Part Three: Sustainable Communities Initiative & Programme

Background to the SC Initiative Problem Statement –Localities with numerous socio-economic problems –Good policies and funding available, but few if any South African examples of ‘best practice’ at local level Opportunity –National Strategy for Sustainable Development –Strong Government and partner emphasis on delivery of economic and social development at local level –Championed by DBSA Governor – Mr. Trevor Manuel, DBSA Chairman Jay Naidoo and DBSA MD, Mandla Gantsho –Initiative at the heart of DBSA’s vision and mission –Create synergy between local and national/provincial development activists

Vision of the SC Initiative Cohesive communities that live in places where life can take place in a positive way People live, work and play in an environment of human dignity and opportunity

Core Underlying Principles of SC A sense of justice A sense of place A sense of history A sense of limits A sense of craft A sense of nature

Tourism and Farming (game, fish and urban agriculture) Partnerships between private sector and communities, (Unilever) Community owned facilities Supported by Government and municipal structures DBSA funds capacity building and support Facilities run and managed on commercial basis

Role of DBSA in the Initiative Create examples/footprints of ‘Sustainable Communities’ Facilitate and unblock obstructions Provide dedicated technical assistance Knowledge management and sharing – ‘best practice’ Resource mobilisation and integration Provide bridging finance for non-bankable projects Leave municipality with capacity for further roll-out

Progress with the Initiative Six pilot areas (Motherwell, Ngangelizwe, Grabouw, Phalaborwa, Lydenburg, Diepsloot) Ongoing stakeholder interaction Strategic frameworks prepared for each –Strategic scan and identification of challenges –Strategic direction –Implementation plan –Resource mobilisation Draft business plans prepared MOUs signed with municipalities Training of staff and other stakeholders Next steps –Finalise business plans –Implementation to commence in July 2006

Pilots were selected to reflect the range of challenges facing the South African Community Six pilot areas: –Ba-Phalaborwa –Diepsloot –Grabouw –Motherwell –Ngangelizwe –Thaba-Cheuw

Tentative Budget (million Rand) PilotTA GrantPreparation Assistance Capital Investment Motherwell Ngangelizwe24320 Total418860

Part Four: Local Investment Agency (Wild Coast)

LIA Background Joint DBSA / Old Mutual initiative –R8M for capitalizing the LIA Company –R500M as investment facility Catalyzing and crowding in commercial investment in poverty- stricken areas with economic potential Facilitating project development and investment –Overcome investment constraints –Leverage resources into viable commercial projects –Creating a link between development and commercial ventures –Accelerated economic growth and job creation Wild Coast as first phase

The Wild Coast LIA Company Mission: Project development / preparation / packaging Focus: Private, commercially sound ventures and PPPs Sectors: All economic sectors subject to triple bottom line Lifespan: 10 years Separate Investment Facility: R500 Million Linkage to other funding and support from DBSA and OM Synergy and alignment with government policies / programmes Collaboration with other role players

Institutional Arrangements LIA Company 50% OMDBSA LIA LTD Co BOARD OF DIRECTORS

LIA: Progress Approval and support from: DBSA / OM Boards Minister of Finance Eastern Cape stakeholders consulted Shareholders agreement signed Company registered Vijay Makanjee appointed – office based in East London Spatial Investment Framework prepared Coffee Bay conceptualised as a Sustainable Tourism Village Formal Launch – 23 May 2006

Wild Coast LIA Spatial Investment Framework

Possible Investment Nodes –Mthatha: commercial, services, retail, value add manufacturing –Port St Johns: tourism facilities, accommodation, retail –Coffee Bay: tourism facilities and accommodation –Key Mouth: tourism facilities, high order residential

Coffee Bay Concept Urban Design EXTENDED AND REFURBISHED SCHOOL URBAN RENEWAL AND NEW HOUSING NEW URBAN EXTENSION ± 40 ERVEN COMMERCIAL CENTRE OCEAN VIEW HOTEL RESORT HOUSING RESTAURANT AND BEACHFRONT BAR NEW COFFEE BAY HOTEL BEACH WATERFRONT BOTH SIDES OF INLET RESORT ACCOMMODATION AGRICULTURAL FIELDS TREE-TOP BISTRO & BAR Copyright: dmp ………………………………

Investment Opportunities Property Development – Coffee Bay 40-Room Boutique Hotel (redevelopment of Coffee Bay Hotel). Tree-top bistro and bar associated with hotel. Approximately 40 New Residential Locations. Expanded school. Commercial centre at entrance to town including a service station, convenience store and general dealer. Caravan Park/Eco-lodges upgrade. Beachfront restaurant and bar. Waterfront development on both sides of inlet, including bistros, sundowner decks, approximately 60 Resort Units and back- packers resort accommodation. Concept Urban Design Plan

Linkage Projects Hiking trails Agriculture Laundry Fishing trips Restaurants Cultural events Security services Maintenance services Gardening services