PRO-POOR SERVICE DELIVERY WITH AN EMPOWERMENT & JOB CREATION FOCUS CITY OF TSHWANE

1. PRO-POOR SERVICE DELIVERY WITH AN EMPOWERMENT & JOB CREATION FOCUSCITY OF TSHWANE Dr Hein Wiese Strategic Executive Officer

2. CONTENT • Focusing on critical mass • Broadening economic base • Co-ordination & prioritization of projects • Objectives of EDA • Building PPPs • Making economic development a reality

4. AUDITING STRATEGIES & PLANS • We don’t have Great LA, because we have Good LA • It is possible to turn Good into Great in the most unlikely situations • It is not to contrast the Good-to-Great LA • What do the Great LA share in common?

5. CHALLENGE Great results What’s inside the BLACK BOX Good results

6. Employment & Population

7. TSHWANE THE MOST PROSPEROUS METRO

9. 40 36 35 30 25 19 20 15 13 9 10 8 7 6 6 4 5 2 0 WC EC NC FS KZN NW G CTMM M L SECTORAL CONTRIBUTION TO SA’S GGP(CONSTANT PRICES)

10. 15% 6% TRADE TRANSPORT 13% 24% FINANCING GOV OTHER 19% MANUFACTURING 23% SECTORAL CONTRIBUTION TO TSHWANE’S ECONOMY

11. BIG VS SMALL

12. SETTING THE CONTEXT • Key characteristics of success: • Successful cities provide high quality living experiencesin which people want to settle & invest • Successful cities are well–connected • Successful cities provide agglomeration benefits • Tshwane’s challenge is to ensure all people have access within current context of prosperity & poverty duality

13. A DUAL CITY… • Need – The North • 67% of households live in formal dwellings • 46% had access to piped water in their homes in 1996 (although 95% now has access to a water scheme, but not necessary piped water in the home) • 58% (up from 47% in 1996) have access to sanitation & 68% (up form 59% in 1996) have access to electricity. • Tshwane inherited some 72 500 additional households requiring basic municipal services

14. A DUAL CITY… • Governance complexity • Cross boundary with 2 provinces • Sphere of influence over three provinces • Urban efficiency • Shape of city makes municipal service delivery inefficient • Low densities • Discontinuous • Vast • Inequality

15. WHERE TO INVEST? • Areas of greatest need? • Areas of greatest potential for successful growth? • The North of Tshwane unites need with potential • The North can gain leverage from the strong & diverse base of the rest of the Tshwane economy, with which it already intersects.

17. Babelegi Winterveld • DEVELOP THE NORTH • Rudimentary household services • Public facility/ space clusters • Circular public transport • Urban agriculture Shoshanguwe Ga-Rankuwa • DEVELOP THE “URBAN PORT” • Rosslyn • Dinokeng • Bon Accord • Wonderboom Airport Dinokeng Capital/ Inner City • CELEBRATE THE CAPITAL • Cultural heritage • Housing Atteridgeville Mamelodi • MAINTAIN THE REST • Guide the market • Strengthen links between north and south Centurion

18. STRATEGIC FRAMEWORK Developing the North Celebrating the capital Building Social Cohesion Strengthening economic clusters Maintaining existing Urban Areas Sound Financial Fundamentals Strong Developmental Municipal Institution

19. Developing the North Maintaining existing Urban Areas Celebrating the capital Building Social Cohesion Strengthening economic clusters Sound Financial Fundamentals Strong Developmental Municipal Institution COLUMN 1: STRENGTHENING CLUSTERS • Automotive, Metal Industries & Defence clusters • Support for research & development, teaching & knowledge based institutions • International marketing & networking • Engagement with major economic stakeholders • Structured BEE & SMME support • Supporting Blue IQ initiatives

20. Developing the North Maintaining existing Urban Areas Celebrating the capital Building Social Cohesion Strengthening economic clusters Sound Financial Fundamentals Strong Developmental Municipal Institution COLUMN 4: CONTINUED DEVELOPMENT OF EXISTING URBAN AREAS THROUGH MAINTAINING SERVICES • Maintenance & expansion of service partnerships • Strengthening economic development promotion • Expedited development approval mechanism • Support Blue IQ initiatives • Maximising infill opportunities

