Local Labour Promotion Project

The Overstrand Local Labour Promotion Project, established in 2005, is located in the Zwelihle township in Hermanus, which saw changing rooms and public toilets constructed at the local sports field in order to pay off a communal debt of more than R95,000 owed for electricity and water usage.  Along with working off the debt, participants were also taught skills in plumbing and carpentry, and became proficient in the use of power tools.  

The debtor-participant, namely the water and electrical firms, were to receive R2, from the Municipal Capital Fund, for every R1 the community member earned building the changing rooms and public toilets, eventually leading to a community without the burden of overwhelming debt.  When the project had been completed R1 331-60 had been earned amongst the participants in excess of the R95 000 allowing for the water and electricity to be activated again.   

The Local Labour Promotion Project not only provided a chance for a community to become debt-free through exercises in labour, but also taught invaluable skills to participants, such as plumbing and electrical work while insisting on the importance of financial frugality and personal responsibility, and through tandem efforts encouraged the creation of an overwhelming sense of pride of ownership in the community.   

Innovation

The Overstrand Municipality is the first municipality in the Western Cape to launch a project of this nature.  The innovative aspect is evident in the holistic approach of creating job opportunities for the unemployed local residents, while municipal debt was serviced and the municipality was able to provide facilities as stipulated by the constitution.  Beyond job creation, Local Labour Promotions provided classes on life skills, which included opening up a bank account, a first time occurrence for many, and worked to create a culture of financial repsonsibility amongst the 18 participants.  The establishment of a recreation facility in a poor communuty is a rare occurance, and will provide members of the community a place to congregate and socialize.

Effectiveness

This project was able to build the changing rooms and toilets for R246 000, R100 000 less than quoted by a private firm, while helping to relieve R95 000 in debt.  This was accomplished in 16 weeks with the help of 18 participants.  Beneficiaries are satisfied with the project, since they managed to discharge their indebtness unto the municipality in a relatively short period. The municipality was able to meet its mandate by providing services to its constituency. The tools that were initially supplied by the municipality were bought by the participants at the end of the project enabling them to work on other prospective projects in the future.
Poverty Impact

Participants received onsite training in valuable trades, and were able to service their municipal debt, resulting in the re-connecting of electricity and water supplies.

Sustainability

The project was a one-off initiative that was completed in June 2005 and was funded and managed by the municipality.

Replication

The model utilised by the municipality can be replicated in other settings, where similar challenges exist. The model is being replicated in Hawston and can be extended to other areas of service delivery, such as housing, etc.

Partnerships

• Overstrand Municipality