2020 Final Draft

ECONOMIC GROWTH & DEVELOPMENT STRATEGY

NELSON MANDELA METROPOLITAN MUNICIPALITY

2004 presented by

VUYO ZITUMANE ECONOMIC DEVELOPMENT, TOURISM AND AGRICULTURE BUSINESS UNIT

• • • • • • • • • •

CONTENT

LEGAL FRAMEWORK JOURNEY OUTCOMES NMMM CHALLENGES NMMM VISION NMMM ECONOMIC VISION OBJECTIVES STRATEGIC THRUSTS/ CORE DRIVERS PRINCIPLES SECTOR STRATEGIES AND PLANS

LEGAL FRAMEWORK

• • • • • • • • • •

CONSTITUTION MUNICIPAL STRUCTURE ACT NMMM IDP NATIONAL LED DRAFT POLICY SMALL BUSINESS ACT CO-OPERATIVE BILL TOURISM ACT DTI-MANUFACTURING STRATEGY BLACK ECONOMIC EMPOWERMENT ACT PREFERENTIAL PROCUREMENT ACT

The Journey



MARKET-DRIVEN APPROACH INTERVENTION PROGRAMMES – SMME DEVELOPMENT AND



BEST PRACTICE LEARNING IN CTN, DBN, JHB AND GOTEBORG, 2001



COMPREHENSIVE ECONOMIC ASSESSMENT, 2002 AND IDP ALIGNMENT, 2002



VISIONING AND STRATEGY, 2003



STRATEGY COMPILATION, 2003 AND IDP ALIGNMENT 2004



BROADER CONSULTATIONS & FINALISATION, 2004



IMPLEMENTATION PLAN



SHARED ECONOMIC VISION FOR THE NMB REGION



QUANTIFIABLE LONG-TERM MEASURABLE OBJECTIVES The Outcomes



INDENTIFICATION OF CORE DRIVERS TO ACHIEVE SOCIO-ECONOMIC OBJECTIVES



KEY GROWTH SECTORAL INTERVENTIONS AND PLANS



INTEGRATION INTO THE IDP



DYNAMIC ECONOMIC PLANNING & PERFORMANCE TOOL



PARTNERSHIPS FUNDAMENTALS WITH BUSINESS, LABOUR AND COMMUNITIES

What are the real socio-economic issues?

To inform the Vision What objectives do we need to set?

Clear, specific and measurable 3-10 yr objectives to be set and prioritised within the limited resources What high-level strategies to pursue?

Given the limited resources again, how do we ensure that the NMMM and its partners deliver on the strategy

Strategic approach

Which key sectors to focus on?

Key growth sectors to be prioritised What is the role of the NMMM ? What are we best suited to do vs other role-players and other institutions

The Challenges



GROWTH



HUMAN

- Average 3,7% over the last 5 yrs 

EMPLOYMENT

- Increased from umployment from 35% to 40% 

POVERTY

- MLL increased from 31% to 38% (R590 m p/a) - HDI is 0,65 made of 0,84 WHITE and .058 N-BLACK

The Challenges



EDUCATION

- 29% have matric or higher qualifications 

GEOGRAPHIC

- Uneven growth and expectations between PE, UIT & DES 

HIV/AIDS

- Rapid growth since 1995; to peak in 2010

The IDP Vision

“The Nelson Mandela metropolitan area practices social justice in a culture of public participation guided by an

efficient, accountable, non-racial, non-sexist municipality

that focuses on

sustainable environmental, social and economic development

, improving quality of life of its communities in a secured,

safe and tourist friendly environment

.”

The vision sets a series of broad goals that need to be analysed in measurable outcomes

IDP outcomes

What we aim to achieve

Social Sustainability

Principles governing how the vision is achieved

Economic Sustainability Good Governance Safe & Tourist Friendly Environment Environmental Sustainability

2020

Economic Growth and Development Strategy and Plan

A

globally competitive economy with excellent business environment and sustainable livelihood STRATEGY OUTCOME

Economic Growth

Vision objectives

3.5% to 8 % year-on year

Job Growth

Annual 3,5% increase to halve current unemployment

Vision objectives

Poverty Reduction

Vision objectives

60% number of h/h

What It Means

Understanding the vision 3.5-5% GROWTH WILL INCREASE P.C.I TO R33 000 PER ANNUM BY 2020 8% GROWTH WILL INCREASE P.C.I TO R85 000 PER ANNUM BY 2020

