Urban-Econ: Development Economists 1088 Pretorius Street, Hatfield Email: pta@urban-econ.com Tel: 012 342 8686 L OCAL E CONOMI C DE VE L OPME NT SUMMIT
PURPOSE OF T HE SUMMI T • Pre se nt ide ntifie d de ve lo pme nt o ppo rtunitie s • Pro mo te c o lla b o ra tio n b e twe e n b usine ss o wne rs a nd the L e se di L o c a l Munic ipa lity • F a c ilita te the imple me nta tio n o f L E D inte rve ntio ns • Co nside r the e sta b lishme nt o f a n L E D F o rum
L E D invo lve s a c o llab o rative e ffo rt b y lo c al stake ho lde rs to c re ate b e tte r c o nditio ns fo r e c o no mic g ro wth and de ve lo pme nt. WHAT I S L OCAL E CONOMI C OBJE CT I VE S DE VE L OPME NT ? 1. Re a lise c o mpa ra tive a dva nta g e s 2. Jo b c re a tio n 3. Po ve rty a lle via tio n 4. Pa rtne rship de ve lo pme nt 5. Re mo ve o b sta c le s to b usine ss 6. E nc o ura g e BE E
Ac ts as a b lue print fo r L E D in the Munic ipality. T o b e utilise d b y the Munic ipal L E D Unit in partne rship with o the r lo c al stake ho lde rs. WHAT I S AN L E D ST RAT E GY? OBJE CT I VE S 1. Ana lyse the lo c a l e c o no my 2. Asse ss c o mpa ra tive a dva nta g e s 3. I de ntify o ppo rtunitie s 4. De ve lo p L E D pro je c ts 5. F a c ilita te imple me nta tio n
DE VE L OPI NG T HE ST RAT E GY
KE Y POL I CI E S AND ST RAT E GI E S 1. Natio nal De ve lo pme nt Plan 2. I ndustrial Po lic y Ac tio n Plan (I PAP) I V 3. Gaute ng 2055 4. Gaute ng Gro wth and De ve lo pme nt Strate g y 5. Se dib e ng Gro wth and De ve lo pme nt Strate g y I I 6. Distric t and L o c al I DPs, SDF s and L E D Strate g ie s POL I CY RE VI E W AND AL I GNME NT L E D SHOUL D F OCUS ON 1. Quic k wins a nd c a ta lytic pro je c ts 2. Susta ina b le jo b c re a tio n 3. L a b o ura b so rb ing industrie s 4. I nve stme nt a ttra c tio n 5. Rura l a nd urb a n inte g ra tio n 6. Pub lic -priva te pa rtne rships
1. Over 105 000 residents in 2013 • Average annual growth of 3.1% • 44.2% of the population is under 25 2. Relatively strong economic growth • 4.8% growth in 2011 HI GHL I GHT S OF • Average annual growth of 3.0% T HE MUNI CI PAL ASSE SSME NT 3. Relatively diversified economy 4. Unemployment rate of 29.4% • Sedibeng DM: 40.4% • Gauteng: 29.1% 5. High level of service delivery • Reliable electricity, water and refuse removal
Surve ye d o ve r 160 sma ll b usine sse s in the Munic ipa lity F o rmal and info rmal • He ide lb e rg , Ratanda and De vo n • Re pre se ntative o f all industrie s • T HE SMAL L BUSI NE SS K E Y F I NDI NGS SURVE Y 1. Re la tive ly we ll dive rsifie d 2. Go o d b usine ss c o nfide nc e 3. Stro ng re pre se nta tive o rg a nisa tio n 4. Crime is no t a ma jo r c o nc e rn 5. Ge ne ra l e nthusia sm to pa rtic ipa te in lo c a l de ve lo pme nt initia tive s
F ORMAL SURVE Y: SUMMARY 1) L a rg e re ta il pre se nc e , b ut a lso re pre se nte d in o the r industrie s 2) Va st ma jo rity a re individua lly o r fa mily o wne d 3) 20% b e lo ng to a b usine ss e ntity/ c ha mb e r Ye a rs in Ope ra tion Numbe r of E mploye e s 20- 50 20+ 8% 17.6% 10- 20 0- 5 11% 35.2% 15- 20 5- 10 9.3% 16% 0- 5 10- 15 5- 10 65% 15.7% 22.2%
I NF ORMAL SURVE Y: SUMMARY 1) I nfo rma l b usine sse s a re c o nc e ntra te d in Ratanda a nd the He ide lbe r g CBD 2) Prima rily spa za sho ps, c lo thing a nd b a rb e rs 3) 15% b e lo ng to a re pre se nta tive / suppo rt o rg a nisa tio n 4) Mo re tha n ha lf o f info rma l b usine ss o wne rs e mplo y no e xtra sta ff 5) Ave ra g e pro fit I n a g o o d we e k: R1900 I n a b a d we e k: R800 E a rn a s muc h a s R6000 a we e k a nd a s little a s R0
SWOT ANAL YSI S S tr W e akne sse s e ngths • • L oc ation and ac c e ssibility High une mployme nt L ittle e c onomic • Natur al e nvir onme nt pote ntial in small r ur al c ommunitie s • • Good agr ic ultur al land Poor spatial inte gr ation • • Str ong agr o- pr oc e ssing Gr adual de c line in the He ide lbe r g • He ide lbe r g CBD CBD • • Ac tive busine ss c hambe r Skills shor tage s • Good infr astr uc tur e & se r vic e s O ppor T tunitie s hr e ats • • Unde r utilise d land Global war ming • • L ar ge ne ighbour ing mar ke ts Pote ntial wate r & e le c tr ic ity • T r anspor t r oute s and fac ilitie s shor tage s • • Gov. suppor t for agr ic ultur e and Slow r e c ove r y in tr aditional e xpor t agr o- pr oc e ssing mar ke ts • • Industr y par tic ipation in L E D Industr ial ac tion
