May 8, 2007
By Emily van Rijswijck
EXECUTIVE Mayor Amos Masondo confirmed the City's pledge to prioritise inner city regeneration when he opened the Inner City Summit in Braamfontein on 5 May.
The inner city is the symbolic, economic and cultural heart of Johannesburg and is strategically important to the city as a whole, Masondo said in his opening address.
Masondo said the revitalisation of the inner city was a catalyst for economic growth and job creation, as well as for creating a work and living environment that was secure and decent. There are more than 250 000 permanent residents in the area, while 800 000 or more move through the area on any given day.
Spatial framework
To date, over R1,7-billion had been invested in property in the inner city, most of which came from the public sector. It was expected that 45 000 to 55 000 new residential units could be developed in the inner city, an estimate that Barry Senior, an urban designer, described as "conservative" during the spatial framework presentation at the summit.
Citing clear signs of inner city regeneration, Senior mentioned the number of major corporations that had opted to stay in the city, as well as companies that were returning to the inner city; the AngloGold-Ashanti Group was but one. "Twenty developers are currently looking at the city. Over 100 buildings have been identified and are going through renewal processes."
Masondo confirmed that there had been progress. "Five or six years ago there was no Metro Mall, Constitution Hill, Drill Hall, Faraday Taxi Rank, Gandhi or Mary Fitzgerald squares. Indeed, there was no Nelson Mandela Bridge or the Brickfields housing development. Over the last few years we have seen the transformation of Main Street and Braamfontein, with major private sector investment."
Key interventions in six areas were necessary for the inner city to be functional, Senior added, suggesting the creation of a new heart for the city with three key development nodes. These would be "the northern node, consisting of transport, shopping and residential areas surrounding the Park Station area; the central node, a governmental and financial node; and the southern node, a completely new node, providing major living opportunities and major residential areas".
Other interventions were also suggested in the spatial framework, including a major greening programme; open spaces for everyone; housing that caters for low-, middle- and high-income earners; social facilities; and reliable transport not only within the city but also to outer nodes.
Senior cautioned, however, that the spatial framework was a draft and required additional integration before a final plan could be drawn up.
Economic growth and job creation
Better trading facilities for and managing of informal traders (micro-traders) - both local and foreign - and supporting key existing economic sectors formed the core of discussions at the summit's economic development forum.
The City will strive to provide better facilities and manage informal traders in the inner city
Some of the key business sectors identified were the fashion district, jewel district, the hospitality and tourism industry, cross-border traders, the financial district and various development nodes, mainly Faraday Market, Constitution Hill, Newtown, the Metro Centre area, Braamfontein, Hillbrow, Ellis Park and Westgate.
The importance of providing cheap telecommunications facilities and accurate business and tourist information to potential investors and visitors remained a concern to business groups.
The City suggested commitments to deal with the challenges raised and to create opportunities for economic development in different sectors, as follows.
Street trading and micro retailing
The City's emphasis would be on creating various opportunities for street traders and better organised street trading, said Graeme Gotz, the summit co-ordinator and urban development specialist. Focusing on development as well as regulation, Gotz said the emphasis would be on "stabilising their businesses and assisting with entrepreneurial skills".
Suggested interventions:
Roll out a smart card system by March 2008, managed through a central database, that will provide a record of each trader and trading activity;
Set up two pilot linear markets – markets in pedestrian streets, such as the one currently in Main Street – by December 2007;
Develop and train micro retailers, including training 1 000 traders by June 2008 and link traders to mentorship programmes through relevant Setas, or sector education and training authorities; and
Scale-up the enforcement regime by March 2008 to coincide with the roll-out of new trading spaces.
Telecommunications
The City recognised that the lack of broadband was often a hindrance to doing business in the inner city, Gotz said. With this in mind, it would facilitate access to cheaper broadband telecommunications and related services in specific areas – the inner city, Soweto and Johannesburg South, City Deep and Sandton and Randburg business nodes would be target areas.
Parks Tau, the member of the mayoral committee for finance and economic development, said the broadband network would accommodate both fixed line and mobile lifestyles.
