Joberg_2030-strategy.pdf

7/28/2019 Joberg_2030-strategy.pdf

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Strategy


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Chapter 6

Actions, Programmesand Interventions

118

1 Certain pockets of excellence exist within Council, developing strategies characterised by enormous insight and sophistication. The aim here isto assist in prioritising and co-ordinating such initiatives while recognising internal abilities and excellence.

Address Bus

Crime. Will

increase Invest. &

Bus and consumer

confidence.

Match Skills base

to industry needs.

Will increase jobs

& support high

value sectors.

Establish an urban

boundary. Will support

densification and

clustering and allow

utilities econs of

scale.

Increase Efficacy

of the transportand telecomms

system.MORE

INVESTMENT

MORE J OBS

INCREASED

PROFITABILITY

GGP GROWTH

Introduction

This chapter deals with specific actions, programmes and interventions related to the Vision and the Foundation.

The Foundation articulated inefficiencies and gaps in the Citys economy that undermined its growth potential

both in terms of economies of urbanisation and economies of localisation. The Vision described what the City

would look like if these gaps and inefficiencies were overcome.

The Strategy seeks to provide a bridge between the present City and the City envisaged in the 2030 Vision. It does

so by defining the tasks and interventions that will be required and by attempting to provide a measure of how

these activities will be gauged as successes or failures. In some instances, the Strategy provides considerable detail

on how such interventions or programmes should be formulated and implemented; in others it offers less. In areas

of pure economic action, for example, more detail is provided. In speciality areas such as policing, water sanitation

and urban waste management, only high level strategic actions are listed. These action lists will need to filterthrough to the appropriate departments for further investigation and implementation choices by those with the

appropriate skills1.

The format of the remainder of the Strategy will follow the format of Chapters Three and Four. To summarise, a

crude causality diagram is presented below.

Creating a Cycle of Growth

In very simple terms, we are seeking to establish sustainable GGP growth within the City in order to increase the

standard of living and quality of life of the Citys residents and firms. To establish this growth, we need to create a

sustainable virtuous circle as shown in the centre circle. First we need to increase investment (new firms and

expansion of existing firms). More firms operating will create a demand for more workers thereby creating jobs

(directly and indirectly). If capital and labour are operating effectively and, in addition, interventions are made to

increase profitability further, then there will be more investment, creating yet more jobs. And so the cycle will

repeat itself.

In the Foundation, it was found that the two largest constraints or factors influencing the investment decisions offirms are crime and a shortage of sufficiently skilled workers. Hence, the two circles on the left of the diagram are

the highest priority areas for the Citys growth strategy. If these two constraints are addressed then investment will


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increase. However, such increases in investment will be insufficient to provide the

City with a sufficiently high GGP growth rate to increase GGP per capita

fundamentally. In order to reach higher orders of growth, additional strategies need

to be embarked upon. The most important of these are shown in the circles to the

right of the diagram. A variety of other actions are also suggested. These do not

appear on the diagram but will be discussed below.

It is important to list the strategies, interventions and action programmes required.

Equally important, however, is the designation of priorities. This is particularly critical

as many of the programmes and strategies suggested below have already been

articulated in Council at various times since 1996. What has been missing, however,

has been a consistent prioritisation and understanding of how such actions interplaywith one another. In this Strategy, priorities for key focus areas are set according to

only one criterion the causality chain of the virtuous circle described above as

explained in detail in the Foundation.

In workshopping the contents of the document, there was a great deal of discussion

about the very difficult trade offs required to support the programme of action and

considerable concern about non economic issues, most importantly AIDS. Many of

these issues are dealt with in the Six Mayoral Thrusts. These remain in force and are

accommodated in the medium-term budget of the Council. The remaining issues are

dealt with through a practical understanding of how and when the suggested

programmes come into force and how, in most instances, additional resources will

not be required, but merely the redirection of existing resources. While there are

resource constraints (especially financial) in many areas, the Council feels strongly

that throwing money at problems is not always an effective solution. Many of the

programmes, actions and interventions to be listed rely rather on the better and

more strategic utilisation of resources. Thus it is envisioned that a fundamental

redirecting of resources will not occur in the short term, but that budget and

resource allocations will shift slowly over the next five years as operations and

activities dictate and the 2030 vision is assimilated into the consciousness of the

Council.

This chapter is divided into three sections.

The first will deal with the highest priority focus areas and will be named the

Conducive Environment Focus Areas. These are the interventions, actions and

programmes whose outcomes will fundamentally and crucially determine the

future of the City. Failure to succeed in these programmes will result in the City

remaining as it is, with decreasing standards of living and increased joblessness.

Success in these strategies will produce an environment conducive to growth.

However, while it will establish the conditions necessary for growth, these

conditions on their own are unlikely to be sufficient to support growth.

The second section will deal with the next most important level of priorityinterventions, actions and programmes. It will be called the Engine of Growth

Focus Areas. These programmes should be embarked on simultaneously with

...the Council feels strongly that

"throwing money at problems" is

not always an effective solution...

...It is important to list the

strategies, interventions and

action programmes required.

Equally important, however, is the

designation of priorities...

119


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those in the first section but with the understanding that, in the absence of success in the latter, the results

arising from success in the former will be greatly diminished. The issues dealt with in this section deal mainly

with enhanced corporate profitability, which will support investment and hence job creation and income

generation for households. These issues support organic and market related growth at a generic level.

The third section will deal with the third most important set of priority focus areas and will be called the

Accelerating Growth Focus Areas. It is believed that these interventions, actions and programmes will

complement the generic, organic and natural market growth established by successes in the first two

categories of priority interventions. This means that failure to achieve the outcomes in this area will result in

slower growth than would be optimal, but that growth will still be sustainable. Given the sluggishness of the

Citys economy, poor business confidence and the massive backlog of growth that needs to be addressed, it

is felt that even these category three priorities are important if the quality of life and standard of living goalsforeseen in the Vision are to be achieved by 2030.

Conducive Environment Focus Areas

Only two areas of concern are seen as sufficiently critical to fundamentally influence the future of the City with

respect to its economic environment: business crime and the mismatch of skills between what is supplied by the

labour force and what is demanded by industry. Of these, crime is weighted above skills. A detailed explanation

of why crime is the most important variable in the Johannesburg growth equation is provided in the Foundation

where we saw that crime is responsible for 61 percent of any investment decision made by a firm in Johannesburg

at present. This means that improved sales, improved exports, improved labour productivity and all other good

things will be unable to sway an investment decision if the crime component of the decision is negative. Crime

will ride roughshod over all other variables in an investment decision-making process due to its massive weighting.

And clearly, in the absence of investment, economic growth cannot be established.

Strategy to Address Crime

The success of this strategy will be measured by a decrease in the crime elasticity of investment from 61 percent

to 5 percent within ten years.

Despite the enormous significance of crime, this Strategy will provide very little detail concerning actual

programmes, actions and interventions in this area for two reasons. First, research has suggested that, within the

myriad of agencies working on all aspects of crime in the Province and the City, there are approaches and

information that are not available to the authors and which constitute cutting-edge thinking with respect to

various aspects of City safety and security. Second, it is impossible to do justice to the import and complexity of

the issue in a generalised document of this nature. As a result, the strategic recommendations below cover only

safety and security issues arising from the Foundation and Vision that have not previously been considered in an

integrated manner in the Citys programme as related to economic growth, together with comments and opinions

on the current Business Plan of the Metropolitan Police Department (MPD). As stated in the MPD Business Plan

itself: the complex causes of crime and violence in Johannesburg necessitate a degree of caution in the

development of the strategy (MPD Business Plan 2000).

