THE
MSUNDUZI
MUNICIPALITY
AN
ECONOMIC
DEVELOPMENT STRATEGY
FOR
A GROWING CAPITAL CITY
INTRODUCTION
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City has a rapidly growing economy
Poverty and unemployment remain
key issues
Strategy must further develop the
economy and generate sufficient
employment
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MARCH 2000 CONFERENCE
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First ever investment conference in
the city
Potential growth sectors were
identified, viz. tourism and
aluminium downstreaming
Key properties were put out for
development proposals
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HULETT ALUMINIUM
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ALLTUBE FACTORY
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INCENTIVES PACKAGE
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City announced a new concessions
package
New and expanding business
qualified
Concessions were extended to both
industrial and commercial activities
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INVESTMENT
FACILITATION TEAM
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Multi-disciplinary team approach
Team meets twice monthly and deals with concessions
applications and development proposals
One-stop facilitation approach has been well received by
developers
“The Msunduzi Municipality is the most co-operative,
knowledgeable and proactive I have ever dealt with.” Jim
McLean, MD Liberty Properties, Developers of the Liberty
Midlands Mall.
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TOTAL INVESTMENTS
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Since 2000 40 new investments and
40 expansions have received
concessions
Total investments exceeds R4 billion
7000 new jobs created
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FLAGSHIP PROJECTS
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Golden Horse Casino and Hotel
Complex
Liberty Midlands Mall, regional
shopping centre
CBD Extension Node development
Freedom Square Development
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GOLDEN HORSE CASINO
AND HOTEL
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REGIONAL SHOPPING
CENTRE
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CBD EXTENSION NODE
MOTORWORLD
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CAPITAL CITY STATUS
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Capital coalition formed to lobby
support
City declared the sole capital in April
2004
Government departments relocated
to the city
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PREMIER’S OFFICES
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MOTOR VEHICLE
COMPONENTS SECTOR
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Currently about 11 companies in the
sector
Approximately 40 motor components
made in the city
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MOTOR VEHICLE
COMPONENTS SECTOR
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BUSINESS CONFIDENCE
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At an all time high
Business turnover has doubled since
2003
Insolvencies have halved
Job creation is steadily increasing
Confidence index is at 85
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EPI GRAPH
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TOWARDS AN ECONOMIC
DEVELOPMENT STRATEGY
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Knowledge and Exchange
programme comes at an opportune
time
Virginia Beach experiences will be
valuable
Action Plan identifies actions steps
and time frames, and goals
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ACTION STEPS
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Appoint a consultant
Hold economic development strategy
workshops
Review all studies and plans done to date
Development of the strategy
Obtain council approval as part of the IDP
Develop project implementation timeline
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SHORT TERM GOALS
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Staffing to manage development
initiatives
Business retention and expansion
programme
Development of tourism products
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TOURISM PRODUCTS
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PIETERMARITZBURG
RAILWAY STATION
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SHORT TERM GOALS
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Increase funding for tourism sector
Creation of industrial sites
Creation of city improvement
districts
Implementation of informal and
street trading plan
Compilation of an economic data
base
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FREEDOM SQUARE
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LONG TERM GOALS
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Monitoring the city’s economy and
amending the strategy periodically
Investigate the creation of new
revenue streams
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PROGRESS MADE TO
DATE
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80% of District turnover generated by
Msunduzi
District and Msunduzi strategies must be
aligned
Agreement reached on a District-wide
economic development strategy
Joint funding between Msunduzi and the
District
A consultant has been appointed
Project team has been established
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TERMS OF REFERENCE
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Phase 1 – information gathering
Phase 11
• Visioning and strategic planning
• Processes
• Policy Framework
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CONCLUSION
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The strategy will form part of the IDP
Key areas of the strategy should be included as
KPI’s in performance agreements
Strategy must:
• meet national goals of halving unemployment by 2014
• Contribute positively to the financial viability of the
municipality
• Yield a globally competitive and job creating economy
• Contribute substantially to a better life for ALL the
people of Msunduzi
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