PLANS FOR DRIVING SUSTAINABLE INDUSTRIAL DEVELOPMENT IN

EKURHULENI METROPOLITAN MUNICIPALITY

City of Ekurhuleni (CoE) Industrial Sector

• Background

CoE is one of the six

metro’s in South

Africa and is located

in Gauteng

As indicated in the

map it is bounded by

City of Tshwane on

the north; City of

Joburg on the west

while Lesedi and

Midvaal Local

municipalities

boarding the south.

This is the city that hosted the negotiations of new

democratic government in World Trade Centre in

Kempton Park.

The birth of the city came to effect in 2000 after the

amalgamation of former East Rand nine towns.

It is where South Africa’s (SA) major international

airport is located as well as the agglomeration of

industries are found.

Once again CoE is the first city in Africa to introduce

aerotropolis.

Like any other cities in SA CoE is also faced with

challenges of eradicating unemployment; inequality

and improving economic growth.

This is the city that has managed to achieve a clean

audit rating in the financial year.

In January 2016 the Mayor in his speech announced

that the city’s economy remains rated at the high end

of the range of municipalities.

CoE Industrial Sector Status Quo • The CoE industrial sector

is amongst the cities that

contributes high growth

rate in the economy of SA.

• Ekurhuleni forms part of

development plans and a

vision of the Gauteng

Province’s Blue IQ projects

called Wadeville-Alrode

Industrial Corridor.

2% 23%

3% 5%

15% 11%

22%

19%

MiningManufacturingElectricityConstructionTradeTransportFinanceCommunity

• According to the MSDF 2015 manufacturing is the

highest contributor towards the city’s economic growth

as indicated.

• The said MSDF also reveal that there are about 7 major

concentrations of industrial activities within the city and

these comprise of about 20 separate industrial areas

with 4 of them lie directly adjacent to the City of Joburg.

• The other industrial activities are taking place more

centrally around Boksburg and Benoni and at the

eastern towns of Brakpan; Springs and Nigel.

• At the same time Olifantsfontein and Clayville are

situated in the northern part of the city next to Tembisa

Township.

• Isando; Spartan and Jet Park industrial hubs are located in the heart of the city and they form part of Aerotropolis and consist of light and heavy industrial activities.

• There are also other heavy noxious industrial activities taking place in Germiston; Wadeville andeerbolt.

• It is important to also note that some of these industrial hubs have been existing for long time with some need to be revitalised to meet today’s need and to comply with by laws.

• In making sure that such issues are addressed; the city has developed plans that will look at improving the manufacturing sector. Such plans are aligned with all government policies which contribute towards improving economic growth and fighting unemployment in the country.

The City of Ekurhuleni Driving Plans • In order to achieve an inclusive and broad based investment

destination the city through the GDS 2055 has identified the

following 5 strategic imperatives:

Re-urbanise: to achieve sustainable urban

integration

Re-industrialise: for job creation and economic

growth purposes

Re-generate: sustainable environmental benefit

Re-mobilise: To achieve Social empowerment

Re-govern: Effective cooperative governance.

• To achieve the GDS 2055 vision, council adopted nine

flagship projects with six of these projects needing

investment incentives to enhance their implementation.

These flagship projects are:

Ekurhuleni Aerotropolis;

Revitalization of the Manufacturing Sector;

Revitalization of Township Economies;

Urban Regeneration;

Revenue Enhancement; and

Beautification of Lakes and Dams.

• Aerotropolis Strategy: Through this plan the city has

identified key development nodes within the airport and

industrial development zone that will drive this strategy.

• This 30 years aerotropolis master plan is aimed at moving the city and Gauteng region to unlock the land’s potential to develop new industrial space, create more jobs, increasing property values and generating taxes.

• The said master plan has proposed the following 5 overarching principles:

Community: build strong neighbourhoods that will allow the people to take charge of their full potential.

Collaborate: streamlined and effective governance that meets or surpasses

Concentrate: creating dense transit oriented development that promote and complement existing communities.

Connect: Based on connecting goods and service of the country around the world

Compete: finding ways for the country to compete globally

• Municipal Spatial Development Framework (MSDF)

2015: The previously approved MSDF in the city was done

against the legislative backdrop such as Spatial Planning

and Land Use Management Act and this has opted the

council to review the said document. This was aimed at

simplifying our processes and cut out the red tapes that was

hindering development. The said policy also dealt with the

following issues that were not addressed by the previous

document:

Establish a permanent urban boundary;

Develop the core node as a metropolitan hub around the

airport;

Existing nodes needed to be retrofitted to serve the

current needs of the metro and new nodes need to be

developed to improve connectivity and serviceability in

the metro;

Corridors need to be developed applying the “beads

on a string” principle;

Agriculture should be developed (in conjunction with

Lesedi) to become a meaningful contributor to the

Ekurhuleni economy;

Densification needs to support public transport and

needs to be supported by sufficient municipal

services;

Transit orientated development needs to be promoted

throughout the metropolitan area;

Improved regional connectivity needs to be achieved

via the development of PWV 3, PWV 5 and PWV 17

routes;

Rail services need to be improved to augment the

road based public transport services and to develop

the inland freight ports of Tambo Springs and

Sentrarand; and

Gautrain extensions need to be pursued to service

the eastern side of the airport.

