
DC28:
Uthungulu
Kwazulu-Natal
2001
Utilising
electricity
%
Number
Total
number of
households
%
Not utilising
electricity
Number
Utilising
electricity
%
Number
%
35 421
24 725
69.8
10 696
30.2
44 598
24 671
55.3
19 927
44.7
5 301
4 306
81.2
995
18.8
12 646
7 918
62.6
4 728
37.4
KZ286:
Nkandla
19 509
19 260
98.7
249
1.3
24 868
23 130
93.0
1 738
7.0
DC29:
iLembe
KZ291:
eNdondakusuka
24 479
13 430
54.9
11 049
45.1
31 001
11 221
36.2
19 780
63.8
Kwazulu-Natal
DC29:
iLembe
KZ292:
KwaDukuza
36 841
12 259
33.3
24 582
66.7
45 898
11 473
25.0
34 425
75.0
Kwazulu-Natal
DC29:
iLembe
KZ293:
Ndwedwe
25 452
20 535
80.7
4 917
19.3
30 630
22 341
72.9
8 289
27.1
Kwazulu-Natal
DC29:
iLembe
KZ294:
Maphumulo
21 402
18 722
87.5
2 680
12.5
22 391
18 380
82.1
4 011
17.9
Kwazulu-Natal
DC43:
Sisonke
KZ5a1:
Ingwe
17 445
14 924
85.5
2 521
14.5
21 927
15 838
72.2
6 089
27.8
Kwazulu-Natal
DC43:
Sisonke
KZ5a2:
Kwa Sani
3 632
2 374
65.4
1 258
34.6
4 656
2 959
63.6
1 697
36.4
Kwazulu-Natal
DC43:
Sisonke
KZ5a3:
Matatiele
2 497
1 135
45.5
1 362
54.5
5 703
2 522
44.2
3 181
55.8
Kwazulu-Natal
DC43:
Sisonke
KZ5a4:
Greater Kokstad
8 729
5 775
66.2
2 954
33.8
20 535
10 349
50.4
10 186
49.6
Kwazulu-Natal
DC43:
Sisonke
KZ5a5:
Ubuhlebezwe
15 188
13 200
86.9
1 988
13.1
23 088
16 426
71.1
6 662
28.9
North West
DC37:
Bojanala
NW371:
Moretele
32 669
16 991
52.0
15 678
48.0
43 167
12 407
28.7
30 760
71.3
North West
DC37:
Bojanala
NW372:
Madibeng
76 065
52 262
68.7
23 803
31.3
97 228
27 610
28.4
69 618
71.6
North West
DC37:
Bojanala
NW373:
Rustenburg
75 722
37 471
49.5
38 251
50.5
119 581
35 766
29.9
83 815
70.1
North West
DC37:
Bojanala
NW374:
Kgetlengrivier
7 718
3 389
43.9
4 329
56.1
10 484
3 884
37.0
6 600
63.0
North West
DC37:
Bojanala
NW375:
Moses Kotane
49 137
35 753
72.8
13 384
27.2
62 712
5 488
8.8
57 224
91.2
North West
DC38:
Central
NW381:
Setla-Kgobi
17 642
17 052
96.7
590
3.3
22 714
5 351
23.6
17 363
76.4
North West
DC38:
Central
NW382:
Tswaing
17 687
11 349
64.2
6 338
35.8
25 624
7 914
30.9
17 710
69.1
North West
DC38:
Central
NW383:
Mafikeng
51 658
30 602
59.2
21 056
40.8
67 505
18 890
28.0
48 615
72.0
North West
DC38:
Central
NW384:
Ditsobotla
26 611
11 987
45.0
14 624
55.0
36 387
11 946
32.8
24 441
67.2
North West
DC38:
Central
NW385:
Zeerust
24 292
16 379
67.4
7 913
32.6
32 363
9 705
30.0
22 658
70.0
North West
DC39:
Bophirima
NW391:
Kagisano
18 871
16 072
85.2
2 799
14.8
23 391
7 612
32.5
15 779
67.5
North West
DC39:
Bophirima
NW392:
Naledi
12 414
4 763
38.4
7 651
61.6
15 223
5 258
34.5
9 965
65.5
PART III KEY HOUSEHOLD SERVICES INDICATORS
263
Table 15: (continued) Local municipalities: Households not utilising electricity as an energy source, 1996 and 2001
Province
District
Municipality
Local
Municipality
1996
Total
number of
households
Not utilising
electricity
Number
264
North West
DC39:
Bophirima
NW393:
Mamusa
North West
DC39:
Bophirima
NW394:
Greater Taung
North West
DC39:
Bophirima
North West
2001
Utilising
electricity
%
Number
Total
number of
households
%
Not utilising
electricity
Number
Utilising
electricity
%
Number
%
9 142
3 696
40.4
5 446
59.6
10 748
3 100
28.8
7 648
71.2
35 663
31 913
89.5
3 750
10.5
41 994
21 305
50.7
20 689
49.3
NW395:
Molopo
3 584
2 206
61.6
1 378
38.4
3 791
1 976
52.1
1 815
47.9
DC39:
Bophirima
NW396:
Lekwa-Teemane
7 776
2 205
28.4
5 571
71.6
11 570
3 346
28.9
8 224
71.1
North West
DC40:
Southern
NW401:
Ventersdorp
6 860
4 799
70.0
2 061
30.0
11 428
4 383
38.4
7 045
61.6
North West
DC40:
Southern
NW402:
Potchefstroom
29 089
12 652
43.5
16 437
56.5
33 962
7 217
21.3
26 745
78.7
North West
DC40:
Southern
NW403:
Klerksdorp
77 825
25 161
32.3
52 664
67.7
112 022
17 878
16.0
94 144
84.0
North West
DC40:
Southern
NW404:
Maquassi Hills
12 815
4 910
38.3
7 905
61.7
17 291
6 290
36.4
11 001
63.6
North West
CBDC1:
Kgalagadi
NW1a1:
Moshaweng
16 176
14 769
91.3
1 407
8.7
18 369
12 683
69.0
5 686
31.0
Gauteng
CBDC2:
Metsweding
GT02b1:
Nokeng tsa
Taemane
11 149
5 268
47.3
5 881
52.7
16 404
5 476
33.4
10 928
66.6
Gauteng
CBDC8:
West Rand
GT411:
Mogale City
61 551
10 630
17.3
50 921
82.7
89 496
18 261
20.4
71 235
79.6
Gauteng
CBDC8:
West Rand
GT412:
Randfontein
27 504
6 828
24.8
20 676
75.2
40 471
9 958
24.6
30 513
75.4
Gauteng
CBDC8:
West Rand
GT414:
Westonaria
23 219
14 135
60.9
9 084
39.1
51 488
17 284
33.6
34 204
66.4
Gauteng
DC42:
Sedibeng
GT421:
Emfuleni
148 889
26 975
18.1
121 914
81.9
190 156
19 331
10.2
170 825
89.8
Gauteng
DC42:
Sedibeng
GT422:
Midvaal
17 726
4 576
25.8
13 150
74.2
20 831
7 789
37.4
13 042
62.6
Gauteng
DC42:
Sedibeng
GT423:
Lesedi
15 501
7 477
48.2
8 024
51.8
19 002
4 972
26.2
14 030
73.8
Mpumalanga
DC30:
Gert Sibande
MP301:
Albert Luthuli
35 486
26 618
75.0
8 868
25.0
41 193
20 162
48.9
21 031
51.1
Mpumalanga
DC30:
Gert Sibande
MP302:
Msukaligwa
25 029
14 382
57.5
10 647
42.5
30 263
14 155
46.8
16 108
53.2
Mpumalanga
DC30:
Gert Sibande
MP303:
Mkhondo
18 816
11 929
63.4
6 887
36.6
28 899
18 711
64.7
10 188
35.3
Mpumalanga
DC30:
Gert Sibande
MP304:
Seme
14 560
5 240
36.0
9 320
64.0
18 392
5 981
32.5
12 411
67.5
Mpumalanga
DC30:
Gert Sibande
MP305:
Lekwa
20 479
11 163
54.5
9 316
45.5
26 171
10 276
39.3
15 895
60.7
Mpumalanga
DC30:
Gert Sibande
MP306:
Dipaleseng
9 454
3 422
36.2
6 032
63.8
9 572
3 072
32.1
6 500
67.9
Mpumalanga
DC30:
Gert Sibande
MP307:
Govan Mbeki
49 675
23 986
48.3
25 689
51.7
67 581
19 333
28.6
48 248
71.4
Mpumalanga
DC31:
Nkangala
MP311:
Delmas
12 355
4 648
37.6
7 707
62.4
13 952
4 856
34.8
9 096
65.2
THE DBSA INFRASTRUCTURE BAROMETER
Table 15: (continued) Local municipalities: Households not utilising electricity as an energy source, 1996 and 2001
Province
District
Municipality
Local
Municipality
1996
Total
number of
households
Not utilising
electricity
Number
2001
Utilising
electricity
%
Number
