Tshwane, South Africa’s Capital 2055:“Four Decades of Game Changing”

By Msizi Myeza OBO Deputy City Manager: Ms Lindiwe Kwele

23 August 2012

Content• Part 1: Background and introduction

• Part 2: Paradigm shift, conceptual framework and Principles

• Part 3: Economic outlook and recent global developments

• Part 4: The GDS outreach process and process plan

Introduction • Tshwane, South Africa’s Capital 2055 (Tshwane 2055) strategy

formulation process

• Analysis of the levels of challenges, weaknesses and threat • Demographics shift, urbanization, and migration; • Resource (energy and water) security;• Poverty, unemployment, underdevelopment, and inequality;• Youth bulge, mobility challenges; and• Seismic global economic shifts;• Climate change issues;• Spatial fragmentation;• Weak institutions

Part 1: Setting the scene and Key drivers of change: Opportunities

• Opportunities and assets and strengths : • Strong knowledge and science base (Innovation capital)• Youthful City • Economic infrastructure investment potential • Urban Agriculture potential• Green economy opportunities• Tshwane as a Capital city of the South Africa• Headquarters of embassies• Innovation centre • Concentration of academic institutions -academic belt

Part 2: What is a Tshwane, South Africa’s Capital 2055 ?

• Tshwane 2055 is NOT a plan.

• It is an aspirational long term strategy framework aimed at galvanising resources and stakeholders within which shorter term actions can meaningfully take place towards a shared vision.

• It defines the City’s chosen development path for the city

• Informed by the Freedom Charter (1955), the RDP (1994) and the South African Constitution

Part 2: Successful Cities and long term planning

• Long-term planning to facilitate growth• Successful cities address the needs of the poor• Provide high quality of living experiences • Well connected, well governed and well managed • Bankable- financially sound and creditworthy• Issues of fiscal sustainability at the fore

Part 2: Tshwane, SA’s Capital 2055 Principles

• Tshwane 2055 strategy guiding principles • Spatial reengineering, curbing sprawl and densification • Diversified and shared economic development• Safe and healthy City for all• Revenue security and financial sustainability• Social cohesion, inclusion and diversity • Service delivery excellence and innovation • Integrated economic, social and environmental strategies• Participation, engaged citizenry, collaboration and

partnerships

Part 2: Government- wide Outcomes Based Approach

Tshwane 2055

IDP

Business & Operational plans

SDBIP/CIF

Part 2: Tshwane, SA’s Capital 2055 Policy and strategy emphasis shifts• Areas of focus:

• Modernising the administration • Infrastructure-led development • From a concentration on individual household infrastructure to

balanced investing in community benefit infrastructure & individual households

• Celebrating Tshwane a National Capital & Repositioning the Inner City• Create opportunities for social mobility and liveability • Ensuring municipal financial fundamentals as platforms for services &

development• Develop green and knowledge based economy • Each policy proposals, will outline actions or processes that need to

occur

Part 2: Key Thematic Focus Areas• Governance• Health and poverty• Economic growth• Natural resources • Sustainable Environment :-Transition to a low carbon economy• Transport• Liveable communities• Community safety• Smart city

Part 3: Economic outlook and recent global developments

• Global economic activity is weakening after picking up in quarter 1 of the 2012; a “soft patch”, but the risk of another recession remains significant

• Manufacturing activity, a key driver of global economy, is weak• A pattern of global growth, characterised by:

• Growth in the US and emerging economies is positive, but the pace of growth is weak

• Europe and the UK are contracting• Emerging economies remain the leading growth drivers• Key risks

• Fiscal difficulties in peripheral Eurozone countries – spreading to core economies!

• Unemployment rates remain high

Part 3: Most problematic factors for doing business in South Africa (2010-2011)

Source: World Bank Study Cost of Doing Business, 2010/11

Part 3: Gauteng’s Economic Profile •Gauteng comprises 1.4% of RSA land mass.• contribute 34% to the national GDP,.•has 11,2 million people of RSA 50 million.•Contributes 10% to Africa’s GDP,.•Is the 5th largest economy after Nigeria Egypt, RSA, Algeria•Is the economic and Industrial Hub of the African Continent

Part 3: Gauteng Chasing after a Moving Target

EC: 50,087

FS: 21,773

GP: 367,076

KZN: 59,625

LP: 131,879

MP: 57,035

NC: 3,645

NW: 51,886

WC: -8,854

Net Migration To/From Gauteng by Provinces, 2006-2011 •Between 2006 & 2011, Gauteng

experienced a net inflow of

approximately 367,076 people.

