Kouga agency builds muscle for growth in 2007

It has taken the Kouga Development Agency (KDA), the agency tasked with economic development in the area, scarcely a year to ensure that it has the capacity and make the necessary preparations to manage of the largest developments in the region.

The Kouga area, situated in the Cacadu Municipal District of the Eastern Cape, comprises Jeffrey's Bay, Humansdorp, Hankey, Patensie, Loerie, Thornhill and St Francis Bay. It is to be the location of a multimillion rand eco-tourism investment with preliminary R210 million tourism projects consisting of a five and three to four star developments together with a unique community centre.

The environmentally sensitive development will take place on 683 hectares of state owned land, which includes 153 hectares of an unproclaimed local nature reserve.

“The initiative should be seen as part of the broader Baviaans Kloof Mega Reserve Development,” explains Cacadu District Municipality municipal manager Ted Pillay.

At the launch of the agency’s offices in Jeffrey’s Bay, the economic capital of the Kouga area, KDA CEO Zola Tshefu says the key to the project’s success lies in ensuring the agency has the capacity to deliver a project that fulfils a dire need for the tourism industry, creates jobs, provides an economic stimulus to the area as well as promotes black economic empowerment.

The agency was conceptualised and founded by the Independent Development Corporation (IDC), the Eastern Cape Provincial government, the Kouga Local Municipality (KLM) and Cacadu District Municipality (CDM).

IDC regional manager Stuart Bartlett explains that worldwide, development agencies have created a new methodology for local economic development. These have made a remarkable contribution in re-activating local economies and have been able to mobilise local resources to stimulate new opportunities, to be a strategic instrument to fight poverty with the sustainable development of local resources and have represented a means of inventing new economic paths for communities.

Pillay also sees the agency as the ideal vehicle to deliver infrastructure adjacent to the area such as the regional road which is to be upgraded.

Tshefu says there is a need for tourism facilities that cater for the medium to high paying international and domestic tourists, visiting the Garden Route area. Currently, the closest facilities of this nature are two hours’ drive from the Kouga site.

“In order to meet a challenging mandate, we understood that we needed an agency that had a robust infrastructure. Hence, our focus was to ensure that the necessary foundations of governance, regulatory and operational processes were put in place. We want the least amount of distractions during 2007 when the project gets underway,” explains Tshefu.

“Amongst the tasks that were the precursor to our activities for this year were the conclusion of the statutory requirements for KDA’s establishment and the appointment of our board of directors which is chaired by Mncedisi Mayekiso. It also includes four observers from the Kouga and Cacadu Municipalities which are our principals.

“The agency has spent its first year developing its institutional capacity, staffing, operating policies and procedures, organisational structure and appointed key staff. We have also a reliable and adequate reporting and financial management system,” she adds.

Other milestones noted for the year included integrating previous project work into single framework document, commissioning a macro level pre-feasibility study, preparing the project’s business plan and budget and establishing offices in Jeffrey’s Bay.

Major achievements include complying with IDC agency guidelines, securing the IDC establishment grant and supplementary funding from Cacadu District Municipality as well as finding the continued support from Provincial Government that was instrumental in establishing the agency. The most recent achievement is commissioning of the master plan, the “blueprint” for directing the development.

“A major hurdle has been getting the right people on board. However, we believe the project is very challenging, exciting and offers opportunity to any aspiring employee. The learning curve is very steep yet the environment is relaxed.”

Tshefu says the agency bears a huge responsibility and success is an imperative.

“The area is one of least developed towns along the Garden Route with about 70,000 inhabitants, a large majority of which would greatly benefit from job creation and economic development.

The project is estimated, during the construction phase, to generate 500 jobs and in turn, create 295 permanent jobs during full operation of preliminary projects. There is also a strong BEE imperative on development projects, and qualifying local community enterprises will participate directly and indirectly on the projects.

However, Tshefu believes that the area is fast becoming one of the fastest growing areas in the country.

“It is being driven by residential estate developments with some commercial and industrial. Four developments are underway in the area: the Jubilee Open Golf Estate which includes two 18-hole golf courses with an estate development, the Kabeljaauws Equestrian Estate plans for about 1500 plots, the Cob Creek Wine & Golf Estate is a 250Ha farm which is to be developed as a golf estate with high end hotel. The R2 billion Fountains development will comprise a R200 million shopping complex with a private clinic, a number of residential estates, an old age home, other retail and industrial estates and a nature reserve with entertainment centre.

Tshefu says that while there has been encouraging domestic and foreign interest in the project, there is still the risk of not attracting the right investor.

“However, we have explained that our proposal selection process will be transparent and open.

“This development offers great opportunity for the right investor. Very few locations around the world offer a coastal dune field, salt marshes, a freshwater wetland, a nature reserve and the perfect wave” she ends.

Pillay adds that whatever development is approved, it will be subject to extensive environmental impact assessments because protecting the environment is a number one priority.