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TRANSCRIPT
City of Ekurhuleni (CoE) Industrial Sector
• Background
CoE is one of the six
metro’s in South
Africa and is located
in Gauteng
As indicated in the
map it is bounded by
City of Tshwane on
the north; City of
Joburg on the west
while Lesedi and
Midvaal Local
municipalities
boarding the south.
This is the city that hosted the negotiations of new
democratic government in World Trade Centre in
Kempton Park.
The birth of the city came to effect in 2000 after the
amalgamation of former East Rand nine towns.
It is where South Africa’s (SA) major international
airport is located as well as the agglomeration of
industries are found.
Once again CoE is the first city in Africa to introduce
aerotropolis.
Like any other cities in SA CoE is also faced with
challenges of eradicating unemployment; inequality
and improving economic growth.
This is the city that has managed to achieve a clean
audit rating in the financial year.
In January 2016 the Mayor in his speech announced
that the city’s economy remains rated at the high end
of the range of municipalities.
CoE Industrial Sector Status Quo • The CoE industrial sector
is amongst the cities that
contributes high growth
rate in the economy of SA.
• Ekurhuleni forms part of
development plans and a
vision of the Gauteng
Province’s Blue IQ projects
called Wadeville-Alrode
Industrial Corridor.
2% 23%
3% 5%
15% 11%
22%
19%
MiningManufacturingElectricityConstructionTradeTransportFinanceCommunity
• According to the MSDF 2015 manufacturing is the
highest contributor towards the city’s economic growth
as indicated.
• The said MSDF also reveal that there are about 7 major
concentrations of industrial activities within the city and
these comprise of about 20 separate industrial areas
with 4 of them lie directly adjacent to the City of Joburg.
• The other industrial activities are taking place more
centrally around Boksburg and Benoni and at the
eastern towns of Brakpan; Springs and Nigel.
• At the same time Olifantsfontein and Clayville are
situated in the northern part of the city next to Tembisa
Township.
• Isando; Spartan and Jet Park industrial hubs are located in the heart of the city and they form part of Aerotropolis and consist of light and heavy industrial activities.
• There are also other heavy noxious industrial activities taking place in Germiston; Wadeville andeerbolt.
• It is important to also note that some of these industrial hubs have been existing for long time with some need to be revitalised to meet today’s need and to comply with by laws.
• In making sure that such issues are addressed; the city has developed plans that will look at improving the manufacturing sector. Such plans are aligned with all government policies which contribute towards improving economic growth and fighting unemployment in the country.
The City of Ekurhuleni Driving Plans • In order to achieve an inclusive and broad based investment
destination the city through the GDS 2055 has identified the
following 5 strategic imperatives:
Re-urbanise: to achieve sustainable urban
integration
Re-industrialise: for job creation and economic
growth purposes
Re-generate: sustainable environmental benefit
Re-mobilise: To achieve Social empowerment
Re-govern: Effective cooperative governance.
• To achieve the GDS 2055 vision, council adopted nine
flagship projects with six of these projects needing
investment incentives to enhance their implementation.
These flagship projects are:
Ekurhuleni Aerotropolis;
Revitalization of the Manufacturing Sector;
Revitalization of Township Economies;
Urban Regeneration;
Revenue Enhancement; and
Beautification of Lakes and Dams.
• Aerotropolis Strategy: Through this plan the city has
identified key development nodes within the airport and
industrial development zone that will drive this strategy.
• This 30 years aerotropolis master plan is aimed at moving the city and Gauteng region to unlock the land’s potential to develop new industrial space, create more jobs, increasing property values and generating taxes.
• The said master plan has proposed the following 5 overarching principles:
Community: build strong neighbourhoods that will allow the people to take charge of their full potential.
Collaborate: streamlined and effective governance that meets or surpasses
Concentrate: creating dense transit oriented development that promote and complement existing communities.
Connect: Based on connecting goods and service of the country around the world
Compete: finding ways for the country to compete globally
• Municipal Spatial Development Framework (MSDF)
2015: The previously approved MSDF in the city was done
against the legislative backdrop such as Spatial Planning
and Land Use Management Act and this has opted the
council to review the said document. This was aimed at
simplifying our processes and cut out the red tapes that was
hindering development. The said policy also dealt with the
following issues that were not addressed by the previous
document:
Establish a permanent urban boundary;
Develop the core node as a metropolitan hub around the
airport;
Existing nodes needed to be retrofitted to serve the
current needs of the metro and new nodes need to be
developed to improve connectivity and serviceability in
the metro;
Corridors need to be developed applying the “beads
on a string” principle;
Agriculture should be developed (in conjunction with
Lesedi) to become a meaningful contributor to the
Ekurhuleni economy;
Densification needs to support public transport and
needs to be supported by sufficient municipal
services;
Transit orientated development needs to be promoted
throughout the metropolitan area;
Improved regional connectivity needs to be achieved
via the development of PWV 3, PWV 5 and PWV 17
routes;
Rail services need to be improved to augment the
road based public transport services and to develop
the inland freight ports of Tambo Springs and
Sentrarand; and
Gautrain extensions need to be pursued to service
the eastern side of the airport.