Before looking at specific recommendations, two further points must be made. The first is that the MPDs strategic

approach of separating out enforcement and prevention issues is fully supported and will provide the structure for

proposed recommendations. Second, the MPD has insufficient powers in terms of current legislation, insufficientsupport from the criminal justice system and insufficient resources to achieve the necessary reduction of crime in

the City in isolation. This means that multi-agency issues are of crucial importance and the MPD is only a small part

120


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of the overall solution. It is therefore proposed that Council needs to establish a

broader safety and security capability to deal with strategy, co-operation, information

and planning over and above the operational and planning responsibilities of the

MPD.

A New Safety and Security Vision Proposal

In terms of the vision of the City regarding safety and security, the MPD vision of

ensuring a universal sense of safety and security as well as its mission of ... providing

professional road traffic policing, by law enforcement and crime prevention services

is accepted and endorsed. However, in terms of the specific paradigm suggested in

the Foundation and borne out in the Citys Vision and the remainder of this Strategy,

a vision focus shift is proposed, perhaps as an interim vision.

It is recommended that the Safety and Security vision proposal re-orientate itself

around an outcome that is expressed more in economic than in purely social terms.

This recommendation flows from the paradigm for creating a better city through

sustainable economic growth. If such an approach is adopted, the safety and security

vision can be rearticulated and its success redefined as a vision that aims explicitly to

improve safety and security such that business confidence and business investment

decision-making is no longer negatively influenced by crime. The resultant reversals in

investment and business confidence will lead to increased standards of living which

will reduce the key social and economic factors that fuel crime.

Increases in business confidence and investment will lead to increased GGP growth

which will, in its turn, result in reduced unemployment, higher education levels,

increased standards of living, fewer residents living in poverty, township upgrading

and so on, all of which will support sustainable improvements in safety and security

and the reduction of local crime to containable levels. Given the complex reasons for

the existing high rates of crime, it is accepted that such an approach will not be

sufficient to resolve all the crime issues plaguing our City. It is, however, believed that

such an approach will have enormous fundamental effects on the crime situation.

Mutli Agency Strategies

In line with the above, it is necessary for the Councils expanded safety and security

capabilities to sell the Citys vision and its required outcomes in terms of crime

reduction to the broader multi-agency community, and for key agenda items for the

City to be recognised and prioritised within this community. There are already

coordinating mechanisms for safety and security between the City, the Province and,

to a lesser degree, the national government and it is essential that such mechanisms

are strengthened and entrenched. Key to making these mechanisms an effective part

of City strategy is the communication of the Citys safety and security strategy and its

focus areas in terms of reducing crimes impact on economic activity.

Creating this niche and integrating it with broader activities co-ordinated through thesection 64k and other committees will require much negotiation and persuasion. It

will also require that the City table a strong directional paper stating what it requires

...There are only two areas of

concern seen as sufficiently crucial

as to fundamentally influence the

future of the City with respect to

its economic environment:

business crime and the mismatch

of skills between what is supplied

by the labour force and what is

demanded by industry...

...investment and business

confidence will lead to increased

standards of living which will

reduce the key social and

economic factors which fuel

crime...

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from the broader multi-agency community and what resources the City can make available to expedite such actions.

Thus for example, where the City Strategy identifies the need for a new police station in a given area (arising from

its priorities and paradigm shift), the strategy tabled to the multi agency committee might suggest that the City make

funds available to a non-City agency (i.e. the SAPS) for the delivery of such a service. The same argument would

apply to the establishment of Municipal Courts. The notion here is that the City should plan and fund the actions

and interventions it requires that are at present outside its implementing jurisdiction or which could more efficiently

be implemented by agencies other than the MPD. Projects and programmes of this nature have been implemented

in the past and it is believed that this strategic operational paradigm should be supported and expanded.

As mentioned in the introductory section to this chapter, great caution must be exercised when suggesting

agenda items in this complex and sensitive area. However, it needs to be reiterated (as discussed in the

Foundation) that business confidence and decision-making is threatened by the stealing of freight and cargo atterminuses and ports, the hijacking of road haulier and train containers and delivery vehicles within the City2,

property and personal crime and intimidation in business hubs adjacent to low income settlements3, retail outlet

robberies and finally and most importantly random personal crime against employees.

Diagnostics

The safety and security report commissioned by the Council in 1999 strongly endorses the need for best available

information and sophisticated diagnostic abilities to guide interventions and resources. The report cites the

experiences of Boston in the USA where increased crime was traced back to increased firearm ownership. A gun

control programme was implemented and crime in key areas dropped substantially, in some cases by as much as

70 percent.

Data collection and diagnosis occurs in numerous agencies and it is suggested that the City, through its task team,

should interact with existing players and identify gaps or new approaches to ensure specific and sophisticated City

based data and diagnosis that can be fed into an integrated approach. Council should fund resources for extensions

to existing data and analysis systems or the development of new systems to whatever extent is necessary.

Crime Prevention Strategies

There is little debate about the fact that

fundamental crime prevention strategies need to

be based on improving the economic and social

situations of individuals. The argument here is

simply that a well-educated person with a secure

job and a sufficient disposable income is less likely

to embark on any type of criminal activity than a

person who does not enjoy such an economic

and social situation. As such, safety and security

measures are only one part of a broader strategy

to prevent crime, while the greatest requirement

is the need to increase the standard of living and

quality of life within the City. Safety and security

agencies must, however, deal with the current

situation and are unable to address thesebroader issues directly. By indirectly controling

1222 Important in terms of individual firms transport costs, competitiveness of the transport sector in general and the need for reliable delivery as a

precondition for international competitiveness and J IT production.3 If the City is seeking to increase investment, its first priority must be retaining existing investment; vulnerable areas such as Wynberg for

example must have retention strategies implemented as a priority.


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the broader issues they are able to break the cycle that limits social and economic

development through low investment and growth.

After substantial research and extensive reading and interviewing, the authors of this

document are of the opinion that virtually every conceivable crime prevention

strategy has been documented and researched to a greater or lesser extent by the

various agencies and role players over the last seven years. What appears to be

undermining the effectiveness of all this intelligence is co-ordination, lack of resources

and critical mass gained through coherent prioritisation. It is proposed that, through

its expanded capability, the Council take it upon itself to strategize and co-ordinate the

prioritisation and implementation of such prevention strategies. Once it has done this

it should take this approach to the formal co-ordinating committees.

Crime Enforcement Strategies

Here a dual approach is required. On the one hand, the Citys expanded safety and

security capability must identify (through the process mentioned above) enforcement

issues that it is unable to perform itself but which are crucial to the achievement of

its Vision. Once these issues have been identified, strategies must be developed to

ensure that action is undertaken by the relevant parties. Such strategies may include

preparatory planning by the Council, getting buy-in, completing negotiations and

organising funding options (direct funding, indirect funding, joint funding and so

on). If Council is able to take on these responsibilities, this will decrease the likelihood

of the implementing agency refusing the programme or failing to implement it in an

optimal way.

The second portion of the dual strategy is for the Council to ensure that enforcement

that is within its legislated powers is undertaken in an optimal manner and prioritised

according the needs articulated in the Foundation, Vision and the remainder of this

Strategy. It is here that we can focus on the enforcement aspect of the MPD.

