THE THE MSUNDUZIMSUNDUZI
MUNICIPALITYMUNICIPALITY
AN AN ECONOMIC DEVELOPMENT ECONOMIC DEVELOPMENT
STRATEGY STRATEGY FORFOR
A GROWING CAPITAL CITYA GROWING CAPITAL CITY
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INTRODUCTIONINTRODUCTION
City has a rapidly growing economyCity has a rapidly growing economy Poverty and unemployment remain Poverty and unemployment remain
key issueskey issues Strategy must further develop the Strategy must further develop the
economy and generate sufficient economy and generate sufficient employment employment
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MARCH 2000 CONFERENCEMARCH 2000 CONFERENCE
First ever investment conference in First ever investment conference in the citythe city
Potential growth sectors were Potential growth sectors were identified, viz. tourism and identified, viz. tourism and aluminium downstreamingaluminium downstreaming
Key properties were put out for Key properties were put out for development proposalsdevelopment proposals
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HULETT ALUMINIUMHULETT ALUMINIUM
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ALLTUBE FACTORYALLTUBE FACTORY
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INCENTIVES PACKAGE INCENTIVES PACKAGE
City announced a new concessions City announced a new concessions packagepackage
New and expanding business New and expanding business qualifiedqualified
Concessions were extended to both Concessions were extended to both industrial and commercial activitiesindustrial and commercial activities
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INVESTMENT FACILITATION INVESTMENT FACILITATION TEAMTEAM
Multi-disciplinary team approachMulti-disciplinary team approach Team meets twice monthly and deals with concessions Team meets twice monthly and deals with concessions
applications and development proposalsapplications and development proposals One-stop facilitation approach has been well received by One-stop facilitation approach has been well received by
developersdevelopers ““The Msunduzi Municipality is the most co-operative, The Msunduzi Municipality is the most co-operative,
knowledgeable and proactive I have ever dealt with.” Jim knowledgeable and proactive I have ever dealt with.” Jim McLean, MD Liberty Properties, Developers of the Liberty McLean, MD Liberty Properties, Developers of the Liberty Midlands Mall.Midlands Mall.
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TOTAL INVESTMENTSTOTAL INVESTMENTS
Since 2000 40 new investments and Since 2000 40 new investments and 40 expansions have received 40 expansions have received concessionsconcessions
Total investments exceeds R4 billionTotal investments exceeds R4 billion 7000 new jobs created7000 new jobs created
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FLAGSHIP PROJECTSFLAGSHIP PROJECTS
Golden Horse Casino and Hotel Golden Horse Casino and Hotel ComplexComplex
Liberty Midlands Mall, regional Liberty Midlands Mall, regional shopping centreshopping centre
CBD Extension Node developmentCBD Extension Node development Freedom Square DevelopmentFreedom Square Development
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GOLDEN HORSE CASINO GOLDEN HORSE CASINO AND HOTELAND HOTEL
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REGIONAL SHOPPING REGIONAL SHOPPING CENTRECENTRE
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MOTORWORLDMOTORWORLD
CBD EXTENSION NODECBD EXTENSION NODE
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CAPITAL CITY STATUSCAPITAL CITY STATUS
Capital coalition formed to lobby Capital coalition formed to lobby supportsupport
City declared the sole capital in April City declared the sole capital in April 20042004
Government departments relocated Government departments relocated to the cityto the city
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PREMIER’S OFFICESPREMIER’S OFFICES
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MOTOR VEHICLE MOTOR VEHICLE COMPONENTS SECTORCOMPONENTS SECTOR
Currently about 11 companies in the Currently about 11 companies in the sectorsector
Approximately 40 motor components Approximately 40 motor components made in the citymade in the city
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MOTOR VEHICLE MOTOR VEHICLE COMPONENTS SECTORCOMPONENTS SECTOR
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BUSINESS CONFIDENCEBUSINESS CONFIDENCE
At an all time highAt an all time high Business turnover has doubled since Business turnover has doubled since
20032003 Insolvencies have halvedInsolvencies have halved Job creation is steadily increasingJob creation is steadily increasing Confidence index is at 85Confidence index is at 85
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EPI GRAPHEPI GRAPH
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TOWARDS AN ECONOMIC TOWARDS AN ECONOMIC DEVELOPMENT STRATEGYDEVELOPMENT STRATEGY
Knowledge and Exchange Knowledge and Exchange programme comes at an opportune programme comes at an opportune timetime
Virginia Beach experiences will be Virginia Beach experiences will be valuablevaluable
Action Plan identifies actions steps Action Plan identifies actions steps and time frames, and goalsand time frames, and goals
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ACTION STEPSACTION STEPS
Appoint a consultant Appoint a consultant Hold economic development strategy Hold economic development strategy
workshopsworkshops Review all studies and plans done to dateReview all studies and plans done to date Development of the strategyDevelopment of the strategy Obtain council approval as part of the IDPObtain council approval as part of the IDP Develop project implementation timelineDevelop project implementation timeline
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SHORT TERM GOALSSHORT TERM GOALS
Staffing to manage development Staffing to manage development initiativesinitiatives
Business retention and expansion Business retention and expansion programmeprogramme
Development of tourism productsDevelopment of tourism products
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TOURISM PRODUCTSTOURISM PRODUCTS
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PIETERMARITZBURG PIETERMARITZBURG RAILWAY STATIONRAILWAY STATION
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SHORT TERM GOALSSHORT TERM GOALS
Increase funding for tourism sectorIncrease funding for tourism sector Creation of industrial sitesCreation of industrial sites Creation of city improvement Creation of city improvement
districtsdistricts Implementation of informal and Implementation of informal and
street trading planstreet trading plan Compilation of an economic data Compilation of an economic data
basebase
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FREEDOM SQUAREFREEDOM SQUARE
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LONG TERM GOALSLONG TERM GOALS
Monitoring the cityMonitoring the city’’s economy and s economy and amending the strategy periodicallyamending the strategy periodically
Investigate the creation of new Investigate the creation of new revenue streamsrevenue streams
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PROGRESS MADE TO DATEPROGRESS MADE TO DATE
80% of District turnover generated by 80% of District turnover generated by MsunduziMsunduzi
District and Msunduzi strategies must be District and Msunduzi strategies must be alignedaligned
Agreement reached on a District-wide Agreement reached on a District-wide economic development strategyeconomic development strategy
Joint funding between Msunduzi and the Joint funding between Msunduzi and the DistrictDistrict
A consultant has been appointedA consultant has been appointed Project team has been establishedProject team has been established
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TERMS OF REFERENCETERMS OF REFERENCE
Phase 1 – information gatheringPhase 1 – information gathering Phase 11Phase 11
• Visioning and strategic planningVisioning and strategic planning• ProcessesProcesses• Policy FrameworkPolicy Framework
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CONCLUSIONCONCLUSION The strategy will form part of the IDPThe strategy will form part of the IDP Key areas of the strategy should be included as Key areas of the strategy should be included as
KPIKPI’’s in performance agreementss in performance agreements Strategy must:Strategy must:
• meet national goals of halving unemployment by 2014meet national goals of halving unemployment by 2014• Contribute positively to the financial viability of the Contribute positively to the financial viability of the
municipalitymunicipality• Yield a globally competitive and job creating economyYield a globally competitive and job creating economy• Contribute substantially to a better life for ALL the Contribute substantially to a better life for ALL the
people of Msunduzi people of Msunduzi