City of Johannesburg INVESTOR ROADSHOW PRESENTATION 25-27 February - PowerPoint PPT Presentation

“Corridors of Freedom - Re- stitching our city to create a new future” City of Johannesburg INVESTOR ROADSHOW PRESENTATION 25-27 February 2019

Agenda Political Overview 1 Strategic Overview 2 Financial Analysis 3 Treasury Management 4 2

“Corridors of Freedom - Re- stitching our city to create a new future” POLITICAL OVERVIEW PRESENTATION TO INVESTORS 25 – 27 February 2019 MMC FINANCE : CLLR FUNZELA NGOBENI

Political Context : Strategic Evolution and Direction Where are we as the City of Johannesburg … Sustainability Consolidation Phase Stabilisation Phase Phase (service with pride) Long Term Medium Term TEN POINT PLAN MAYORAL GDS OUTCOMES PRIORITIES The initial “10 Point Plan” – conceived in the early days of the administration – has evolved to be replaced by 5 Growth & Development Outcomes and 9 Mayoral Priorities 4

Political Context : Strategic Direction We are still committed to achieving the following by 2040…. 1. A growing, diverse and competitive economy that creates jobs 5. An honest, 2. An inclusive society with transparent and enhanced quality of life that responsive local provides meaningful redress government that prides through pro-poor itself on service development excellence 3. Enhanced, quality 4. Caring, safe and services and sustainable secure communities environmental practices 5

What we promised and achieved….. Training of the new 1500 JMPD officers who were recruited in 2017 is at completion stage and they are expected to begin patrolling the City’s streets in 2019 Inner-City Revitalisation – The inner-city revitalisation took off and the first batch of 84 properties was approved by Council to be offered to the private sector for development. More buildings will be offered in the coming financial year. The City conducted a skills audit of top management in order to ensure that our employees possess the right skills for the appropriate positions. The audit was hugely successful and revealed that we are on the right track to creating a professional civil service in Johannesburg. We have served with pride …… .. 6

Political Context : “Real Change” To drive the 2018/19 delivery agenda for the current IDP term, Diphetogo demands that the City ensures the City’s focus is on delivering transformative change residents and stakeholders of (Diphetogo) and making a real difference for the residents of Johannesburg experience exceptional Johannesburg. service standards. The key to accelerating change is narrowing focus to the most critical needs of the City. Diphetogo is the City’s programme to accelerate change aligned to these critical needs. The City has identified key non-negotiables that will form the basis of the interventions and programmes the City will pursue for the remainder of the term. 7

“Corridors of Freedom - Re- stitching our city to create a new future” STRATEGIC OVERVIEW PRESENTATION TO INVESTORS 25 – 27 February 2019 CITY MANAGER DR NDIVHONISWANI LUKHWARENI

Operating Context : Socio-Economic Indicators City of Johannesburg remains the biggest metro in South in terms of population, and the size and reach of the economy • The City’s population has increased by an annual growth rate of 3% in the past 10 years. In 2007, there were 3.75 Recent Economic Performance and Outlook million people living in the city. The number of people in GDP % constant prices the city increased to 5.04 million in 2017. 2015 2016 2017 2018 2019 2020 • The total number of households have also increased marginally over the same period. The number of World Economy 3.5 3.3 3.8 3.7 3.5 3.6 households increased from 1.21million in 2007 to 1.63 million in 2017. South Africa 1.3 0.6 1.3 0.7 1.3 1.9 • Increased population size and number of households puts Gauteng 1.3 1.3 1.0 0.9 1.7 2.2 pressure on the delivery of services by the City as the demand for services increases as well. The city is thus Johannesburg 1.1 1.4 0.9 1.1 1.9 2.4 forced to do more with less.

