Jason Ngobeni
Executive Director
11 March 2009
Agenda
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Overview of DED
Catalytic projects
Some key achievements of DED
Q&A
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Overview
• Department of Economic Development is
command centre for economic growth in the
city:
– Engage proactively with all role players;
– Creating an enabling environment for
accelerated, shared and sustainable
growth
• Department is responsible for:
– Overall coordination & strategic direction
of economic development in the city
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Mission
A CITY ECONOMY THAT PLAYS A ROLE AS THE KEY ECONOMIC HUB ON THE
CONTINENT, AND A NATIONAL ECONOMIC GROWTH LEADER, BY ENSURING
SUSTAINABLE SHARED GROWTH THAT BENEFITS ALL.
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Economic Development Goals
• Diversification of the local economy, so that it rests on a broad base of economic
sectors, rapidly forming
• A local economy with strong links to the national, regional and global economy
• A robust and growing domestic market for locally produced gods and services and
sustainable expansion of household demand
• Equitable sharing of the value gains from economic growth and geographic spread of
economic activities
• For increased competitiveness of City firms, continuous improvement in the general
business environment
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Towards 9% Economic
Growth
• Identify the most important sectors / clusters / industry segments.
Provide sustained support to sectors we have already selected but also look
for new niche sectors.
• Continue to reduce costs of doing business (for example providing cheap
broadband infrastructure).
• Take advantage of beneficiation opportunities (especially around Jewel
City)
• Build the commercial ladder for SMME development, and intervene
decisively through provision of appropriate finance, ensuring a built
environment that facilitates growth etc
• Scale up area interventions: package land with unique advantages;
respond to demand for industrial land by reconfiguring brownfield sites; act
now to build City Deep as freight and logistics hub; publicly commit to inner
City as core node
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Departmental Overview
• MMC : Finance and Economic Development
• Executive Director: Department of Economic Development
• Special Projects Directorate
– Soweto Empowerment Zone
– Expanded Public Works Programme
– Targeted Beneficiaries Unit
• Economic Research Unit
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Departmental Overview
• Sector Support, Growth and Sustainability Projects Directorate
– Financial and Business Services
– Business Tourism
– Retail and Wholesale
– Business Process Outsourcing
– Information and Communication Technology
– Freight and Logistics
– Creative Industries
– Manufacturing
– Mining and Beneficiation
• SMME Development and Support Directorate
– Enterprise Development and Support
– Skills Development
– Financial Assistance and Support
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Departmental Overview
• Spatial Economic Development Directorate
– Nodal Economic Development
– Economic and Industrial Support
– Inner City Economic Development
• Trade and Investment Promotion Directorate
– Investment Promotion and Facilitation
– Trade Promotion
– Investor Relations
• Policy and Programme Integration
– Policy Development
– Programme Integration
– Economic Regulations
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Departmental Overview
• Municipal Owned Entities Support and Administration
– Johannesburg Property Company
– The Johannesburg Fresh Produce Market
– Johannesburg Tourism Company
– Metro Trading Company
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Jozi Equity Fund
Funding SMME City
Suppliers
• Implementation of the Jozi Equity Fund has started.
• Access to finance is key challenge to SMME growth
• Joburg 2030 Strategy identified importance of developing SMME sector toward achieving
9% economic growth target by 2014
• City has identified a funding gap and need to support its own projects by developing
SMME / black owned businesses as suppliers
• Equity funding as opposed to debt
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Dirang ba Bohle
Community Micro
Finance
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Micro finance institution (MFI)
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To assist emerging entrepreneurs in Joburg have access to financial services and
credit extension
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Intl. experience shows that countries that use MFIs as vehicles to bring finance to
the poor have economically benefited in that these institutions contribute to socio
economic development of their citizens.
•
Benefits include
– enhancement of entrepreneurship,
– enabling marginalized citizens to engage in economic activities and become
more self-reliant
– Increased employment opportunities
– Increased household income
– Wealth creation
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Soweto
Empowerment
Zone
Soweto SMME Industrial
Park
• An industrial park to support, promote and
formalise Soweto-based SMMEs situated
at the major gateway to Soweto
• Cluster model – promoting links to
established businesses
• Not an incubator
• Strategic approach
– Focus on attracting and developing a
cluster of related and complementary
businesses
– City supplier contracts to be directed
toward SEZ clusters
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Inner City Property
Scheme
Economically driven
regeneration
•
The Inner City Property Scheme financial and
business model was approved in April 2008
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Reconfigures and upscales the “Better Buildings
Programme”
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Promoting BBBEEE through advancement of
black property investors and community
partnerships
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Reduction of property arrears through effective
revenue management
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Skills Hubs
Developing Skills
• The Skills Strategy was successfully launched on the 12th August 2008
• Skills programme successfully completed the assessment of 2,042 RPL
artisans which allows them further career advancement.
