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Johannesburg Business Forum

Johannesburg Business Forum. 07 November 2008. Agenda. Background. Overview of DED Some key achievements of DED Review of JBF initiatives JBF planned activities for 2009. Overview. DED. Economic Development is command centre for economic growth in the city:

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Johannesburg Business Forum

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  1. Johannesburg Business Forum 07 November 2008

  2. Agenda Background • Overview of DED • Some key achievements of DED • Review of JBF initiatives • JBF planned activities for 2009

  3. Overview DED • Economic Development is command centre for economic growth in the city: • Engage proactively with all role players; • Creating an enabling environment for accelerated, shared and sustainable growth • Department is responsible for: • Overall coordination & strategic direction of economic development in the city

  4. Overview Achievements • 550 traders from Grow Your business Project run in conjunction with Wits University also graduated last quarter. • 700 students have been certified for BPO call centres • Launch of Joburg Shopping Festival • Secured Miss World pageant

  5. Overview Achievements • Executive Mayor of Johannesburg, Councilor Amos Masondo, unveiled the City five year Soweto Economic Development Plan • The Greater Soweto Business Forum has been constituted; • The Annual Soweto Festival took place between 24 – 28 September 2008; • 69 EPWP projects are in the implementation stage and a total of 7108 job opportunities have been created

  6. Overview Achievements • The City's Broad Based Black Economic Empowerment Policy and Strategy Framework • The interim Broadband Policy Framework was approved in March 2008 which will regulate access to City's infrastructure by electronic communications operators. • Johannesburg Annual Economic Review 2008

  7. Jozi Equity Fund Funding SMME City Suppliers • Implementation of the Jozi Equity Fund has started. • Access to finance is key challenge to SMME growth • Joburg 2030 Strategy identified importance of developing SMME sector toward achieving 9% economic growth target by 2014 • City has identified a funding gap and need to support its own projects by developing SMME / black owned businesses as suppliers • Equity funding as opposed to debt

  8. Dirang ba Bohle Community Micro Finance • Micro finance institution (MFI) • To assist emerging entrepreneurs in Joburg have access to financial services and credit extension • Intl. experience shows that countries that use MFIs as vehicles to bring finance to the poor have economically benefited in that these institutions contribute to socio economic development of their citizens. • Benefits include • enhancement of entrepreneurship, • enabling marginalized citizens to engage in economic activities and become more self-reliant • Increased employment opportunities • Increased household income • Wealth creation

  9. Soweto Empowerment Zone Soweto SMME Industrial Park • An industrial park to support, promote and formalise Soweto-based SMMEs situated at the major gateway to Soweto • Cluster model – promoting links to established businesses • Not an incubator • Strategic approach • Focus on attracting and developing a cluster of related and complementary businesses • City supplier contracts to be directed toward SEZ clusters

  10. Inner City Property Scheme Economically driven regeneration • The Inner City Property Scheme financial and business model was approved in April 2008 • Reconfigures and upscales the “Better Buildings Programme” • Promoting BBBEEE through advancement of black property investors and community partnerships • Reduction of property arrears through effective revenue management

  11. Skills Hubs Developing Skills • The Skills Strategy was successfully launched on the 12th August 2008 • Skills programme successfully completed the assessment of 2,042 RPL artisans which allows them further career advancement. • Skills Hub Initiative seeks to • accurately map target markets and match candidates with specific appropriate market opportunities. • Provide holistic integration of need for skills development in various economic growth areas • Consolidate existing skills development efforts and share resources • ICT Skills Hubs aim to • Develop ICT skills at locations close to poorer communities (Orange Farm, Yeoville) • Provide desktop services such as printing copying faxing email and internet services to community • Provide business training and support for local businesses • Incubate close corporations providing above services

  12. BPO Precinct Customized Business Process Outsourcing District • Joburg competes with major international destinations that have built customized BPO districts, including infrastructure and incentives to attract FDI (India, Philippines, India & Mauritius) • Inner City offers favourable conditions for BPO precinct development: • Tax incentives to promote inner city regeneration • Good infrastructure • International gateway with traffic of 13 million people annually • Strong clusters of vendors and institional headquarters • Major projects that support BPO (Gautrain, Rea Vaya) • Access to skills facilities (such as Wits, UJ) • DED intends to take aggressive marketing approach to attract FDI and realize BPO job creation opportunities

  13. Joburg Broadband Network A Municipal Broadband Network • Purpose of project • To implement a municipal broadband network to aid economic development through the reduction of telecommunications costs and the delivery of government services to Joburg residents • To establish Joburg as a digital smart city • Strategy • City to provide access to municipal property and assets • Service provider contracted to build and operate infrastructure • City has invested in infrastructure to support network needs of the City • Objectives • Increase and accelerate access to digital services through the massification of affordable broadband • Prepare for 2010 ICT needs • Stimulate socio economic growth