21. KEY OBJECTIVES • Creation of short, medium and long term - Jobs • Sector specific development – SMME’s • Black Economic Empowerment • Extended Public Works Programme • Growing the economy of CoT by 5% over 5 years • Reducing unemployment rate by 5% over 5 years

22. TRUE PARTNERSHIP Growing the City Together

23. SERVICE DELIVERY PRINCIPLES OF BATHO PELE • Consultation • Service standards • Access to services • Courtesy • Information • Openness & transparency • Value for money • Economic empowerment

24. PROGRAMMES • Economic Development Agency • Entrepreneurial Development Centres • Skills Development Centres • Incubators / Production Centres • Tshwane Manufacturing Advisory Centre • Trade & Investment Centres

25. CLUSTER ONEMICRO ECONOMIC DEVELOPMENT • Focusing on Development. Costly. The Initial Investment is high with long term benefit. Linkages with the Extended Public Works Programme, DBSA, IDC, IDT, NDA, NEF • Promotion of community-based, informal sector & micro-enterprise development • Promotion of formal sector SME establishment & growth • Promotion of inward investment & development facilitation • Promotion of rural economic development • Management of the socio-economic impact of HIV/Aids • Promotion of agricultural development

26. CLUSTER TWOMICRO ECONOMIC DEVELOPMENT • Development for Growing the Economy • Linkages to the National, Provincial Manufacturing & Trade Policies & Programmes (IDC, DBSA, TISA, GEDA, Provincial Government, SADC schemes & NEPAD) • Promotion of various industrial & service sectors • Business retention, expansion & attraction • Promotion of trade & exports

27. CLUSTER THREECONTINOUS PROCESS • Creating an enabling environment through interpretation & implementation of policy & legislative directorates, BEE, EE & AA • Promotion of strategic & spatial development initiatives • Research, policy impact assessment & information management • Promotion of gender-responsive economic empowerment • Promotion of a diversified spectrum of financial & venture capital, equity investment & corporate venturing institutions • Promotion of localization & Tshwane economic branding

28. LED PROCESS IMPLEMENTATION PLAN • Appointment of EDA Steering Committee • Confirm availability of financial resources • Identify 3 facilitators • Finalize report to Mayoral Committee • Mobilize funding • Implementation within two months

29. IMPLEMENTATION PLAN

32. URBAN AGRICULTURE

34. BBBEEINTRODUCTION • Constitution mandates LG to transform itself so it can play a developmental role • National policy is based on the belief that strategies for economic growth, development, BBBEE are mutually supportive strategies • BBBEE Act 53 of 2003 seeks to promote ownership, control & management of enterprises by Black people incl women, youth & people with disabilities • Tshwane Business Week 2003 resolved that BBBEE be prioritised in LED • CTMM has no overall strategy on BBBEE

35. BBBEEGOALS & OBJECTIVES • Develop a BBBEE plan of action • Use its local economic development & service delivery activities • CTMM must comply with EE & Skills Development Act • Establish partnerships for growth, development & transformation – PPPs • Develop a BBBEE Charter for Tshwane

36. BBBEEMONITORING & REPORTING • Balance score card will be used to measure progress • Reviewing the milestones of BBBEE projects • CTMM engage in discussions with its stakeholders to develop a consensus around the use of specific tools & systems for black economic empowerment targets & objectives

38. EDAROLE OF EDA • Full the gap in LED as delivery vehicle for development projects • Co-ordinate & manage public resources, potential investors & regional investment opportunities • Extension of the development role of local government • Supporting the networks that catalyze local economic development

39. EDAKEY CRITERIA FOR IDC • Poor & under-developed areas • Rural bias • Jobs to be created • Empowerment opportunities created • Local business development opportunities • SMME development opportunities • Social, economic, environmental & physical benefits • Use of un/under utilized assets

40. EDAPROCESS

42. STRATEGY ‘Strategy is not rocket science. It’s common sense & creativity combined. The best ideas are so obvious that everyone overlooks them, or so extraordinary that no one thinks about them. Either way, it’s how you execute them that finally matters.’ (Manning, T. 1998. Radical strategy)