The MPD identifies four strategies in relation to enforcement:

1. Road Traffic Policing

2. Enforcement of Municipal By-Laws

3. Establishment of an Integrated Metro Police Service

4. Policy, Procedures, Standards and Training

These policies appear to be well developed and strategically coherent with respect

to the set of documents presented here. The only comment to be made at a generic

level is that, within the strategies, there is constant reference to the need to prioritise

which areas of traffic laws and which by-laws are in greatest need of enforcement.

This appears to be a pragmatic response to limited resources.

It is immediately clear, however, that this fundamentally undermines two important

strategic thrusts. The first thrust is a commitment to zero tolerance for any infringement

of any law enforceable at a municipal level. The second thrust relates to the need toestablish a regard and mindset in the population at large for the law at every level. The

...What appears to be

undermining the effectiveness of

all this intelligence is co-

ordination, lack of resources and

critical mass gained through

coherent prioritisation...

...The first thrust is a commitment

to zero tolerance for any

infringement of any law

enforceable at a municipal level.

The second thrust relates to the

need to establish a regard and

mindset in the population at large

for the law at every level...

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New York City example is well cited in this regard. While pragmatically prioritisation may be necessary, strategically it

is crucial that a no-tolerance campaign is launched and supported at the highest levels. It is proposed that the Council

establish a sisterhood agreement with New York City to facilitate this approach. It is further recommended that the

expansion of the MPD as currently proposed is supported and if necessary expanded. To the extent that prioritisation

is required, it is anticipated that the Corporate Planning Unit (CPU) works with the Foundation and, inter alia,

Planning and Transport officials within Council to assist with this prioritisation.

This section has perhaps been disappointingly broad given the importance attached to the issue of safety and

security in terms of the Citys future. It is, ironically, its very importance that has resulted in the cautiousness of these

proposals, coupled by a feeling that only experts can address matters of such complexity in detail. Despite this,

the section has made three important contributions to the way forward in terms of safety and security in the City.

First, it has argued the case that the City Council cannot rely only on MPD activities to achieve the required safety

and security outcomes to establish conditions for economic growth. As such, the Strategy argues that a broader

safety and security capability must be established and resourced.

Second, it has suggested that, in a multi faceted, complex spiral of cause and effect, the way to look at safety and

security issues (in order to move from a spiral to a straighter line) is to refocus the paradigm away from a social

paradigm towards an economic paradigm. This shift will result in the measurement of indicators to determine the

progress and achievement of interventions, with these new measures re-prioritising actions and plans.

The third major statement of the Strategy in the area of safety and security is that the MPD has a crucial role to

play in changing attitudes towards the law in the City but that resources are required to allow it to adopt and

implement a zero tolerance strategy.

Strategy to Address Skills Shortage

A City Skills Project should be developed within the Corporate Planning Unit4 (CPU). That unit should take

responsibility for the direction, facilitation, co-ordination and implementation of the various aspects of the project.

The strategy is multi dimensional and is premised both on a chain of lifetime learning and skills development as

well as the concept that it takes a village to raise a child (Clinton 1998).

Information

The City Skills Project will need to establish a detailed database of all the Citys crches, after school care facilities,

primary and secondary schools, public and private tertiary education institutions, community centres and

museums. Information about each facilitys number of students/visitors and the facilities available will be required,

as well as a contact person in each case5. Regional Directors will assist in this activity.

In addition (as will be shown below), the City Skills Programme will be responsible for a host of initiatives, all of

which will require information collection and dissemination to industry, educational and training facilities and end-

user learners and job seekers. A comprehensive, Internet-based, informational portal on services, products and

opportunities will be crucial to the success of the programme.

124 4 The CPU will be the champion of the 2030 Strategy and will provide both an active function and a co-ordinating role within the Council.5 Much of this data collection requirement is already catered for in existing departmental plans. The difference of this approach lies in its

suggestion that the information be integrated.


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...Community centres, libraries

and museums can be powerful

tools towards establishing a

culture of learning and,

specifically in the case of

Johannesburg, a culture of

science and technology...

...The City Skills Programme must

work with Library services to

ensure that books and displays in

these venues strongly reinforce

access to technological and

business areas of interest...

125

Early

Childhood

DevelopmentPrimarySchool

HighSchool

Public

Tertiary

Institu

PrivateColleges

J obSearch

Holiday Programs

Culture of learning and technology

3 years 20 years

Socialization/ compliance

Areas of Potential Influence

Culture of Learning and Technology

The programmes described below offer ideas on how existing City infrastructure and

resources can be strongly focused to achieve a strong foundation for the skills the

economy will require. Community centres, libraries and museums can be powerful

tools towards establishing a culture of learning and, specifically in the case of

Johannesburg, a culture of science and technology.

The City Skills Programme must work in conjunction with the Citys museums and

private exhibition centres to host at least one exhibition a year targetting the five to

sixteen year old markets on a topic related to science and technology. International

travelling exhibitions of this nature do exist and corporate sponsorship and donor

funding rosters should be established. Metro Bus should budget for non-profit but

cost recovery provision of transportation where required.

The City Skills Programme must work with Library services to ensure that books and

displays in these venues strongly reinforce access to technological and business areas

of interest. Each library should host at least four speakers a year to discuss scienceand technology-related issues. The City Skills Programme will compile speaker lists

annually via networks established through other programmes. Library facilities

should be extended to offer safe and quiet spaces for after school learning and

revision. All libraries will have at least one computer linked to the Internet. Libraries

must offer school holiday programmes, especially activities related to technology and

business. The Citys Library Services must establish a twinning relationship with

international libraries with a view to transferring skills and assets. Chat rooms

between local libraries and their international twins should be established.

In the short-term, the success of this programme will be the increased usage of

library facilities (at present 25 percent). In the medium-term, success will be

measured in the higher percentage of students doing science and maths at


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126

secondary school level. In the long-term, the success of the programme will be increased enrolment in science,

technology and businesses courses at the tertiary education level.

Citizenry and Compliance Programmes

A programme must be established to ensure the enforcement of current legislation regarding attendance at

school. Truancy officers from the community in conjunction with other agencies should ensure that children of

school-going age are attending school regularly. Education programmes for parents, conducted at community

centres, will assist with this. Community centres should also operate advice centres for parents who are

experiencing difficulties in keeping their children in school.

Community centres should operate primarily as centres for lifelong learning for both children and adults. While

formal training courses are a medium-term goal, the shorter-term goals should relate to citizenry learning. Suchlearning will assist in overcoming the legacy of apartheid and township life and will provide access to information

not usually available to poorer communities. Programmes should include: workshops on water, water usage,

waste, facilities, litter, the environment and recycling programmes; gardening courses; stress and anger

management courses, household budgeting courses, introduction to banking and financial product courses;

career planning courses and interactions with community service operators (especially the police). All these small

and soft issues will collectively support a culture of learning and respect and will, over time, lead to increases in

economic productivity in general and labour productivity in particular.

The success of this programme will be measured in higher school attendance and higher pass rates as well as the

softer benefits of increased appreciation for learning, the usefulness of knowledge and empowering individuals

through self-improvement. Workshops should be facilitated by the CPUs network system and sponsorship found

in the donor community and private sector. The centralised planning of such programmes should allow for

economies of scale and sustainability.

Holiday Programmes

The City Skills Programme must devise and implement a holiday and intern programme for Grade 11 and 12 learners.