What It Means

Understanding the vision 3,5% JOB GROWTH TRANSLATES TO 227 000 JOBS BY 2020 3,5% JOB GROWTH TRANSLATES TO 13,000 NEW ADDITIONAL JOBS PER ANNUM

EGDS PILLARS

1 2 3 4 5

Core Drivers

1

Sector Diversification

Driver 1 • FOR DECADES GROWTH HAS BEEN DRIVEN-OFF FROM A FEW SECTORS EXCLUSIVELY FROM AUTO-MANUFACTURING AND EXPORTS BROADEN THE PRESENT AND FUTURE • • ECONOMIC-BASE

STRATEGIC CHOICES INFORMED BY UNDERSTANDING OF :

SECTORS TO BE PROTECTED AND GROWN SECTORS TO BE DIVERSIFIED

FOCUS ON THOSE THAT HAVE A HIGH VALUE ADD:

SECTORS TO OPTIMIZE JOB CREATION COMPETITIVE SECTORS (productivity and GGVA/GDP contribution) THE NMMM TO IDENTIFY, PACKAGE AND INVEST IN NEW MARKET OPPORTUNITIES WITHIN A SET OF WELL-DEFINED KEY GROWTH SECTORS

1

Sector Diversification

Key attractive & growth sectors:

• TOURISM • MANUFACTURING & SUB-SECTORS • AUTOMOTIVE AND COMPONENTS •AGRICULTURE •CONSTRUCTION •LOGISTICS (TO INVESTIGATE) Driver 1

TOURISM SECTOR OBJECTIVES

•TOURISM MASTER PLAN DEVELOPMENT •DEVELOPMENT OF AN INTEGRATED MARKEING STRATEGY •INSTITUTIONAL FRAMEWORK DEVELOPMENT • INFRASTRUCTURE DEVELOPMENT AND UPGRADE •TRAINING AND CAPACITY BUILDING •PRODUCT PACKAGING •EVENTS STRATEGY DEVELOPMENT •RESEARCH, DEVELOPMENT AND INFORMATION MANAGEMENT •PROMOTION OF STRATEGIC ALLIANCES •PROMOTION OF BLACK ECONOMIC EMPOWERMENT

WHAT HAVE WE DONE SO FAR

• INCREASED INVESTMENT FOR AGGRESSIVE MARKETING OF TOURIST ATTRACTIONS AND ROLLING OUT OF THE NEW NMMM BRAND • MOU’S WITH DIFFERENT SERVICE PROVIDERS TO PROVIDE TRAINING IN ALL KEY AREAS WITHIN THE HOSPITALITY INDUSTRY AND IN PARTICULAR “QUALITY OF SERVICE”. • SERVICE PROVIDERS AND TERTIARY INSTITUTIONS ARE IN A PROCESS OF BEING CONTRACTED BY THE NMMM TO FOCUS ON RESEARCH, TRAINING AND DEVELOPMENT THAT IS REQUIRED WITHIN THIS SECTOR.

• LAUNCHING COMMUNITY-BASED TOURISM STRUCTURES.

NMMM KEY PRIORITY SECTORS

AGRICULTURE SECTOR OBJECTIVES:

• DETAILED STRATEGY IMPLEMENTATION •ESTABLISHMENT OF STRATEGIC ALLIANCES •CO-ORDINATION OF ALL AGRICULTURAL INITIATIVES WITHIN THE METRO •RESEARCH, DEVELOPMENT AND INFORMATION MANAGEMENT •PROMOTION OF BLACK ECONOMIC EMPOWERMENT •CONSOLIDATION OF FINANCIAL AND TECHNICAL SUPPORT •PRODUCT DEVELOPMENT AND PROMOTION OF SECONDARY SECTOR •INSTITUTIONAL DEVELOPMENT RESTRUCTURING AND CAPACITY •INFRASTRUCTURE DEVELOPMENT FOR THE SECTOR BUILDING AND

WHAT HAVE WE ACHIEVED SO FAR

AGRICULTURE:

• CURRENTLY IMPLEMENTING 6 PROJECTS • LEVERAGED FINANCIAL AND TECHNICAL SUPPORT FROM CELL C AND SAB FOR PILOT PROJECTS • NMMM AND DBSA IS SUPPORTING A JOB CREATION PROJECT, INITIATED BY BUSINESS WITH FUNDING AND TECHNICAL SUPPORT FOR INFRASTRUCTURE AND START UP • IN CONJUCTION WITH DLA AND DEPT OF AGRICULTURE DEVELOPING A STOCK FARMING PILOT PROJECT • INVESTIGATING EXPORT OPPORTUNIES, PROCESSING WITHIN THE SECTOR.

