SAPOA celebrated their 50th anniversary this year being established in

1966 by the leading and large property investment organisations to bring

together all role players in the commercial property field and to create a

powerful platform for property investors. SAPOA members own and

control over 90% of all commercial property in this country. That’s over

35 million square metres office, retail and industrial space, which is

growing steadily at 7% per annum. This equates to more than 70% of all

rental commercial space in South Africa and most of it resides in our

metropolitan areas. Our industry contributes between 6 and 8% of the

national GDP.

Who is the South African Property Owners Association

Contextualise the KZN Property Sector

The Role and Impact of the Commercial Property Sector (SAPOA,2015)

•GDP R18 billion representing just under 6% of the economy

•240 000 Jobs

•752 million Tax Revenue 18.26% of the provincial economy

Value in terms of Gross Domestic Product (GDP)

Value in terms of Sustained Jobs

Tax Value

Challenges

•External Environment

•Internal Environment

•Legislation

•Transformation

•Productivity

•Soft Skills

•External Environment

•Ratings Agencies

•BREXIT

•TRUMP

•Globalisation

•Digital Disruption

•Climate Change

•South Africa’s Investment Image

•Internal Environment•State of Capture

•Corruption

•Crime

•Productivity

•Skills retention

•Visas

•Stagnant Economy

•Currency Fluctuations

•Title Deeds (Ingonyama Trust) Access to Land

•Municipal Competencies

•Uncertainty on Foreign Ownership

•Time and friction of doing business

•Electricity (Nuclear Deal)

•Water

•Inbalance in budgetary allocation social vs economic infrastructure

Legislation

“Fragmented legislation”

•Section 195 of the Constitution,

in particular the obligation to be “development oriented”

•WULAS

•EIA

•Act70 of 70

•SPLUMA

•Preservation and Development of Agricultural Bill

•Labour Laws

•Visa regulations to attract skills

•“Harmonisation”

SA CONSTITUTION: CHAPTER 10

PUBLIC ADMINISTRATION

195. Basic values and principles governing public administration.-(I) Public administrationmust be governed by the democratic

values and principles enshrined in the Constitution,including the following principles:

•A high standard of professional ethics must be promoted and maintained.

•Efficient, economic and effective use of resources must be promoted.

•Public administration must be development-oriented.

•Services must be provided impartially, fairly, equitably and without bias.

•People’s needs must be responded to, and the public must be encouraged to participate in po!icy-making.

•Public administration must be accountable.

•Transparency must be fostered by providing the public with timely, accessible and accurate information.

•Good human-resource management and career-development practices, to maximise human potential, must be cultivated.

•Public administration must be broadly representative of the South African people, with employment and personnel management

practices based on ability, objectivity, fairness, and the need to redress the imbalances of the past to achieve broad representation.

(2) The above principles apply to-

(a) administration in every sphere of government;

(b) organs of state; and

(c) public enterprises.

(3) National legislation must ensure the promotion of the values and principles listed insubsection (1).

(4) The appointment in public administration of a number of persons on policy considerationsis not precluded, but national legislation

must regulate these appointments in the public service.

(5) Legislation regulating public administration may differentiate between different sectors, administrations or institutions.

(6) The nature and functions of different sectors, administrations or institutions ofpublic administration are relevant factors to be

taken into account in legislation regulatingpublic administration.

Transformation

•Pace of transformation

•Willingness for transformation

•Skills for transformation

•Finance for transformation

•Opportunities for transformation

•Communities

•Criminal Element posing as transformation

•One stop shop for transformation

Productivity

• Section 195 of the Constitution to be development-oriented

•Silo mentality and behaviour of individual departments

•not only national, provincially but also at municipal level

•Attitudes of functional staff towards service

•Labour Laws

•Entrepreneurs vs wanting a job ( Frikkie Brooks)

Soft Skills

• Relationships

•Leadership

•“Achieving results through others”

•Communication

•Platforms for Collaboration Public/Private

•Attitudes

•Mutual Respect and acknowledgement of respective challenges

•Negotiation Skills

•Listening Skills

•Collaboration

Critical Success Factors•Strategy

•Precinct Management

•Catalytic Interventions ( Minister Jeff Radebe)

•Fresh Approach to property Development

•Key Economic Infrastructure

•Collaboration

StrategyGood solid plans in place that need inter departmental alignment

at national and provincial spheres that result in the PGDP becoming the accepted

spatial plan and being utilised as the basis for municipal plans to guide investment

and development to create real Certainty!