Total
number of
households
%
Not utilising
electricity
Number
Utilising
electricity
%
Number
%
Mpumalanga
DC31:
Nkangala
MP312:
Emalahleni
56 469
16 846
29.8
39 623
70.2
82 241
24 332
29.6
57 909
70.4
Mpumalanga
DC31:
Nkangala
MP313:
Middelburg
33 644
9 904
29.4
23 740
70.6
37 040
9 232
24.9
27 808
75.1
Mpumalanga
DC31:
Nkangala
MP314:
Highlands
9 302
4 239
45.6
5 063
54.4
10 899
3 212
29.5
7 687
70.5
Mpumalanga
DC31:
Nkangala
MP315:
Thembisile
48 099
8 233
17.1
39 866
82.9
58 803
6 850
11.6
51 953
88.4
Mpumalanga
DC31:
Nkangala
MP316:
Dr JS Moroka
48 347
12 733
26.3
35 614
73.7
54 328
4 474
8.2
49 854
91.8
Mpumalanga
DC32:
Ehlanzeni
MP321:
Thaba Chweu
20 128
6 473
32.2
13 655
67.8
26 559
6 371
24.0
20 188
76.0
Mpumalanga
DC32:
Ehlanzeni
MP322:
Mbombela
91 615
46 675
50.9
44 940
49.1
121 951
34 782
28.5
87 169
71.5
Mpumalanga
DC32:
Ehlanzeni
MP323:
Umjindi
11 681
5 988
51.3
5 693
48.7
15 855
6 717
42.4
9 138
57.6
Mpumalanga
DC32:
Ehlanzeni
MP324:
Nkomazi
53 105
39 622
74.6
13 483
25.4
75 554
39 402
52.2
36 152
47.8
Limpopo
DC33:
Mopani
NP331:
Greater Giyani
42 183
23 048
54.6
19 135
45.4
52 861
17 220
32.6
35 641
67.4
Limpopo
DC33:
Mopani
NP332:
Greater Letaba
41 465
21 042
50.7
20 423
49.3
53 735
18 273
34.0
35 462
66.0
Limpopo
DC33:
Mopani
NP333:
Greater
Tzaneen
73 898
33 702
45.6
40 196
54.4
97 376
29 922
30.7
67 454
69.3
Limpopo
DC33:
Mopani
NP334:
Ba-Phalaborwa
25 577
9 563
37.4
16 014
62.6
33 532
7 785
23.2
25 747
76.8
Limpopo
DC34:
Vhembe
NP341:
Musina
8 401
3 588
42.7
4 813
57.3
13 955
5 653
40.5
8 302
59.5
Limpopo
DC34:
Vhembe
NP342:
Mutale
13 113
12 182
92.9
931
7.1
17 645
10 365
58.7
7 280
41.3
Limpopo
DC34:
Vhembe
NP343:
Thulamela
101 760
67 894
66.7
33 866
33.3
129 155
51 388
39.8
77 767
60.2
Limpopo
DC34:
Vhembe
NP344:
Makhado
88 977
63 750
71.6
25 227
28.4
113 524
37 611
33.1
75 913
66.9
Limpopo
DC35:
Capricorn
NP351:
Blouberg
28 016
23 191
82.8
4 825
17.2
35 166
20 823
59.2
14 343
40.8
Limpopo
DC35:
Capricorn
NP352:
Aganang
27 584
23 549
85.4
4 035
14.6
32 522
19 275
59.3
13 247
40.7
Limpopo
DC35:
Capricorn
NP353:
Molemole
22 668
13 861
61.1
8 807
38.9
28 927
7 235
25.0
21 692
75.0
Limpopo
DC35:
Capricorn
NP354:
Polokwane
85 611
49 001
57.2
36 610
42.8
135 434
47 448
35.0
87 986
65.0
Limpopo
DC35:
Capricorn
NP355:
Lepele-Nkumpi
44 373
29 331
66.1
15 042
33.9
52 904
20 421
38.6
32 483
61.4
Limpopo
DC36:
Waterberg
NP361:
Thabazimbi
14 466
6 728
46.5
7 738
53.5
25 023
10 470
41.8
14 553
58.2
Limpopo
DC36:
Waterberg
NP362:
Lephalale
21 218
7 632
36.0
13 586
64.0
28 335
9 765
34.5
18 570
65.5
PART III KEY HOUSEHOLD SERVICES INDICATORS
265
Table 15: (continued) Local municipalities: Households not utilising electricity as an energy source, 1996 and 2001
Province
District
Municipality
Local
Municipality
1996
Total
number of
households
Number
266
Limpopo
DC36:
Waterberg
NP364:
Mookgopong
Limpopo
DC36:
Waterberg
Limpopo
2001
Not utilising
electricity
Utilising
electricity
%
Number
Total
number of
households
%
Not utilising
electricity
Number
Utilising
electricity
%
Number
%
5 019
2 059
41.0
2 960
59.0
9 563
3 979
41.6
5 584
58.4
NP365:
Modimolle
12 031
5 947
49.4
6 084
50.6
20 934
9 453
45.2
11 481
54.8
DC36:
Waterberg
NP366:
Bela-Bela
11 165
4 319
38.7
6 846
61.3
14 159
3 911
27.6
10 248
72.4
Limpopo
DC36:
Waterberg
NP367:
Mogalakwena
53 716
37 351
69.5
16 365
30.5
70 082
20 698
29.5
49 384
70.5
Limpopo
CBDC3:
Sekhukhune
NP03A2
Makhuduthama
49 943
37 481
75.0
12 462
25.0
54 204
20 253
37.4
33 951
62.6
Limpopo
CBDC3:
Sekhukhune
NP03A3:
Fetakgomo
17 360
14 736
84.9
2 624
15.1
19 000
11 394
60.0
7 606
40.0
Limpopo
CBDC4:
Bohlabela
NP04A1:
Maruleng
18 364
12 996
70.8
5 368
29.2
23 032
9 428
40.9
13 604
59.1
Northern Cape/
North West
CBDC1:
Kgalagadi
CBLC1:
Ga-Segonyana
13 174
6 664
50.6
6 510
49.4
17 762
4 432
25.0
13 330
75.0
Gauteng/
Mpumalanga
CBDC2:
Metsweding
CBLC2:
Kungwini
18 244
6 177
33.9
12 067
66.1
33 560
9 292
27.7
24 268
72.3
Limpopo/
Mpumalanga
CBDC3:
Sekhukhune
CBLC3: Greater
Marble Hall
19 388
8 701
44.9
10 687
55.1
26 539
5 299
20.0
21 240
80.0
Limpopo/
Mpumalanga
CBDC3:
Sekhukhune
CBLC4: Greate
Groblersdal
42 245
12 941
30.6
29 304
69.4
48 747
7 933
16.3
40 814
83.7
Limpopo/
Mpumalanga
CBDC3:
Sekhukhune
CBLC5:
Greater Tubatse
42 526
33 786
79.4
8 740
20.6
56 216
29 498
52.5
26 718
47.5
Limpopo/
Mpumalanga
CBDC4:
Bohlabela
CBLC6:
Bushbuckridge
112 986
74 816
66.2
38 170
33.8
109 666
23 040
21.0
86 626
79.0
Northern Cape/
North West
DC9:
Frances Baard
CBLC7:
Phokwane
13 406
4 122
30.7
9 284
69.3
17 078
4 340
25.4
12 738
74.6
North West/
Gauteng
CBDC8:
West Rand
CBLC8:
Merafong City
39 801
16 741
42.1
23 060
57.9
99 651
19 840
19.9
79 811
80.1
Western Cape
DC1:
West Coast
WCDMA01:
West Coast
1 097
471
42.9
626
57.1
1 178
584
49.6
594
50.4
Western Cape
DC2:
Boland
WCDMA02:
Breede River
1 594
798
50.1
796
49.9
1 931
568
29.4
1 363
70.6
Western Cape
DC3:
Overberg
WCDMA03:
Overberg
12
0
0.0
12
100.0
80
6
7.5
74
92.5
Western Cape
DC4:
Eden
WCDMA04:
South Cape
2 875
1 035
36.0
1 840
64.0
3 551
530
14.9
3 021
85.1
Western Cape
DC5:
Central Karoo
WCDMA05:
Central Karoo
1 558
359
23.0
1 199
77.0
1 567
213
13.6
1 354
86.4
Eastern Cape
DC10:
Cacadu
ECDMA10:
Aberdeen Plain
1 942
1 049
54.0
893
46.0
2 015
1 073
53.3
942
46.7
Eastern Cape
DC13:
Chris Hani
ECDMA13:
Mountain Zebra
National Park
22
7
31.8
15
68.2
18
0
0.0
18
100.0
Eastern Cape
DC14:
Ukhahlamba
ECDMA14:
Oviston Nature
Reserve
0
0
0.0
0
0.0
3
3
100.0
0
0.0
Eastern Cape
DC44:
Alfred Nzo
ECDMA44:
O’Conners
Camp
0
0
0.0
0
0.0
0
0
0.0
0
0.0
THE DBSA INFRASTRUCTURE BAROMETER
Table 15: (continued) Local municipalities: Households not utilising electricity as an energy source, 1996 and 2001
Province
District
Municipality
Local
Municipality
1996
Total
number of
