2020 Final DraftECONOMIC GROWTH & DEVELOPMENT

STRATEGY

NELSON MANDELA METROPOLITAN MUNICIPALITY2004

presented by VUYO ZITUMANE

ECONOMIC DEVELOPMENT, TOURISM AND AGRICULTURE BUSINESS UNIT

CONTENT• LEGAL FRAMEWORK• JOURNEY• OUTCOMES• NMMM CHALLENGES• NMMM VISION• NMMM ECONOMIC VISION• OBJECTIVES• STRATEGIC THRUSTS/ CORE DRIVERS• PRINCIPLES• SECTOR STRATEGIES AND PLANS

LEGAL FRAMEWORK

• CONSTITUTION• MUNICIPAL STRUCTURE ACT• NMMM IDP • NATIONAL LED DRAFT POLICY• SMALL BUSINESS ACT• CO-OPERATIVE BILL• TOURISM ACT• DTI-MANUFACTURING STRATEGY• BLACK ECONOMIC EMPOWERMENT ACT• PREFERENTIAL PROCUREMENT ACT

The Journey

MARKET-DRIVEN APPROACH – SMME DEVELOPMENT AND

INTERVENTION PROGRAMMES

BEST PRACTICE LEARNING IN CTN, DBN, JHB AND GOTEBORG,

2001

COMPREHENSIVE ECONOMIC ASSESSMENT, 2002 AND IDP

ALIGNMENT, 2002

VISIONING AND STRATEGY, 2003

STRATEGY COMPILATION, 2003 AND IDP ALIGNMENT 2004

BROADER CONSULTATIONS & FINALISATION, 2004

IMPLEMENTATION PLAN

The Outcomes SHARED ECONOMIC VISION FOR THE NMB REGION

QUANTIFIABLE LONG-TERM MEASURABLE OBJECTIVES

INDENTIFICATION OF CORE DRIVERS TO ACHIEVE SOCIO-ECONOMIC OBJECTIVES

KEY GROWTH SECTORAL INTERVENTIONS AND PLANS

INTEGRATION INTO THE IDP

DYNAMIC ECONOMIC PLANNING & PERFORMANCE TOOL

PARTNERSHIPS FUNDAMENTALS WITH BUSINESS, LABOUR AND COMMUNITIES

Strategic approach

What high-level What high-level strategies to strategies to

pursue?pursue?

Given the limited Given the limited resources again, resources again,

how do we how do we ensure that the ensure that the NMMM and its NMMM and its

partners deliver partners deliver on the strategyon the strategy

What high-level What high-level strategies to strategies to

pursue?pursue?

Given the limited Given the limited resources again, resources again,

how do we how do we ensure that the ensure that the NMMM and its NMMM and its

partners deliver partners deliver on the strategyon the strategy

What is the role of What is the role of the NMMM ? the NMMM ?

What are we best What are we best suited to do vs suited to do vs

other role-players other role-players and other and other

institutionsinstitutions

What is the role of What is the role of the NMMM ? the NMMM ?

What are we best What are we best suited to do vs suited to do vs

other role-players other role-players and other and other

institutionsinstitutions

What are the real What are the real socio-economic socio-economic

issues?issues?

To inform the To inform the Vision Vision

What are the real What are the real socio-economic socio-economic

issues?issues?

To inform the To inform the Vision Vision

Which key Which key sectors to focus sectors to focus

on?on?

Key growth Key growth sectors to be sectors to be prioritisedprioritised

Which key Which key sectors to focus sectors to focus

on?on?

Key growth Key growth sectors to be sectors to be prioritisedprioritised

What objectives What objectives do we need to do we need to

set?set?

Clear, specific Clear, specific and measurable and measurable

3-10 yr 3-10 yr objectives to be objectives to be

set and set and prioritised within prioritised within

the limited the limited resourcesresources

What objectives What objectives do we need to do we need to

set?set?