43. STRATEGY TO IMPROVE ECONOMIC GROWTH • Value-added production: Realigning the manufacturing sector away from traditional heavy industries towards sophisticated, high value-adding • ‘Smart’ industries: Creating an environment in which ie information technology, telecommunications, research & development and bio-medical industries can thrive • Financial services: Developing the finance & business service sector by focusing on, technology, business services & business tourism

44. STRATEGY TO SPECIFIC CLUSTERS • Automotive – Blue IQ project where Tshwane are hosting 40% of all automotive activities in SA • Information, Communication and Technology & Innovation Hub – Blue IQ project, currently in the process of bulding the site at CSIR & University of Pretoria • Medical & Pharmaceutical – a new focus area • Biotechnology – a new focus area • Education & research & development – well developed • Tourism – to be developed based on Government and business tourism • Metals – well developed but need new focus after ISCOR has down scalled • Agriculture & processing – Urban agriculture in the process of attracting investors for business case plans

45. IMPROVING OUR PERFORMANCE? • Major new investment growth – private sector partners • World class research & development industry – relationships with centres of excellence • New export markets – Trade Point • Tourism boost – improved co-ordination • World class education levels – new investment in facilities • Priority for infrastructure projects – for target sectors • Strategic land developments – incentive • Small business initiatives – services to assist • Integrated development planning process

46. ROLE OF CTMM • Influence the components of Porter Diamond • Improve the quality of the inputs (factors) firms can draw upon & define a competitive environment • Incentives is important part in shaping the pressures • Working in tandem with favourable underlying conditions in the diamond • Create environment where business can gain competitive advantage • Catalyst & challenger • Encourage companies

47. AUTOMOTIVE CLUSTER ENGINES WELDERS SUB- ASSEMBLERS FINANCE TRANSMISSIONS JIGS PRODUCTION PAINT SHOP LINE INSURANCE METAL PRODUCTS PRESSES POWER PASSENGER COMPA- CARS NIES GLASS PRODUCTS BUSES ASSEMBLERS GOVERN- DEALERS * MANAGING LOGISTICS MENT LIGHT BASIC COMMERCIALS CHEMICALS INDIVI- DUALS HEAVY TEXTILES & LOGISTIC COMMERCIALS LEATHER SUPPORT RUBBER & PLASTIC PRODUCTS QUALITY SAP TAX CONTROL PHASE VI STRUCTURE PAINTS MANAGEMENT MARKETING SYSTEM ELECTRONIC AFTER SALES ROBOTICS EQUIPMENT SERVICE TRANSPORT

48. DEFENCE CLUSTER Manufacturing Equipment Customised Nuclear Weapon Systems Weapons SA and other Aerospace Electronics Governments Navigation Commodity Metal Products Product Manufacture Chemical Products Info Services R&D Finance and IT Government Technology

49. METAL PRODUCTS IRON & STEEL ELECTRICAL DESIGN MACHINERY FURNACES INSTRUMENTS ALUMINIUM SHIPPING MIS MOULDS PACKAGING STAINLESS WELDERS STEEL BUILDING CONTAINERS SCRAP WHITE-GOODS TANKS SHEET STRIP TRANSPORT POWER METAL PRODUCTS CANS FOIL AGRICULTURE * ROLLING, SHAPING, OTHER BARS CASTING & WELDING METALS TUBES VEHICLES RODS WIRE PAINT ENGINEERING PROFILES DEFENCE WOOD ROLLING MILL MINING CUTTERS PETRO- CHEMICALS PETRO-CHEM DIES HEAVY LIFTING FURNITURE JIGS RUBBER & TRANSPORT SPRAYING & EQUIPMENT PAINTING WHOLESALERS EQUIPMENT PLASTICS CONSUMERS

50. BIOMEDICAL CLUSTER Additives • Prescription Active Fine Pharmaceutical products Compounds Manufacture Chemicals • Over the counter Manufacture products Hospitals & Clinics • Spare parts • Hospital furniture Private • Support • Hi-tech medical Medical Equipment Manufacturing Machine equipment services Manufacturing / Practice Equipment Assembly • Small Surgical Assembly • Machine equipment components Pharmacies Surgical • Syringes / Needles Steel Disposable • Suture material Glass Manufacture • Bandages Plastics Textiles Rubber Government R&D IT Medical Training Logistics Health Insurance GP’s l Specialists l Allied Professional l Dentists l Vets l