“ Strategy is a Strategy it needs to find it’s way to the ground” ( Frikkie Brooks,2016)

•PGDS

•PGDP

•IDP

•SDP

•LDP

Urban and Precinct Management

A CASE FOR PUBLIC/PRIVATE PARTNERSHIP IN URBAN

AND PRECINCT MANAGEMENT

“Urban management is concerned with the policies, plans,

programs, and practices that seek to ensure that population

growth is matched by access to basic infrastructure, shelter,

and employment. While such access will depend as much, if

not more, on private initiatives and enterprises, these are

critically affected by public sector policies and functions that

only government can perform.” –

Davey, KJ, in Elements of

Urban Management

What must be achieved in order to ensure that cities and towns

manage the influx?

attention to spatial equities,

effective and affordable public transport,

the creation and maintenance of safe and attractive public spaces,

and

stimulation and growth of the economy

job creation

Precinct management “is focused on the post-implementation

management of public spaces knitting the public, private and

community facilities and properties together.”

(National Treasury)

Why property owners are critical stakeholders

• they support the municipality’s rates revenue

• the values of their properties are directly proportional to the

rates revenue.

• higher values = more rates revenue

Case Study

Cape Town City CID

2006: Aggregate property values = R6 billion

2016: coming up to R35 billion

(nearly 6x in a decade)

Private sector investment in

precinct

Manage precinct

Attract investors

Property values

increase

Rates revenue

increases

Theme story

Vibrant users

Attractive street life

Programmed and Promoted

Attractive Environment -aesthetics

Welcoming public space - in good repair, signage, easy access,

greeter etc

Clean and safe

Messy, dirty and unsafe

Catalytic Interventions

A philosophy that relates

not so much to catalytic

projects as opposed to

catalytic interventions

(which could unlock new

projects) – but the issue is

around interventions that

are systemic and include

procedural and regulatory

elements

A philosophy that relates not so much to catalytic projects as opposed to catalytic interventions (which could unlock new projects) – but the issue is around interventions that are systemic and include procedural and regulatory elementsA philosophy that relates not so much to catalytic projects as opposed to catalytic interventions (which could unlock new projects) – but the issue is around interventions that are systemic and include procedural and regulatory elements

Fresh Approach to property Development

A fresh approach to property development is required that creates an environment where more sustainable city forms are enabled – ie mixed use, higher intensities that provide critical mass for Public Transport – municipalities need to get behind their own vision and actively support such an approach – as opposed to the continued car centric mindsets.

•Driverless Cars are around the corner reducing the need for parking and reducing the

number of cars on our roads

Key Economic Infrastructure

Recognition of key economic infrastructure that can have a catalytic impact on unlocking new investment and development – and the associated planning and budgeting around such- this relates to the need for a programmatic approach to be taken working with the private sector

•Innovative Funding Models

Collaboration

• ICT and software solutions to support communication, management and

implementation

•To stimulate private activism and participation

•To plug into the working groups of the PGDP

•A transformation One stop Shop

•Digital Strategy

Interventions

•What

•How

•When

Intervention One

What

Create a Transformation One stop Shop

•Stakeholders

•Opportunites

•Finance

• Skills Development

•Mentorship

How

Engage Private and Public Departments that would support

the initiative and resource it.

Plug it into the existing One Stop Shop

When

By the end of 2017 to be functional

Intervention Two

What

Establish a robust forum for collaboration and engagement between Private

and Public sector on the following:

•Catalytic Interventions

•Key Economic Infrastructure

•Urban Management

•Fresh Approach to property development

•To address the fragmented legislation

•To create an enabling environment for investment and development

How

To plug into existing structures like the working groups of the PGDP.

To explore co-ordinating the private entities like SAPOA, Growth Coalition

and the Chambers into a forum that engage with high level counterparts in

Government on a regular basis to assess progress and implementation of plans

When

To be established by the middle of 2017

Intervention Three

What

Training of Government Employees to establish a developmental culture as

envisioned in section 195 of the constitution as well as a service culture.

How

Programs to be developed and implemented in collaboration between

Private and Public Sector

When

Programs to be developed in 2017 and implemented in 2018

Intervention FourWhat

To create cross cutting institutional structures that diminish and address the silos

that exist in Government

How

Create Non Profit Companies with directors nominated from private and public

Eg. Strategic Urban Management

To be customer centric.

Research what the users/citizens/clients need.

To make use of the plethora of IT solutions to manage these engagements

CRM systems

When

Pilot Programs to be developed in 2017 and implemented in 2018

“ Business Unusual” (Sihle Zikalala,2016)

Thank you for the opportunity of

Presenting to you.Edwin van Niekerk