Clear, specific Clear, specific and measurable and measurable

3-10 yr 3-10 yr objectives to be objectives to be

set and set and prioritised within prioritised within

the limited the limited resourcesresources

The Challenges

HUMAN - HDI is 0,65 made of 0,84 WHITE and .058 N-BLACK

POVERTY - MLL increased from 31% to 38% (R590 m p/a)

EMPLOYMENT - Increased from umployment from 35% to 40%

GROWTH - Average 3,7% over the last 5 yrs

The Challenges

GEOGRAPHIC - Uneven growth and expectations between PE, UIT & DES

EDUCATION - 29% have matric or higher qualifications

HIV/AIDS - Rapid growth since 1995; to peak in 2010

The IDP Vision

“The Nelson Mandela metropolitan area practices social justice in a culture

of public participation guided by an efficient, accountable, non-racial,

non-sexist municipality that focuses on sustainable environmental,

social and economic development, improving quality of life of its

communities in a secured, safe and tourist friendly environment.”

“The Nelson Mandela metropolitan area practices social justice in a culture

of public participation guided by an efficient, accountable, non-racial,

non-sexist municipality that focuses on sustainable environmental,

social and economic development, improving quality of life of its

communities in a secured, safe and tourist friendly environment.”

The vision sets a series of broad goals that need to be analysed in measurable outcomes

IDP outcomes

Good GovernanceGood Governance

SocialSustainability

SocialSustainability

EconomicSustainability

EconomicSustainability

EnvironmentalSustainability

EnvironmentalSustainability

Safe & TouristFriendly

Environment

Safe & TouristFriendly

Environment

What we aim to achieve

Principles governing how the vision is achieved

2020 Economic Growth and

Development Strategy and Plan

2020 Economic Growth and

Development Strategy and Plan

A globally competitive economy

with excellent business environment

and sustainable livelihood

A globally competitive economy

with excellent business environment

and sustainable livelihood

STRATEGY OUTCOME

Economic Growth

3.5% to 8 % year-on year

Vision objectives

Job Growth

Annual 3,5% increase to halve current unemployment

Vision objectives

Poverty Reduction

60% number of h/h

Vision objectives

What It Means

3.5-5% GROWTH WILL INCREASE P.C.I TO R33 000 PER ANNUM BY 2020

8% GROWTH WILL INCREASE P.C.I TO R85 000 PER ANNUM BY 2020

Understanding the vision

What It Means

3,5% JOB GROWTH TRANSLATES TO 227 000 JOBS BY 2020

3,5% JOB GROWTH TRANSLATES TO 13,000 NEW ADDITIONAL JOBS PER ANNUM

Understanding the vision

EGDS PILLARSEGDS PILLARS

1 32 4

Core Drivers

5

Sector Diversification1

FOR DECADES GROWTH HAS BEEN DRIVEN-OFF FROM A FEW SECTORS EXCLUSIVELY

FROM AUTO-MANUFACTURING AND EXPORTS BROADEN THE PRESENT AND FUTURE

ECONOMIC-BASE

• STRATEGIC CHOICES INFORMED BY UNDERSTANDING OF :

SECTORS TO BE PROTECTED AND GROWN

SECTORS TO BE DIVERSIFIED

• FOCUS ON THOSE THAT HAVE A HIGH VALUE ADD:

SECTORS TO OPTIMIZE JOB CREATION

COMPETITIVE SECTORS (productivity and GGVA/GDP contribution)

• THE NMMM TO IDENTIFY, PACKAGE AND INVEST IN NEW MARKET OPPORTUNITIES

WITHIN A SET OF WELL-DEFINED KEY GROWTH SECTORS

Driver 1

Sector Diversification1

Key attractive & growth sectors:

• TOURISM

• MANUFACTURING & SUB-SECTORS

• AUTOMOTIVE AND COMPONENTS

•AGRICULTURE

•CONSTRUCTION

•LOGISTICS (TO INVESTIGATE)

