Municipality: Nxuba Local Municipality

Address

Nxuba Local Municipality
Private Bag X350
5760 Adelaide , Eastern Cape
South Africa
Phone: 046 684 0034
Fax: 046 684 1931
Eastern Cape ZA

Description

Nxuba Local Municipality is situated in the Winterland of the Eastern Cape, under the jurisdiction of the Amathole District Municipality. The two towns are imbedded with a variety of architecture and steeped in history.

The Nxuba Local Municipality is characterized by low levels of employment and a high percentage of people who are not economically active. This in turn accounts for the high poverty levels and low income levels. High unemployment rates impact negatively on municipalities as low affordability levels generally result in a poor payment rate for services. Nxuba Local Municipality‟s unemployment rate is estimated to be 69%.

In Nxuba Local Municipality the agriculture sector accounts for the majority of specified jobs (20.6%) and this is closely followed by the community and public sector with 17.6%. The latter sector is an unlikely base for employment expansion. Manufacturing and the wholesale and retail trade constitute the third and fourth highest employment sector (14.5% and 10.1% respectively), but it is also doubtful whether these sector will expand significantly as commercial and business activities are confined to urban centers of Adelaide and to a lesser degree Bedford. This limits the majority of the rural population from finding work in these sectors.

The Municipality has managed to develop and promote its enterprise development by proving business skills training to its SMME‟s. Focus in the 2010/11 financial year was agriculture and the Municipality, together with other Government Sectors, provided communities with food gardens and livestock thereby improving their livelihood.

Funding for LED projects remains a great challenge in this Municipality. Nxuba was in the process of developing its Local Economic Development Strategy in 2011.

Source: Nxuba Local Municipality IDP 2011/12

Strengths

The sectors offering the most significant potential include:

  • Agriculture (livestock and game farming )
  • Tourism (The nature reserve, arts, crafts, scenery, wildlife, wetlands, cultural heritage).
  • SMME
  • Trade and Business Services
  • Forestry (limited to the Northern mountainous region)

Weaknesses

  • High unemployment and poverty levels in the Municipality result in low affordability levels which manifest in low levels of investment, development and service delivery and under-utilization of development opportunities. There is an urgent need for major new private sector investments to create jobs and improve livelihoods in the Municipality
  • Municipality has a limited and almost non-existent industrial economy and a high dependency upon primary economic activities.