The aim of the programme is to provide learners with on the job experience and skills, together with experiences that

will help them decide what career they wish to pursue. This concept is widely adopted in Europe and the USA but

has never been part of the South African corporate culture. The Skills Programme will need to begin on a small scale

with a pilot project. The intention is that this should grow over time to become a standard activity adopted on a large

scale, by the private sector without government input. For the purposes of the pilot project, the suggestion is that

the City Skills Programme works in conjunction either with one of the existing business fora or with a particular

economic sector association. Leading by example, the Council should offer an intern programme.

Tertiary Education

It is suggested that the Council is badly positioned to intervene directly or indirectly in primary and secondary

education programmes (given national policies and provincial competencies). It is, however, suggested that

relationships be strengthened, particularly with the Gauteng Education Department.

In the tertiary sector, there is more scope for direct Council programmes. However, all proposals are mindful of the

fact that this is a highly robust (though not necessarily effective) sector in the private, public and NGO domains.

There are literally hundreds of initiatives in this area and, whatever actions Council takes, the first step will be toappraise what programmes currently exist and to place Council initiatives either within such programmes or in a

complementary or facilitating role.


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The motivation for involvement in this area arises from the employment/education

graph in the Foundation which shows that a matric student with a two-year post

school training is three times more likely to find employment than a matric learner

with no further training or tertiary education of any kind. It is clear from this that skills

specific training is crucial to the future development of the City. The City Skills

Programme will need to interact in this arena from both a supply and demand point

of view.

On the demand side, the City Skills Programme must assist in getting information to

students about reputable course operators and must ensure that disreputable

operators are closed down. The possibility of introducing by-laws to control

educational facilities as well as accreditation enforcement should be investigated asan avenue for managing the proliferation of fly-by-night operators.

On the supply side, the City Skills Programme can play a pivotal role in strengthening

the relationship between City-based industries (particularly the Citys preferred

industries) and the suppliers of training so as to ensure a better skills match. This role

is undertaken at a macro level by the nationally established Sectoral Education and

Training Authorities (SETAs). However, the complexity of the system and its

bureaucratic nature has resulted in slow and often poor implementation. The City

Skills Programme should position itself beneath the official SETA layer and should, via

the networks established in the section on Accelerating Growth Focus Areas (see

later in this chapter), establish a direct channel between the Citys training suppliers

and the Citys sectoral interests. This channel can then be used to feed back

information on syllabus development, quality of graduates and changing needs, as

well as providing a database and network for the holiday placement programmes

mentioned above.

An example of how this could operate can be seen with respect to the tourism

industry. The City is aiming to position itself as a key MICE (meetings, incentives,

conferences and exhibitions) destination. To this end, it is establishing an agency to

promote this activity in conjunction with the industry. This agency will identify the

particular skills required (for example, logistical management of large conferences)

which the City Skills Programme could then communicate to the Citys training

providers within the Hospitality SETA. Students of such specific courses could then be

identified for holiday internships within the sector.

Job Search Facilities

It was noted in the Foundation that recruitment costs to City firms are extremely high,

often amounting to the equivalent of a months salary even at the lower end of the

skills ladder. To reduce these search and recruitment costs and to ensure that the match

between the labour force and industry actually materialises, the City Skills Programme

needs to look into ways of increasing the efficiency of suitable placements.

There is at present a highly profitable and robust private sector placement sector,

focusing primarily on professional and management skills. Within the public sector,

...Community centres should

operate primarily as centres for

lifelong learning for both children

and adults. While formal training

courses are a medium-term goal,

the shorter-term goals should

relate to citizenry learning. Such

learning will assist in

overcomming the legacy of

apartheid and township life and

will provide access to information

not usually available to poorer

communities...

...The City Skills Programme must

devise and implement a holiday

and intern programme for Grade11 and 12 learners. The aim of

the programme is to provide

learners with on the job

experience and skills, together

with experiences that will help

them decide what career they

wish to pursue...

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12/34

the Department of Labour offers a limited service, focusing primarily on artisan, trade and craft skills sets. Given

these alternatives, it is questionable whether the City should play a placement role and, if so, what the definitions

of such a role should be. It is the view of the authors of this document that, in the context of attempting to increase

the efficiencies of the Citys labour market, a pilot project could be launched upon which a longer-term strategy

might then be developed. Such activities are the logical conclusion of a series of interventions that aim to match

skills supply and demand. It is proposed that a sector specific placement initiative be developed within one of the

Citys preferred sectors. The system can be Internet-based and hence operate at minimal cost. Support for the

initiative should be garnered from the private firms operating in the sector as well as the training institutions that

offer courses related to that sector.

Engine of Growth Focus Areas

Spatial PlanningThe Foundation identifies the existing urban form and geography of the City as a major impediment to economic

efficiency and productivity. There are a number of reasons for this.

First, the expansion of bulk infrastructure to outlying areas with low usage rates and low densification patterns

undermines the commercial viability of the utility companies providing services and places enormous financial

strain on the Councils limited resources (for example, Walkerville).

Second, unplanned and ad hoc densification and commercial nodal sprawl in formerly residential areas lead to

utility inefficiencies due to a lack of appropriate infrastructure (for example, Sandton).

Third, substantial existing infrastructure is underused (for example, CBD).

Fourth, urban sprawl and poor transportation systems have a negative effect on labour productivity because of

long and expensive travel times between places of residence and places of work.

Finally, sectoral clustering has not been inculcated into the urban form, in terms of proximity to freight and cargo

infrastructure and shared specialist infrastructure resulting in transportation cost inefficiencies (Kya Sands).

The rectification of these inefficiencies will increase the GGP growth potential of the City and in this way increase

the standard of living of the Citys residents.

A New Urban Boundary

The most important and urgent intervention in this respect is the redefinition of the urban boundary. Once this is

done, the new status and its implications must be communicated to other public sector authorities, the private

sector and the public at large. This new boundary has been developed in conjunction with the work on this

document and was submitted to the Council for approval in December 2001.

The setting of the boundary is driven by the Vision and, more specifically, by the Foundation. It incorporates:

existing bulk infrastructure; existing transport infrastructure and, importantly, the new railway line; a maximum 60

minute travel time for commuters from home to office; the new economic trajectory and the demographics of the

City projected for 2030; well defined activity nodes, and key principles of sustainable development. The boundary

is as tight as is feasibly possible given forecasted demographic data until 2030 and has not been unduly influencedby existing settlements6. The outcome being sought is to establish a boundary compact enough to allow

economies of scale in service provision and increased total factor productivity via economies of urbanisation,

128

6 There are already settlements beyond the current boundary that will need to be managed and dealt with. The new boundary should be theoptimal planning boundary and settlements outside of the boundary should be seen as an issue to be managed and dealt with, rather thanas limitations to the optimal planning solution.


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without decreasing the quality of life of the Citys inhabitants or the sustainability of

the environment.

Once the boundary has been officially set, it must be enforced by all responsible

authorities. It will be essential to communicate and educate a variety of players as to

the rationale for the decision as well as the long-term implications of the new

boundary7.

In the first place, it is essential to establish certainty and avoid unnecessary rent

seeking, as the declaration of the new boundary will fundamentally affect land

prices over time.

Second, the declaration will, over time, change the property markets and individuals

perceptions about physical space in their City and their unique decisions regarding

their personal accommodation. The commercial and property development sector

will need, over time, to adopt a new philosophy towards the urban environment

and design and build according to these newly created limits. High-density low cost

housing will also need to be accepted as an idea. In marketing this concept, it is

intended that the idea of reduced City sprawl and increased City efficiency become

a shared vision of all the residents and firms of the City. Communication with the

Provincial Housing Department will be crucial in all issues related to the new City

boundary.