Driver 1

TOURISM SECTOR OBJECTIVES

•TOURISM MASTER PLAN DEVELOPMENT

•DEVELOPMENT OF AN INTEGRATED MARKEING STRATEGY

•INSTITUTIONAL FRAMEWORK DEVELOPMENT

• INFRASTRUCTURE DEVELOPMENT AND UPGRADE

•TRAINING AND CAPACITY BUILDING

•PRODUCT PACKAGING

•EVENTS STRATEGY DEVELOPMENT

•RESEARCH, DEVELOPMENT AND INFORMATION MANAGEMENT

•PROMOTION OF STRATEGIC ALLIANCES

•PROMOTION OF BLACK ECONOMIC EMPOWERMENT

WHAT HAVE WE DONE SO FAR• INCREASED INVESTMENT FOR AGGRESSIVE

MARKETING OF TOURIST ATTRACTIONS AND ROLLING OUT OF THE NEW NMMM BRAND

• MOU’S WITH DIFFERENT SERVICE PROVIDERS TO PROVIDE TRAINING IN ALL KEY AREAS WITHIN THE HOSPITALITY INDUSTRY AND IN PARTICULAR “QUALITY OF SERVICE”.

• SERVICE PROVIDERS AND TERTIARY INSTITUTIONS ARE IN A PROCESS OF BEING CONTRACTED BY THE NMMM TO FOCUS ON RESEARCH, TRAINING AND DEVELOPMENT THAT IS REQUIRED WITHIN THIS SECTOR.

• LAUNCHING COMMUNITY-BASED TOURISM STRUCTURES.

NMMM KEY PRIORITY SECTORS

AGRICULTURE SECTOR OBJECTIVES:• DETAILED STRATEGY IMPLEMENTATION

•ESTABLISHMENT OF STRATEGIC ALLIANCES

•CO-ORDINATION OF ALL AGRICULTURAL INITIATIVES WITHIN THE METRO

•RESEARCH, DEVELOPMENT AND INFORMATION MANAGEMENT

•PROMOTION OF BLACK ECONOMIC EMPOWERMENT

•CONSOLIDATION OF FINANCIAL AND TECHNICAL SUPPORT

•PRODUCT DEVELOPMENT AND PROMOTION OF SECONDARY SECTOR

•INSTITUTIONAL RESTRUCTURING AND CAPACITY BUILDING AND DEVELOPMENT

•INFRASTRUCTURE DEVELOPMENT FOR THE SECTOR

WHAT HAVE WE ACHIEVED SO FARAGRICULTURE:• CURRENTLY IMPLEMENTING 6 PROJECTS• LEVERAGED FINANCIAL AND TECHNICAL SUPPORT

FROM CELL C AND SAB FOR PILOT PROJECTS• NMMM AND DBSA IS SUPPORTING A JOB CREATION

PROJECT, INITIATED BY BUSINESS WITH FUNDING AND TECHNICAL SUPPORT FOR INFRASTRUCTURE AND START UP

• IN CONJUCTION WITH DLA AND DEPT OF AGRICULTURE DEVELOPING A STOCK FARMING PILOT PROJECT

• INVESTIGATING EXPORT OPPORTUNIES, PROCESSING WITHIN THE SECTOR.

NMMM KEY PRIORITY SECTORS

MANUFACTURING SECTOR OBJECTIVES:

•INSTITUTIONAL DEVELOPMENT AND CAPACITY BUILDING

•INFRASTRUCTURAL FACILITATION AND DEVELOPMENT

•HUMAN RESOURCES DEVELOPMENT AND HIV/AIDS INTERVENTION

•INVESTMENT ATTRACTION AND PROMOTI0N

•CONSOLIDATION OF FINANCIAL AND TECHNICAL SUPPORT

•RESEARCH, DEVELOPMENT AND INFORMATION MANAGEMENT

NMMM KEY PRIORITY SECTORS

AUTOMOTIVE SECTOR OBJECTIVES:

•CREATION OF AN ATTRACTIVE INVESTMENT CLIMATE

•INFRASTRUCTURE DEVELOPMENT AND UPGRADE

•PROMOTION OF PEOPLE DEVELOPMENT

•PROMOTION OF SOCIAL RESPONSIBILITY

•COMPETITIVENESS IMPROVEMENT

•PROMOTION OF LONG-TERM VIEW AND STRATEGIC ALIGNMENT

WHAT HAVE WE ACHIEVED SO FAR

AUTOMOTIVE AND MANUFACTURING:• DEVELOPED A BUSINESS PLAN FOR THE AUTOMOTIVE

SUPPLIER PARK IN UTH. (R300M)• THROUGH ECMAC, 121 BUSINESSES IN THESE SECTORS

BENEFITED FROM THE BUSINESS DEVELOPMENT SERVICES• 5 BUSINESSES WERE ASSISTED IN CREATING EXPORT

LINKAGES• 51 BUSINESSES WERE ASSISTED IN GETTING DTI INCENTIVES• 31 BUSINESSES WERE ALSO ASSISTED IN GETTING ACCESS TO

NEW TECHNOLOGY WITHIN THIS SECTOR.• 44 BUSINESS WERE CERTIFIED TO COMPLY WITH

INTERNATIONAL STANDARD SYSTEMS• BLACK ENGINEER DEVELOPMENT PROGRAMME – 5 STUDENTS• 2 TOILET PAPER MANUFACTURING CO-OPERATIVES 100• 3 BUILDING SUPPLIES MANUFACTURING CO-OPERATIVES

NMMM KEY PRIORITY SECTORS

CONSTRUCTION SECTOR OBJECTIVES:

•STRATEGIC PARTNERSHIPS AND ALLAINCES

•CO-ORDINATION OF ALL CONSTRUCTION INITIATIVES WITHIN THE METRO

•RESEARCH, DEVELOPMENT AND INFORMATION AND MANAGEMENT

•CO-ORDINATION OF FINANCIAL AND TECHNICAL SUPPORT

•INSTITUTIONAL DEVELOPMENT AND RESTRUCTURING

•HUMAN RESOURCES DEVELOPMENT AND HIV/AIDS INTERVENTION

•INNOVATION AND TECHNOLOGY DEVELOPMENT

WHAT HAVE WE ACHIEVED SO FAR

CONSTRUCTION:• TRAINING OF 100 EMERGING CONTRACTORS • 12 COMPANIES BENEFITED FROM THE SETA

BASED TRAINING PROGRAMME WITHIN THE CONSTRUCTION INDUSTRY .

• THROUGH NMMM PROCUREMENT POLICY, 65% OF ALL CONSTRUCTION RELATED CONTRACTS WERE AWARDED TO PDI’s.

• 30% SET ASIDES FOR, CONTRACTORS AND CO-OPERATIVES.

• MAJOR CONSTRUCTION OPPORTUNITES WITHIN VISION 2020 PROJECTS, I.E. ICC, FS, NJOLI AND OTHERS

NMMM KEY PRIORITY SECTORS

LOGISTICS SECTOR OBJECTIVES:•INVESTIGATION OF OPPORTUNITIES WITHIN THIS SECTOR

•POLICY AND STRATEGY DEVELOPMENT (NINGBO ASSISTANCE)

•DEVELOPMENT OF INFRASTRUCTURE MAPPING

•TRAINING AND DEVELOPMENT

HR/HIV Alignment2

DEVELOPMENT RATIONALE:

• ECONOMY-DRIVEN SKILLS, TRAINING AND REDEVELOPMENT PROGRAMME

• SUPPLY AND DEMAND ALIGNMENT

• COUNTER THE HIV/AIDS IMPACT POST 2010

• CREATION OF MULTI-TIER PARTNERSHIPS

Driver 2

HR/HIV Alignment2

DEVELOPMENT APPROACH:

• ALIGNMENT WITH INVESTOR NEEDS

• ALIGNMENT WITH LOCAL ECONOMY DEMANDS

• ALIGNMENT WITH MAJOR INFRASTRUCTURE DEVELOPMENTS

• ALIGNMENT WITH KEY GROWTH SECTOR REQUIREMENTS

Driver 2

WHAT HAVE WE ACHIEVED SO FAR

HUMAN RESOURCES DEVELOPMENT:• MEMORANDUM OF AGREEMENT WITH VARIOUS

SERVICE PROVIDERS AND TERTIARY TO DEVELOP THOSE SKILLS

• MORE THAN 200 BUSINESSES TRAINED IN 2003 > R2M• RECENTLY SIGNED AN AGREEMENT WITH AIDC TO

PROVIDE TECHNICAL SUPPORT WITHIN THE AUTOMOTIVE INDUSTRY

• MAJOR INTAKE OF STUDENTS FOR INTERNSHIP WITHIN THE NMMM EDTA.