NMMM KEY PRIORITY SECTORS

MANUFACTURING SECTOR OBJECTIVES:

•INSTITUTIONAL DEVELOPMENT AND CAPACITY BUILDING •INFRASTRUCTURAL FACILITATION AND DEVELOPMENT •HUMAN RESOURCES DEVELOPMENT AND HIV/AIDS INTERVENTION •INVESTMENT ATTRACTION AND PROMOTI0N •CONSOLIDATION OF FINANCIAL AND TECHNICAL SUPPORT •RESEARCH, DEVELOPMENT AND INFORMATION MANAGEMENT

NMMM KEY PRIORITY SECTORS AUTOMOTIVE SECTOR OBJECTIVES:

•CREATION OF AN ATTRACTIVE INVESTMENT CLIMATE •INFRASTRUCTURE DEVELOPMENT AND UPGRADE •PROMOTION OF PEOPLE DEVELOPMENT •PROMOTION OF SOCIAL RESPONSIBILITY •COMPETITIVENESS IMPROVEMENT •PROMOTION OF LONG-TERM VIEW AND STRATEGIC ALIGNMENT

WHAT HAVE WE ACHIEVED SO FAR

AUTOMOTIVE AND MANUFACTURING:

• DEVELOPED A BUSINESS PLAN FOR THE AUTOMOTIVE SUPPLIER PARK IN UTH. (R300M) • THROUGH ECMAC, 121 BUSINESSES IN THESE SECTORS BENEFITED FROM THE BUSINESS DEVELOPMENT SERVICES • 5 BUSINESSES WERE ASSISTED IN CREATING EXPORT LINKAGES • 51 BUSINESSES WERE ASSISTED IN GETTING DTI INCENTIVES • 31 BUSINESSES WERE ALSO ASSISTED IN GETTING ACCESS TO NEW TECHNOLOGY WITHIN THIS SECTOR.

• 44 BUSINESS WERE CERTIFIED TO COMPLY WITH INTERNATIONAL STANDARD SYSTEMS • BLACK ENGINEER DEVELOPMENT PROGRAMME – 5 STUDENTS • 2 TOILET PAPER MANUFACTURING CO-OPERATIVES 100 • 3 BUILDING SUPPLIES MANUFACTURING CO-OPERATIVES

NMMM KEY PRIORITY SECTORS

CONSTRUCTION SECTOR OBJECTIVES:

•STRATEGIC PARTNERSHIPS AND ALLAINCES •CO-ORDINATION OF ALL CONSTRUCTION INITIATIVES WITHIN THE METRO •RESEARCH, DEVELOPMENT AND INFORMATION AND MANAGEMENT •CO-ORDINATION OF FINANCIAL AND TECHNICAL SUPPORT •INSTITUTIONAL DEVELOPMENT AND RESTRUCTURING •HUMAN RESOURCES DEVELOPMENT AND HIV/AIDS INTERVENTION •INNOVATION AND TECHNOLOGY DEVELOPMENT

WHAT HAVE WE ACHIEVED SO FAR CONSTRUCTION:

• TRAINING OF 100 EMERGING CONTRACTORS • 12 COMPANIES BENEFITED FROM THE SETA BASED TRAINING PROGRAMME WITHIN THE CONSTRUCTION INDUSTRY .

• THROUGH NMMM PROCUREMENT POLICY, 65% OF ALL CONSTRUCTION RELATED CONTRACTS WERE AWARDED TO PDI’s.

• 30% SET ASIDES FOR, CONTRACTORS AND CO-OPERATIVES.

• MAJOR CONSTRUCTION OPPORTUNITES WITHIN VISION 2020 PROJECTS, I.E. ICC, FS, NJOLI AND OTHERS

NMMM KEY PRIORITY SECTORS LOGISTICS SECTOR OBJECTIVES:

•INVESTIGATION OF OPPORTUNITIES WITHIN THIS SECTOR •POLICY AND STRATEGY DEVELOPMENT (NINGBO ASSISTANCE) •DEVELOPMENT OF INFRASTRUCTURE MAPPING •TRAINING AND DEVELOPMENT

2

HR/HIV Alignment

DEVELOPMENT RATIONALE:

• ECONOMY-DRIVEN SKILLS, TRAINING AND REDEVELOPMENT PROGRAMME • SUPPLY AND DEMAND ALIGNMENT • COUNTER THE HIV/AIDS IMPACT POST 2010 • CREATION OF MULTI-TIER PARTNERSHIPS Driver 2