Land and property prices will increase over time as a result of this intervention, both

with respect to commercial and residential property. It is believed that, given the low

price of industrial and commercial property in the City at present (benchmarked

against other international capital cities), even a 50 percent price increase will

maintain Johannesburgs cost advantage as an investment location. However, given

the excess supply of commercial and industrial space at present, no short-term rental

increases are expected. On the residential side of the market, prices will also increase

over time, but will remain well below international norms. While the land and

property market adjustments of a tighter urban boundary will work their way slowly

through the market signal and pricing system, the most immediate effect will be felt

in the low cost housing market where the value of the housing subsidy currently in

place will now cover a smaller percentage of total cost (this will be dealt with in more

detail below).

On the positive side, improvements to existing properties will increase and there will

be gentrification in the traditional townships and lower and middle-income suburbs;

while additional value will be created in the economy over and above gains in total

factor productivity.

Strategic Densification, Urban Renewal and Infill

Once the City Boundary is adopted, the next task will be to devise the structural formor city structure of the City within the boundary. Research within Council suggests

that a hub and spoke concept similar to the Stockholm model is the best fit for the

...unplanned and ad hoc

densification and commercial

nodal sprawl in formerly

residential areas lead to utility

inefficiencies due to a lack of

appropriate infrastructure...

...over time, the declaration will

change the property markets and

individuals perceptions about

physical space in their City and

their unique decisions regarding

their personal accommodation...

7 It has been noted that two boundaries will possibly be required. The first will be an absolute boundarywhich is crucial for the selling of the notion. The second boundary will be the functional boundary andwill take into account the more complex nuances of boundaries and existing economic activity. This willrelate especially to the eastern boundary and to a lesser extent to a northern boundary.

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City. A definitive plan is being produced which covers recognition of existing hubs, planned new hubs and existing

hubs that do not fit into the long term vision of the City. This must be followed by the elucidation of the key spokes

(existing and required) necessary to ensure the movement of resources between the hubs. These two criteria will

lead the causality chain of the City structure so as to ensure economies of urbanisation and economies of

localisation. It will then become necessary to designate selective appropriate densification upon this economically

logical hub and spoke system within the boundary. Once optimal, appropriate densifications for the forecasted

demographic profile have been determined, this will inform designated areas for infill and open areas. The by-

product of the links in the chain above are that urban renewal will be boosted in the medium term endogenously

as opposed to the forced or exogenous renewal that is currently part of the Citys strategy. Open space strategies

will be crucially important not only with respect to providing access to leisure activities, but also for environmental

reasons such as providing water drainage areas and taking into account natural structuring elements such as

waterways and ridges. Substantial high quality work in this regard already exists within Council. Indeed, suchpockets of excellence exist that this task can and should be completed relatively easily within Council itself. Key to

this analysis will be the different parameters of the various utilities and service providers. Thus, as densification takes

place, the optimal land usage pattern must draw on existing infrastructure and future upgrade costs of such

infrastructure. It is critical that the hub and spoke structure devised and the chain of events that this will set in

motion must be based on the Vision of a service-based economy with a large percentage of white and blue collar

workers that will make up the Citys economic background.

Clearly a City structure developed for what the City will look like in 30 years time will create a disjuncture between

immediate needs (particularly related to low cost housing) and future needs. This disjuncture must be managed

but not bowed to. This will require a new strategy towards low cost housing. The new housing strategy will need

to take into account the following new environmental considerations arising out the Vision and Strategy. First the

policy should look at rental stock in the light of the fact that many low-income households may in fact migrate

over time to cities that offer greater opportunities to less skilled workers. Second the policy must look at

accommodation options given that the price of land will increase and higher densification occur. Third the policy

must consider that incomes will increase substantially over the next thirty years and low cost housing demand will

decrease as the demand for middle and upper income housing increases.

Political support to empower decisive city structure policy determination and to accept the consequences8 of such

a policy is the key to the success of this intervention. Also crucial to the success of the plan is the effective reduction

of crime a major determinant of commercial and urban sprawl and degeneration to date. General safety and

security policies as well as specific policies to retain activity in established economic hubs that are being threatened

by crime are key issues. The implementation of the spatial plan in the absence of the addressing of crime will result

in the relocation of residents and firms out of the City. Once again addressing crime remains the lynch pin for the

success of this intervention.

Also of enormous importance is the need for the effective enforcement of by-laws as they apply to building codes,

environmental management, informal trading and land use rights. A strategy to deal with the shortcomings of the

current enforcement strategy needs to be tabled as an adjunct to the city form strategy.

Utilities

Utilities and their service provision are usually the number one priority for a city council. In this scheme, utility

services enter the strategy as a fourth focus area, not because of decreased importance, but because to discuss

130

8 Negative consequences need to be accepted, and tier two planning must be implemented to manage such consequences. Certain critiquesof the Citys planning functions to date have arisen from the perceived desire of the City to minimise negative consequences resulting in suboptimal planning. A new philosophy of optimal planning and consequence management is proposed.

9 The argument here is that at present firms and residents can escape crime by relocating to less affected areas, usually on the periphery ofexisting areas. Once this movement/sprawl is curtailed by a tighter City boundary, the only option of those who feel the need to escape will becomplete relocation.


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utility service provision outside of economic growth scenarios and urban

management strategies is to continue to view utilities from the traditional perspective

that led to a myriad of problems in the past.

The actions, programmes and interventions necessary to increase the effectiveness,

efficiency, service levels and competitive cost structures of the utilities operating in

the City have, to a large extent, been addressed by the spatial planning interventions

mentioned above. As mentioned in the Foundation, the most pressing threats to the

utilities at present are: ad hoc densification in hubs that were not planned or

foreseen, low usage and low densification in other areas and under utilisation of

existing infrastructure in a third set of areas. A tighter City boundary and the

implementation of planned hubs, planned densification and planned infill will allassist the utilities in the commercial viability of their businesses by allowing the

exploitation of economies of scale and a reduction in the geographic expansion of

bulk infrastructure to low income periphery areas. In addition, the citizenry

education programmes suggested in the City Skills Programme above will assist in

developing a better educated client population which will, in turn, increase usage

levels where appropriate (electricity) but decrease usage levels in other areas (litter

pick up services).

The spatial planning initiative presented above will allow the utilities to decrease

expenditure on new low usage expansion capital and allow the reallocation of

resources to expansion capital and new services in increasingly concentrated areas

on a more commercially viable basis. This shift will result in three outcomes. First,

new expansion services will be of a higher quality and more cost effective to end-

users. Second, the utilities will be able to increase allocations to refurbishment,

maintenance and upgrading of existing services, thereby ensuring the continued

advantageous locational advantage of the City on the basis of its first world standard

services. Third, such a shift in urban form will allow for lower cross subsidisation

tariffs between firms and households. Research suggests that some of the utilities are

getting remarkably close to the edge of industry tolerance thresholds with respect to

tariff increases. In order to protect the current economic base of the City, it is crucial

that cross subsidisation (which leads to higher industrial rates) is contained.