• FUNDED MORE THAN 3 SMME INCUBATORS AT BETHELSDORP, MOTHERWELL AND VEEPLAAS. >R2M

Infrastructure Investment3

DEVELOPMENT RATIONALE:

•BACKBONE FOR GROWTH AND GLOBAL COMPETITIVENESS

• ENHANCES LABOUR-INTENSIVE PUBLIC WORKS PROGRAMME

• FACILITATES INWARD INVESTMENTS – INVESTOR REQUIREMENTS

EXAMPLES, EUROPE ECONOMY ON CANALS AND ROADS AND RAILWAYS

EXAMPLES, FAR EAST ON GOOD EDUCATION, HEALTH AND INFRASTRUCTURE

INVESTMENTS

Driver 3

Infrastructure Investment3

DEVELOPMENT APPROACH:

•SUPPORT COEGA PROJECT AS AN IMPERATIVE, WITH OTHER STRATEGIC PROJECTS

• INFRASTRUCTURE INVESTMENT TO TARGET UNDERDEVELOPED AREAS WITHIN UITH /

DESPATCH

• ADDRESS INFRASTRUCTURE DECAY AS AN ECONOMIC IMPERATIVE IN DESIGNATED

AREAS

•ENSURE THAT THERE IS APPLICATION OF LABOUR INTENSIVE METHODS OF

INFRASTUCTURE DEVELOPMENT TO ENCOURAGE JOB MAXIMISATION.

• DEDICATED CAPACITY TO UNDERTAKE HIGH-LEVEL INFRASTRUCTURE PLANNING,

INCLUDING OTHER STAKEHOLDERS E.G. COEGA, NPA OTHER

Driver 3

WHAT HAVE WE ACHIEVED SO FAR

INFRASTRUCTURE DEVELOPMENT:• ALMOST 80% OF OUR CAPITAL BUDGET IS FOR

INFRASTRUCTURE DEVELOPMENT ROAD NETWORKS, ELECTRICITY UPGRADE, WATER SUPPLY.

• TO ENSURE THAT 50% OF ALL OUR INFRASTRUCTURE PROJECTS ARE LABOUR INTENSIVE.

• CURRENT PLANS TO UPGRADE THE NJOLI SQUARE , AND FOCUS ON ROAD UPGRADING, TRADING FACILITIES FOR INFORMAL SECTOR, COMMERCIAL DEVELOPMENTS FOR INFORMAL AND FORMAL SECTOR AND COMMUNITY CENTRES

• FINANCIAL AND TECHNICAL SUPPORT TO STRATEGIC PROJECTS E.G. PORT OF NGQURHA, COEGA, UDDI, AXIS.

Destination Marketing4

DEVELOPMENT RATIONALE:

•A PLACE TO VISIT, LIVE, WORK AND INVEST IN

• IMAGE AND CONFIDENCE BUILDING TARGETING KEY GROWTH SECTORS

• RAISE THE SOCIAL, POLITICAL AND ECONOMIC PROFILE OF THE NMB REGION

• DEFINE, PACKAGE AND SELL OUR UNIQUE ASSETS

• STRONG LEADERSHIP AND GOOD GOVERNANCE

• BUILDING A SENSE OF BELONGING AND UNITY

Driver 4

Destination Marketing4

DEVELOPMENT APPROACH:

• MARKET AND POSITION AS AN INVESTMENT, TOURISM AND TRADE DESTINATION

• CONSOLIDATE AND AGGRESSIVE ROLL OUT OF THE NEW BRAND AND ITS

MARKETING STRATEGY

• CONSOLIDATE OUR INVESTMENT, EXPORTS AND MARKETING STRATEGIES

• IMPLEMENT A BUSINESS AND RETENTION STRATEGY

• SET-UP JOINT MARKETING INITIATIVES TO BOLSTER COORDINATION

Driver 4

WHAT HAVE WE ACHIEVED SO FAR

INVESTMENT PROMOTION AND ATTRACTION:• INVESTMENT STRATEGY FOR THE METRO HAS BEEN

DEVELOPED WHICH IS AIMED AT ATTRACTING AND RETAINING INVESTORS.

