Infrastructure
Quick links: Bank Facilities . Health Facilities . Institutions of Learning . Outdoor & Sporting Facilities .
Postal & Telecommunications Facilities . Shopping Facilities . Population . Economic Activities .
Possible Investment Opportunities . Economic Opportunities & Weaknesses . Notes i.r.o. Economic Profile . Commercial Options . Crop Production


Water Supply
The major river si the Vaal River. The Klip River is situated approximately 25 kilometers from Standerton and forms the boundary between Mpumalanga and the Free State. Standerton boasts the tenth largest dam in South Africa, the Grootdraai Dam.

Electricity Supply
Lekwa boasts a coal fired power station situated 25 kilometers from Standerton as well as a mine that supplies the power station with fuel. The major portion of Lekwa has underlying coal reserves that will last many years to come.

The National Electricity Regulator (NER) granted a licence to the Local Council to distribute electricity to an area extending beyond the geographic boundaries of the Local Council (Plan 8) to distribute within those areas.

Topographical & Physical Characteristics
The proximity of Lekwa, and especially Standerton, to the major urban areas is reflected as follows:

Johannesburg Route R23 170km
Pretoria Route R23 187km
Secunda Route R546 65km
Ermelo Route R39 96km
Volksrust Route R23 85km
Vrede Route R546 57km
Durban Route 546 480km
Cape Town Route R23 / N1 1600km









The road network is of a good quality and the above centres are easily accessible via road network.

Lekwa is the main link between Gauteng and KwaZulu-Natal as the route passes through Standerton.

The main rail link between Gauteng and KwaZulu-Natal passes through Standerton thus making the harbour at Durban is easily accessible by rail.

Standerton also boasts an aerodrome for light aircraft to land and take off at will.

Infrastructure
Lekwa has an excellent internal road network. the rail network links Lekwa to the economic heart of South Africa, namely Gauteng and the port of Durban. The power station can generate enough electricity to meet Lekwa's needs well into the next century. Power failures are practically unheard of in Lekwa. The Grootdraai Dam supplies all water needs and will continue to do so for many years to come. Sufficient land for housing and industrial development is available.


Bank Facilities

All the major banks are represented in Lekwa and all have the capacity to do foreign exchange transactions as well as normal day-to-day banking facilities. ABSA, Standard Bank, First National Bank and BOE Bank have fully fledged branches in Lekwa.

Health Facilities
Lekwa has a fully operational Provincial Hospital; 6 clinics; a hospital catering for patients suffering from tuberculosis (SANTA); an after-care centre in which patients recovering from major surgery can recuperate under expert medical supervision; in excess of 10 medical practitioners in private practice; numerous dentists in private practice; and in excess of 3 optometrists practicing in Lekwa.

Institutions of Learning

28 pre-primary schools; 15 primary schools; 9 high schools; a college offering a variety of courses; and 3 municipal libraries which are fully intergrated with Provincial and National Structures and are fully equipped with state of the art technology.

Outdoor & Sporting Facilities
A nine-hole golf course; Horse riding; Fishing & water sports; An abundance of birds and bird watching opportunities; A river park with various entertainment facilities; Sports parks catering for soccer, rugby, cricket, volleyball, netball, pistol shooting, hockey, wrestling, squash, kickboxing, karate, basketball and various other sporting codes.


Postal & Telecommunications Facilities
Lekwa's postal network is excellent as it is serviced by 4 Post Offices. The telephone network is fully digitized and integrated.

Shopping Facilities
Most of the major chain stores have branches in Lekwa. Private businesses offering a variety of services are also present in Lekwa. Individual ownership of businesses is encouraged by Local Government. A number of shopping centres have been established in Lekwa.


Population

The population is approximately 120 000.
The latest census figures for 2001 have not been released at date of print.
Skilled population is approximately 30 000.
Unskilled population is approximately 40 000.
There is sufficient capacity for more people to be trained.

Economic Activities

Lekwa is fortunate to be reasonably industrialised and has enormous capacity for greater industrialisation. Engineering, textiles, dairy products, animal feed producers, grain mills, mining and farming are some of the sectors that have established themselves within Lekwa's boundaries. Lekwa also has an agricultural base that covers cattle and sheep farming, maize, sorghum, mushrooms, flowers and sunflower cultivation.

Farming is a sector that still has enormous potential, a few examples of yields on crops are listed below:
Maize 3.5 tonne 8 tonne + (irrigated)
Sorghum 3.0 tonne 5 tonne + (irrigated)
Sunflower 1.5 tonne
Prices per tonne are also quoted for the 2001/2002 seasons:
Maize white R1 500.00
yellow R1 200.00
Sunflower R2 300.00
Sorghum R1 200.00
Soya Beans R2 000.00











Tourism is a sector that has enormous untapped potential. Histocial sites and monuments abound within Lekwa's boundaries. Lekwa also has a mini Game Reserve. Accomodation in the form of Guesthouses is plentiful and of good quality and standards.

