ECONOMIC
DEVELOPMENT
& JOB CREATION
STRATEGY
DURBAN @ WORK
NOV
27
PRESENTED BY DR. AJIV MAHARAJ
POLICY ALIGNMENT
NATIONAL
NDP, NGP, IPAP, SONA, BUDGET SPEECH,
INFRASTRUCTURE, SECTOR SPECIFIC
(SEZ BILL, SECTOR PLANS)
PROVINCIAL
PDGS/P, PSEDS, SOPA, INDUSTRIAL,
EXPORT,
COGTA URBAN DEVELOPMENT
FRAMEWORK, etc
LOCAL
LTDF, IDP,
SECTOR PLANS
2
CONTEXT
AFRICA
GLOBAL
RECESSION
EMERGING MARKETS
INVESTMENT
PATTERNS
SADC
NATIONAL
PROVINCIAL
ROLE OF ETHEKWINI
TRIPLE CHALLENGE
YOUTH SKILLS
SLOW GROWTH OF
PRODUCTIVE SECTORS
PRODUCTIVITY
ENTREPRENEURSHIP
APARTHEID CITIES
INFRASTRUCTURE
LOGISTICS COSTS
3
REGIONAL APPROACH
Decision
Making
CHALLENGES
Insular Approach
Cost of
Doing Business
Infrastructure
Limitations
Government
Finances
Growth in Fixed
Investments
Income &
Consumption
Low Levels of
Trade & Production
Growth of
Labour Force
4
SMME
Development
DEPENDING
HOW WE
RESPOND3
SCENARIOS
EMERGE
5
KEY AREA
FLOAT
CHOKE
FLY
STEP CHANGE
Strategic
Investment
Strategic decisions Driven by external
made operationally forces
– “why should this
not happen”
approach
Strategic decisions made
strategically – Forum to resolve
issues and look at how can the
right investments be made
possible
Operational to strategic
‘Can’t do’- to – ‘can do’
DEVELOP ONE CITY
PLAN
No expansion, protect
backlogs. Lack of
areas against
funding for economic development. Long-term
infrastructure
phasing for infrastructure.
Sweat existing assets only
Fixing problems
PPPs for infrastructure provision.
Expand base & sweat
infrastructure. New areas for
expansion and develop regional
approach e.g. SEZ.
Infrastructure driving
decision/strategic
priorities- to –strategic
decisions driving
infrastructure priorities.
Work through
partnerships.
Economic
Leadership
Uncertainty, delay Decisions to contain
in making decisions investments. Economic
mandate gets sidetracked
onto social and
environmental issues
Well informed decision-making;
city leadership is in touch with
business & thinkers and is
responsive to challenges.
From uncertainty – to
politicians well informed
and driving policy in
partnership with officials
& stakeholders.
Strategic
Planning
Insular focused and Insular and infrastructure
6
constrained
constrained
Regional and ambitious; progrowth and job creation
Insular and constrained to
regional approach and
solutions driven.
Infrastructure Address social
VISION
OUTCOMES
1. Reduced Unemployment
2. Reduced income and
spatial inequality and
poverty
3. Creating Sustainable
Economic Growth and
Development
4. Becoming a Global
Metropolis over the next
20 years
Africa’s Most Liveable Southern Gateway Destination to Trade Travel
MISSION
Make a step change in
approach of economic
leadership in delivering
catalytic growth
initiatives and quality job
creation efforts that
address poverty, income
inequality and
unemployment
Capitalising on the role of
the port, international
Promoting the city as the
airport and potentially
centre for trade between
modern rail, road and
African and the world
ICT connectivity and
infrastructure
Africa’s Most Liveable Southern
Gateway Destination to Trade
Travel
Emphasising the potential
of the City as the best
location for manufacturing
activity
7
Developing the lifestyle
aspect of the area for its
residents and tourism
potential
GROWTH
TRAJECTO
RY
PER 5
YEAR
PHASE
• Unblocking key developments
• Packaging of land in inner city
• Implement
industrial
park
projects
• Township projects
• Innovation
centre
and
technology park developed
• Trade centre under construction
• Improved
investment
environment for large and small
firms
• DTP SEZ becomes operational
and some growth around DTP
•Large investments in bulk
infrastructure
• groundwork
geared
to
unlocking N3 corridor in future
phase
• Nodal
developments
and
IRPTN
• Special focus on youth, social
economy and micro LED
•Transformation
•SMME drive
• Key locations along N3
unlocked
and
growth
happens in Durban –Pmb
Corridor
• Further growth around
DTP
• Infrastructure to unlock
growth
• Phase 1 DIA Dig-out
• Construction of freight
route
• unlocking
land
along
freight route
• Development of Logistics
hubs begin
• Industrial renewal work in
SDB
• SMME drive
• Last
industrial
areas
unlocked
• Integration along Durban
– Pmb and
Durban –
iLembe corridors
• Promote
Development
along freight route
•Commercial
and
residential densification
• High growth in services sectors
(Logistics services; professional
services; finance; ICT; Tourism)
• Regional integration/ City region
• Green economy becomes major
sector
• purely
competitiveness
&
innovation focus on manufacturing
• Densification
High investment in skills towards gearing of forthcoming phase
High investment in infrastructure to unlock growth
2013-2018
Manufacturing sectors; innovation (and
ICT); Logistics, Tourism
2018-2023
2023-2028
Logistics; Manufacturing, Green
Economy; Construction, Tourism
8
Logistics; Manufacturing, ICT, Tourism,
Green Economy
2028-2033
Logistics, Tourism, Green Economy,
ICT, Finance & Trade
9
KEY PROJECTS
NEW CATALYTIC PROJECTS
EXISTING CATALYTIC
PROJECTS
REGIONAL AND COMMUNITY PROJECTS
Bulk Infrastructure to unlock
development in the north (greater
DTP)
Dig Out
Port
Re-focus Nodal
Programme
N3 Corridor (Hammarsdale, Cato
Ridge
Back of Port
Renewal
Re-focus Township
Programme
Automotive
Park
Freight Plan &
Route
Re-focus Tourism
Programme
Center for Innovation
Support
IRPTN Nodal
Development
Industrial Renewal
Industrial Sector Projects
World Trade
Centre
Re-Focus Rural Nodal Programme
Inner City Revitalisation
Unlock key Private
Developments
10
Employment: 5 400
Annual Rates: R70m
Employment: 8 900
Annual Rates: R378m
Employment: 9 000
Annual Rates: R133m
R15bn – R20bn Total
Anticipated Investment
Durban Investment Dashboard
November 2013
INSTITUTIONAL AREAS FOR FOCUS
12
INSTITUTIONAL AREAS FOR FOCUS
Partnerships with Industry
and Leadership by Council
ADDITIONAL 23
000
JOBS ANNUALLY
SUSTAINED GROWTH
OF 4% TO 7% P.A.
REDUCE GINI FROM
0,62 TO 5,8 BY 2018
13
JOBS
GROWTH
INEQUALITY
WAY FORWARD
DEVELOP A 5 YEAR ECONOMIC PLAN TO
LINK TO IDP
REVIEW IMPLEMENTATION MECHANISMS TO IMPLEMENT THE STRATEGY
INCLUDING SPVS
MONITORING AND
EVALUATION
14
THANK
YOU
For your attention!
DURBAN @ WORK