240 000 jobs - kzn ppc · 2016. 11. 25. · sapoa members own and control over 90% of all...
TRANSCRIPT
SAPOA celebrated their 50th anniversary this year being established in
1966 by the leading and large property investment organisations to bring
together all role players in the commercial property field and to create a
powerful platform for property investors. SAPOA members own and
control over 90% of all commercial property in this country. That’s over
35 million square metres office, retail and industrial space, which is
growing steadily at 7% per annum. This equates to more than 70% of all
rental commercial space in South Africa and most of it resides in our
metropolitan areas. Our industry contributes between 6 and 8% of the
national GDP.
Who is the South African Property Owners Association
Contextualise the KZN Property Sector
The Role and Impact of the Commercial Property Sector (SAPOA,2015)
•GDP R18 billion representing just under 6% of the economy
•240 000 Jobs
•752 million Tax Revenue 18.26% of the provincial economy
Value in terms of Gross Domestic Product (GDP)
Value in terms of Sustained Jobs
Tax Value
Challenges
•External Environment
•Internal Environment
•Legislation
•Transformation
•Productivity
•Soft Skills
•External Environment
•Ratings Agencies
•BREXIT
•TRUMP
•Globalisation
•Digital Disruption
•Climate Change
•South Africa’s Investment Image
•Internal Environment•State of Capture
•Corruption
•Crime
•Productivity
•Skills retention
•Visas
•Stagnant Economy
•Currency Fluctuations
•Title Deeds (Ingonyama Trust) Access to Land
•Municipal Competencies
•Uncertainty on Foreign Ownership
•Time and friction of doing business
•Electricity (Nuclear Deal)
•Water
•Inbalance in budgetary allocation social vs economic infrastructure
Legislation
“Fragmented legislation”
•Section 195 of the Constitution,
in particular the obligation to be “development oriented”
•WULAS
•EIA
•Act70 of 70
•SPLUMA
•Preservation and Development of Agricultural Bill
•Labour Laws
•Visa regulations to attract skills
•“Harmonisation”
SA CONSTITUTION: CHAPTER 10
PUBLIC ADMINISTRATION
195. Basic values and principles governing public administration.-(I) Public administrationmust be governed by the democratic
values and principles enshrined in the Constitution,including the following principles:
•A high standard of professional ethics must be promoted and maintained.
•Efficient, economic and effective use of resources must be promoted.
•Public administration must be development-oriented.
•Services must be provided impartially, fairly, equitably and without bias.
•People’s needs must be responded to, and the public must be encouraged to participate in po!icy-making.
•Public administration must be accountable.
•Transparency must be fostered by providing the public with timely, accessible and accurate information.
•Good human-resource management and career-development practices, to maximise human potential, must be cultivated.
•Public administration must be broadly representative of the South African people, with employment and personnel management
practices based on ability, objectivity, fairness, and the need to redress the imbalances of the past to achieve broad representation.
(2) The above principles apply to-
(a) administration in every sphere of government;
(b) organs of state; and
(c) public enterprises.
(3) National legislation must ensure the promotion of the values and principles listed insubsection (1).
(4) The appointment in public administration of a number of persons on policy considerationsis not precluded, but national legislation
must regulate these appointments in the public service.
(5) Legislation regulating public administration may differentiate between different sectors, administrations or institutions.
(6) The nature and functions of different sectors, administrations or institutions ofpublic administration are relevant factors to be
taken into account in legislation regulatingpublic administration.
Transformation
•Pace of transformation
•Willingness for transformation
•Skills for transformation
•Finance for transformation
•Opportunities for transformation
•Communities
•Criminal Element posing as transformation
•One stop shop for transformation
Productivity
• Section 195 of the Constitution to be development-oriented
•Silo mentality and behaviour of individual departments
•not only national, provincially but also at municipal level
•Attitudes of functional staff towards service
•Labour Laws
•Entrepreneurs vs wanting a job ( Frikkie Brooks)
Soft Skills
• Relationships
•Leadership
•“Achieving results through others”
•Communication
•Platforms for Collaboration Public/Private
•Attitudes
•Mutual Respect and acknowledgement of respective challenges
•Negotiation Skills
•Listening Skills
•Collaboration
Critical Success Factors•Strategy
•Precinct Management
•Catalytic Interventions ( Minister Jeff Radebe)
•Fresh Approach to property Development
•Key Economic Infrastructure
•Collaboration
StrategyGood solid plans in place that need inter departmental alignment
at national and provincial spheres that result in the PGDP becoming the accepted
spatial plan and being utilised as the basis for municipal plans to guide investment
and development to create real Certainty!