  14. Export Development Enabling Emerging Enterprises Go Global • 154 SMME’s graduated in the Export Development Programme. • Targets businesses and entrepreneurs in identified key sectors who have the potential to enter the export market • Provides exporter training and education & institutional support • Assistance with SMME competitiveness and export-readiness • Assisting and facilitating SMME participation in export related activities: • International trade fairs • Exhibitions • Trade Missions

  15. Urban Development Zone Joburg UDZ • Re –launch of the UDZ whose targets have been exceeded and whose cumulative figures now stand at over ZAR 5.7 billion. • Major cities from New York to Birmingham have experienced periods of urban decay – but they have not stayed that way. Johannesburg, particularly its core inner city region has not been immune from similar negative economic factors • To reverse this DED is promoting economic and fiscal incentives to investors in the Inner City and surrounds • UDZ incentive is an accelerated depreciation allowance to encourage private sector investment in construction, extensions, additions, improvements or refurbishment of buildings in specific zones

  16. JBF INITIATIVES Highlights THE MANUFACTURING SECTOR IN GAUTENG PROVINCE • Gauteng Economic Development made a presentation on the growth of the manufacturing sectors in Gauteng and its effects on the economy. BUSINESS WORKSHOP ON ELECTRICITY SUPPLY • The objectives of the workshop was to discuss the current Electricity Capacity Challenges faced by Eskom and City Power, Security Supply and various ways being investigated and implemented to manage the situation. NEW RATES POLICY: VALUATIONS & BUSINESS RATES • Members requested clarity as to how the Rates Policy impacts on the business community.

  17. JBF INITIATIVES LAND REGULARISATION PROJECT JPC made a presentation of the regularisation of land process in the previously black townships of the City. They informed the meeting that most residents did not have title deeds for a very long time and that JPC did an audit of the City’s land and 35 000 residential property has not yet been transferred by the City and the City is currently engaging the provincial housing to start the transfer process. JTC: NEW OUTLOOK The presentation highlighted that the City is aggressively working towards turning around the tourism sector in the city.

  18. JBF INITIATIVES BUS RAPID TRANSIT: REA VAYA BRT PROJECT The BRT project was approved in November 2006 for phase 1 and 14 BRT systems were planned for the city which is an integral part of the City’s spatial development programme. USE OF GAS AS AN ALTERNATIVE ENERGY SOURCE : EGOLI GAS Members enquired if the City is considering alternative sources of energy such as solar geysers and gas. PIKITUP CLEAN CITY 2009 AND BEYOND The JBF members enquired about what the City is doing to address the grime problem in the city and that it will impact negatively on tourists who would be visiting place like inner city. INTEGRATED STORM WATER MANAGEMENT(JRA)

  19. JBF INITIATIVES ILLEGAL ELECTRICITY CONNECTION AND ITS IMPACT ON LOAD SHEDDING JBF members raised concerns regarding the illegal connection of electricity in Soweto and its impact on Johannesburg's electricity woes. TRAFFIC MANAGEMENT AND CRIME PREVENTION (JMPD) Discussion was held regarding the city's preparedness to host visitors during the 2010 world cup and the business community enquired as to what the city was doing to address crime in preparation for the world cup and preparedness of JMPD to manage traffic during times of power outages and what plans are in place to address this. BY LAWS ENFORCEMENT (JMPD) The JBF was also informed of the JMPD establishing a special unit to enforce the bylaws of the city. the meeting wanted more information on this initiative as they felt that the city was not enforcing bylaws such as those related to litter etc.

  20. JBF INITIATIVES NATURE OF THE DEBTORS BOOKS OF THE CITY A presentation was made on the status and nature of the City of Johannesburg Debtors book. The percentage of the outstanding money Breakdown of rate recovered and what has not been recovered on Electricity. SOUTH AFRICAN NATIONAL ROAD AGENCY/JOHANNESBURG ROADS AGENCY Members were concerned about lack of integration between National, Provincial and the City in terms of road infrastructure development. SANRAL made a presentation on the planned toll roads for Gauteng and its impact on alleviating congestion.

  21. JBF INITIATIVES ANNUAL ECONOMIC REVIEW The presenter tabled the economic performance of the City as well as the sectors which are contributing to the economic development of the City. 2010 FIFA SOCCER WORLD CUP EVENT PREPARATIONS Meeting discussed security and safety issues pre and post the soccer event. Stadia preparations almost complete More police officers are being trained and the 2010 Office received more than 17 000 volunteers. INNER CITY PROPERTY SCHEME

  22. JBF PROPOSED ACTIVITIES 2009 • Terms of Reference • JBF Logo • Formation of working committees • Increase participation by organised business in JBF • Joint Initiatives between business and the City • Allignment with Economic Development issues

  23. Johannesburg Business Forum Available Logos

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