1. Agriculture and Agro-Processing 2. Small Business and Retail 3. Urban and Township Revitalisation 4. Tourism Development 5. Transport and Logistics F OCUS ARE AS
AGRI CUL T URE AND AGRO-PROCE SSI NG O BJEC TIVES, O PPO RTUNITIES A ND PRO JEC TS
1. Busine ss de ve lo pme nt a nd jo b c re a tio n 2. Ho use ho ld fo o d se c urity 3. I nc re a se d numb e r o f b la c k fa rme rs/ pro duc e rs OBJE CT I VE S 4. F e we r e c o no mic le a ka g e s 5. Be ne fic ia tio n a nd pro duc t dive rsific a tio n 6. I nc re a se ma rke t size a nd dive rsity
1. Stre ng the n the a g ric ulture va lue -c ha in 2. De ve lo p sma ll-sc a le fa rme rs a nd pro duc e rs 3. Attra c t inve stme nt a nd I DE NT I F I E D pro je c ts to rura l a re a s OPPORT UNI T I E S 4. De ve lo p spe c ia lty a nd nic he pro duc ts 5. E xpo rt pro mo tio n a nd dive rsific a tio n
SMAL L BUSI NE SS AND RE T AI L O BJEC TIVES, O PPO RTUNITIES A ND PRO JEC TS
1. Cre a te inc o me a nd e mplo yme nt o ppo rtunitie s 2. I nc re a se e ntre pre ne uria l a c tivity 3. F o rma lise info rma l tra de rs a nd b usine sse s OBJE CT I VE S 4. I nc re a se the e c o no mic pa rtic ipa tio n o f b la c k-o wne d b usine sse s 5. Re duc e b a rrie rs to e ntry
1. Ma ximise impa c t o f the He ide lb e rg Ma ll 2. Busine ss de ve lo pme nt a nd upg ra de s to the He ide lb e rg CBD I DE NT I F I E D OPPORT UNI T I E S 3. Busine ss fo rma lisa tio n a nd suppo rt in rura l a re a s 4. Co nso lida te a to wn c e ntre in Ra ta nda
URBAN AND T OWNSHI P RE VI T AL I SAT I ON O BJEC TIVES, O PPO RTUNITIES A ND PRO JEC TS
1. Attra c t g re a te r inve stme nt 2. Re duc e the so c ia l a nd e c o no mic b a rrie rs b e twe e n c o mmunitie s 3. I mpro ve q ua lity o f life OBJE CT I VE S 4. Cre a te a n e na b ling b usine ss e nviro nme nt 5. E nc o ura g e to urism b y impro ving b usine ss distric ts a nd to urism o ffe ring s
1. I mpro ve the inte g ra tio n o f He ide lb e rg a nd Ra ta nda 2. I nve st in the de ve lo pme nt o f b usine ss infra struc ture I DE NT I F I E D OPPORT UNI T I E S 3. E nc o ura g e de ve lo pme nt o f e ntre pre ne urs 4. Pro mo te the de ve lo pme nt o f info rma l b usine sse s
T OURI SM DE VE L OPME NT O BJEC TIVES, O PPO RTUNITIES A ND PRO JEC TS
1. Pro mo te the a re a a s a to urism de stina tio n 2. E xpa nd the ta rg e t ma rke t 3. I mpro ve the q ua lity, visib ility a nd OBJE CT I VE S a c c e ssib ility o f to urism o ffe ring s 4. I nc re a se visito r numb e rs a nd spe nding 5. Cre a te ne w sma ll b usine ss a nd jo b o ppo rtunitie s
1. Ma rke t the re g io n a s a to urism de stina tio n 2. I nc re a se the to urism impa c t o f na ture re se rve s I DE NT I F I E D OPPORT UNI T I E S 3. Pro mo te he rita g e b a se d to urism 4. Ho st a n a nnua l fe stiva l/ e ve nt
T RANSPORT AND L OGI ST I CS O BJEC TIVES, O PPO RTUNITIES A ND PRO JEC TS
1. I nc re a se a c c e ss to re g io na l ma rke ts 2. Attra c t g re a te r inve stme nt 3. E nc o ura g e lo c a l b usine ss OBJE CT I VE S de ve lo pme nt 4. Addre ss the ne g a tive implic a tio ns o f tra nspo rt 5. I mpro ve the a re a ’ s visib ility a nd a c c e ssib ility
1. Ma ximise impa c t o f the T ra nsne t Bulk L iq uid T e rmina l 2. Ma ximise o ppo rtunitie s re la ting to the T a mb o Spring s I nla nd Po rt I DE NT I F I E D 3. Addre ss the impa c t o f OPPORT UNI T I E S truc king 4. F a c ilita te to urism thro ug h tra nspo rt inte rve ntio ns 5. E sta b lish the re g io n a s a tra nspo rt a nd lo g istic s hub
PRI ORI T Y PROJE CT S Ove r 60 po ssib le pro je c ts a re ide ntifie d in the L E D stra te g y 15 pro je c ts a re prio ritise d fo r imple me nta tio n I mple me nta tio n o f the se pro je c ts will b e drive n b y the L E D F o rum
PROJE CT L I F E -CYCL E 5) CONST RUCT ION AND HAND OVE R 4) F INANCIAL CL OSURE 1) PROJE CT SCOPING 3) BANKABL E F E ASIBIL IT Y ST UDY 2) PRE - F E ASIBIL IT Y ST UDY
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