The effects of better urban management and the above spatial programme will take

time to filter through to the utilities. In the meantime, the Council should implement

assistance support programmes for the utilities. These could include, inter alia:

aggressively implementing the citizenry education programmes mentioned above10,

actively supporting maintenance and refurbishment budget allocation11, assisting in

the creation, costs, running and analysis of utility-specific databases and actively

supporting the creation of external income streams to the utilities.

In a different vein, the Council must support a closer working relationship between

the utilities, the Skills Development Unit and the Environmental function of the

...This disjuncture must be

managed but not bowed to. This

will require a new strategy

towards low cost housing. The

new housing strategy will need to

take into account the following

new environmental

considerations arising out the

Vision and Strategy...

...The spatial planning initiative

presented above will allow the

utilities to decrease expenditure

on new low usage expansion

capital and allow the reallocation

of resources to expansion capital

and new services in increasinglyconcentrated areas on a more

commercially viable basis...

10The aim here is to increase usage levels, increase payment levels, increase safety (especially regardingelectricity cables and garden sites) and increase civic responsibility regarding infrastructure e.g. calling infaults, reporting illegal connections, and decreasing thefts.

11As shown in the Foundation, such budgets will assist in increasing existing capacity, increasing servicestandards, decreasing wastage and overall increases in the efficiency and sustainability of the asset baseand operational budgets.

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132

Planning Function within Council to ensure that the economic growth forecasted in the 2030 Vision is

environmentally sustainable. If not managed in terms of environmental consequences, economic growth could

result in problems currently experienced in first world countries such as air quality issues. Agenda items such as

alternative fuel sources, energy efficiency, waste generation and management and water usage will all need to

be addressed.

While the first two programmes already exist on

Councils strategy radar screens in various forms, the

latter two suggestions are more nascent in their

development and require some additional

explanation. Interviews with the utilities, as well as

documented information, show that the datasystems upon which strategic and operational

decisions are made are by and large sub optimal in

most of the utilities. This is particularly true with

respect to industrial and commercial users and

informal settlements; less so with respect to formal

residential users. Data collection and management

in South Africa in general is of a very poor quality

and there are limited skills in this profession resulting

in massive price tags for any serious primary data collection and management system. Centralisation is the key to

containing costs. Another benefit of centralised data collection is the ability to tag and cross reference data sets so

that industry-specific as well as macro economic trends can be factored into strategic planning. For example, PikItUp

needs to be able to categorise the waste of each and every industrial firm in the City so as to provide the correct

disposal facilities for these activities and identify unlawful disposals. At the same time, water sanitation authorities

need to know which industries are likely to grow and hence gear up for special needs arising from such industries.

The micro and macro economic interplays suggest that a multi faceted and robust data system and model should

be developed at a non-residential level. It is therefore proposed that the Council establish a sophisticated and

dedicated information and data competency, one aspect of which will be data necessary for the effective and

efficient provision and costing of services from the utilities. This idea will be expanded on in the next section.

The second programme that should be adopted by Council relates to assisting the Citys utility providers with

foreign direct investment (FDI), on the one hand, and export opportunities on the other. This function is akin to

the trade and investment facilitation services offered by organisations such as Trade and Investment South Africa

(TISA) at a national level and the Gauteng Economic Development Agency (GEDA) at a provincial level. While there

are concerns about the timing of the introduction of an export focus given operational constraints at home, the

overall principle remains that exports are important and that the introduction of outward looking operations

should be embarked upon sooner rather than later.

Despite the commercialisation of the Citys utilities (through Egoli 2002), trade and investment in this sector

requires government support as a means of providing credibility and diminished risk to potential trade

counterparts and potential investors. On the trade side, it is suggested that the Council support its utilities

positioning on the sub continent via participation in African fora and marketing initiatives. There are numerous

contract opportunities on the sub continent, ranging from consulting to BOT (build, operate, transfer) contracts.While the Citys utilities may not wish to enter this market actively at present, it is important that they establish their

brand and positioning as such international contracts will be bid on by well known international players


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(particularly former colonial interests) and competition will be stiff. In the short-run,

such activities will increase foreign income flows to the utilities, allowing for such

streams to be used to cross subsidise local activities. In the long run, such activities

will allow the sector (identified as a preferred sector in the Foundation) to grow and

increase its contribution to employment and GGP. Such flows are important at the

national macro economic level in respect of FDI. They also offer opportunities for

technology and skills and niche market specialisation. The positive impacts of the

American firms influence on Egoli Gas can be seen as a success story and benchmark

in relation to this idea.

It is proposed that it is unnecessary to develop an outside agency such as TISA or

GEDA for this purpose, but that instead a Utility Trade and Investment Functionshould be established within Council. The success of this unit would be measured

directly by increased FDI and increased exports of utility services, and indirectly by

increased employment and GGP contributions by the sector as a whole. The success

of the programme will be felt over time via lower cost increases to local users,

increased efficiency, new product development and higher service standards.

Telecommunications

Johannesburg is home to the lions share of South Africas ICT industry. As a City

whose vision it is to become a service-based economy with a large middle-income

population, the importance of telecommunications to our nations economic capital

cannot be underestimated. However, the negative impact of insufficiently high

quality services coupled with the very high user charges of the existing

telecommunications sector threatens the ability of the City to achieve this vision. In

the absence of the provision of better, more cost-effective telecommunication

services, Johannesburg will not be able to use technology optimally in order to

operate a cyber government and increase access and efficiency; nor will it be able

to attract and retain businesses with a high demand for bandwidth or those offices

that operate as subsidiaries or hubs and hence require video conferencing and other

sophisticated ICT products. The loss or failure to grow such industries will

fundamentally decrease future growth and employment opportunities in the City.

Insufficient telecommunications competitiveness will also jeopardise the Citys role as

a hub for sub continental business operations both directly and indirectly.

With the Telkom exclusivity period ending, the timing is perfect for the Council to

begin making clear its intentions in the telecommunications field.

It would, however, be fruitless for the Council to develop a detailed programme at

this stage, given vacillating national legislation and the lack of recognition of the role

or potential role of local councils in telecommunications provision. It is rather

proposed that the CPU develop a five-year plan aimed at establishing the role of the

City and its telecommunications infrastructure. The first step would be to develop a

position paper. This should be circulated and lobbied at provincial and nationalgovernment level, explaining why Johannesburg must become a direct participant

in an industry that will (after the development of the skills base of its labour force)

...If not managed in terms of

environmental consequences,

economic growth could result in

problems currently experienced in

first world countries such as air

quality issues...

...In the absence of the provision

of better, more cost-effective

telecommunication services,

Johannesburg will not be able to

use technology optimally in order

to operate a cyber government

and increase access and

efficiency; nor will it be able to

attract and retain businesses witha high demand for bandwidth or

those offices that operate as

subsidiaries or hubs and hence

require video conferencing and

other sophisticated ICT products...

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prove to be its most important economic input. It is suggested that the position paper be supported by a workshop

of international best practice, sponsored and run by the Council, and that overseas city representatives be invited

to explain the methodology, applications and outcomes of their various city initiatives. Once the Citys viewpoint

on this issue has gained political currency, the CPU should work on a business plan phase, indicating the specific

commercial options it would seek to pursue. This business plan proposition should be ready when a third

operators license is granted. Throughout this process, the designated CPU officials should draw heavily on

sisterhood agreements and international experience as well as the local ICT industry (which has already

expressed interest in supporting such an initiative). Given the long-term nature of the project, it is suggested that

internal capacity be developed and that the process be determined in-house with the support suggested, and

not by fundamentally relying on the consulting industry.