• Once again the city realise that by addressing the above

mentioned issues; can assist in achieving the 5 identified

strategic imperatives of the GDS.

• Industrial Development Strategy: This 5 year industrial

development strategy as highlighted by the department

is aimed at fostering accelerated, sustainable economic

development in the city. The strategy is also intended to

draw on the city’s current strength and leverage potential

for synergies across various industries.

CASE STUDIES: Strategic Urban Development Projects

• Lords view Development

– Located within Region B in Chloorkop Industrial Hub

– This is an environmentally friendly and eco-sensitive industrial and logistics park

– Its development make use of the latest technology in creating clean greener township Industrial development.

– The development has already housed the prominent well-known companies such as Green cross; Foschini groups; Grand Trade Mark and Unilever Ice Cream.

– The capital investment of the said development as stated in the Demacon CIF modelling report 2015 is amounting at R9 793 524.000

• Prasa Gibela Development

– Located within Region E in Dunnottar in Nigel

– This is a train manufacturing plant aimed at rolling

new stock of about 3 600 train carriages

– The Capital Project value is R51 Billion and expected

to create 1500 direct and 28 000 indirect job

opportunities.

– It is expected to deliver the Economic Development

opportunities for local businesses

– The project to be delivered over 10 years for

manufacturing and further 19 years for maintenance

and services.

• Tambo Springs Inland Port

– This Gauteng to Durban Inland Port project is a

partnership project between the Council; government

and Transnet

– The said organisations signed a memorandum of

understanding to allow collaboration and cooperation

of all parties

– In line with Gauteng spatial model and is located

along N3 freeway.

Institutional Arrangement

• Investment Centre

The Council through Economic Department has

set up the 1- stop investment centre in 2013.

The committee that leads the centre serves as a

sub-committee to Development Facilitation

Committee for the investment and development

applications.

The said committee consists of divisional heads of

the key departments in development e.g service

departments.

Its role is to fast track major investment projects

and to assist the investors in terms of going

through the development systems.

• Capital Investment Framework (CIF)

The aim of this document is to strategically and

spatially guide, align and coordinate municipal capital

expenditure across all sectors in order to promote

growth and meet infrastructure and service needs

This monitoring tool also assist in avoiding duplication

in projects rolled out by department to avoid wasteful

expenditure.

• Strategic Urban Development (SUD) Project

These are large scale development projects identified

by the city as of critical importance through

investment centre

In order for a project to qualify to be an SUD it has to

meet certain criteria i.e value of the project and

impact towards economic growth and job creation.

The facilitation of such developments is done through

City Planning Specialist Project division.

Prasa Gibela is one of the projects that is facilitated

through this process and can be proud to say that it

took the council 4 months to approve the township.

• Industrial Survey Study

This was aimed at unlocking the process of strategic

land parcels through the formulation of reports for the

available industrial land within the city.

this information is made available by specialist

projects division to the investment centre to make

process easier for investors.

The said information provides the status of each and

every industrial parcel such as approved right.

• Ekurhuleni Town Planning Scheme (EToPs) 2015

Came into effect in 2015

Replacing all 19 old town planning scheme

Aimed at bringing uniformity as well as simplifying

any development processes

Ekurhuleni So What?

• There is a lot to say about the Ekurhuleni and this brings a reason why one can consider investing in city.Reasons such as:

Africa’s Workshop: Ekurhuleni’s economy is underpinning by manufacturing

The Country’s Transportation hub: Being home to the OR Tambo International airport which connects the country with the world.

Economic Growth: the city has experienced positive economic growth over the 15 years with an average annual growth rate of 3.7 % between 1996-2011 which is higher than the national growth rate of 3.2 % over the corresponding period.

Investment incentives: 107 investment projects have been identified through the process of strategic prioritization with 21 catalytic and 8 strategic projects. 40 % roads bulk contribution rebate for investors.

Flagship Projects: Aerotropolis as well as other projects as mentioned in the previous slide.

How can Sustainable Industrial

Development be achieved?

• Sustainable industrial Development can only be achieved by creating policies that can respond positively and shape up the economic growth in the manufacturing sector.

• These policies while creating job opportunities must also provide trade off and create social inclusiveness and environmental sustainability. For example if we look at what industrialization brought to the living standards of the people by then.

• Investing in modern technology and infrastructure development is vital. UN report, 2015 view technology and innovation approach as a tool that can achieve inclusive and sustainable development in Africa.

• Investing in skills development and entrepreneurship

• Provide access to finance and incentives

• Need to promote multi-stakeholder and private sector involvement

• African countries can learn from Dukem industrial development in Ethiopia.

THANK YOU!!!!!!!!!