• MAJOR EXPANSIONS IN THE LAST YEAR (R126M)• A TRADE CENTRE IS IN A PROCESS OF BEING ESTABLISHED BY

THE NMMM.• AN INVESTMENT COUNCIL TO CO-ORDINATE TRADE AND

INVESTMENT PROMOTION IS IN A PROCESS OF BEING ESTABLISHED AS AN INTERIM STRUCTURE TO CO-ORDINATE ISSUES OF TRADE AND INVESTMENT PROMOTION.

• EXHIBITIONS, TRADE FAIRS AND EXPOS FOR SMMES• INTERNATIONAL INVESTMENT CONFERENCE 2003 &4 AND THE

COEGA AUTOMOTIVE CONFERENCE

BEE PROMOTION5

DEVELOPMENT RATIONALE

•AFFIRMATIVE PROCUREMENT ADVANCES BEE AND JOB CREATION

•PROVIDES EMERGING BLACK ENTEPRISES AND CO-OPERATIVES OPPORTUNITIES TO:

– GROW THEIR PRODUCTION (ACCESS TO OPPORTUNITIES)

–TO BECOME COMPETITIVE (TECHNICAL SUPPORT PROVIDED)

–TO BECOME EFFICIENT (TECHNICAL SUPPORT AND EXPERIENCE)

Driver 4

BEE PROMOTION5

DEVELOPMENT APPROACH:

• SET UP INSTITUTIONAL TARGETS FOR AFFIRMATIVE PROCUREMENT

•PROVIDE SET ASIDES TO THE VALUE OF 30% OF TOTAL NMMM OPPORTUNITIES

•PROVIDE TECHNICAL SUPPORT AND MENTORSHIP TO BUILD CAPACITY

•ENSURE YOU LINK BEE COMPANIES AND CO-OPERATIVES TO SUPPORT STRUCTURES

•REFER TO ADVICE CENTRES FOR TECHNICAL AND FINANCIAL SUPPORT –TRADE CENTRE

•SET UP MONITORING AND EVALUATION SYSTEMS TO ENSURE COMPLIANCE THROUGHOUT

THE INSTITUTION.

•MARKET BEE COMPANIES AND CO-OPERATIVES TO PRIVATE SECTOR AND GOVERNMENT

DEPARTMENTS.

Driver 4

WHAT HAVE WE ACHIEVED SO FAR

• THE OVERALL NO TENDERS AWARDED = 3783• THE OVERALL NO FOR HDI TENDERS = 2438• THE OVERALL NO FOR NON-HDI = 1345• THE MONETARY VALUE FOR ALL = R 777M• THE OVERALL VALUE FOR HDI’S = R473M• THE OVERALL VALUE FOR NON-HDI’S = R304M• THE PERCENTAGE OF TENDERS AWARDED TO HDI’S= 61 %

Principles

economic vision

economic vision

Development Thrusts

Vision principles

Principles

1. PROMOTE DEVELOPMENT OF SMME AND INFORMAL TRADERS

2. IMPLEMENT COMMUNITY-BASED PROGRAMMES (POVERTY ALLEVIATION)

3. FACILITATE TECHNOLOGY DEVELOPMENT AND INNOVATION

4. ADVANCE THE COURSE OF BLACK ECONOMIC EMPOWERMENT

(PROCUREMENT POLICY REVIEW AND CO-OPERATIVE POLICY)

5. ESTABLISH CROSS-SECTIONAL PARTNERSHIPS

6. SUSTAINABLE DEVELOPMENT - AGENDA 21

DEVELOPMENT PROGRAMMES

•VISION 2020 PROJECTS

•STRATEGIC PROJECTS

•LED PROJECTS

•URBAN AGRICULTURE PROGRAMME

•SMME AND CO-OPERATIVE SUPPORT

•TOURISM DEVELOPMENT PROGRAMMES

•CO-OPERATIVE DEVELOPMENT PROGRAMME