CITY OF JOHANNESBURG
STRATEGIC PLANNING IN JOBURG – MORE
THAN A TOOL FOR ECONOMIC
TRANSFORMATION
By: Zayd Ebrahim
PRESENTATION STRUCTURE:
•UNDERSTANDING THE CITY
•CHALLENGES
•OUR RESPONSE
•OUTCOMES AND EXPECTATIONS
•MOVING FORWARD
UNDERSTANDING THE CITY
JOHANNESBURG IN CONTEXT
Population of Joburg was at 3.9 million in 2010
Still remains South Africa’s economic powerhouse – concentration of large industries and
businesses
Johannesburg generates
16% of South Africa's GDP
and employs 12% of the
national workforce
Johannesburg is divided
into seven regions
Attractive to large
migrant population –local
and foreign
UNDERSTANDING THE CITY
EVOLUTION OF STRATEGIC PLANNING IN JOBURG
Strategic planning is a well-entrenched practice in Johannesburg
Joburg 2030 was an ambitious attempt in 2002 to link long-term economic
planning to long-term growth for the City
The City’s Human Development Strategy (Social development focussed) adopted in
2005 focussed on a pro-poor approach with targeted interventions for those at the
doorstep of poverty
The 2006 Growth and Development Strategy (GDS) was a fresh attempt at
balancing pro-growth and pro-poor interventions for a city constantly in change
The reviewed 2011 GDS reaffirms the developmental approach of the City’s
development trajectory and proposes a new, fresh and contemporary perspective -it
aligns to National Government's New Growth Path (national economic plan) aim of
assisting to create five million jobs by 2020 and bring unemployment rate down to 15
per cent.
The 2011 GDS is a document that covers the critical problems that face the city and
proposes solutions for them, as Joburg emerges as the leading African City in
financial, social, spatial and environmental terms
WHAT WE NEED TO DEAL WITH
JOHANNESBURG’S CHALLENGES
Population is increasing at a decreasing rate - In the next 5 years, Joburg would
have to accommodate 10% more residents but the population is not growing as fast
due to high infant mortality and HIV/AIDS.
Service delivery must continue to ensure demand of services effectively meets
supply –taking into account critical funding gaps and affordability
Demand for services is located in informal settlements- approximately 180
settlements mainly concentrated in the south of the city
Johannesburg’s faces a quadruple resource challenge; water, electricity, fuel and
food
There are structural barriers to the economy that manifest in Johannesburg - while
still competitive, excludes large numbers of the workforce
WHAT WE NEED TO DEAL WITH
JOHANNESBURG’S CHALLENGES cont…
Acute skills shortages exist in most sectors of Johannesburg’s local economy.
40% of Johannesburg’s formally employed are unskilled or semi-skilled, 45% are
classified as skilled and only 14% of the total working population are highly skilled.
Characterized by high levels of inequality - 4 types viz: Income inequality, wealth
inequality (assets formulation), social inequality (access to social and cultural
services), spatial inequality (access to the built environment)
Evidence of climate change impacts – more flash floods, increased rainfall in offseason months, unexpected weather patterns emerging
Greater number of people, more private vehicles on the road – increased traffic
congestion and greater maintenance and rehabilitation of road infrastructure
OUR RESPONSE
Joburg’s 2011 GDS Paradigm
GOVERNANCE
Sustainable
Socio-Economic
Environments
development
Service Delivery
GOVERNANCE
The 2011 GDS reaffirms the
developmental approach of the
City’s developmental trajectory
This GDS charts the long-term
strategic course, and makes some of
the bigger, overarching decisions
about what to emphasise if the City
is to accelerate growth and
development
The paradigm balances Socioeconomic development, sustainable
environments and the delivery of
services under the umbrella of
ensuring effective governance
OUR COMMITMENT & APPROACH
Guiding Principles – supported by the paradigm
GOVERNANCE
1. Support the Poor
2. Sharing economic opportunities
Sustainable
Environments
SocioEconomic
development
Service Delivery
3. Sustainable Human
Environments
4. Resource Security &
Environmental Sustainability
5. Achieving social inclusion
GOVERNANCE
6. Good Governance
EXPECTED OUTCOMES
• The GDS takes into account measurable and relevant indicators to track
• The City instituted a Performance Management System to measure operational
impact and outcomes of the medium-term strategic plan (IDP)
• These are in line with the goals of the revised GDS
• Key outcome statements related to the guiding principles are addressed below:
1. GOOD GOVERNANCE
Improved customer satisfaction, improved credit rating, eliminate
corrupt activities and increased participation by citizens.
2. SUSTAINABLE HUMAN ENVIRONMENTS
Improved quality of life for all. This establishes itself through higher
life expectancy, literacy and income per capita (a higher human
development).
EXPECTED OUTCOMES
3. REDUCED ECOLOGICAL FOOTPRINT
The City must be environmentally friendly to preserve the natural
environment and resource base of the future generations
4. PRO-POOR SUPPORT
Pro-poor support measures also ensure that communities are built
where the proportion of people living below poverty line is as low as
is possible.
Efforts to support the poor will lead to communities where income
inequality is reduced as much as possible.
5. FACILITATING JOB CREATION & ECONOMIC GROWTH
Imperative to ensure that the growth of the local economy is
controlled in job intensive sectors with adequate up-skilling to meet
demands for the economy
EXPECTED OUTCOMES – 5 YEAR SECTOR FOCUS
Vision
A city economy that plays a role as the key economic hub on the continent, and a national economic growth leader,
by ensuring sustained shared growth that benefits all.
Long-term goal
2011-2016 strategic areas
Strengthen and protect key local
economic sectors
Facilitate economic sector skills demand and supply
Promote innovation and green economic practices
Facilitate the extension of cost effective broadband ICT infrastructure to all businesses
Strengthen, grow and protect
emerging economic practices,
SMMEs and the Informal sector
SMME funding and financial support
SMME business support in marginalised areas
SMME and informal trader education and skills development
Improved public-private and public-public collaboration Leverage CoJ procurement to
support emerging businesses, BBBEE, women, youth, etc
Intergovernmental and
international relationship building
and investment promotion
Identify and promote investments in line with a Joburg-wide Investment Portfolio and the UDZ
Promote niche-market tourism opportunities
Promote improved business
infrastructure services and assets
Expand Fresh Produce Market (JFPM) operations to support SMMEs and contribute to food
security
Strategic spatial planning to guide development/re-development
Public investment framework to guide development/re-development
Assessment of tariff model to ensure equity, affordability and competitiveness
Facilitate job creation
EPWP, internships and learnership support focusing on the Youth Labour-intensive
infrastructure projects – youth focus/linkage to ESP/job pathways
An efficient and effective
economic information service that
meets the standards of a WorldClass African City
Maintenance and dissemination of economic information
Undertake strategic economic research and surveys to empower decision-making
MOVING FORWARD
•Joburg’s long term strategy is more than just a tool for economic
development – various social, spatial, environmental and financial
components are strategically aligned
•The City of Johannesburg remains committed to continued
economic growth - Joburg was shielded from the economic downturn
of 2008/9; but not immune as most job losses were in the informal
sector – this was largely attributed to the construction boom as a
result of the 2010 FIFA World Cup
•Whilst it is necessary that the City evaluates its strategic direction
given the ever changing global and local context, its economic
development outcomes will never be compromised