Economic development and job creation strategy 2013 2018

ECONOMIC
DEVELOPMENT
& JOB CREATION
STRATEGY
DURBAN @ WORK

NOV

27

PRESENTED BY DR. AJIV MAHARAJ


POLICY ALIGNMENT
NATIONAL

NDP, NGP, IPAP, SONA, BUDGET SPEECH,
INFRASTRUCTURE, SECTOR SPECIFIC
(SEZ BILL, SECTOR PLANS)

PROVINCIAL

PDGS/P, PSEDS, SOPA, INDUSTRIAL,
EXPORT,
COGTA URBAN DEVELOPMENT
FRAMEWORK, etc

LOCAL

LTDF, IDP,
SECTOR PLANS

2


CONTEXT

AFRICA

GLOBAL

RECESSION
EMERGING MARKETS

INVESTMENT
PATTERNS
SADC

NATIONAL

PROVINCIAL

ROLE OF ETHEKWINI
TRIPLE CHALLENGE
YOUTH SKILLS
SLOW GROWTH OF
PRODUCTIVE SECTORS
PRODUCTIVITY
ENTREPRENEURSHIP
APARTHEID CITIES
INFRASTRUCTURE

LOGISTICS COSTS

3

REGIONAL APPROACH


Decision
Making

CHALLENGES

Insular Approach

Cost of
Doing Business

Infrastructure
Limitations

Government
Finances

Growth in Fixed
Investments

Income &
Consumption

Low Levels of

Trade & Production

Growth of
Labour Force

4

SMME
Development


DEPENDING
HOW WE
RESPOND3
SCENARIOS
EMERGE

5


KEY AREA

FLOAT

Strategic
Investment

Strategic decisions Driven by external
made operationally forces
– “why should this

not happen”
approach

Infrastructure Address social

backlogs. Lack of
funding for
economic
infrastructure

CHOKE

No expansion, protect
areas against
development. Long-term
phasing for infrastructure.
Sweat existing assets only
Fixing problems

FLY

STEP CHANGE

Strategic decisions made
strategically – Forum to resolve
issues and look at how can the
right investments be made
possible

Operational to strategic

‘Can’t do’- to – ‘can do’
DEVELOP ONE CITY
PLAN

PPPs for infrastructure provision.
Expand base & sweat
infrastructure. New areas for
expansion and develop regional
approach e.g. SEZ.

Infrastructure driving
decision/strategic
priorities- to –strategic
decisions driving
infrastructure priorities.
Work through
partnerships.

Economic
Leadership

Uncertainty, delay Decisions to contain
in making decisions investments. Economic
mandate gets sidetracked
onto social and
environmental issues

Well informed decision-making;
city leadership is in touch with
business & thinkers and is

responsive to challenges.

From uncertainty – to
politicians well informed
and driving policy in
partnership with officials
& stakeholders.

Strategic
Planning

Insular focused and Insular and infrastructure
constrained
constrained 6

Regional and ambitious; progrowth and job creation

Insular and constrained to
regional approach and
solutions driven.


VISION Africa’s Most Liveable Southern Gateway Destination to Trade
Travel

OUTCOMES

MISSION

1. Reduced

Unemployment
2. Reduced income and
spatial inequality and
poverty
3. Creating Sustainable
Economic Growth and
Development
4. Becoming a Global
Metropolis over the
next 20 years

Make a step change
in approach of
economic leadership
in delivering catalytic
growth initiatives and
quality job creation
efforts that address
poverty, income
inequality and
unemployment

Capitalising on the
role of the port,
international airport
and potentially
modern rail, road and
ICT connectivity and
infrastructure

Promoting the city as
the centre for trade
between African and
the world

Africa’s Most Liveable
Southern Gateway
Destination to Trade Travel

Emphasising the
Developing the lifestyle
potential of the City as aspect of the area for
the best location for
its residents and
manufacturing activity
tourism potential

7


GROWTH
TRAJECTO
RY
PER 5
YEAR
PHASE

• Unblocking key developments
• Packaging of land in inner city
• Implement industrial park

projects
• Township projects
•
Innovation
centre
and
technology park developed
• Trade centre under construction
•
Improved
investment
environment for large and small
firms
• DTP SEZ becomes operational
and some growth around DTP
•Large investments in bulk
infrastructure
•
groundwork
geared
to
unlocking N3 corridor in future
phase
• Nodal developments and
IRPTN
• Special focus on youth, social
economy and micro LED
•Transformation
•SMME drive

2013-2018
Manufacturing sectors; innovation (and
ICT); Logistics, Tourism

• Key locations along N3
unlocked
and
growth
happens in Durban –Pmb
Corridor
• Further growth around
DTP
• Infrastructure to unlock
growth
• Phase 1 DIA Dig-out
• Construction of freight
route
• unlocking land along
freight route
• Development of Logistics
hubs begin
• Industrial renewal work in
SDB
• SMME drive

•

Last industrial areas
unlocked
• Integration along Durban

– Pmb and
Durban –
iLembe corridors
• Promote Development
along freight route
•Commercial
and
residential densification

High investment in skills towards gearing of forthcoming phase
High investment in infrastructure to unlock growth
2018-2023
2023-2028
Logistics; Manufacturing, Green
Economy; Construction, Tourism

8

Logistics; Manufacturing, ICT, Tourism,
Green Economy

• High growth in services sectors
(Logistics services; professional
services; finance; ICT; Tourism)
• Regional integration/ City region
• Green economy becomes major
sector
• purely competitiveness &
innovation focus on manufacturing
• Densification

2028-2033
Logistics, Tourism, Green Economy,
ICT, Finance & Trade


9


KEY PROJECTS
NEW CATALYTIC
PROJECTS

EXISTING CATALYTIC
PROJECTS

REGIONAL AND COMMUNITY
PROJECTS

Bulk Infrastructure to unlock
development in the north
(greater DTP)

Dig Out
Port

Re-focus Nodal
Programme

N3 Corridor (Hammarsdale,

Cato Ridge

Back of Port
Renewal

Re-focus Township
Programme

Automotive
Park

Freight Plan &
Route

Re-focus Tourism
Programme

Center for Innovation
Support

IRPTN Nodal
Development

Industrial Renewal
Industrial Sector
Projects

World Trade
Centre

Re-Focus Rural Nodal
Programme

Inner City
Revitalisation
Unlock key Private
Developments
10


Employment: 5 400
Annual Rates:
R70m

Employment: 8 900
Annual Rates:
R378m
Employment: 9 000
Annual Rates:
R133m

R15bn – R20bn Total
Anticipated
Investment

Durban Investment Dashboard
November 2013


INSTITUTIONAL AREAS FOR FOCUS

12


INSTITUTIONAL AREAS FOR FOCUS

Partnerships with Industry
and Leadership by Council

ADDITIONAL 23
000
JOBS
ANNUALLY
SUSTAINED
GROWTH
OF 4% TO 7% P.A.
REDUCE GINI
FROM 0,62 TO 5,8
BY 2018
13

JOBS
GROWTH

INEQUALITY


WAY FORWARD

DEVELOP A 5 YEAR ECONOMIC PLAN

TO LINK TO IDP
REVIEW IMPLEMENTATION MECHANISMS TO IMPLEMENT THE
STRATEGY INCLUDING SPVS
MONITORING AND
EVALUATION

14


THANK
YOU
For your
attention!

DURBAN @ WORK