The final success of this programme will be increased bandwidth and service provision at lower costs inJohannesburg, as well as a comparative and competitive telecommunication advantage for the City over other

sub continental and local cities. Indirectly, its success will result in the growth of the ICT industrys contribution to

employment and GGP as well as increased corporate and international headquartering in the City as the hub of

choice. Failure to achieve success in this programme will result in the inability of the City to move towards a service-

based economy and will leave the economy on a low growth trajectory, unable to generate the sufficiently high

levels of GGP growth necessary to increase the standard of living and quality of life of the Citys residents.

Transport

Commuter Transport

A variety of transport actions and programmes are required, many of which have already been absorbed into the

relevant departments within Council. The proposals below revolve around two essential shifts in perspective

regarding City transport. The first shift involves reprioritising the transport agenda from its predominantly

commuter-based focus to a focus that more even-handedly balances the issues of commuter transport with those

of freight and professional business transport. The second shift involves a paradigm shift informed by the

anticipated change in per capita income levels and hence the future private car to household ratio and its

potential impact on congestion and pollution.

At present City mobility issues relate strongly to the movement of people, with little emphasis placed on the

movement of goods or professional business movement. The efficient movement of people, in economic terms,

relates to labour productivity and, in social terms, to quality of life and access to facilities and jobs. In absolute and

relative terms, mobility of people within the City operates fairly well. Travel times, monthly transport costs and

access to transport generally fall within acceptable international norms. Improvements in all of these variables can

be expected if the spatial planning framework mentioned above is implemented. This is not to say that substantial

operational short-term issues do not require attention.

The short-term priority list includes some essentials such as increasing the safety of taxis, their passengers and other

road users; as well as increasing the efficacy of intermodal connections and transport routes. Both these will be

supported by the hub and spoke concept proposed above. However, these interventions are not strategic in line

with the Vision. What are strategically important in terms of commuter transport are the impact of the proposed

Gauteng provincial rail system, the inevitable increase in private car usage and the attitudes of car users towards

public transportation. In the face of rising incomes, increased densification and increasing congestion, the

strategic commuter transport issue is a fundamental increase in the provision of public transport and the increasedusage of such transport by a variety of different users (different quality options).

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Recommendations with respect to commuter transport are obviously strongly based

on whether or not the Council will establish a Transportation Authority. At present it

is unclear whether the advantages of such an authority outweigh the cost, as well as

whether it is worth having a metropolitan authority given the size and operation of

the provincial economy. As a first step in the Citys transportation strategy, it is therefore

suggested that a task team be established to determine whether or not to establish

such an Authority. Broad level research, interviews and assessments (particularly

looking at the Durban cost benefit analysis) suggest that a Transport Authority may

not be strategically important for the Council in achieving its transportation goals.

The second requirement of the transport strategy is that it incorporates the two shifts

mentioned above. It is proposed that the current strategy be reworked to focus onthe importance of freight and cargo transportation both within the City and to

export destinations, as well as a massive increase in the provision of public transport

for a population with an increased private car base and a higher than current

disposable income level. Public transport for a population, most of whom do not

own private cars, is a totally different ball game to providing public transport for a

population most of whom do own private cars. In this scenario, usage shifts from

necessity to choice and hence impacts on the quality and required advantages of

public transportation.

The success of this programme by 2030 will be measured by a slow down in the

purchase of private motor vehicles as citizens become comfortable relying on public

transport, decreased usage of private vehicles during the week as they move from

home to office, and a sufficiently deep transportation system so that the entire area

within the City boundary is evenly catered for. A final success determinant will be the

environmental sustainability of the new transport system and its effect on pollution

and air quality as key elements to the quality of life in the City.

The starting point for the above commuter strategy determination must be the

GauTrain proposed route. It is therefore recommended that an official City task team

be set up to work with Blue IQ at an official and formal level regarding routes, feeder

systems and forward planning related to the train. From this will follow a support

strategy which overlays the hubs and spokes mentioned in the spatial planning

section above and concretely depicts what capacity, quality and options for

transportation can be accommodated for each hub and spoke. In this area, as with

spatial planning, a fundamental shift of paradigm is required, moving from a one-tier

based plan that deals with requirements in the current status quo to a two-tier

planning process which incorporates the former, but which is augmented by a

longer-term strategy based on the 2030 Vision. Once again, optimal long-term

planning is required, while at the same time undertaking short-term management of

existing problems.

Commercial and Industrial TransportationMany of the proposals for interventions with respect to commercial and industrial

transportation are covered under Accelerating Growth Focus Areas as they relate to

...The first shift involves

reprioritising the transport agenda

from its predominantly commuter-

based focus to a focus that more

even-handedly balances the issues

of commuter transport with those

of freight and professional

business transport...

...The short-term priority list

includes some essentials such as

increasing the safety of taxis, their

passengers and other road users;

as well as increasing the efficacy

of intermodal connections and

transport routes...

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1 Normative statements

the micro economic aspects of the transport industry as an economic sector. At the level of City efficiencies,

however, a variety of actions and programmes are required.

In the Foundation, survey information and research showed that City-based firms do not believe that the Citys

transport infrastructure operates in a manner that aids their access to sub continental markets or their endeavours

to operate hub services with respect to overseas import and export activities. The importance of exports was well

documented in the Foundation where it was shown that the failure to ensure that the City operates as an efficient

hub will not only limit GGP growth of existing City operators, but will decrease the likelihood of attracting new

market entrants. Unfortunately, the solutions to these problems fall outside the direct jurisdiction of the City.

However, just as this document has proposed a new role for the City in relation to telecommunications, so it is

suggested here that the City must, of necessity, establish a new role for itself with respect to the operations ofvarious parastatals in the transportation business.

Thirty-five percent of the countrys exports move through Johannesburg and the largest inland port in Africa is

located here. It can, therefore, be strongly argued that it is in the national interest that Johannesburgs industrial

and commercial transport system be improved. The key efficiencies to be gained are not in the area of

infrastructure expansion, but relate rather to the operations of Portnet, Spoornet and Transnet.

It is therefore proposed that the Council establish a Business Transport Division within its existing transportation

structure. This new division will be required, firstly, to deal with a range of issues fundamentally different to

commuter transport issues and hence requiring different skills and dedicated resources. The Business Transport

Division will also ensure that the Council has the in-house expertise to assist with the economic growth of the

transportation sector as an economic sector in its own right (see Accelerating Growth Focus Areas below). Once

this division is established and has been sanctioned by the national and provincial transport departments and the

Department of Public Enterprises, its first task will be to establish a formal and recognised channel of

communication with Transnet, Spoornet and Portnet. This should be followed by a series of information-sharing

and strategic discussions aimed at informing these entities of the details of the Citys business transportation

constraints and its future Vision. A joint undertaking must then be negotiated.

Once this stronger relationship between the City and other national players has been established, the Business

Transport Division must formally and officially participate in the City Deep Blue IQ and the J IA IDZ projects.

Participation must not only be representative but must be proactive in terms of tabling the issues and concerns of

City-based firms. To this end, the Business Transport Division must create a City forum of transport players and

operators as well as a necessary database of sectoral activities. The division must, for example, table issues relating

to the need for a freight village or increased group services, as well as supply chain management activities12.