households
Number
Northern Cape
DC6:
Namakwa
NCDMA06:
Namaqualand
Northern Cape
DC7:
Karoo
Northern Cape
2001
Not utilising
electricity
Utilising
electricity
%
Number
Total
number of
households
%
Not utilising
electricity
Number
Utilising
electricity
%
Number
%
564
396
70.2
168
29.8
342
190
55.6
152
44.4
NCDMA07:
Bo Karoo
1 290
702
54.4
588
45.6
1 098
476
43.4
622
56.6
DC8:
Siyanda
NCDMA08:
Benede Oranje
2 540
1 649
64.9
891
35.1
3 241
1 592
49.1
1 649
50.9
Northern Cape
DC9:
Frances Baard
NCDMA09:
Diamondfields
1 076
677
62.9
399
37.1
1 613
671
41.6
942
58.4
Northern Cape
CBDC1:
Kgalagadi
NCDMACB1:
Kalahari
1 882
787
41.8
1 095
58.2
2 488
516
20.7
1 972
79.3
Free State
DC19:Thabo
Mofutsanyane
FSDMA19:
Golden Gate
Highlands
National Park
119
41
34.5
78
65.5
59
0
0.0
59
100.0
DC22:
UMgungundlovu
KZDMA22:
Highmoor/
Kamberg Park
152
88
57.9
64
42.1
12
3
25.0
9
75.0
Kwazulu-Natal
DC23:
Uthukela
KZDMA23:
Gaints Castle
Game Reserve
75
1
1.3
74
98.7
217
44
20.3
173
79.7
Kwazulu-Natal
DC27:
Umkhanyakude
KZDMA27:
St Lucia Park
1 612
1 509
93.6
103
6.4
1 285
606
47.2
679
52.8
Kwazulu-Natal
DC43:
Sisonke
KZDMA43:
Mkhomazi
Wilderness Area
311
86
27.7
225
72.3
330
111
33.6
219
66.4
North West
DC37:
Bojanala
NWDMA37:
Pilansberg
National Park
96
12
12.5
84
87.5
121
0
0.0
121
100.0
Gauteng
CBDC8:
West Rand
GTDMA41:
West Rand
971
359
37.0
612
63.0
2 010
598
29.8
1 412
70.2
Mpumalanga
DC31:
Nkangala
MPDMA31:
Mdala
Nature Reserve
5
5
100.0
0
0.0
0
0
0.0
0
0.0
Mpumalanga
DC32:
Ehlanzeni
MPDMA32:
Lowveld
0
0
0.0
0
0.0
263
174
66.2
89
33.8
Limpopo/
Mpumalanga
CBDC3:
Sekhukhune
CBDMA3:
Schuinsdraai
Nature Reserve
9
3
33.3
6
66.7
0
0
0.0
0
0.0
Limpopo/
Mpumalanga
CBDC4:
Bohlabela
CBDMA4:
Kruger Park
538
118
21.9
420
78.1
2 294
251
10.9
2 043
89.1
5 841 979
3 178 493
54.4
2 663 486
45.6
7 479 952
2 701 104
36.1
4 778 848
63.9
Kwazulu-Natal
Total
Note: 0 (zero) households: information is not available
PART III KEY HOUSEHOLD SERVICES INDICATORS
267
Table 16: Local municipalities: Households with access or nearby access to telephones, 1996 and 2001
Province
268
District
Municipality
Local
Municipality
1996
Total
number of
households
2001
No access/ no nearby
access
With access/ nearby
access
Number
Number
%
Total
number of
households
%
No access/ no nearby
access
With access/ nearby
access
Number
Number
%
%
Western Cape
DC1:
West Coast
WC011:
Matzikama
9 956
888
8.9
9 068
91.1
14 464
1 468
10.1
12 996
89.9
Western Cape
DC1:
West Coast
WC012:
Cederberg
7 803
599
7.7
7 204
92.3
11 180
987
8.8
10 193
91.2
Western Cape
DC1:
West Coast
WC013:
Bergrivier
8 886
406
4.6
8 480
95.4
13 295
727
5.5
12 568
94.5
Western Cape
DC1:
West Coast
WC014:
Saldanha Bay
12 791
513
4.0
12 278
96.0
18 887
246
1.3
18 641
98.7
Western Cape
DC1:
West Coast
WC015:
Swartland
15 889
1 054
6.6
14 835
93.4
18 668
1 283
6.9
17 385
93.1
Western Cape
DC2:
Boland
WC022:
Witzenberg
16 124
1 990
12.3
14 134
87.7
20 384
1 270
6.2
19 114
93.8
Western Cape
DC2:
Boland
WC023:
Drakenstein
42 245
3 399
8.0
38 846
92.0
46 216
1 387
3.0
44 829
97.0
Western Cape
DC2:
Boland
WC024:
Stellenbosch
26 186
1 514
5.8
24 672
94.2
34 772
383
1.1
34 389
98.9
Western Cape
DC2:
Boland
WC025:
Breede Valley
29 190
2 680
9.2
26 510
90.8
35 004
1 485
4.2
33 519
95.8
Western Cape
DC2:
Boland
WC026: Breede
River/Winelands
16 122
1 529
9.5
14 593
90.5
21 155
1 268
6.0
19 887
94.0
Western Cape
DC3:
Overberg
WC031:
Theewaterskloof
18 057
1 173
6.5
16 884
93.5
24 302
766
3.2
23 536
96.8
Western Cape
DC3:
Overberg
WC032:
Overstrand
11 412
456
4.0
10 956
96.0
19 056
197
1.0
18 859
99.0
Western Cape
DC3:
Overberg
WC033:
Cape Agulhas
5 595
305
5.5
5 290
94.5
7 544
154
2.0
7 390
98.0
Western Cape
DC3:
Overberg
WC034:
Swellendam
6 098
628
10.3
5 470
89.7
7 597
573
7.5
7 024
92.5
Western Cape
DC4:
Eden
WC041:
Kannaland
4 855
814
16.8
4 041
83.2
6 137
587
9.6
5 550
90.4
Western Cape
DC4:
Eden
WC042:
Langeberg
9 743
634
6.5
9 109
93.5
12 624
597
4.7
12 027
95.3
Western Cape
DC4:
Eden
WC043:
Mossel Bay
15 420
933
6.1
14 487
93.9
20 195
437
2.2
19 758
97.8
Western Cape
DC4:
Eden
WC044:
George
25 700
796
3.1
24 904
96.9
36 114
1 390
3.8
34 724
96.2
Western Cape
DC4:
Eden
WC045:
Oudtshoorn
15 734
939
6.0
14 795
94.0
18 311
625
3.4
17 686
96.6
Western Cape
DC4:
Eden
WC047:
Plettenberg Bay
5 075
312
6.1
4 763
93.9
8 921
442
5.0
8 479
95.0
Western Cape
DC4:
Eden
WC048:
Knysna
11 498
683
5.9
10 815
94.1
14 900
217
1.5
14 683
98.5
Western Cape
DC5:
Central Karoo
WC051:
Laingsburg
1 461
235
16.1
1 226
83.9
1 943
66
3.4
1 877
96.6
Western Cape
DC5:
Central Karoo
WC052:
Prince Albert
2 132
594
27.9
1 538
72.1
2 604
210
8.1
2 394
91.9
Western Cape
DC5:
Central Karoo
WC053:
Beaufort West
7 309
565
7.7
6 744
92.3
9 063
586
6.5
8 477
93.5
THE DBSA INFRASTRUCTURE BAROMETER
Table 16: (continued) Local municipalities: Households with access or nearby access to telephones, 1996 and 2001
Province
District
Municipality
Local
Municipality
1996
Total
number of
households
2001
No access/ no nearby
access
With access/ nearby
access
Number
Number
%
Total
number of
households
%
No access/ no nearby
access
With access/ nearby
access
Number
Number
%
%
Eastern Cape
DC10:
Cacadu
EC101:
Camdeboo
9 388
571
6.1
8 817
93.9
10 466
628
6.0
9 838
94.0
Eastern Cape
DC10:
Cacadu
EC102: Blue
Crane Route
8 001
484
6.0
7 517
94.0
9 538
1 111
11.6
8 427
88.4
Eastern Cape
DC10:
Cacadu
EC103:
Ikwezi
2 329
350
15.0
1 979
85.0
2 748
140
5.1
2 608
94.9
Eastern Cape
DC10:
Cacadu
EC104:
Makana
16 329
1 537
9.4
14 792
90.6
18 154
925
5.1
17 229
94.9
Eastern Cape
DC10:
Cacadu
EC105:
Ndlambe
11 668
1 063
9.1
10 605
90.9
15 916
1 088
6.8
14 828
93.2
Eastern Cape
DC10:
Cacadu
EC106:
Sunday’s River
Valley
9 411
1 165
12.4
8 246
87.6
10 514
792
7.5
9 722
92.5
Eastern Cape
DC10:
Cacadu
EC107:
Baviaans
3 106
208
6.7
2 898
93.3
3 887
215
5.5
3 672
94.5
Eastern Cape
DC10:
Cacadu
EC108:
Kouga
14 552
1 170
8.0
13 382
92.0
19 522
1 412
7.2
18 110
92.8
Eastern Cape
DC10:
Cacadu
EC109:
Kou-Kamma
6 856
493
7.2
6 363
92.8
9 961
562
5.6
9 399
94.4
Eastern Cape
DC12:
Amatole
EC121:
Mbhashe
48 880
43 698
89.4
5 182
10.6
53 174
20 531
38.6
32 643
61.4
Eastern Cape
DC12:
Amatole
EC122:
Mnquma
60 052
48 959
81.5
11 093
18.5
67 858
19 808
29.2
48 050
70.8
Eastern Cape
DC12:
Amatole
EC123:
Great Kei
8 408
2 240
26.6
6 168
73.4
11 507
969
8.4
10 538
91.6
Eastern Cape
DC12:
Amatole
EC124:
Amahlathi
29 176
18 088
62.0
11 088
38.0
34 876
8 298
23.8
26 578
76.2
Eastern Cape
DC12:
Amatole
EC125:
Buffalo City
160 779
27 837
17.3
132 942
82.7
194 063
11 852
6.1
182 211
93.9
Eastern Cape
DC12:
Amatole
EC126:
Ngqushwa
20 620
13 240
64.2
7 380
35.8
21 892
3 246
14.8
18 646
85.2
Eastern Cape
DC12:
Amatole
EC127:
Nkonkobe
28 637
14 091
49.2
14 546
50.8
34 361
3 588
10.4
30 773
89.6
Eastern Cape
DC12:
Amatole
EC128:
Nxuba
5 434
713
13.1
4 721
86.9
6 634
914
13.8
5 720
86.2
Eastern Cape
DC13:
Chris Hani
EC131: Inxuba
Yethemba
13 064
1 127
8.6
11 937
91.4
16 048
951
5.9
15 097
94.1
Eastern Cape
DC13:
Chris Hani
EC132:
Tsolwana
7 754
3 664
47.3
4 090
52.7
7 934
661
8.3
7 273
91.7
Eastern Cape
DC13:
Chris Hani
EC133:
Inkwanca
4 270
587
13.7
3 683
86.3
5 478
669
12.2
4 809
87.8
Eastern Cape
DC13:
Chris Hani
EC134:
Lukanji
37 447
12 561
33.5
24 886
66.5
44 910
4 077
9.1
40 833
90.9
Eastern Cape
DC13:
Chris Hani
EC135:
Intsika Yethu
44 194
38 926
88.1
5 268
11.9
45 171
13 125
29.1
32 046
70.9
Eastern Cape
DC13:
Chris Hani
EC136:
Emalahleni
25 512
20 494
80.3
5 018
19.7
26 067
4 821
18.5
21 246
81.5
Eastern Cape
DC13:
Chris Hani
EC137:
Engcobo
28 423
22 914
80.6
5 509
19.4
31 425
10 952
34.9
20 473
65.1
PART III KEY HOUSEHOLD SERVICES INDICATORS
269
Table 16: (continued) Local municipalities: Households with access or nearby access to telephones, 1996 and 2001
Province
270
District
Municipality
Local
Municipality
1996
Total
number of
households
2001
No access/ no nearby
access
With access/ nearby
access
Number
Number
%
Total
number of
households
%
No access/ no nearby
access
With access/ nearby
access
Number
Number
%
%
Eastern Cape
DC13:
Chris Hani
EC138:
Sakhisizwe
10 016
5 752
57.4
4 264
42.6
12 721
2 911
22.9
9 810
77.1
Eastern Cape
DC14:
Ukhahlamba
EC141:
Elundini
29 585
23 860
80.6
5 725
19.4
33 786
18 257
54.0
15 529
46.0
Eastern Cape
DC14:
Ukhahlamba
EC142:
Senqu
27 923
18 263
65.4
9 660
34.6
34 053
8 028
23.6
26 025
76.4
Eastern Cape
DC14:
Ukhahlamba
EC143:
Maletswai
7 007
1 145
16.3
5 862
83.7
9 790
1 526
15.6
8 264
84.4
Eastern Cape
DC14:
Ukhahlamba
EC144:
Gariep
6 589
693
10.5
5 896
89.5
8 265
916
11.1
7 349
88.9
Eastern Cape
DC15:
O.R.Tambo
EC151:
Mbizana
41 891
38 432
91.7
3 459
8.3
46 340
17 953
38.7
28 387
61.3
Eastern Cape
DC15:
O.R.Tambo
EC152:
Ntabankulu
22 984
21 538
93.7
1 446
6.3
27 170
11 409
42.0
15 761
58.0
Eastern Cape
DC15:
O.R.Tambo
EC153:
Qaukeni
44 358
38 069
85.8
6 289
14.2
51 212
14 306
27.9
36 906
72.1
Eastern Cape
DC15:
O.R.Tambo
EC154:
Port St Johns
27 286
23 926
87.7
3 360
12.3
29 316
11 379
38.8
17 937
61.2
Eastern Cape
DC15:
O.R.Tambo
EC155:
Nyandeni
50 742
43 654
86.0
7 088
14.0
56 491
15 093
26.7
41 398
73.3
Eastern Cape
DC15:
O.R.Tambo
EC156:
Mhlontlo
39 076
33 994
87.0
5 082
13.0
42 908
13 328
31.1
29 580
68.9
Eastern Cape
DC15:
O.R.Tambo
EC157:
King Sabata
Dalindyebo
80 611
54 778
68.0
25 833
32.0
90 247
18 740
20.8
71 507
79.2
Eastern Cape
DC44:
Alfred Nzo
EC05b1:
Umzimkhulu
31 517
26 324
83.5
5 193
16.5
36 642
12 055
32.9
24 587
67.1
Eastern Cape
DC44:
Alfred Nzo
EC05b2:
Umzimvubu
82 084
73 348
89.4
8 736
10.6
87 763
43 072
49.1
44 691
50.9
Northern Cape
DC6:
Namakwa
NC061:
Richtersveld
3 038
270
8.9
2 768
91.1
2 873
42
1.5
2 831
98.5
Northern Cape
DC6:
Namakwa
NC062:
Nama Khoi
9 688
735
7.6
8 953
92.4
12 064
492
4.1
11 572
95.9
Northern Cape
DC6:
Namakwa
NC064:
Kamiesberg
2 597
500
19.3
2 097
80.7
3 229
174
5.4
3 055
94.6
Northern Cape
DC6:
Namakwa
NC065:
Hantam
5 078
475
9.4
4 603
90.6
5 490
270
4.9
5 220
95.1
Northern Cape
DC6:
Namakwa
NC066:
Karoo Hoogland
3 276
444
13.6
2 832
86.4
3 147
264
8.4
2 883
91.6
Northern Cape
DC6:
Namakwa
NC067:
KhGi-Ma
2 223
378
17.0
1 845
83.0
3 346
332
9.9
3 014
90.1
Northern Cape
DC7:
Karoo
NC071:
Ubuntu
4 237
1 199
28.3
3 038
71.7
4 245
346
8.2
3 899
91.8
Northern Cape
DC7:
Karoo
NC072:
Umsombomvu
5 454
662
12.1
4 792
87.9
5 881
473
8.0
5 408
92.0
Northern Cape
DC7:
Karoo
NC073:
Emthanjeni
8 540
1 438
16.8
7 102
83.2
8 804
677
7.7
8 127
92.3
Northern Cape
DC7:
Karoo
NC074:
Kareeberg
2 733
545
19.9
2 188
80.1
2 424
190
7.8
2 234
92.2
THE DBSA INFRASTRUCTURE BAROMETER
Table 16: (continued) Local municipalities: Households with access or nearby access to telephones, 1996 and 2001
Province
District
Municipality
Local
Municipality
1996
Total
number of
households
2001
No access/ no nearby
access
With access/ nearby
access
Number
Number
%
Total
number of
households
%
No access/ no nearby
access
With access/ nearby
access
Number
Number
%
%
Northern Cape
DC7:
Karoo
NC075:
Renosterberg
2 372
268
11.3
2 104
88.7
2 465
324
13.1
2 141
86.9
Northern Cape
DC7:
Karoo
NC076:
Thembelihle
2 836
899
31.7
1 937
68.3
3 477
226
6.5
3 251
93.5
Northern Cape
DC7:
Karoo
NC077:
Siyathemba
4 546
728
16.0
3 818
84.0
4 163
280
6.7
3 883
93.3
Northern Cape
DC7:
Karoo
NC078:
Siyancuma
7 013
1 765
25.2
5 248
74.8
9 215
859
9.3
8 356
90.7
Northern Cape
DC8:
Siyanda
NC081:
Mier
1 315
286
21.7
1 029
78.3
1 577
192
12.2
1 385
87.8
Northern Cape
DC8:
Siyanda
NC082:
!Kai! Garib
11 087
1 697
15.3
9 390
84.7
18 484
1 187
6.4
17 297
93.6
Northern Cape
DC8:
Siyanda
NC083:
Khara Hais
15 462
1 721
11.1
13 741
88.9
17 186
