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Joburg 2030

Johannesburg’s Economic

Development Strategy

Population

Joburg is South Africa’s most

populous city, with 3.2 million

people in just over one million

households.

Demographics

Population of SA Metros

2,500,000

3,000,000

3,500,000

1 02.09.2003Dr TA van der Walt

households.

Our population is growing

rapidly, largely due to the

migration of young adults from

other parts of the country. 0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Cape Town

Johannesburg

Durban

Persons

Joburg is a world city

• According to an international academic think-tank

Johannesburg is Africa’s only world city

(Universities of Chicago, USA and Loughborough, UK)

• This is due to the concentration of business and • This is due to the concentration of business and financial services within the city.

• Joburg serves as a regional hub for banks, accounting companies, insurance firms, legal, media, medical and related companies, as well as for corporate head offices.

Joburg is the business hub of South

Africa• 74% of corporate Head Offices are in Joburg

• 59% of IT enterprises in SA along with the large majority of accounting, legal and media firms

• The Johannesburg Securities Exchange is the largest stock • The Johannesburg Securities Exchange is the largest stock exchange in Africa, operating since 1887, with a market capitalisation similar to that of Singapore, Kuala Lumpur

• Quality of life in Joburg has been rated at 83 in a global survey (New York = 100) (WM Mercer)

• Economist Intelligence Unit rates Joburg as the world’s eighth cheapest city for business (2001)

• Sophisticated retail and property markets

Historical Development of the

Johannesburg Economy

From Mining to Manufacturing to Financial Services

…. And on to the knowledge economy….

The Four Economic Cycles of Johannesburg

Mining Manufacturing Financial Services

and Other Services

Emerging Knowledge

Economy

City of Cape Town

Ethekwini

Nelson Mandela

Comparative size of economy

by Metro 2001/2

0 50,000,

000

100,000

,000

150,000

,000

200,000

,000

City of Joburg

Ekurhuleni

Tshwane

City of Cape Town

Comparative average

growth rates by Metro

1997/8-2001/2

GVA annual average growth 1997/8-2001/2

4.0%

5.0%

6.0%

0.0%

1.0%

2.0%

3.0%

4.0%

Joburg Ekurhuleni Tshwane Cape Town Ethekwini Nelson Mandela

Annual average % growth GVA

1997/8 - 2001/2

Average annual growth

1997/8 – 2001/2

0

2

4

6

Joburg Gauteng RSA

Number of formal jobs in Joburg 1998-

2002

Formal jobs in City of Joburg

1,100,0001,150,0001,200,0001,250,0001,300,0001,350,0001,400,000

1 2 3 4 5

Rate of unemployment in Joburg

(expanded definition) 1996-2002

Rate of unemployment

32

34

24

26

28

30

Year

Economy

• Joburg generates 16% of

South Africa’s GDP

• Our economy is highly

diversified

• Finance and Business 20%

25%

30%

35%

9 02.09.2003Dr TA van der Walt

• Finance and Business

services contribute about one

third to our economy, followed

by trade and manufacturing.

0%

5%

10%

15%

Fina

ncial &

Bus

ines

s Se

rvice

s

Trad

eMan

ufac

turin

g

Socia

l/Com

mun

ity S

ervice

s

Tran

spor

t & C

omm

unica

tions

Cons

truc

tion

Oth

er

Composition of City GGP

Composition of Employment

Housing

Apartheid left us with

enormous backlogs in the

provision of infrastructure and

services. Large strides have

been made over the last ten

Housing

Dwelling Type

900,000

6 02.09.2003Dr TA van der Walt

been made over the last ten

years but much remains to be

done.

The number of formal houses

grew from 550 000 to 790 000

between 1996 and 2001 many

of which are subsidised units. 0100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Formal

Informal

Traditional

Other

Households

Source of energy for

lighting

The City has made enormous

inroads in the provision of

electricity to households. 85%

Services

Lighting

800,000

900,000

12 02.09.2003Dr TA van der Walt

electricity to households. 85%

of households now have

electricity.

The number of households

using electricity for lighting

grew from 600 000 to 850 000

between 1996 and 2001. 0100,000

200,000

300,000

400,000

500,000

600,000

700,000

Electricity

Gas

Paraffin

Candles

Solar

Other

Households

Refuse

The number of households

receiving a weekly refuse

Services

Refuse

800,000

900,000

1,000,000

13 02.09.2003Dr TA van der Walt

receiving a weekly refuse

removal service increased

from 600 000 to 900 000

between 1996 and 2001.

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Munic Weekly

Munic Other

Communal

Dump

Own Dump

No Disposal

Households

Education levels of

individuals older than

20 years

The proportion of people in the

Education

Education levels - Over 20

700,000

800,000

900,000

11 02.09.2003Dr TA van der Walt

The proportion of people in the

city who attained a Grade 12

and Higher education has

increased substantially.

The number of people with

higher education almost tripled

between 1996 and 2001.

0

100,000

200,000

300,000

400,000

500,000

600,000

No Schooling

Some Primary

Complete

Primary

Secondary

Grade 12

Higher

Persons

A long term vision

In 2030 Johannesburg will be a world class city with

service deliverables and efficiencies which meet world

best practice Its economy and labour force will

specialise in the service sector and will be strongly

outward orientated such that the City economy

operates on a global scale. The strong economic operates on a global scale. The strong economic

growth resultant from this competitive economic

behaviour will drive up City tax revenues, private

sector profits and individual disposable income levels

such that the standard of living and quality of life of

all the City’s inhabitants will increase

in a sustainable manner.

Joburg 2030- strategic approach

• The City has a major impact on the investment climate

• City’s financial position will improve with economic growth and development

• City’s financial position will improve with economic growth and development

• Align all Council activities to the strategy

• Create a conducive environment for private sector investment

• Create partnerships with business

Strategy to nurture a

growth cycle

CONDUCIVE

ENVIRONMENT

FOR

INVESTMENT

INCREASED

EFFICIENCY

OF

NEW

INVESTMENT

OF

INVESTMENT

JOBS

Accelerating

activities

MORE TAX

REVENUE

AcceleratingActivities

Sector support

Areasupport

SMMEsupport

Invest-ment

facilitation

ConduciveEnvironment

Efficiency ofInvestment

Safetyand

Security

Urban regulation

CouncilAccountManage-ment

Land useapplicationManage-ment

Skills

UrbanForm

TransportEfficientServices

Infra-structure

J2030 projects

Sector Support ICT, Call centres, creative industries, Freight and logistics

Area Regeneration Inner City, Randburg, Soweto, Nasrec, Lenasia,

Safety and security City Safety Strategy and institutional co-ordinationco-ordination

Skills Meeting labour market requirements in the long term

SMME support Informal Trading, Open For Business, Clothing sector (fashion district)

Investment

facilitation

Business liaison, BEE, investor

assistance

Data and Research Economic overview