McKinsey Global Institute (top 600 cities) has identified
three critical factors why larger Cities have more
advantageous conditions for economic success:
◦ Larger cities attract the most human talent.
◦ Larger cities attract more investments
FDI in emerging markets tend to go to areas that have:
Market access, better infrastructure, efficient services and financial
incentives
◦ City network stimulates economic growth
 Cluster of smaller economic centres/precincts drive or generate
economic growth
◦ Durban is considered as a middleweight City with a
population of 3,4 million as at 2011.
◦ Durban hosts a number of academic institutions, e.g. UKZN,
DUT, MUT, Etc.
◦ Durban is a port City – biggest port in Africa.
◦ Multi National Companies (MNCs) located in Durban – Toyota,
Volvo Trucking, Mondi Paper, Etc.
◦ King Shaka Airport and Dube Trade Port
◦ Durban is the gateway to the SADC market
Percentage contribution of Metros to South African GDP, 2011
Source: IHS Global Insight, July 2012
◦ In 2012 the MGI ranked our City as number 238 in the World in
the category of fastest growing urban areas.
◦ The Economist Intelligence Unit ranks the competitiveness of
120 of the World’s major Cities – Durban was ranked at number
94 in March 2012.
◦ City’s draft economic development strategy - economically
active people as % of population = 31% in 2011
◦ Economic growth rate reduced from 6% in 2006 to 3.4% in 2011
◦ Unemployment reduced from 34.7% in 2001 to 20.4% in 2011
but it still remains high
 Policy
framework – investment policies,
regulations, rules on entry and exit.
 Economic
conditions – local and regional
markets, availability and quality of raw material,
cost of doing business and physical
infrastructure.
 Service
offerings and facilities – investment
promotion services, investment incentives and
social amenities.
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There is a lack of significant private and public sector
investment in eThekwini, which hinders the City’s
development agenda.
◦ Low economic growth; lack of job creation; lower rates base;
slower reduction in poverty and inequality.
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A study in eThekwini on aspects which impede
investment and development with specific reference
to the legal framework, institutional framework,
mechanisms, capacity, and professionalism.
COMMISSION FINAL RECOMMENDATIONS LIST:
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Investment Promotion Agency
Corporate Plan
Development Facilitation Centre
Policy and Legal Framework
Local Economic Development Zones
Attitudinal Changes
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New Growth Path – target of 5 million jobs by 2020
and an economic growth rate of between 4% to 7% p.a.
Ethekwini’s Draft Economic Development Strategy
(EDS) – sets out a target of 45 000 job opportunities
annually, while the local economy is currently creating
approximately 21 726 job opportunities per annum.
Economic Growth Rate – EDS sets out an economic
growth rate target of 4% to 7% between 2012 to 2014,
while the local economy grew at 2.9% and 3.4% in
2010 and 2011 respectively.
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An in-depth review of the BPCC 1999
recommendations,
A review of the present investment situation in
eThekwini in terms of: economic, governance,
legal and organisational structure,
Assessing the cost of doing business in
Durban.
Internal
• DCM Sustainable Dev
• Economic Dev
• Planning
• ETA
• Water, Real Estate,
Electricity, Etc
Project
Steering
Committee
Strategic &
Tactical
Operational
Research
Commissioners
Consultation
Project Manager
Secretariat
Phase 1: Appointment of Commissioners
Phase 2: Review of the 1999 recommendations and survey on
investment trends in the City
Phase 3: Research on factors conducive to and factors constraining
development in the City: How effective are our business retention
and expansion programmes?
Phase 4: Benchmarking on City’s offerings and institutional models
against international best practice: what do we offer and how is our
turnaround time?
Phase 5: Recommendations
Call for written submissions on their
experience in dealing with development
applications
Sector and stakeholder consultations on the
project objectives
Public participation on reviewing the City
offerings
a.
A proactive strategy of channelling development and
investment proposals
b.
Consolidation and packaging of infrastructure plans to
support development
c.
Identification of alternative sources of funding
infrastructure
d.
Comparative analysis on the cost of doing business in
Durban
e.
Identification of and packaging of land parcels with
investment potential
Project Secretariat – Ms Phumelele Biyela
 Email address: phumelele.biyela@durban.gov.za
 Tel number: 031 311 4311
Project Manager – Mr Ndumiso Mlambo
 Email address:
ndumiso.mlambo@durban.gov.za
 Tel number: 031 311 4311
 Cell number: 083 554 1110
Making the ‘step change’ from good to great!