Eating establishments are also available in Lekwa, e.g. Wimpy, Spur, Kentucky Fried Chicken, Chicken Licken and a number of private institutions.

Lekwa can boast enormous tracts of land for industrial and residential development. Average industrial erven measure approximately 2 200 square meters. Residential erven measure approximately 1 200 square meters.

Possible Investment Opportunites
Due to the proximity of Lekwa to all the major centers via road and rail link, the investment opportunities are enormous. The availability of raw materials is not a problem. Unavailable raw materials can be imported from any major center if those materials are not available within our boundaries. Mining, housing, farming, furniture, manufacture, chemical industries, assembly plants and electronics industries are but some of the possible investment opportunites available in Lekwa. Lekwa has the potential to develop a fishing industry as well. The Vaal river has great potential in that fishing farms can be established as well as processing plants that will assist the fishing industry as a downstream function. Lekwa also has the perfect climate conditions to develop apple orchards. The possibility is that the apples produced can be processed as dry fruit or table fruit.

Economic Opportunities & Weaknesses
Lekwa has a number of advantages, which should be utilized:
1. Above average rainfall.
2. Ample water available.
3. Available labour force (many of these people have experience of one type or other, many in agriculture).
4. Ready markets within it's own boundaries.
5. Well-established infrastructure.
6. Good transport network.
7. Reasonably close proximity to the largest market int eh country (Gauteng).
Experienced farmers.
Willing community (even if disjointed)
Well equipped and willing training institutions.
Adding value to the products of the primary sector (agriculture), focussing on satisfying the local market and retaining as much income as possible within Lekwa.
Expanding the above to regional and national markets.
Developing a tourism route along environmental, historical and convenience lines, and encouraging passing trade.
Import replacement manufacture, product or produce related.
Support services to mining and electricity sector.
Municipal service partnersips.
Linkages to growing urban sector (SMME's in townships - small traders).
Business skills development - contracting, ownership patters, manufacturing etc.

Notes with regard to the Economic Profile
The Lekwa economy is dependent on a limited number of sectors over an extended period of time, namely agriculture, electricity generation and mining. Most of the other activities, manufacturing service, transport etcd. have been reliant on or have originated from the previous three sectors.

As with many rural towns Lekwa is used as a market for goods from the cities. Importing mose of its consumables from outside its own region and in most cases outside of its own province. This invariably results in retained earnings been restrictied to minimal mark-ups/profits being circulated within Lekwa (large scale exporting of money.

The agriculture sector has remained too tightly focused int eh pastand is subject to a number of external influences, most of these beyond the conrol of the farmer of local economy (external dependency).

Electricity generation and mining have optimized their performance and are in the process of streamlining their industries. The controlling bodies of both of these industries lie outside of the economic control of the Lekwa economy (external dependency).

Employment numbers are dropping across all sectors.

Influx numbers to the town continue to increase, many from outlying towns, driven by the hope of obtaining some form of employment and farm workers seeking to provide better health and education services for their children.

The lack of co-ordination and culsultation between the different population groups and economic movements is aggravating poor economic development.

Lekwa has more positive opportunities than negative circumstances, which can be used in its favour. These include:
1. Ample water.
2. Available labour.
3. Established infrastructure.
4. Efficient transport network.
5. Willing, if unco-ordinated community.
6. Cross-section of skills available in the community.
7. Close proximity to major markets.
8. Approximity 30 years life span expectancy for two major sectors.

Initial efforts should concerntrate on taking advantage of the above opportunities and should focus on satisfying local markets. Expansion into the Region would be the next goal, with the aim of achieving a share of National markets and import replacement, in the medium term.

Commercial Options
Vegetable Production & Commercial Chicken Farming
The majority of vegetable produce consumed within the target area is imported from the Gauteng and Nelspruit markets (approximately 100 tons per month). This does present an opportunity, for example, around vegetable production and a market for the products.

By far the largest consumer of fresh produce are the Power Stations and Mines in the target area. Most of the food requirements of these bodies are provided by National and Multi-National Companies, with their economic foundations in Gauteng Province, or possibly overseas. Estimates place the value of these services at approximately R2 million per month. Very little, if any of this money is being spent within the province let alone within the region.

Given the predicted lifespan of the majority of these enterprises as being approximately 30 - 50 years, this could provide the economic stimulus required supporting a sustainable venture as well as an increasing informal population.

Large scale Commercial Chicken farmin also previously provided a definite market for both chicken farms as well as chicken feed producers. This venture was recently taken over by a Gauteng based National Company (Astral Foods) which now controls input and output costs on both chickens and feed aspects.

Crop Production
Large-scale production of a crop like rice, (subject to agricultural viability) on a labour intensive basis has a substantial role to play in import replacement. The fact that the Grootdraai Dam is totally under-utilized and could possibly be included in the design of the sustainable Village makes this option a serious subject for the feasibility study.