2

HR/HIV Alignment

DEVELOPMENT APPROACH:

• ALIGNMENT WITH INVESTOR NEEDS • ALIGNMENT WITH LOCAL ECONOMY DEMANDS • ALIGNMENT WITH MAJOR INFRASTRUCTURE DEVELOPMENTS • ALIGNMENT WITH KEY GROWTH SECTOR REQUIREMENTS Driver 2

WHAT HAVE WE ACHIEVED SO FAR

HUMAN RESOURCES DEVELOPMENT:

• MEMORANDUM OF AGREEMENT WITH VARIOUS SERVICE PROVIDERS AND TERTIARY TO DEVELOP THOSE SKILLS • MORE THAN 200 BUSINESSES TRAINED IN 2003 > R2M • RECENTLY SIGNED AN AGREEMENT WITH AIDC TO PROVIDE TECHNICAL SUPPORT WITHIN THE AUTOMOTIVE INDUSTRY • MAJOR INTAKE OF STUDENTS FOR INTERNSHIP WITHIN THE NMMM EDTA.

• FUNDED MORE THAN 3 SMME INCUBATORS AT BETHELSDORP, MOTHERWELL AND VEEPLAAS. >R2M

Driver 3

3

Infrastructure Investment

DEVELOPMENT RATIONALE:

•BACKBONE FOR GROWTH AND GLOBAL COMPETITIVENESS • ENHANCES LABOUR-INTENSIVE PUBLIC WORKS PROGRAMME • FACILITATES INWARD INVESTMENTS – INVESTOR REQUIREMENTS  EXAMPLES, EUROPE ECONOMY ON CANALS AND ROADS AND RAILWAYS  EXAMPLES, FAR EAST ON GOOD EDUCATION, HEALTH AND INFRASTRUCTURE INVESTMENTS

3

Infrastructure Investment

Driver 3

DEVELOPMENT APPROACH:

•SUPPORT COEGA PROJECT AS AN IMPERATIVE, WITH OTHER STRATEGIC PROJECTS • INFRASTRUCTURE INVESTMENT TO TARGET UNDERDEVELOPED AREAS WITHIN UITH / DESPATCH • ADDRESS INFRASTRUCTURE DECAY AS AN ECONOMIC IMPERATIVE IN DESIGNATED AREAS •ENSURE THAT THERE IS APPLICATION OF LABOUR INTENSIVE METHODS OF INFRASTUCTURE DEVELOPMENT TO ENCOURAGE JOB MAXIMISATION.

• DEDICATED CAPACITY TO UNDERTAKE HIGH-LEVEL INFRASTRUCTURE PLANNING, INCLUDING OTHER STAKEHOLDERS E.G. COEGA, NPA OTHER

WHAT HAVE WE ACHIEVED SO FAR

INFRASTRUCTURE DEVELOPMENT:

• ALMOST 80% OF OUR CAPITAL BUDGET IS FOR INFRASTRUCTURE DEVELOPMENT ROAD NETWORKS, ELECTRICITY UPGRADE, WATER SUPPLY.

• TO ENSURE THAT 50% OF ALL OUR INFRASTRUCTURE PROJECTS ARE LABOUR INTENSIVE.

• CURRENT PLANS TO UPGRADE THE NJOLI SQUARE , AND FOCUS ON ROAD UPGRADING, TRADING FACILITIES FOR INFORMAL SECTOR, COMMERCIAL DEVELOPMENTS FOR INFORMAL AND FORMAL SECTOR AND COMMUNITY CENTRES • FINANCIAL AND TECHNICAL SUPPORT TO STRATEGIC PROJECTS E.G. PORT OF NGQURHA, COEGA, UDDI, AXIS.

4 Destination Marketing DEVELOPMENT RATIONALE:

•A PLACE TO VISIT, LIVE, WORK AND INVEST IN • IMAGE AND CONFIDENCE BUILDING TARGETING KEY GROWTH SECTORS • RAISE THE SOCIAL, POLITICAL AND ECONOMIC PROFILE OF THE NMB REGION • DEFINE, PACKAGE AND SELL OUR UNIQUE ASSETS • STRONG LEADERSHIP AND GOOD GOVERNANCE • BUILDING A SENSE OF BELONGING AND UNITY Driver 4

Driver 4

4 Destination Marketing DEVELOPMENT APPROACH:

• MARKET AND POSITION AS AN INVESTMENT, TOURISM AND TRADE DESTINATION • CONSOLIDATE AND AGGRESSIVE ROLL OUT OF THE NEW BRAND AND ITS MARKETING STRATEGY • CONSOLIDATE OUR INVESTMENT, EXPORTS AND MARKETING STRATEGIES • IMPLEMENT A BUSINESS AND RETENTION STRATEGY • SET-UP JOINT MARKETING INITIATIVES TO BOLSTER COORDINATION

WHAT HAVE WE ACHIEVED SO FAR INVESTMENT PROMOTION AND ATTRACTION:

• INVESTMENT STRATEGY FOR THE METRO HAS BEEN DEVELOPED WHICH IS AIMED AT ATTRACTING AND RETAINING INVESTORS.