•Highest net migration came from

Limpopo

•Immigration growth rates shows a

positive rate for all population groups

except for the White population group,

thus signifying an outflow of the White

population from Gauteng.

Part 3: Gauteng Regional Sectoral Comparative Advantage

Agriculture Mining Manufacturing Electricity Construction Trade Transport FinanceCommunity services0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

Location Quotient of Gauteng Metros

Ekurhuleni

City of Johannesburg

City of Tshwane

It is also important to understand the comparative advantages that Gauteng has from a sectoral perspective. This can be described using a Location Quotient, which simply provides a relative indication of whether a sector is competitive in relation to the rest of the South African economy.

Gauteng’sMetro’s

Agric Mining Manuf Electr Construction Transport Trade Finance Comm-Service

Ekurhuleni 0.18 0.19 1.81 1.14 1.27 1.27 0.87 0.96 0.83

COJ 0.12 0.27 1.06 1.07 1.30 1.30 1.21 1.30 0.99

Tshwane 0.15 0.08 0.93 0.77 1.40 1.40 0.99 1.09 1.43

Part 3:Economic Performance-Gauteng Regions : GDP by Municipalities 2001-2012

Ekurhuleni CoJ CoT Sedibeng West Rand0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

2001 2010

Part 3: Socio economic issues for Tshwane

• Poverty levels:• Lowest poverty rates within the province• Reduced by approximately 2% in the last four years; significant considering

population absolutes.• 2010 poverty estimate at 20.5%, lower than the S.A. rate

• Income inequality• The largest Gini co-efficient globally• CoT has the lowest Gini co-efficient within Gauteng

• Also lower than the country average

• Household income by group has improved• Alarming trend concerning number of people without income

• Tshwane exhibits the highest HDI factor within Gauteng• Higher than the SA average. • Decreased from 0.7 in 2006 to 0.67 in 2010.

Part 3: The City of Tshwane in the Gauteng City Region

State of the art ICT technology

Automotive Supply Park

Research & Development Support (CSIR, Innovation Hub, TIA)Leading training institutes

Favorable cost of doing business

Home to 190 component suppliers

Established Road, Rail & Air infrastructure.

Outstanding Business Services (Conference venues)

World class Financial & Banking Systems

Variety of tourist attractions

Politica Capital of South Africa

National Government Support (Dti, DED, DOL,DS&T)

Automotive Industry Development Centre

Largest portion of skilled workforce

Home to 4 of the 8 OEM Assemblers

Gauteng Government Support (GEDA, GEP, Blue IQ)

Have the second highest Number of Embassies after Washington

DC

Part 4: Stakeholder Outreach Process: 1 August – 16 September

• This campaign is a call for Citizens Participation in shaping the future of the city.

• The Tshwane 2055 draft has been distributed to communities & stakeholders for Input.

• Community Hall Debates on each theme are currently unfolding which are addressed by theme Expert Leaders/Commissioners and political principals.

• Efforts to ensure feedback loops by various MMCs as well as Ward Councillors is currently .

• We take every input seriously to ensure that Citizens can see their aspirations reflected in the final outcome.

Part 5: Our Key considerations• A vital economy and a prosperous community will depend on

the collaboration of various stakeholders• For the City of Tshwane we believe that the following are some

of the necessary interventions:• Transforming the Tshwane economy• Sustainable employment creation• Economic transformation ito ownership• Human capital development • Research and developing as a lever for economic growth• Sustainable communities and social cohesion• Good governance and innovation

Part 4: Broad questions framing our economic growth engagements

• What other economic development challenges could the City face in 2055?

• How can the City become diversify its economy?• What economic sectors should the City of Tshwane

prioritize going forward?• What interventions can the City implement to support

SMMEs?• How can the City improve the opportunities for the residents

of the City to gain employment and improve income levels?• What can the City do to become more business friendly?• How should Tshwane 2055 support the skills development to

increase the City’s competitiveness?

• A Tshwane 2055 Microsite has been created on http://www.tshwane.gov.za/tshwane2055

• Facebook page: http://facebook.com/tshwane2055• Twitter – @tshwane2055 http://www.twitter.com/tshwane2055

• Written feedback may be sent to: Msizi Myeza or MsiziM@Tshwane.gov.za• Or • E-mail: tshwane2055@gmail.com