The purpose of the situational analysis is to provide an overview of the existing situation by focusing on the relevant aspects of the situation which will enable the management of the municipality to make appropriate management decisions.


The Municipal Systems Act requires an assessment of the existing level of development in the municipal area, including the identification of communities that do not have access to basic municipal services. This prescription should however be seen in the broader context of what information should be at the disposal of the municipality to enable its management to make decisions that are both strategic and practical in terms of their implementation.

The situational analysis should provide decision-makers with sufficient knowledge of the nature of the priority issues and problems, existing and accessible assets and resources as well as resource limitations within their municipal area to enable them to make efficient and effective strategic decisions. This chapter provides descriptive data across a range of socio-economic indicators of Ingquza Hill Local Municipality.

In some cases, trends in the municipality have also been compared with trends at the district level in order to understand these in their regional context. This is crucial as it provides the municipality and its social partners with deep insight into local socio-economic trends patterns and development challenges.

The municipality is predominantly rural. Flagstaff and Lusikisiki are the two major urban centres. The predominant land use is subsistence agriculture with commercial agriculture activities generally …

The area is characterized by poor literacy levels and low educational levels. Only 2, 4% of the population have matric and only 1, 4% of the population have post-matric qualifications. 

Ingquza Hill has 27 wards. The political leadership of the municipality comprises the Municipal Council which comprises 54 Councillors and an Executive mayor who is assisted by a Mayoral Committee. 

Service infrastructure plays a critical role in the development of the economy of the municipal area as well as the maintenance of environmental and health standards.

Ingquza Hill lies within the northern section of the Wild Coast. The most prominent geographical and topographical feature is the rugged plateau of the Msikaba sandstone formation which is congruent with the Pondoland Centre of Endemism.

The rural nature of Ingquza Hill results in it having a low-income base from assessment rates. This is aggravated by the high unemployment rate and associated high poverty levels and low affordability rates.

Economic Characteristics

The municipality has significant potential for developing a community-based tourism industry due to its unique attractions. The Wild Coast represents an international destination potential provided the infrastructure…

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