Preparation of sector support programme for urban development in Eastern Cape

The ECD and National Treasury of South Africa have allocated funds for a programme to support urban development in the Eastern Cape in the current Multi-Annual Indicative Programme.From preliminary discussions between National Treasury, the Department of Provincial and Local Government, support to the two National Urban Renewal nodes in the province, namely Mdantsane (in Buffalo City) and Motherwell (in Nelson Mandela Metro) was recommended. As these nodes are part of the national urban renewal programme, the scope for replication of approaches and lessons learned to other areas nationwide is wider. National Urban Renewal nodes are also integrated in a national reporting and monitoring system, therefore experience in these areas contributes directly to the national policy debates. 

The ECD Sector Policy Support Programme (SPSP) provides support for the implementation of a sector policy and its expenditure framework. ECD resources match government funds to contribute to better coherence between sectoral policies, spending and results, to ensure a comprehensive view of the sector and to improve the capacity of the beneficiary institution to deliver on its objectives.

The overall objective of this study was the preparation of a sector policy support programme (SPSP) for Urban Development in the Eastern Cape.

The preparation for ECD support to Urban Development in the Eastern Cape was divided into three phases, namely:

·            Identification: preliminary assessment of seven areas in order to formulate a recommendation on the readiness of the municipalities concerned (Buffalo City and Nelson Mandela) in engaging in an SPSP and receiving EC budget support

·            Formulation: in event that the recommendation to proceed with an SPSP was accepted by all parties, the team was required to develop the operating modalities of each SPSP based on an in-depth assessment of the seven areas

·            Preparation of a draft-financing proposal

The phases were to be sequential and the award of phase 2 was subject to satisfactory performance of phase 1, while the award of phase 3 was subject to satisfactory performance of phase II.