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Local Economic Development

From Strategy to Implementation: gy pAlexandra Renewal Programme.

September 2008 - D. Louw


Defining the Contextg



HistoricalHistorical

•Apartheid planning•Struggle•Neglect



Location:

Greater Alexandra is located on prime and valuable land within the principal growth corridor of Johannesburg South AfricaJohannesburg, South Africa.

Adjacent to the financial capital of Southern Africa (Sandton) and to key arterial roads (the main highway linking Johannesburg to Pretoria) and the Gautrain Station (linking Sandton to Pretoria andGautrain Station (linking Sandton to Pretoria and OR Thambo International).

350 000 l li i 8 500 f l h 34 000350 000 people live in 8 500 formal houses, 34 000 shacks, 3 hostel complexes and 2 500 flats at a density of 770 people per hectare.


y p p p


VisionThe Alexandra Renewal Project seeks to fundamentally upgrade living conditions and human development potential within Alexandra by:

Substantially reducing levels of unemployment.Creating a healthy and clean living environment.Providing services at an affordable and sustainable level.Reducing levels of crime and violence.Upgrading existing housing environments and creating additionalUpgrading existing housing environments and creating additional affordable housing opportunities and.De-densification to appropriate land.

This will be undertaken in a manner which encourages high levels of community involvement, civic pride and sustainable local authority

September 2008 - D. Louwadministration.


Reduce UnemploymentReduce Unemployment

Facilitate processes to avail economic opportunities.E i t t i t tEngage private sector investment.Sensitize market developers towards economic

opportunities within Alexandraopportunities within Alexandra



Integration of Spheresg pPHYSICAL

DEVELOPMENT

SOCIAL DEVELOPMENT

INSTITUTIONAL DEVELOPMENT

ECONOMIC DEVELOPMENT



Socio-Economic Context



Population DistributionPopulation Distribution100,000

72,3

89

60,0

15

80,000

ple

5 9,58

4 41,9

89

29,9

96

43,8

75

6

8,97

2

40,000

60,000

umbe

r of P

eo

20,0

1 2 2 28

10,8

43

20,000

Nu

0Babies Children

2-6Years

Children7-13Years

Children14-18Years

Adults19-24Years

Adults25-34Years

Adults35-49Years

Adults50-64Years

Adults65+

Years



Number of Employed and Unemployed

4,54

7

717

100,000

74

7

68,7

60,000

80,000

of p

eopl

e

27,8

0

13,2

16

868 15

,572

20,000

40,000

Num

ber o

3,8

0

d Fu

ll-Ti

me

Past

-an

ce

ellin

gw

ork

oyed

:W

ork

: not

wor

k

ers

/tir

ed

Empl

oyed

Wor

k P

Tim

e/Fr

eela Se

ngs/

Piec

ew

Une

mpl

ook

ing

For W

nem

ploy

edoo

king

for w

Pens

ione ret


T

Thi

Loo

Un lo


Household Income Groups

50

Only 7% of Alex households (6,510 households) earn more than R5,000 per month. 20% (18,905 households) exist on less than R1,000 per month.

40

50

720

30

f hou

seho

lds

9.6 10

.3 11.5

11.4 15

.7

11.6

6.910

20

% o

f

0Up To R699Per Month

R700 -R999 Per

R1 000 - R1399 Per

R1 400 - R1999 Per

R2 000 - R2999 Per

R3 000 - R4999 Per

R5 000+Per Month


Per Month R999 PerMonth

399 PerMonth

999 PerMonth

999 PerMonth

999 PerMonth

Per Month


Alex vs Gauteng and South AfricaH h ld i i Al i 2005 (R2448 th) ll b l th ti lHousehold incomes in Alex in 2005 (R2448 per month) are well below the national average and the Gauteng average of 2004. They also remain well below the Gauteng average and the average for black households in Gauteng while being marginall abo e the national a erage for black ho seholdsmarginally above the national average for black households.

South Africa GautengAverage Household Income 2004

R's pm R's pmTotal 4092 6714Black 2410 3806Source AMPS 2004



Where are persons employed?Not answered

6%

Johannesburg

Alex23%

37% of those whog21% 37% of those who

are employed (full-time, part-time or

Greater Alex

doing piecework) work in Alex. Johannesburg and

Kempton Park8%

14% Johannesburg and Sandton are other areas in which Alex

Sandton20%Midrand

8%

residents work.



Shopping HabitsResidents are shopping for food inside Alex but clothing and electrical

goods are purchased elsewhere.

