Transcript Document
PRO-POOR SERVICE DELIVERY WITH AN EMPOWERMENT & JOB CREATION FOCUS CITY OF TSHWANE Dr Hein Wiese Strategic Executive Officer CONTENT • • • • • • Focusing on critical mass Broadening economic base Co-ordination & prioritization of projects Objectives of EDA Building PPPs Making economic development a reality 2 3 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? 4 CHALLENGE Great results What’s inside the BLACK BOX Good results 5 Employment & Population City Polokwane Buffalo City Msunduzi Nelson Mandela Sol Plaatje Emfuleni Mangaung eThekwini Ekurhuleni Mossel Bay George Cape Town Tshwane Joburg Sample above Rest of SA South Africa Employed Total 93,768 139,087 120,822 226,617 46,411 153,656 156,827 782,934 761,047 22,135 42,095 939,440 654,485 1,085,545 5,224,869 4,358,893 Population Total 508,277 701,890 553,223 1,005,779 201,465 658,420 645,440 3,090,121 2,480,277 71,494 135,409 2,893,247 1,985,983 3,225,812 18,156,837 26,662,941 9,583,762 44,819,7786 Population White Dependency ratio 31,238 5.4 59,208 5.0 45,030 4.6 166,026 4.4 26,220 4.3 92,213 4.3 78,049 4.1 277,428 3.9 482,089 3.3 20,349 3.2 29,904 3.2 542,580 3.1 474,553 3.0 515,185 3.0 2,840,072 3.5 1,453,568 6.1 4,293,640 4.7 % black 94% 92% 92% 83% 87% 86% 88% 91% 81% 72% 78% 81% 76% 84% 84% 95% 90% TSHWANE THE MOST PROSPEROUS METRO Growth Indicator GGP (1996-2001) (%) Annual per capita income in 2001 % people living in poverty in 2001 % employment growth 1999 2000 2001 Tshwane Joburg Cape Town eThekweni Ekurhuleni 4,7 2,6 1,8 2,1 2,9 R57,168 R47,521 R26,033 R21,374 R23,848 12,3 16,6 21,0 31,5 29,3 -1,6 -0,1 0,7 0,0 -5,0 -0,1 2,7 -7,8 -4,1 -3,2 -2,0 -0,5 2,6 1,4 1,6 7 8 SECTORAL CONTRIBUTION TO SA’S GGP (CONSTANT PRICES) 40 36 35 30 25 20 19 15 13 9 10 7 6 8 6 4 5 2 0 WC EC NC FS KZN 9 NW G CTMM M L SECTORAL CONTRIBUTION TO TSHWANE’S ECONOMY 6% 15% TRADE TRANSPORT 13% 24% FINANCING GOV OTHER 19% MANUFACTURING 23% 10 BIG VS SMALL Turnover % Firms % Turnover % Salaries R500m + 0.2 55.2 34.7 R20-R500m 1.2 24.5 32.5 R1 – R20m 28.0 17.4 22.4 - R1m 70.6 2.9 10.4 TOTAL 100.0 100.0 100.0 11 SETTING THE CONTEXT • Key characteristics of success: – Successful cities provide high quality living experiences in 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 12 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 13 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 14 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. 15 16 Babelegi Winterveld DEVELOP THE NORTH •Rudimentary household services •Public facility/ space clusters •Circular public transport •Urban agriculture Shoshanguwe Ga-Rankuwa Dinokeng Capital/ Inner City Atteridgeville DEVELOP THE “URBAN PORT” •Rosslyn •Dinokeng •Bon Accord •Wonderboom Airport CELEBRATE THE CAPITAL •Cultural heritage •Housing Mamelodi MAINTAIN THE REST •Guide the market •Strengthen links between north and south Centurion 17 STRATEGIC FRAMEWORK Maintaining existing Urban Areas Building Social Cohesion Celebrating the capital Strengthening economic clusters Developing the North Sound Financial Fundamentals Strong Developmental Municipal Institution 18 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 Maintaining existing Urban Areas Building Social Cohesion Celebrating the capital • Supporting Blue IQ initiatives Strengthening economic clusters Developing the North Sound Financial Fundamentals 19 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 Maintaining existing Urban Areas Building Social Cohesion Celebrating the capital Strengthening economic clusters Developing the North Sound Financial Fundamentals 20 Strong Developmental Municipal Institution 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 21 TRUE PARTNERSHIP The initiator/ government Service Provider Growing the City Together The Private Sector 22 Business – The Private Sector SERVICE DELIVERY PRINCIPLES OF BATHO PELE • • • • • • • • Consultation Service standards Access to services Courtesy Information Openness & transparency Value for money Economic empowerment 23 PROGRAMMES • • • • • • Economic Development Agency Entrepreneurial Development Centres Skills Development Centres Incubators / Production Centres Tshwane Manufacturing Advisory Centre Trade & Investment Centres 24 CLUSTER ONE MICRO 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 & microenterprise 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 25 CLUSTER TWO MICRO 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 26 CLUSTER THREE CONTINOUS 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 27 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 28 IMPLEMENTATION PLAN EDA Setting up Steering Committee & End Oct 2004 finalising access to IDC funding – approve process plan Urban-agriculture Submission of 4 final business plans Incubators/produc Finalise process plan through Steering Committee tion centres Fundraising road show End Nov 2004 End Nov 2004 Establish Fundraising Committee Mid Dec 2004 & programme for road show 29 30 31 URBAN AGRICULTURE Project Flowers Investment R30m Jobs 250 Strawberries R9m 200 Goat milk R3m 20 Vegetables R12m 450 Citrus trees R12m 200 32 33 BBBEE INTRODUCTION • 