Operating Context : Socio-Economic Indicators Human Development Gini Coefficient Index (HDI) (Inequality marker) 0.74 0.66 0.73 0.65 0.72 0.65 Official Unemployment Rate Q3 0.7 0.7 2018 – COJ 0.68 0.64 0.63 0.66 0.66 0.63 0.64 0.62 0.62 2001 2011 2017 2001 2011 2017 29.2% Access to basic services 27.5% South Africa City of Water Electricity Sanitation Refuse Johannesburg 98.4% 90% 95.1% 95.9% for lighting within 200m flush toilet or weekly and other of dwelling VIP collection purposes  Ironically, despite being a “place of gold”, Joburg has some of the most underdeveloped communities in the country and levels of inequality are very high 10

Johannesburg in Context : Strategic Response We responded to the call to service the citizens of Johannesburg with pride. 11

Key achievements: Sustainable services City Power  Installed 1 374 public lights;  Electrified 2 167 units (structures) in informal settlements;  Slovo Park: 1076 informal settlement dwellings have been electrified after CoJ allocated R41 million for the completion of this project;  Alexandra: 300 units (structures) in informal settlement have Johannesburg Water been connected and 100 public lights installed;  99.9% compliance with drinking water quality  Elias Motsoaledi: 175 RDP houses connected, and 105 public  Water consumption decreased to 284.92 litres per lights installed. person per day from a baseline of 287.70 litres per person per day in 2016/17;  100% compliance to sludge breakage  Replaced 45.4 kilometres of sewer pipes against a target of 33.5 kilometres, translating to 135.5% over- achievement;  Water bursts restored within 48 hours of notification was 89.09% against a target of 95%, and for sewer blockages cleared within 24 hours of notification: 12 94.94% against a target of 96%.

Key achievements: Sustainable services Johannesburg Social Housing Company  Joshco delivered 1 159 units  Four inner city buildings that were acquired in the past financial years which are going through pre-construction planning process;  Five informal settlements were upgraded during this financial year;  2 020 rental accommodation units have been completed in the Inner City; Pikitup  2 075 housing opportunities were created this financial year  Pikitup successfully implemented the against the annual target of 2 190; Community Upliftment Programme  218 transitional housing units were constructed this financial (CUP) whereby 37 co-operatives were year against the annual target of 200; established, and 1 362 jobs created in  3 597 title deeds issued to beneficiaries; the waste industry  The capital expenditure performance for the year under review was R60.06 million (99.91%) against the annual plan of R60.11 million. 13

Key achievement : Economic Growth Johannesburg Roads Agency  Spent 97.40% of its total capital budget against a target of 95.00%, and spent all its allocated grant funds on providing basic infrastructure;  92.27% achievement against the target of 90.00% on resolving all reported traffic faults on traffic signals;  Met targets for roads resurfacing (301.12km) and roads upgrading (31.34km) ReaVaya  Phace 1C (a) OF Rea Vaya Bus Rapid Transport between Economic Development, Johannesburg Property Company and Fresh Produce Market Johannesburg CBD, Alexander and Sandton CBD is  8 978 SMMEs were supported against a target of 8 000 currently being implemented.  R8.69 billion value of investment and/or business transactions facilitated  19 449 EPWP opportunities created  Overall 8.8% of market share acquired by emerging 14 producers.

Key Achievements: Human and social development Social Development  Community based Substance Abuse Treatment Sites were established in Tladi, Eldorado Park, Jourbert Park and River Park  64 Clinics with electronic health records since the launch of Ehealth@Joburg  1 619 044 individuals were reached through Jozi Ihlomile HIV/AIDS education door to door programme 15

Key Achievements: Good Governance  Unqualified audit opinion and 4 MEs with clean audit opinion  91% capital expenditure  Attainment of critical ratios: current ratio, remuneration to expenditure, cash coverage  91% revenue collection with respect to billing  Rolled out New Valuation Roll  Appointment of critical key positions:  Chief Operations Officer  Group Chief Financial Officer  Group Head Treasury Financial Strategy and Planning  Group Head Revenue Services and Customer …  Chief of Police 16