ECONOMIC DEVELOPMENT

& JOB CREATIONSTRATEGY

DURBAN @ WORK

NOV

27

PRESENTED BY DR. AJIV MAHARAJ

2

POLICY ALIGNMENT

LOCALLTDF, IDP,

SECTOR PLANS

PROVINCIALPDGS/P, PSEDS, SOPA, INDUSTRIAL,

EXPORT, COGTA URBAN DEVELOPMENT

FRAMEWORK, etc

NATIONALNDP, NGP, IPAP, SONA, BUDGET SPEECH,

INFRASTRUCTURE, SECTOR SPECIFIC(SEZ BILL, SECTOR PLANS)

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CONTEXT

GLOBAL

RECESSION

EMERGING MARKETS

AFRICA

INVESTMENT PATTERNS

SADC

PROVINCIAL

ROLE OF ETHEKWINI

REGIONAL APPROACH

NATIONAL

TRIPLE CHALLENGE

YOUTH SKILLSSLOW GROWTH OF PRODUCTIVE SECTORS

PRODUCTIVITY

ENTREPRENEURSHIP

APARTHEID CITIESINFRASTRUCTURELOGISTICS COSTS

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CHALLENGESInsular Approach

Infrastructure Limitations

Growth in FixedInvestments

Low Levels of Trade & Production

Growth of Labour Force

SMMEDevelopment

Income &Consumption

GovernmentFinances

Cost of Doing Business

Decision Making

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DEPENDING HOW WE RESPOND3 SCENARIOS EMERGE

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KEY AREA FLOAT CHOKE FLY STEP CHANGE

Strategic Investment

Strategic decisions made operationally – “why should this not happen” approach

Driven by external forces

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

Infrastructure Address social backlogs. Lack of funding for economic infrastructure

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

Fixing problems

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 in making decisions

Decisions to contain 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 constrained

Insular and infrastructure constrained

Regional and ambitious; pro-growth and job creation

Insular and constrained to regional approach and solutions driven.

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

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

OUTCOMES MISSION

Promoting the city as the centre for trade between African and

the world

Capitalising on the role of the port,

international airport and potentially

modern rail, road and ICT connectivity and

infrastructure

Emphasising the potential of the City as

the best location for manufacturing activity

Developing the lifestyle aspect of the area for

its residents and tourism potential

Africa’s Most Liveable Southern Gateway

Destination to Trade Travel

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GROWTH TRAJECTORYPER 5 YEAR PHASE

• 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 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

Manufacturing sectors; innovation (and ICT); Logistics, Tourism

Logistics; Manufacturing, Green Economy; Construction, Tourism

Logistics; Manufacturing, ICT, Tourism, Green Economy

Logistics, Tourism, Green Economy, ICT, Finance & Trade

2013-2018 2018-2023 2023-2028 2028-2033

High investment in infrastructure to unlock growthHigh investment in skills towards gearing of forthcoming 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

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KEY PROJECTS

Dig Out Port

Back of Port Renewal

Freight Plan & Route

IRPTN Nodal Development

EXISTING CATALYTIC PROJECTS

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

N3 Corridor (Hammarsdale, Cato Ridge

Automotive Park

Center for Innovation Support

World Trade Centre

NEW CATALYTIC PROJECTS

Inner City Revitalisation

Unlock key Private Developments

REGIONAL AND COMMUNITY PROJECTS

Re-focus Nodal Programme

Re-focus Township Programme

Re-focus Tourism Programme

Industrial Renewal

Industrial Sector Projects

Re-Focus Rural Nodal Programme

Durban Investment DashboardNovember 2013

Employment: 8 900Annual Rates:

R378m

Employment: 5 400Annual Rates:

R70m

Employment: 9 000Annual Rates:

R133m

R15bn – R20bn TotalAnticipated Investment

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INSTITUTIONAL AREAS FOR FOCUS

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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

JOBS

GROWTH

INEQUALITY

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WAY FORWARD

DEVELOP A 5 YEAR ECONOMIC PLAN TO LINK TO IDP

REVIEW IMPLEMENTATION MECHANISMS TO IMPLEMENT THE STRATEGY INCLUDING SPVS

MONITORING AND EVALUATION

THANKYOUFor your attention!

DURBAN @ WORK