• Once again the city realise that by addressing the above
mentioned issues; can assist in achieving the 5 identified
strategic imperatives of the GDS.
• Industrial Development Strategy: This 5 year industrial
development strategy as highlighted by the department
is aimed at fostering accelerated, sustainable economic
development in the city. The strategy is also intended to
draw on the city’s current strength and leverage potential
for synergies across various industries.
CASE STUDIES: Strategic Urban Development Projects
• Lords view Development
– Located within Region B in Chloorkop Industrial Hub
– This is an environmentally friendly and eco-sensitive industrial and logistics park
– Its development make use of the latest technology in creating clean greener township Industrial development.
– The development has already housed the prominent well-known companies such as Green cross; Foschini groups; Grand Trade Mark and Unilever Ice Cream.
– The capital investment of the said development as stated in the Demacon CIF modelling report 2015 is amounting at R9 793 524.000
• Prasa Gibela Development
– Located within Region E in Dunnottar in Nigel
– This is a train manufacturing plant aimed at rolling
new stock of about 3 600 train carriages
– The Capital Project value is R51 Billion and expected
to create 1500 direct and 28 000 indirect job
opportunities.
– It is expected to deliver the Economic Development
opportunities for local businesses
– The project to be delivered over 10 years for
manufacturing and further 19 years for maintenance
and services.
• Tambo Springs Inland Port
– This Gauteng to Durban Inland Port project is a
partnership project between the Council; government
and Transnet
– The said organisations signed a memorandum of
understanding to allow collaboration and cooperation
of all parties
– In line with Gauteng spatial model and is located
along N3 freeway.
Institutional Arrangement
• Investment Centre
The Council through Economic Department has
set up the 1- stop investment centre in 2013.
The committee that leads the centre serves as a
sub-committee to Development Facilitation
Committee for the investment and development
applications.
The said committee consists of divisional heads of
the key departments in development e.g service
departments.
Its role is to fast track major investment projects
and to assist the investors in terms of going
through the development systems.
• Capital Investment Framework (CIF)
The aim of this document is to strategically and
spatially guide, align and coordinate municipal capital
expenditure across all sectors in order to promote
growth and meet infrastructure and service needs
This monitoring tool also assist in avoiding duplication
in projects rolled out by department to avoid wasteful
expenditure.
• Strategic Urban Development (SUD) Project
These are large scale development projects identified
by the city as of critical importance through
investment centre
In order for a project to qualify to be an SUD it has to
meet certain criteria i.e value of the project and
impact towards economic growth and job creation.
The facilitation of such developments is done through
City Planning Specialist Project division.
Prasa Gibela is one of the projects that is facilitated
through this process and can be proud to say that it
took the council 4 months to approve the township.
• Industrial Survey Study
This was aimed at unlocking the process of strategic
land parcels through the formulation of reports for the
available industrial land within the city.
this information is made available by specialist
projects division to the investment centre to make
process easier for investors.
The said information provides the status of each and
every industrial parcel such as approved right.
• Ekurhuleni Town Planning Scheme (EToPs) 2015
Came into effect in 2015
Replacing all 19 old town planning scheme
Aimed at bringing uniformity as well as simplifying
any development processes
Ekurhuleni So What?
• There is a lot to say about the Ekurhuleni and this brings a reason why one can consider investing in city.Reasons such as:
Africa’s Workshop: Ekurhuleni’s economy is underpinning by manufacturing
The Country’s Transportation hub: Being home to the OR Tambo International airport which connects the country with the world.
Economic Growth: the city has experienced positive economic growth over the 15 years with an average annual growth rate of 3.7 % between 1996-2011 which is higher than the national growth rate of 3.2 % over the corresponding period.
Investment incentives: 107 investment projects have been identified through the process of strategic prioritization with 21 catalytic and 8 strategic projects. 40 % roads bulk contribution rebate for investors.
Flagship Projects: Aerotropolis as well as other projects as mentioned in the previous slide.
How can Sustainable Industrial
Development be achieved?
• Sustainable industrial Development can only be achieved by creating policies that can respond positively and shape up the economic growth in the manufacturing sector.
• These policies while creating job opportunities must also provide trade off and create social inclusiveness and environmental sustainability. For example if we look at what industrialization brought to the living standards of the people by then.
• Investing in modern technology and infrastructure development is vital. UN report, 2015 view technology and innovation approach as a tool that can achieve inclusive and sustainable development in Africa.
• Investing in skills development and entrepreneurship
• Provide access to finance and incentives
• Need to promote multi-stakeholder and private sector involvement
• African countries can learn from Dukem industrial development in Ethiopia.