Four other specific strategic interventions and programmes are suggested for the Business Transport Division. First

the team must develop a position and strategy for a boutique professional commuter airport. This development is

crucial if the City is to operate as a sub continental hub in the business services sector. It will also support the tourist

sector of the City (especially international MICE events and high end business tourism). The Foundation supports

the development of this Stanstead type airport at Lanseria13. As such, a broader development and integration plan

must be developed in conjunction with the Airport Company, together with a variety of support facilities for the

initiative, including marketing, property development, infrastructure upgrades and negotiations with relevantauthorities and airline operators.

136

12At present the City Deep Project in particular is focused primarily on infrastructure issues. The addition of commercial perspectives and issuesof economies of urbanisation will increase the value of the project enormously.


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1 Normative statements

Second, the Business Transport Division must create a database with forecast

capabilities that overlay the hub and spoke spatial plan and take into account the

GauTrain so as to determine the demand for professional business travel connected to

the service sector. The movement of such professionals will increase as the new

economic trajectory develops. This will provide a whole new market segment that has

never before been catered for in Johannesburg. As with commuter transport above, it

will be crucial to move this sector onto public transportation so as to avoid congestion

and increase factor productivity. Such commuters will have different needs and must

be planned for as a market fundamentally different to the daily work-to-home

commuter market.

Third, the team must develop a task force to consider options and programmes toincrease the safety and security of all modal shipments within the City. Hijacking of

road haulage shipments and railway containers and port thefts are resulting in

increased costs, decreased reliability and distortions between modal options. The

task force must operate with existing players in this field. It is felt that the very

existence and funding of such a task force will increase focus on an area that does

not receive sufficient acknowledgement at present. For those sceptical of the

importance of this issue given other aspects of crime which appear more pressing, it

is important to stress that the Monitor (2000) report shows that, whereas the road

haulage sector in Johannesburg is internationally competitive with respect to fuel

costs and wages, its overall international price competitiveness has eroded due

simply to high cost of insurance premiums.

The final project of the Business Transport Division must be the upgrading and

increased usage of the Citys weighbridge system. A Public Private Partnership should

be immediately established to run the twenty weighbridges currently owned by the

City. The success of this programme will be measured in lower road maintenance

costs, fewer overload related accidents and a more responsible transportation sector

displaying respect for the Citys laws.

Accelerating Growth Focus Areas

Information Systems

The Foundation, as well as some of the programmes mentioned above, identifies the

need for reliable, accurate and appropriate information and data systems to ensure

appropriate policy decision-making, implementation, co-ordination and resource

allocation. Information and data collection in South Africa is generally very poor and

well below international standards. When characterising the quality of information

related to economic and social activities at the City level, the picture is even more

serious. Very little primary data is collected at a City level. Even where City data is

directly collected, it is often collated at magisterial district level in a manner that

precludes rigorous disaggregation. More often than not, City data is the result of

disaggregated national and provincial data and cannot be considered sufficiently

reliable for application to the tasks mentioned above.

...Thirty-five percent of the

countrys exports move through

Johannesburg and the largest

inland port in Africa is located

here...

...Hijacking of road haulage

shipments and railway containers

and port thefts are resulting in

increased costs, decreased

reliability and distortions between

modal options...

13713Some experts have suggested that Grand Central Airport may be a viable alternative to Lanseria with

respect to developing such a facility. Grand Centrals lack of international status, doubts as to whether itcould receive such status, as well as the R190m investment in Lanseria over the past 3 years, its marketshare of corporate business and its negotiations with the commercial airline suggest that it is well alongthe path to becoming the most viable option for a boutique airport.


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Planning at a national, city, household or firm level requires two essential inputs: a vision of what one is planning

for and information about how things stand at the present and how things are changing as time progresses. The

Council has made a strong investment in creating a Vision for the City. For any strategy to work effectively towards

a vision, an equal commitment and investment must be made to creating an information network to support the

journey. Building such a network in Johannesburg will represent a massive undertaking in terms of time, skills,

commitment and financial resources. Its success, however, will result in hugely increased efficiency in planning,

greater monitoring and feedback systems. These will keep planning robust and result in increased efficiency of

services, service provision and service matching, increasingly appropriate investment and sales decisions as well as

better utilisation of overall person power and financial resources in both the public and private sectors.

The following is an incomplete list14 of the broad areas where data and data systems are required15: rates and taxes

system, geographic information systems (GIS), City infrastructure and capability systems, macro economic cityindicators, micro economic sectoral indicators and, in some instances, firm specific indicators.

A City Informatics Capability must be established as a matter of urgency. An entirely new department would

probably be an optimal organisational recommendation. One of the first tasks of this unit will be a strategic

determination of the degree of centralisation that would be optimal in its operations. In order to achieve this, the

first step will be an audit of all existing databases and systems within Council and the private sector, the utilities

and other public sector data service providers. The audit should look at the quality of the data, the integrity of the

system in terms of collection and management and the appropriateness of the data sets collected. A cost benefit

analysis will then assist in determining the degree of centralisation that will produce optimal outputs.

The second task of the new unit will be to present a business plan that describes what will be internally centralised

in the Informatics Department, what will be outsourced and, most importantly, how the centralised and

decentralised functions will interact.

The third task will be the specific designation of what data sets are required and with what measurement periods

and how such information is to be captured and systematised.

The fourth aspect of operations will be to determine the commercial and financial implications of the above and

to negotiate the appropriate passing on of costs and cost recovery.

The final aspect of this project will be the determination of information accessibility both in terms of delivery

mechanism and access.

The Informatics Units second major programme will revolve around disseminating, analysing, cross referencing

and cross tabulating information and ensuring that such information is included in planning and resource

allocation decisions. The Informatics Unit will be deemed a success when it becomes seen as a crucial resource by

and for all the Citys economic players to the extent that they do not make decisions without inputting information

from the Unit into their specific plans.

The above discussion has been very high level, as a detailed discussion would be too onerous for a document of

this nature. However, a few examples may assist in concretising some of the above ideas.

Example One: the data system should be such that the sectoral information system helps the sanitation utilities

determine what the growth of future organic load is likely to be and assists them in determining their future

14 Only data driven systems are considered here. Purely administrative systems are excluded.15 although many of these systems exist, they may be sub optimal, dirty, outdated or incorrectly specified

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...For any strategy to work

effectively towards a vision, an

equal commitment and

investment must be made to

creating an information network

to support the journey...

...the Foundation clearly shows

the body of academic and

practical research that supports

the effectiveness of increased

institutional depth regarding

networking systems and

structures, particularly as they

pertain to growth in particular

sectors...

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capacity needs. Example Two: the Citys macro economic indicators should indicate

changes in disposable income by physical location sufficiently that the waste utility is

able to anticipate increased waste tonnage prior to demand outstripping supply.

Example Three: the Citys sectoral database should indicate four-digit SIC code

growth sufficiently that a potential investor in the freight-forwarding and clearing

industry should be able to pick up a unique opportunity for a new business

development in supply chain management for a given four-digit sector.

Increased information flows are no longer merely a nice addition to increasing total

factor productivity in a city, as was the case in the 1970s and 1980s. Information in

the 21st century is a necessary requirement for international competitiveness,

effective operations and the ability of an economy to keep pace with a rapidlychanging environment. Increased information flows will directly increase total factor

productivity and increase profitability, sales and GGP. Moreover, a sustainable

information system will provide the Citys economic players with the tools to remain

relevant in a rapidly changing environment an environment that closes and opens

opportunities in a time period as short as a financial year.

Networking Systems and Structures

The Foundation clearly shows the body of academic and practical research

Documents

Joberg_2030-strategy.pdf