782
4.6
16 404
95.4
Northern Cape
DC8:
Siyanda
NC084:
!Kheis
2 939
355
12.1
2 584
87.9
3 950
673
17.0
3 277
83.0
Northern Cape
DC8:
Siyanda
NC085:
Tsantsabane
6 544
1 459
22.3
5 085
77.7
7 358
592
8.0
6 766
92.0
Northern Cape
DC8:
Siyanda
NC086:
Kgatelopele
3 898
411
10.5
3 487
89.5
4 106
144
3.5
3 962
96.5
Northern Cape
DC9:
Frances Baard
NC091:
Sol Plaatje
45 155
4 619
10.2
40 536
89.8
51 005
2 123
4.2
48 882
95.8
Northern Cape
DC9:
Frances Baard
NC092:
Dikgatlong
7 663
2 223
29.0
5 440
71.0
9 723
1 363
14.0
8 360
86.0
Northern Cape
DC9:
Frances Baard
NC093:
Magareng
5 252
595
11.3
4 657
88.7
5 812
373
6.4
5 439
93.6
Northern Cape
CBDC1:
Kgalagadi
NC01B1:
Gamagara
4 185
288
6.9
3 897
93.1
5 136
222
4.3
4 914
95.7
Free State
DC16:
Xhariep
FS161:
Letsemeng
8 962
2 100
23.4
6 862
76.6
12 083
1 501
12.4
10 582
87.6
Free State
DC16:
Xhariep
FS162:
Kopanong
13 132
2 358
18.0
10 774
82.0
17 611
2 787
15.8
14 824
84.2
Free State
DC16:
Xhariep
FS163:
Mohokare
8 783
2 266
25.8
6 517
74.2
9 540
1 754
18.4
7 786
81.6
Free State
DC17:
Motheo
FS171:
Naledi
6 300
2 122
33.7
4 178
66.3
7 673
1 281
16.7
6 392
83.3
Free State
DC17:
Motheo
FS172:
Mangaung
153 408
21 940
14.3
131 468
85.7
188 657
9 943
5.3
178 714
94.7
Free State
DC17:
Motheo
FS173:
Mantsopa
11 506
2 348
20.4
9 158
79.6
14 070
2 154
15.3
11 916
84.7
Free State
DC18:
Lejweleputswa
FS181:
Masilonyana
15 032
2 180
14.5
12 852
85.5
20 492
2 916
14.2
17 576
85.8
Free State
DC18:
Lejweleputswa
FS182:
Tokologo
6 619
1 542
23.3
5 077
76.7
8 964
2 109
23.5
6 855
76.5
Free State
DC18:
Lejweleputswa
FS183:
Tswelopele
11 377
2 802
24.6
8 575
75.4
12 532
2 553
20.4
9 979
79.6
Free State
DC18:
Lejweleputswa
FS184:
Matjhabeng
110 705
14 024
12.7
96 681
87.3
128 640
7 476
5.8
121 164
94.2
PART III KEY HOUSEHOLD SERVICES INDICATORS
271
Table 16: (continued) Local municipalities: Households with access or nearby access to telephones, 1996 and 2001
Province
272
District
Municipality
Local
Municipality
1996
Total
number of
households
2001
No access/ no nearby
access
With access/ nearby
access
Number
Number
%
Total
number of
households
%
No access/ no nearby
access
With access/ nearby
access
Number
Number
%
%
Free State
DC18:
Lejweleputswa
FS185:
Nala
18 476
4 086
22.1
14 390
77.9
25 985
5 776
22.2
20 209
77.8
Free State
DC19:Thabo
Mofutsanyane
FS191:
Setsoto
26 299
5 726
21.8
20 573
78.2
33 563
6 631
19.8
26 932
80.2
Free State
DC19: Thabo
Mofutsanyane
FS192:
Dihlabeng
25 459
3 460
13.6
21 999
86.4
33 402
4 929
14.8
28 473
85.2
Free State
DC19: Thabo
Mofutsanyane
FS193:
Nketoana
14 749
3 387
23.0
11 362
77.0
15 023
1 802
12.0
13 221
88.0
Free State
DC19: Thabo
Mofutsanyane
FS194: Maluti
a Phofung
80 792
23 733
29.4
57 059
70.6
92 102
9 310
10.1
82 792
89.9
Free State
DC19: Thabo
Mofutsanyane
FS195:
Phumelela
9 475
2 852
30.1
6 623
69.9
12 026
2 473
20.6
9 553
79.4
Free State
DC20: Northern
Free State
FS201:
Moqhaka
37 545
8 157
21.7
29 388
78.3
43 834
3 968
9.1
39 866
90.9
Free State
DC20: Northern
Free State
FS203:
Ngwathe
29 613
6 063
20.5
23 550
79.5
32 510
4 027
12.4
28 483
87.6
Free State
DC20: Northern
Free State
FS204:
Metsimaholo
25 669
2 905
11.3
22 764
88.7
33 701
964
2.9
32 737
97.1
Free State
DC20: Northern
Free State
FS205:
Mafube
12 319
2 760
22.4
9 559
77.6
14 782
2 345
15.9
12 437
84.1
Kwazulu-Natal
DC21:
Ugu
KZ211:
Vulamehlo
17 023
8 051
47.3
8 972
52.7
16 797
4 844
28.8
11 953
71.2
Kwazulu-Natal
DC21:
Ugu
KZ212:
Umdoni
12 659
2 495
19.7
10 164
80.3
16 467
1 924
11.7
14 543
88.3
Kwazulu-Natal
DC21:
Ugu
KZ213:
Umzumbe
27 885
15 279
54.8
12 606
45.2
38 869
7 937
20.4
30 932
79.6
Kwazulu-Natal
DC21:
Ugu
KZ214:
uMuziwabantu
14 305
7 385
51.6
6 920
48.4
19 501
3 065
15.7
16 436
84.3
Kwazulu-Natal
DC21:
Ugu
KZ215:
Ezingoleni
8 058
4 452
55.2
3 606
44.8
11 431
1 327
11.6
10 104
88.4
Kwazulu-Natal
DC21:
Ugu
KZ216:
Hibiscus Coast
42 458
9 216
21.7
33 242
78.3
55 232
6 414
11.6
48 818
88.4
Kwazulu-Natal
DC22:
UMgungundlovu
KZ221:
uMshwathi
25 144
13 468
53.6
11 676
46.4
27 189
5 682
20.9
21 507
79.1
Kwazulu-Natal
DC22:
UMgungundlovu
KZ222:
uMngeni
15 771
2 417
15.3
13 354
84.7
22 660
2 952
13.0
19 708
87.0
Kwazulu-Natal
DC22:
UMgungundlovu
KZ223:
Mooi Mpofana
4 567
692
15.2
3 875
84.8
10 495
3 246
30.9
7 249
69.1
Kwazulu-Natal
DC22:
UMgungundlovu
KZ224:
Impendle
6 040
1 946
32.2
4 094
67.8
7 457
1 142
15.3
6 315
84.7
Kwazulu-Natal
DC22:
UMgungundlovu
KZ225:
Msunduzi
117 519
20 707
17.6
96 812
82.4
135 180
8 443
6.2
126 737
93.8
Kwazulu-Natal
DC22:
UMgungundlovu
KZ226:
Mkhambathini
8 949
4 231
47.3
4 718
52.7
15 414
4 372
28.4
11 042
71.6
Kwazulu-Natal
DC22:
UMgungundlovu
KZ227:
Richmond
12 266
5 248
42.8
7 018
57.2
16 001
4 676
29.2
11 325
70.8
Kwazulu-Natal
DC23:
Uthukela
KZ232:
Ladysmith
33 900
10 600
31.3
23 300
68.7
51 879
4 744
9.1
47 135
90.9
THE DBSA INFRASTRUCTURE BAROMETER
Table 16: (continued) Local municipalities: Households with access or nearby access to telephones, 1996 and 2001
Province
District
Municipality
Local
Municipality
Kwazulu-Natal
DC23:
Uthukela
KZ233:
Indaka
Kwazulu-Natal
DC23:
Uthukela
KZ234:
Umtshezi
Kwazulu-Natal
DC23:
Uthukela
Kwazulu-Natal
1996
Total
number of
households
2001
No access/ no nearby
access
With access/ nearby
access
Number
Number
%
Total
number of
households
%
No access/ no nearby
access
With access/ nearby
access
Number
Number
%
%
15 043
6 430
42.7
8 613
57.3
21 472
5 013
23.3
16 459
76.7
9 038
1 664
18.4
7 374
81.6
13 952
2 456
17.6
11 496
82.4
KZ235:
Okhahlamba
19 441
6 846
35.2
12 595
64.8
27 924
6 141
22.0
21 783
78.0
DC23:
Uthukela
KZ236:
Imbabazane
17 569
10 787
61.4
6 782
38.6
23 269
2 336
10.0
20 933
90.0
Kwazulu-Natal
DC24:
Umzinyathi
KZ241:
Endumeni
9 279
1 428
15.4
7 851
84.6
13 106
845
6.4
12 261
93.6
Kwazulu-Natal
DC24:
Umzinyathi