80 8080

100 Shopping Inside Alex Shopping Outside Alex

43

70

60

80

adul

ts

23 21

43

20

40% o

f a

0

20

Groceries Clothes Electrical Goods



Current Approach1) Spatial integration.

Sub-regional.Nodal.

2) Cl t2) Clusters.Auto.Retail.Retail.Care.Construction.Tourism.Business outsourcing


outsourcing.Urban agriculture.


3) Institutional support3) Institutional support

Business support centre.Employment information centre.

4) Government

Targeted procurement.pInstitutional support.Mainstreaming


Mainstreaming.


1) Spatial Integration

a. Sub-regional.Cit I t Di t i t• City Improvement District

• Street lighting• Policingg• Sidewalk upgrading• Road/ bridge construction• Taxi ranks• Taxi ranks

b. Nodal.• Trading space.• Services, production, retail



Pan Africa

• A mixed use taxi, retail and informal trading facility

• Construction under way• 1000 taxi capacityp y• 350 informal trading stores• 16 000m² formal retail

62% f t il li t i d• 62% of retail clients signed up• Alex franchise opportunities



2) Clusters) C uste s

– Strategic long term planning

– Skill trainingWomanWomanYouthDisabled

– Linkages Private sector LabourLabour

– Life OrientationHIV/AIDS

September 2008 - D. LouwLiteracy


Employment in ARPp y• 17 000 construction non permanent jobs

during life span of project.• 1506 people worked on construction1506 people worked on construction

projects in March 08.785 l l Al l l d d i• 785 local Alex people employed during March 2008. (52%)

• 12% Female



Institutional Supportpp• Business support centre.

- Business plan development.- Tax advice.- Legal advice- Legal advice.- Access to micro finance.- Business consulting.- SMME training.SMME training.

• Employment information centre.

- Data base.- Career advice and monitoring.- Work broker/personnel agency.


p g y


Making Alex a Destination

Projects:

1. Heritage Interpretation CentreCentre

2. First class rugby and athletics facilityy

3. International skate board track

4 Th t4. Theatre5. Football for Hope



Private Sector • High rate of investment back into Wynberg.• CID in progress in Kew.• National chain stores and banks in Pan

Africa.• RMB finance in HousingRMB finance in Housing.• Private sector investment in Pan Precinct

I t t i M lb S th• Investment in Marlboro South• Gautrain



Trainingg

• 2500 trained in construction• 2500 trained in construction • 500 trained in retail cluster• 150 in Tourism

80 trained in auto• 80 trained in auto • 1200 trained in Business Skills



Projects in PlanningProjects in Planning• Alex RDP Flats = 200 RDP flats

M lb 250 RDP fl t 750 S i l H i• Marlboro = 250 RDP flats + 750 Social Housing • East Bank Ext = 160 affordable rent• River Park = 420 affordable rent• Ritamore Land = 200 affordable rent• Lombardy East = 350 Social housing• M1 + Helen Joseph = 2500 units p• Phase 3 of M2 =300 units• Westlake = 350 social housing.• Marlboro Industrial = 500 affordable rent.Marlboro Industrial 500 affordable rent.• Lombardy East = 100 bonded houses• Kelvin = 300 bonded houses



TABLE 8: LINBRO PARK: STANDARDS IN LAND USE BUDGET

NUMBER

Population: 83177Dwellings: 26254g

USE STANDARD NUMBER OF FACILITIESClinic 1/10 000 people 8Clinic 1/10 000 people 8Community Centre / Library 5 000 - 50 000 people 2Municipal Offices 1/50 000 people 2Hospital 4beds/1000 people @350 beds / hospital 1Post Office 1/11 000 people 8Police Station 1/25 000 people 3Fire Station 1/60 000 people 1

24% of population is of school going age of

Primary School

24% of population is of school going age of which 65%go to primary school @ 1800/school, and 7

Secondary School 35% to secondary school @ 2000/school 3

September 2008 - D. LouwSource: PLAN ASSOCIATES, 2008


Challenges identifiedChallenges identified• Develop clear social consensus on p

housing allocations.• Perceived and real corruption

undermining allocations consensus.undermining allocations consensus.• Ensure quality of housing

construction.• Gear up for Football for Hope• Gear up for Football for Hope• Ensure Alex a safe place.• Purchase new land.(Linbro Park)• Increase role of private sector.• Ensure greater government agency

participation in LED program.


p p p g

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