“ Strategy is a Strategy it needs to find it’s way to the ground” ( Frikkie Brooks,2016)
•PGDS
•PGDP
•IDP
•SDP
•LDP
Urban and Precinct Management
A CASE FOR PUBLIC/PRIVATE PARTNERSHIP IN URBAN
AND PRECINCT MANAGEMENT
“Urban management is concerned with the policies, plans,
programs, and practices that seek to ensure that population
growth is matched by access to basic infrastructure, shelter,
and employment. While such access will depend as much, if
not more, on private initiatives and enterprises, these are
critically affected by public sector policies and functions that
only government can perform.” –
Davey, KJ, in Elements of
Urban Management
What must be achieved in order to ensure that cities and towns
manage the influx?
attention to spatial equities,
effective and affordable public transport,
the creation and maintenance of safe and attractive public spaces,
and
stimulation and growth of the economy
job creation
Precinct management “is focused on the post-implementation
management of public spaces knitting the public, private and
community facilities and properties together.”
(National Treasury)
Why property owners are critical stakeholders
• they support the municipality’s rates revenue
• the values of their properties are directly proportional to the
rates revenue.
• higher values = more rates revenue
Case Study
Cape Town City CID
2006: Aggregate property values = R6 billion
2016: coming up to R35 billion
(nearly 6x in a decade)
Private sector investment in
precinct
Manage precinct
Attract investors
Property values
increase
Rates revenue
increases
Theme story
Vibrant users
Attractive street life
Programmed and Promoted
Attractive Environment -aesthetics
Welcoming public space - in good repair, signage, easy access,
greeter etc
Clean and safe
Messy, dirty and unsafe
Catalytic Interventions
A philosophy that relates
not so much to catalytic
projects as opposed to
catalytic interventions
(which could unlock new
projects) – but the issue is
around interventions that
are systemic and include
procedural and regulatory
elements
A philosophy that relates not so much to catalytic projects as opposed to catalytic interventions (which could unlock new projects) – but the issue is around interventions that are systemic and include procedural and regulatory elementsA philosophy that relates not so much to catalytic projects as opposed to catalytic interventions (which could unlock new projects) – but the issue is around interventions that are systemic and include procedural and regulatory elements
Fresh Approach to property Development
A fresh approach to property development is required that creates an environment where more sustainable city forms are enabled – ie mixed use, higher intensities that provide critical mass for Public Transport – municipalities need to get behind their own vision and actively support such an approach – as opposed to the continued car centric mindsets.
•Driverless Cars are around the corner reducing the need for parking and reducing the
number of cars on our roads
Key Economic Infrastructure
Recognition of key economic infrastructure that can have a catalytic impact on unlocking new investment and development – and the associated planning and budgeting around such- this relates to the need for a programmatic approach to be taken working with the private sector
•Innovative Funding Models
Collaboration
• ICT and software solutions to support communication, management and
implementation
•To stimulate private activism and participation
•To plug into the working groups of the PGDP
•A transformation One stop Shop
•Digital Strategy
Interventions
•What
•How
•When
Intervention One
What
Create a Transformation One stop Shop
•Stakeholders
•Opportunites
•Finance
• Skills Development
•Mentorship
How
Engage Private and Public Departments that would support
the initiative and resource it.
Plug it into the existing One Stop Shop
When
By the end of 2017 to be functional
Intervention Two
What
Establish a robust forum for collaboration and engagement between Private
and Public sector on the following:
•Catalytic Interventions
•Key Economic Infrastructure
•Urban Management
•Fresh Approach to property development
•To address the fragmented legislation
•To create an enabling environment for investment and development
How
To plug into existing structures like the working groups of the PGDP.
To explore co-ordinating the private entities like SAPOA, Growth Coalition
and the Chambers into a forum that engage with high level counterparts in
Government on a regular basis to assess progress and implementation of plans
When
To be established by the middle of 2017
Intervention Three
What
Training of Government Employees to establish a developmental culture as
envisioned in section 195 of the constitution as well as a service culture.
How
Programs to be developed and implemented in collaboration between
Private and Public Sector
When
Programs to be developed in 2017 and implemented in 2018
Intervention FourWhat
To create cross cutting institutional structures that diminish and address the silos
that exist in Government
How
Create Non Profit Companies with directors nominated from private and public
Eg. Strategic Urban Management
To be customer centric.
Research what the users/citizens/clients need.
To make use of the plethora of IT solutions to manage these engagements
CRM systems
When
Pilot Programs to be developed in 2017 and implemented in 2018
“ Business Unusual” (Sihle Zikalala,2016)
Thank you for the opportunity of
Presenting to you.Edwin van Niekerk