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Skills Hub Initiative seeks to
– accurately map target markets and match candidates with specific appropriate
market opportunities.
– Provide holistic integration of need for skills development in various economic
growth areas
– Consolidate existing skills development efforts and share resources
•
ICT Skills Hubs aim to
– Develop ICT skills at locations close to poorer communities (Orange Farm,
Yeoville)
– Provide desktop services such as printing copying faxing email and internet
services to community
– Provide business training and support for local businesses
– Incubate close corporations providing above services
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BPO Precinct
Customized Business
Process Outsourcing
District
• Joburg competes with major international destinations that have built customized BPO
districts, including infrastructure and incentives to attract FDI (India, Philippines, India &
Mauritius)
• Inner City offers favourable conditions for BPO precinct development:
– Tax incentives to promote inner city regeneration
– Good infrastructure
– International gateway with traffic of 13 million people annually
– Strong clusters of vendors and institional headquarters
– Major projects that support BPO (Gautrain, Rea Vaya)
– Access to skills facilities (such as Wits, UJ)
• DED intends to take aggressive marketing approach to attract FDI and realize BPO job
creation opportunities
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Joburg Broadband
Network
• Purpose of project
A Municipal Broadband
Network
– To implement a municipal broadband network to aid economic development through
the reduction of telecommunications costs and the delivery of government services to
Joburg residents
– To establish Joburg as a digital smart city
• Strategy
– City to provide access to municipal property and assets
– Service provider contracted to build and operate infrastructure
– City has invested in infrastructure to support network needs of the City
• Objectives
– Increase and accelerate access to digital services through the massification of
affordable broadband
– Prepare for 2010 ICT needs
– Stimulate socio economic growth
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Export Development
Enabling Emerging
Enterprises Go Global
• 154 SMME’s graduated in the Export Development Programme.
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Targets businesses and entrepreneurs in identified key sectors who have the potential to enter the
export market
•
Provides exporter training and education & institutional support
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Assistance with SMME competitiveness and export-readiness
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Assisting and facilitating SMME participation in export related activities:
– International trade fairs
– Exhibitions
– Trade Missions
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Urban Development
Zone
Joburg UDZ
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Re –launch of the UDZ whose targets have been exceeded
and whose cumulative figures now stand at over ZAR 5.7
billion.
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Major cities from New York to Birmingham have experienced
periods of urban decay – but they have not stayed that way.
Johannesburg, particularly its core inner city region has not
been immune from similar negative economic factors
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To reverse this DED is promoting economic and fiscal
incentives to investors in the Inner City and surrounds
• UDZ incentive is an accelerated depreciation allowance to encourage private sector
investment in construction, extensions, additions, improvements or refurbishment of
buildings in specific zones
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2010 Soccer World Cup
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2010 Soccer World Cup
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Achievements
• 550 traders from Grow Your business
Project run in conjunction with Wits
University also graduated last quarter.
• 700 students have been certified for
BPO call centres
• Launch of Joburg Shopping Festival
• Secured hosting of Miss World pageant for
2008 and 2009
• Developed an Economic Development
Policy and Strategy Framework
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Achievements
• Executive Mayor of Johannesburg,
Councilor Amos Masondo, unveiled the
City five year Soweto Economic
Development Plan
• The Greater Soweto Business Forum has
been constituted;
• The Annual Soweto Festival took place
between 24 – 28 September 2008;
• 69 EPWP projects are in the
implementation stage and a total of 7108
job opportunities have been created
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Achievements
• The City's Broad Based Black Economic
Empowerment Policy and Strategy
Framework
• The interim Broadband Policy Framework
was approved in March 2008 which will
regulate access to City's infrastructure by
electronic communications operators.
• Johannesburg Annual Economic Review
2008
• Council approved the implementation of
the Jozi Equity Fund and the Dirang ba
Bohle Micro Finance initiatives.
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Proposed Logo
Thank You