KZ242:
Nqutu
19 873
12 618
63.5
7 255
36.5
25 966
7 538
29.0
18 428
71.0
Kwazulu-Natal
DC24:
Umzinyathi
KZ244:
Msinga
27 564
14 795
53.7
12 769
46.3
32 879
14 485
44.1
18 394
55.9
Kwazulu-Natal
DC24:
Umzinyathi
KZ245:
Umvoti
18 660
8 863
47.5
9 797
52.5
22 948
5 452
23.8
17 496
76.2
Kwazulu-Natal
DC25:
Amajuba
KZ252:
Newcastle
55 291
6 926
12.5
48 365
87.5
71 922
3 505
4.9
68 417
95.1
Kwazulu-Natal
DC25:
Amajuba
KZ253:
Utrecht
3 496
1 973
56.4
1 523
43.6
6 660
2 443
36.7
4 217
63.3
Kwazulu-Natal
DC25:
Amajuba
KZ254:
Dannhauser
15 575
7 697
49.4
7 878
50.6
19 469
2 736
14.1
16 733
85.9
Kwazulu-Natal
DC26:
Zululand
KZ261:
eDumbe
10 199
4 279
42.0
5 920
58.0
15 811
4 178
26.4
11 633
73.6
Kwazulu-Natal
DC26:
Zululand
KZ262:
uPhongolo
15 988
8 815
55.1
7 173
44.9
26 939
7 300
27.1
19 639
72.9
Kwazulu-Natal
DC26:
Zululand
KZ263:
Abaqulusi
27 362
10 166
37.2
17 196
62.8
37 017
5 692
15.4
31 325
84.6
Kwazulu-Natal
DC26:
Zululand
KZ265:
Nongoma
26 170
20 621
78.8
5 549
21.2
32 437
10 104
31.1
22 333
68.9
Kwazulu-Natal
DC26:
Zululand
KZ266:
Ulundi
27 862
15 455
55.5
12 407
44.5
38 648
9 697
25.1
28 951
74.9
Kwazulu-Natal
DC27:
Umkhanyakude
KZ271:
Umhlabuyalingana
18 770
12 291
65.5
6 479
34.5
26 660
7 427
27.9
19 233
72.1
Kwazulu-Natal
DC27:
Umkhanyakude
KZ272:
Jozini
22 126
13 350
60.3
8 776
39.7
34 740
7 805
22.5
26 935
77.5
Kwazulu-Natal
DC27:
Umkhanyakude
KZ273: The Big
5 False Bay
3 739
2 635
70.5
1 104
29.5
7 069
1 030
14.6
6 039
85.4
Kwazulu-Natal
DC27:
Umkhanyakude
KZ274:
Hlabisa
21 855
14 063
64.3
7 792
35.7
27 266
6 697
24.6
20 569
75.4
Kwazulu-Natal
DC27:
Umkhanyakude
KZ275:
Mtubatuba
5 106
1 230
24.1
3 876
75.9
8 638
803
9.3
7 835
90.7
Kwazulu-Natal
DC28:
Uthungulu
KZ281:
Mbonambi
14 080
9 881
70.2
4 199
29.8
20 435
3 033
14.8
17 402
85.2
Kwazulu-Natal
DC28:
Uthungulu
KZ282:
uMhlathuze
38 375
7 609
19.8
30 766
80.2
73 233
5 629
7.7
67 604
92.3
Kwazulu-Natal
DC28:
Uthungulu
KZ283:
Ntambanana
10 270
8 123
79.1
2 147
20.9
13 830
4 637
33.5
9 193
66.5
PART III KEY HOUSEHOLD SERVICES INDICATORS
273
Table 16: (continued) Local municipalities: Households with access or nearby access to telephones, 1996 and 2001
Province
274
District
Municipality
Local
Municipality
Kwazulu-Natal
DC28:
Uthungulu
KZ284:
uMlalazi
Kwazulu-Natal
DC28:
Uthungulu
KZ285:
Mthonjaneni
Kwazulu-Natal
DC28:
Uthungulu
Kwazulu-Natal
1996
Total
number of
households
2001
No access/ no nearby
access
With access/ nearby
access
Number
Number
%
Total
number of
households
%
No access/ no nearby
access
With access/ nearby
access
Number
Number
%
%
35 421
19 817
55.9
15 604
44.1
44 601
13 415
30.1
31 186
69.9
5 301
2 988
56.4
2 313
43.6
12 645
6 301
49.8
6 344
50.2
KZ286:
Nkandla
19 509
13 523
69.3
5 986
30.7
24 866
10 024
40.3
14 842
59.7
DC29:
iLembe
KZ291:
eNdondakusuka
24 479
12 519
51.1
11 960
48.9
31 001
4 152
13.4
26 849
86.6
Kwazulu-Natal
DC29:
iLembe
KZ292:
KwaDukuza
36 841
7 263
19.7
29 578
80.3
45 897
4 592
10.0
41 305
90.0
Kwazulu-Natal
DC29:
iLembe
KZ293:
Ndwedwe
25 452
14 593
57.3
10 859
42.7
30 632
7 744
25.3
22 888
74.7
Kwazulu-Natal
DC29:
iLembe
KZ294:
Maphumulo
21 402
13 908
65.0
7 494
35.0
22 391
4 636
20.7
17 755
79.3
Kwazulu-Natal
DC43:
Sisonke
KZ5a1:
Ingwe
17 445
9 287
53.2
8 158
46.8
21 925
7 419
33.8
14 506
66.2
Kwazulu-Natal
DC43:
Sisonke
KZ5a2:
Kwa Sani
3 632
1 440
39.6
2 192
60.4
4 656
811
17.4
3 845
82.6
Kwazulu-Natal
DC43:
Sisonke
KZ5a3:
Matatiele
2 497
702
28.1
1 795
71.9
5 704
760
13.3
4 944
86.7
Kwazulu-Natal
DC43:
Sisonke
KZ5a4:
Greater Kokstad
8 729
3 019
34.6
5 710
65.4
20 535
3 567
17.4
16 968
82.6
Kwazulu-Natal
DC43:
Sisonke
KZ5a5:
Ubuhlebezwe
15 188
6 033
39.7
9 155
60.3
23 088
4 602
19.9
18 486
80.1
North West
DC37:
Bojanala
NW371:
Moretele
32 669
12 905
39.5
19 764
60.5
43 168
3 685
8.5
39 483
91.5
North West
DC37:
Bojanala
NW372:
Madibeng
76 065
17 974
23.6
58 091
76.4
97 227
5 975
6.1
91 252
93.9
North West
DC37:
Bojanala
NW373:
Rustenburg
75 722
15 702
20.7
60 020
79.3
119 581
4 209
3.5
115 372
96.5
North West
DC37:
Bojanala
NW374:
Kgetlengrivier
7 718
1 111
14.4
6 607
85.6
10 483
956
9.1
9 527
90.9
North West
DC37:
Bojanala
NW375:
Moses Kotane
49 137
23 462
47.7
25 675
52.3
62 710
8 175
13.0
54 535
87.0
North West
DC38:
Central
NW381:
Setla-Kgobi
17 642
13 124
74.4
4 518
25.6
22 714
4 209
18.5
18 505
81.5
North West
DC38:
Central
NW382:
Tswaing
17 687
5 760
32.6
11 927
67.4
25 624
5 405
21.1
20 219
78.9
North West
DC38:
Central
NW383:
Mafikeng
51 658
17 957
34.8
33 701
65.2
67 505
11 099
16.4
56 406
83.6
North West
DC38:
Central
NW384:
Ditsobotla
26 611
6 533
24.5
20 078
75.5
36 388
5 349
14.7
31 039
85.3
North West
DC38:
Central
NW385:
Zeerust
24 292
10 637
43.8
13 655
56.2
32 363
4 385
13.5
27 978
86.5
North West
DC39:
Bophirima
NW391:
Kagisano
18 871
8 675
46.0
10 196
54.0
23 390
5 650
24.2
17 740
75.8
North West
DC39:
Bophirima
NW392:
Naledi
12 414
1 942
15.6
10 472
84.4
15 223
1 210
7.9
14 013
92.1
THE DBSA INFRASTRUCTURE BAROMETER
Table 16: (continued) Local municipalities: Households with access or nearby access to telephones, 1996 and 2001
Province
District
Municipality
Local
Municipality
North West
DC39:
Bophirima
NW393:
Mamusa
North West
DC39:
Bophirima
NW394:
Greater Taung
North West
DC39:
Bophirima
North West
1996
Total
number of
households
2001
No access/ no nearby
access
With access/ nearby
access
Number
Number
%
Total
number of
households
%
No access/ no nearby
access
With access/ nearby
access
Number
Number
%
%
9 142
1 768
19.3
7 374
80.7
10 747
1 363
12.7
9 384
87.3
35 663
18 171
51.0
17 492
49.0
41 996
4 556
10.8
37 440
89.2
NW395:
Molopo
3 584
831
23.2
2 753
76.8
3 789
1 131
29.8
2 658
70.2
DC39:
Bophirima
NW396:
Lekwa-Teemane
7 776
706
9.1
7 070
90.9
11 571
1 897
16.4
9 674
83.6
North West
DC40:
Southern
NW401:
Ventersdorp
6 860
1 289
18.8
5 571
81.2
11 427
1 785
15.6
9 642
84.4
North West
DC40:
Southern
NW402:
Potchefstroom
29 089
4 139
14.2
24 950
85.8
33 963
2 329
6.9
31 634
93.1
North West
DC40:
Southern
NW403:
Klerksdorp
77 825
8 150
10.5
69 675
89.5
112 023
5 072
4.5
106 951
95.5
North West
DC40:
Southern
NW404:
Maquassi Hills
12 815
2 382
18.6
10 433
81.4
17 292
3 230
18.7
14 062
81.3
North West
CBDC1:
Kgalagadi
NW1a1:
Moshaweng
16 176
6 617
40.9
9 559
59.1
18 369
5 677
30.9
12 692
69.1
Gauteng
CBDC2:
Metsweding
GT02b1:
Nokeng
tsa Taemane
11 149
1 348
12.1
9 801
87.9
16 405
824
5.0
15 581
95.0
Gauteng
CBDC8:
West Rand
GT411:
Mogale City
61 551
3 574
5.8
57 977
94.2
89 497
3 419
3.8
86 078
96.2
Gauteng
CBDC8:
West Rand
GT412:
Randfontein
27 504
2 246
8.2
25 258
91.8
40 473
1 246
3.1
39 227
96.9
Gauteng
CBDC8:
West Rand
GT414:
Westonaria
23 219
1 572
6.8
21 647
93.2
51 486
1 065
2.1
50 421
97.9
Gauteng
DC42:
Sedibeng
GT421:
Emfuleni
148 889
7 142
4.8
141 747
95.2
190 157
5 466
2.9
184 691
97.1
Gauteng
DC42:
Sedibeng
GT422:
Midvaal
17 726
2 780
15.7
14 946
84.3
20 830
861
4.1
19 969
95.9
Gauteng
DC42:
Sedibeng
GT423:
Lesedi
15 501
1 080
7.0
14 421
93.0
19 002
1 143
6.0
17 859
94.0
Mpumalanga
DC30:
Gert Sibande
MP301:
Albert Luthuli
35 486
9 965
28.1
25 521
71.9
41 194
4 651
11.3
36 543
88.7
Mpumalanga
DC30:
Gert Sibande
MP302:
Msukaligwa
25 029
4 474
17.9
20 555
82.1
30 264
2 955
9.8
27 309
90.2
Mpumalanga
DC30:
Gert Sibande
MP303:
Mkhondo
18 816
8 816
46.9
10 000
53.1
28 900
4 786
16.6
24 114
83.4
Mpumalanga
DC30:
Gert Sibande
MP304:
Seme
14 560
2 976
20.4
11 584
79.6
18 393
1 989
10.8
16 404
89.2
Mpumalanga
DC30:
Gert Sibande
MP305: Lekwa
20 479
2 781
13.6
17 698
86.4
26 173
1 889
7.2
24 284
92.8
Mpumalanga
DC30:
Gert Sibande
MP306: Dipaleseng
9 454
778
8.2
8 676
91.8
9 574
564
5.9
9 010
94.1
Mpumalanga
DC30:
Gert Sibande
MP307:
Govan Mbeki
49 675
5 165
10.4
44 510
89.6
67 580
2 852
4.2
64 728
95.8
Mpumalanga
DC31:
Nkangala
MP311:
Delmas
12 355
2 027
16.4
10 328
83.6
13 953
533
3.8
13 420
96.2
PART III KEY HOUSEHOLD SERVICES INDICATORS
275
Table 16: (continued) Local municipalities: Households with access or nearby access to telephones, 1996 and 2001
Province
276
District
Municipality
Local
Municipality
1996
Total
number of
households
2001
No access/ no nearby
access
With access/ nearby
access
Number
Number
%
Total
number of
households
%
No access/ no nearby
access
With access/ nearby
access
Number
Number
%
%
Mpumalanga
DC31:
Nkangala
MP312:
Emalahleni
56 469
5 645
10.0
50 824
90.0
82 241
3 919
4.8
78 322
95.2
Mpumalanga
DC31:
Nkangala
MP313:
Middelburg
33 644
3 685
11.0
29 959
89.0
37 041
1 992
5.4
35 049
94.6
Mpumalanga
DC31:
Nkangala
MP314:
Highlands
9 302
2 795
30.0
6 507
70.0
10 900
1 724
15.8
9 176
84.2
Mpumalanga
DC31:
Nkangala
MP315:
Thembisile
48 099
8 659
18.0
39 440
82.0
58 802
1 559
2.7
57 243
97.3
Mpumalanga
DC31:
Nkangala
MP316:
Dr JS Moroka
48 347
10 274
21.3
38 073
78.7
54 326
2 159
4.0
52 167
96.0
Mpumalanga
DC32:
Ehlanzeni
MP321:
Thaba Chweu
20 128
4 778
23.7
15 350
76.3
26 559
3 391
12.8
23 168
87.2
Mpumalanga
DC32:
Ehlanzeni
MP322:
Mbombela
91 615
21 995
24.0
69 620
76.0
121 952
9 274
7.6
112 678
92.4
Mpumalanga
DC32:
Ehlanzeni
MP323:
Umjindi
11 681
4 338
37.1
7 343
62.9
15 855
2 844
17.9
13 011
82.1
Mpumalanga
DC32:
Ehlanzeni
MP324:
Nkomazi
53 105
16 786
31.6
36 319
68.4
75 555
11 076
14.7
64 479
85.3
Limpopo
DC33:
Mopani
NP331:
Greater Giyani
42 183
25 403
60.2
16 780
39.8
52 859
4 769
9.0
48 090
91.0
Limpopo
DC33:
Mopani
NP332:
Greater Letaba
41 465
19 694
47.5
21 771
52.5
53 734
7 044
13.1
46 690
86.9
Limpopo
DC33:
Mopani
NP333:
Greater
73 898
36 669
49.6
37 229
50.4
97 375
10 536
10.8
86 839
89.2
Limpopo
DC33:
Mopani
NP334:
Ba-Phalaborwa
25 577
7 926
31.0
17 651
69.0
33 533
3 477
10.4
30 056
89.6
Limpopo
DC34:
Vhembe
NP341:
Musina
8 401
1 885
22.4
6 516
77.6
13 954
4 058
29.1
9 896
70.9
Limpopo
DC34:
Vhembe
NP342:
Mutale
13 113
10 948
83.5
2 165
16.5
17 646
5 538
31.4
12 108
68.6
Limpopo
DC34:
Vhembe
NP343:
Thulamela
101 760
47 042
46.2
54 718
53.8
129 155
12 404
9.6
116 751
90.4
Limpopo
DC34:
Vhembe
NP344:
Makhado
88 977
40 505
45.5
48 472
54.5
113 525
9 153
8.1
104 372
91.9
Limpopo
DC35:
Capricorn
NP351:
Blouberg
28 016
14 340
51.2
13 676
48.8
35 166
6 483
18.4
28 683
81.6
Limpopo
DC35:
Capricorn
NP352:
Aganang
27 584
9 624
34.9
17 960
65.1
32 522
1 786
5.5
30 736
94.5
Limpopo
DC35:
Capricorn
NP353:
Molemole
22 668
6 667
29.4
16 001
70.6
28 929
3 339
11.5
25 590
88.5
Limpopo
DC35:
Capricorn
NP354:
Polokwane
85 611
22 658
26.5
62 953
73.5
135 433
8 239
6.1
127 194
93.9
Limpopo
DC35:
Capricorn
NP355:
Lepele-Nkumpi
44 373
16 878
38.0
27 495
62.0
52 904
3 864
7.3
49 040
92.7
Limpopo
DC36:
Waterberg
NP361:
Thabazimbi
14 466
3 357
23.2
11 109
76.8
25 023
1 604
6.4
23 419
93.6
Limpopo
DC36:
Waterberg
NP362:
Lephalale
21 218
5 856
27.6
15 362
72.4
28 334
4 484
15.8
23 850
84.2
THE DBSA INFRASTRUCTURE BAROMETER
Table 16: (continued) Local municipalities: Households with access or nearby access to telephones, 1996 and 2001
Province
District
Municipality
Local
Municipality
Limpopo
DC36:
Waterberg
NP364:
Mookgopong
Limpopo
DC36:
Waterberg
Limpopo
1996
Total
number of
households
2001
No access/ no nearby
access
With access/ nearby
access
Number
Number
%
Total
number of
households
%
No access/ no nearby
access
With access/ nearby
access
Number
Number
%
%
5 019
929
18.5
4 090
81.5
9 563
1 711
17.9
7 852
82.1
NP365:
Modimolle
12 031
1 655
13.8
10 376
86.2
20 936
2 482
11.9
18 454
88.1
DC36:
Waterberg
NP366:
Bela-Bela
11 165
1 939
17.4
9 226
82.6
14 160
1 404
9.9
12 756
90.1
Limpopo
DC36:
Waterberg
NP367:
Mogalakwena
53 716
18 748
34.9
34 968
65.1
70 081
8 551
12.2
61 530
87.8
Limpopo
CBDC3:
Sekhukhune
NP03A2:
Makhuduthamaga