• MAJOR EXPANSIONS IN THE LAST YEAR (R126M) • A TRADE CENTRE IS IN A PROCESS OF BEING ESTABLISHED BY THE NMMM.

• AN INVESTMENT COUNCIL TO CO-ORDINATE TRADE AND INVESTMENT PROMOTION IS IN A PROCESS OF BEING ESTABLISHED AS AN INTERIM STRUCTURE TO CO-ORDINATE ISSUES OF TRADE AND INVESTMENT PROMOTION.

• EXHIBITIONS, TRADE FAIRS AND EXPOS FOR SMMES • INTERNATIONAL INVESTMENT CONFERENCE 2003 &4 AND THE COEGA AUTOMOTIVE CONFERENCE

5 BEE PROMOTION

Driver 4

DEVELOPMENT RATIONALE

•AFFIRMATIVE PROCUREMENT ADVANCES BEE AND JOB CREATION •PROVIDES EMERGING BLACK ENTEPRISES AND CO-OPERATIVES OPPORTUNITIES TO: – GROW THEIR PRODUCTION (ACCESS TO OPPORTUNITIES) –TO BECOME COMPETITIVE (TECHNICAL SUPPORT PROVIDED) –TO BECOME EFFICIENT (TECHNICAL SUPPORT AND EXPERIENCE)

5 DEVELOPMENT APPROACH: BEE PROMOTION

Driver 4 • SET UP INSTITUTIONAL TARGETS FOR AFFIRMATIVE PROCUREMENT •PROVIDE SET ASIDES TO THE VALUE OF 30% OF TOTAL NMMM OPPORTUNITIES •PROVIDE TECHNICAL SUPPORT AND MENTORSHIP TO BUILD CAPACITY •ENSURE YOU LINK BEE COMPANIES AND CO-OPERATIVES TO SUPPORT STRUCTURES •REFER TO ADVICE CENTRES FOR TECHNICAL AND FINANCIAL SUPPORT –TRADE CENTRE •SET UP MONITORING AND EVALUATION SYSTEMS TO ENSURE COMPLIANCE THROUGHOUT THE INSTITUTION.

•MARKET BEE COMPANIES AND CO-OPERATIVES TO PRIVATE SECTOR AND GOVERNMENT DEPARTMENTS.

WHAT HAVE WE ACHIEVED SO FAR

•

THE OVERALL NO TENDERS AWARDED

• THE OVERALL NO FOR HDI TENDERS • THE OVERALL NO FOR NON-HDI • THE MONETARY VALUE FOR ALL

=

= = =

3783

2438 1345 R 777M • THE OVERALL VALUE FOR HDI’S = R473M • THE OVERALL VALUE FOR NON-HDI’S = R304M • THE PERCENTAGE OF TENDERS AWARDED TO HDI’S= 61 %

economic vision

Development Thrusts Principles

Vision principles

Principles

1. PROMOTE DEVELOPMENT OF SMME AND INFORMAL TRADERS 2. IMPLEMENT COMMUNITY-BASED PROGRAMMES (POVERTY ALLEVIATION) 3. FACILITATE TECHNOLOGY DEVELOPMENT AND INNOVATION 4. ADVANCE THE COURSE OF BLACK ECONOMIC EMPOWERMENT (PROCUREMENT POLICY REVIEW AND CO-OPERATIVE POLICY) 5. ESTABLISH CROSS-SECTIONAL PARTNERSHIPS 6. SUSTAINABLE DEVELOPMENT - AGENDA 21

DEVELOPMENT PROGRAMMES

•

VISION 2020 PROJECTS

•

STRATEGIC PROJECTS

•

LED PROJECTS

•

URBAN AGRICULTURE PROGRAMME

•

SMME AND CO-OPERATIVE SUPPORT

•

TOURISM DEVELOPMENT PROGRAMMES

•

CO-OPERATIVE DEVELOPMENT PROGRAMME