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 34 BBBEE GOALS & 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 35 BBBEE MONITORING & 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 36 37 EDA ROLE 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 38 EDA KEY 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 39 EDA PROCESS Phase Description Objectives 1 Pre-funding Political buy-in of the Agency concept 2 Pre-establishment Prepare internal & external systems & procedure & initiate operational planning 3 Establishment Agency establishment & project planning 4 Operational Programme & project implementation 5 Exit Final evaluation & IDC withdrawl 40 41 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) 42 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 43 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 44 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 45 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 46 AUTOMOTIVE CLUSTER ENGINES TRANSMISSIONS WELDERS JIGS SUBASSEMBLERS PRODUCTION LINE FINANCE PAINT SHOP INSURANCE METAL PRODUCTS PRESSES POWER GLASS PRODUCTS BASIC CHEMICALS TEXTILES & LEATHER RUBBER & PLASTIC PRODUCTS PASSENGER CARS BUSES ASSEMBLERS DEALERS * MANAGING LOGISTICS LIGHT COMMERCIALS QUALITY CONTROL SAP PHASE VI MANAGEMENT SYSTEM TRANSPORT 47 TAX STRUCTURE MARKETING ROBOTICS GOVERNMENT INDIVIDUALS HEAVY COMMERCIALS LOGISTIC SUPPORT PAINTS ELECTRONIC EQUIPMENT COMPANIES AFTER SALES SERVICE DEFENCE CLUSTER Manufacturing Equipment Customised Weapon Systems Nuclear Weapons Aerospace Navigation Electronics Metal Products Commodity Product Manufacture Chemical Products R&D Info Services and IT Finance Technology Government 48 SA and other Governments METAL PRODUCTS IRON & STEEL DESIGN FURNACES ELECTRICAL INSTRUMENTS ALUMINIUM SHIPPING MIS MOULDS STAINLESS STEEL MACHINERY WELDERS PACKAGING BUILDING SCRAP POWER OTHER METALS METAL PRODUCTS * ROLLING, SHAPING, CASTING & WELDING PAINT RUBBER PLASTICS WHITE-GOODS TRANSPORT AGRICULTURE VEHICLES ENGINEERING DEFENCE WOOD PETROCHEMICALS CONTAINERS TANKS SHEET STRIP CANS FOIL BARS TUBES RODS WIRE PROFILES ROLLING MILL CUTTERS PETRO-CHEM DIES SPRAYING & PAINTING EQUIPMENT MINING JIGS HEAVY LIFTING & TRANSPORT EQUIPMENT FURNITURE WHOLESALERS CONSUMERS 49 BIOMEDICAL CLUSTER Additives Fine Chemicals Active Compounds Manufacture Pharmaceutical Manufacture • Prescription products • Over the counter products Hospitals & Clinics • Spare parts • Support services • Machine components Machine Assembly Medical Equipment Manufacturing / Assembly Manufacturing Equipment • Hospital furniture • Hi-tech medical equipment • Small Surgical equipment Private Practice Pharmacies Surgical Disposable Manufacture Steel Glass Plastics Textiles Rubber Government R&D IT • Syringes / Needles • Suture material • Bandages Medical Training l l l l l 50 GP’s Specialists Allied Professional Dentists Vets Logistics Health Insurance TOURISM AND LEISURE HOLIDAY RESORTS HISTORICAL PLACES SUPPORT SERVICES TRAINING MEDICAL CATERING FINANCE LEGAL FOOD & BEV. REAL ESTATE SIGHT SEEING INSURANCE CONSTRUCTION ACTION HOLIDAY FACILITIES GAME PARKS LEISURE ATTRACTIONS INDIVIDUALS CULTURAL OFFER TRAVEL AGENTS TOUR OPERATORS SPORT FACILITIES TOUR PACKAGES FAMILIES TOUR GROUPS STUDY GROUPS SPORT TEAMS SHOPPING PATIENTS DELEGATIONS RESTAURANTS POLITICIANS PUBL. EVENTS BUSINESS PEOPLE LOCAL TRANSP. BUSINESS ACCOMMODATION BUSINESS ACTIVITIES STUDY CONGRESSES CORE SERVICES ADDITIONAL SERVICES INTERNATIONAL TRANSPORT TELECOMM. INFO. SERVICES SECURITY POLITICAL EVENTS LOCAL AUTHORITIES GENERAL INFRASTRUCTURE 51 PREFERENTIAL PROCUREMENT KEY RECOMMENDATIONS • Preferential procurement policy should be reviewed & updated in line with applicable legislations & best practice • Preferential procurement should be integrated seamlessly with procurement • More preferential procurement strategies should be incorporated to reduce undue reliance on price preference • Comprehensive targets for preferential procurement should be set 52 PREFERENTIAL PROCUREMENT KEY RECOMMENDATIONS • Preferential procurement process should be mapped & procedures documented • Cross functional responsibility on preferential procurement implementation • Preferential procurement performance targets should be incorporated into performance contracts of staff & committees • Preferred BEE supplier database should be created • Monitoring & reporting should be implemented 53 54 HOW DOES IT ALL FIT? 3-5 year IDP Medium-Long Term Strategy MTIEF Review Budgets MTIEF Sectoral plans Gov Grants IDP Community input IDP Review 55 City Development Strategy RE-ENGINEERING • • • • • • Don’t reengineer but say that you are Do not spend a lot of time analysing Proceed with strong & committed leadership Bold & imaginative thinking Once decided, implement The wrong style of implementation = waiting to get all ducks neatly lined up & in a row • Attend to the concerns of the people Hammer, Michael. 1995. ‘The Reengineering Revolution, the Handbook’. 56 THANK YOU Dr Hein Wiese Strategic Executive Officer Economic Development City of Tshwane Metropolitan Municipality Tel: 082-783-0735 [email protected]