49 943
29 881
59.8
20 062
40.2
54 203
8 528
15.7
45 675
84.3
Limpopo
CBDC3:
Sekhukhune
NP03A3:
Fetakgomo
17 360
13 026
75.0
4 334
25.0
19 001
6 640
34.9
12 361
65.1
Limpopo
CBDC4:
Bohlabela
NP04A1:
Maruleng
18 364
11 415
62.2
6 949
37.8
23 032
4 364
18.9
18 668
81.1
Northern Cape/
North West
CBDC1:
Kgalagadi
CBLC1:
Ga-Segonyana
13 174
5 620
42.7
7 554
57.3
17 762
2 638
14.9
15 124
85.1
Gauteng/
Mpumalanga
CBDC2:
Metsweding
CBLC2:
Kungwini
18 244
1 907
10.5
16 337
89.5
33 561
1 606
4.8
31 955
95.2
Limpopo/
Mpumalanga
CBDC3:
Sekhukhune
CBLC3: Greater
Marble Hall
19 388
6 417
33.1
12 971
66.9
26 538
3 274
12.3
23 264
87.7
Limpopo/
Mpumalanga
CBDC3:
Sekhukhune
CBLC4: Greater
Groblersdal
42 245
19 079
45.2
23 166
54.8
48 748
5 088
10.4
43 660
89.6
Limpopo/
Mpumalanga
CBDC3:
Sekhukhune
CBLC5:
Greater Tubatse
42 526
27 528
64.7
14 998
35.3
56 218
12 508
22.2
43 710
77.8
Limpopo/
Mpumalanga
CBDC4:
Bohlabela
CBLC6:
Bushbuckridge
112 986
51 216
45.3
61 770
54.7
109 667
10 612
9.7
99 055
90.3
Northern Cape/
North West
DC9:
Frances Baard
CBLC7:
Phokwane
13 406
2 329
17.4
11 077
82.6
17 078
2 016
11.8
15 062
88.2
North West/
Gauteng
CBDC8:
West Rand
CBLC8:
Merafong City
39 801
3 504
8.8
36 297
91.2
99 652
3 419
3.4
96 233
96.6
Western Cape
DC1:
West Coast
WCDMA01:
West Coast
1 097
157
14.3
940
85.7
1 177
68
5.8
1 109
94.2
Western Cape
DC2:
Boland
WCDMA02:
Breede River
1 594
274
17.2
1 320
82.8
1 930
132
6.8
1 798
93.2
Western Cape
DC3:
Overberg
WCDMA03:
Overberg
12
0
0.0
12
100.0
80
3
3.8
77
96.3
Western Cape
DC4:
Eden
WCDMA04:
South Cape
2 875
338
11.8
2 537
88.2
3 551
247
7.0
3 304
93.0
Western Cape
DC5:
Central Karoo
WCDMA05:
Central Karoo
1 558
509
32.7
1 049
67.3
1 566
251
16.0
1 315
84.0
Eastern Cape
DC10:
Cacadu
ECDMA10:
Aberdeen Plain
1 942
177
9.1
1 765
90.9
2 017
123
6.1
1 894
93.9
Eastern Cape
DC13:
Chris Hani
ECDMA13:
Mountain Zebra
National Park
22
0
0.0
22
100.0
18
0
0.0
18
100.0
Eastern Cape
DC14:
Ukhahlamba
ECDMA14:
Oviston Nature
Reserve
0
0
0.0
0
0.0
3
0
0.0
3
100.0
Eastern Cape
DC44:
Alfred Nzo
ECDMA44:
O’Conners
Camp
0
0
0.0
0
0.0
0
0
0.0
0
0.0
PART III KEY HOUSEHOLD SERVICES INDICATORS
277
Table 16: (continued) Local municipalities: Households with access or nearby access to telephones, 1996 and 2001
Province
District
Municipality
Local
Municipality
Northern Cape
DC6:
Namakwa
NCDMA06:
Namaqualand
Northern Cape
DC7:
Karoo
Northern Cape
1996
Total
number of
households
2001
No access/ no nearby
access
With access/ nearby
access
Number
Number
%
Total
number of
households
%
With access/ nearby
access
Number
Number
%
%
564
62
11.0
502
89.0
342
55
16.1
287
83.9
NCDMA07:
Bo Karoo
1 290
136
10.5
1 154
89.5
1 098
113
10.3
985
89.7
DC8:
Siyanda
NCDMA08:
Benede Oranje
2 540
670
26.4
1 870
73.6
3 243
181
5.6
3 062
94.4
Northern Cape
DC9:
Frances Baard
NCDMA09:
Diamondfields
1 076
456
42.4
620
57.6
1 614
252
15.6
1 362
84.4
Northern Cape
CBDC1:
Kgalagadi
NCDMACB1:
Kalahari
1 882
165
8.8
1 717
91.2
2 488
170
6.8
2 318
93.2
Free State
DC19: Thabo
Mofutsanyane
FSDMA19:
Golden Gate
Highlands
National Park
119
7
5.9
112
94.1
59
0
0.0
59
100.0
Kwazulu-Natal
DC22:
UMgungundlovu
KZDMA22:
Highmoor/
Kamberg Park
152
67
44.1
85
55.9
12
0
0.0
12
100.0
Kwazulu-Natal
DC23:
Uthukela
KZDMA23:
Gaints Castle
Game Reserve
75
0
0.0
75
100.0
217
0
0.0
217
100.0
Kwazulu-Natal
DC27:
Umkhanyakude
KZDMA27:
St Lucia Park
1 612
1 179
73.1
433
26.9
1 285
329
25.6
956
74.4
Kwazulu-Natal
DC43:
Sisonke
KZDMA43:
Mkhomazi
Wilderness Area
311
29
9.3
282
90.7
330
45
13.6
285
86.4
North West
DC37:
Bojanala
NWDMA37:
Pilansberg
National Park
96
1
1.0
95
99.0
121
3
2.5
118
97.5
Gauteng
CBDC8:
West Rand
GTDMA41:
West Rand
971
94
9.7
877
90.3
2 010
60
3.0
1 950
97.0
Mpumalanga
DC31:
Nkangala
MPDMA31:
Mdala
Nature Reserve
5
5
100.0
0
0.0
0
0
0.0
0
0.0
Mpumalanga
DC32:
Ehlanzeni
MPDMA32:
Lowveld
0
0
0.0
0
0.0
262
34
13.0
228
87.0
Limpopo/
Mpumalanga
CBDC3:
Sekhukhune
CBDMA3:
Schuinsdraai
Nature Reserve
9
0
0.0
9
100.0
0
0
0.0
0
0.0
Limpopo/
Mpumalanga
CBDC4:
Bohlabela
CBDMA4:
Kruger Park
538
89
16.5
449
83.5
2 294
139
6.1
2 155
93.9
5 841 979
2 048 764
35.1
3 793 215
64.9
7 479 971
986 083
13.2
6 493 888
86.8
Total
Note: 0 (zero) households: information is not available
278
No access/ no nearby
access
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PART III KEY HOUSEHOLD SERVICES INDICATORS
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288
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292
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294
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Bibliography
MOUTON AJ. 2004. Municipal Statistical Infrastructure Review, 1996 and 2001. DBSA, Midrand
STATISTICS SOUTH AFRICA. 2004. Population Census, 2001. Community Profile databases. Pretoria.
STATISTICS SOUTH AFRICA. 1999. Population Census, 1996. Community Profile databases. Pretoria.
PART III KEY HOUSEHOLD SERVICES INDICATORS
297
Addresses
Development Bank of Southern Africa Limited
Postal address
PO Box 1234, Halfway House
Midrand, South Africa
1685
Telephone
+27 11 313 3911
Fax
+27 11 313 3086
Website
www.dbsa.org
CSIR
Boutek
Postal address
PO Box 395
PRETORIA
0001
Telephone
+27 12 841 2579
Fax
+27 12 841 2703
Website
www.csir.co.za
Photographic credits
Trans African Concessions: p. 1
DBSA: pp. 60, 61
Gauteng Tourism Authority (GTA): pp. 31, 59, 93, 99
Eskom: pp. 48, 134
www.trekearth.com: p. 96
Henner Frankenfeld / PictureNET Africa: p. 156
Hewlett Packard South Africa: p. 180
298
THE DBSA INFRASTRUCTURE BAROMETER
2006
Economic and Municipal Infrastructure in South Africa
THE DBSA INFRASTRUCTURE BAROMETER 2006
THE DBSA
INFRASTRUCTURE BAROMETER
Economic and Municipal
Infrastructure in South Africa
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