Suggested interventions:
A three-dimensional model of the inner city to be available to the public to assist with telecommunications infrastructure planning by July 2007;
Roll out demonstration network projects by September 2007 at the six identified areas;
Roll out the Joburg Broadband Network by June 2008; and
Depending on funding, set up a city-wide telecommunications office in June 2008 to handle telecommunications infrastructure enquiries and requests.
Supporting key economic sectors
Various new economic activities were growing alongside existing businesses, the summit heard. Among these were cross-border traders, business process outsourcing (BPO), specifically the call-centre industry, the fashion district, tourism-related industries, and various arts, culture and entertainment industries.
Monique Griffith, the acting chair of the Joburg Cross-Border Shopping Association, said traders accounted for R18-million a year in trade within the city. Major concerns for cross-border traders were transport and accommodation, customer care and assistance with South African tax levies, she said.
Suggested interventions:
Johannesburg Inner City Business Coalition and the City of Johannesburg to establish working forums with various sub-sectors by December 2007 and develop a three-year inner city economic development plan by December 2008;
Consolidate a BPO plan, delineating buildings in the inner city by September 2007, and create a further 1 000 BPO seats in the inner city;
Develop a Cross Border Shopping Campus in a suitable location by June 2009, in close proximity to Park Station;
Give start-up support to the Fashion District Institute for three years, starting from July 2008;
Draw up a short-list of 20 key companies by July 2007 to help to identify concerns and constraints; and
Continue with upgrades around Jewel City.
Urban development zone
An urban development zone (UDZ) tax incentive was promulgated by the national government in October 2004 and City records show that this incentive had attracted about R2-billion in investments to date.
Additional incentives were offered by the floor, with the suggestion of reduced water and electricity deposits for new businesses and new developments.
Rees Mann, representing the fashion district, asked for extended shopping hours in the inner city at least once a month. During discussions, business representatives cited the loss of revenue as a result of shops closing too early, with many people south of the equator opting to do their shopping in Dubai because of longer shopping hours.
Mann also suggested the introduction of regular markets, such as craft markets and fresh produce markets, on alternate days.
Suggested interventions:
Extending the UDZ deadline and investigating complementary incentives;
Promoting the UDZ tax incentive to attract an additional R2-billion for 2007/08; and
Increasing black economic empowerment participation to 20 percent.
Supportive built environment
Building structures and environments within the city had to support economic activity, said Getz.
Keryn House, representing Contacting Gauteng, a BPO organisation, said "the toughest thing to sell Johannesburg on is crime". Adding to the crime problem, she said accommodation was a challenge, with investors and visitors opting for accommodation in Sandton and Westcliff.
Councillor Prema Naidoo, MMC for environment confers with Councillor Rehana Moosajee, MMC for Transport and Councillor Mayathula-Khoza, MMC for Community Development at the summit
The lack of a world-class convention centre in the inner city was raised with a suggestion from the floor that the Carlton Centre be "de-mothballed".
Suggested interventions:
Create a comprehensive parking solution for on and off-street parking by December 2007;
Stimulate re-investment in conference facilities, hotels and associated infrastructure; and
Ensure buildings are configured for all market players, from first market entrants to established business.
Information
The City would ensure that improved data and information on economic conditions, trends, opportunities and constraints was easily accessible to interested investors.
Suggested interventions:
Release an annual package of critical information for inner city investors;
Expand and deepen the GIS database on economic activity within the city; and
Develop a research programme to pinpoint drivers of and constraints to the local economy.
Community development
The City recognised the crucial supportive role non-governmental organisations (NGOs), community based organisations and faith based organisations played in helping it to meet its development objectives, Gotz confirmed. To this end the aim was to have a number of supportive measures in place.
Suggested interventions:
Provide at least three dedicated buildings for office space to these organisations by March 2009;
Establish a database of civil society organisations operating in or near the inner city by September 2007;
Establish an inner city corporate Social Responsibility Fund by March 2008; and
Introduce new social funding and grants-in-aid provisions and tariff structures by July 2008.
Special groups
Special groups in the inner city were a key concern for the City, which remained committed to protecting vulnerable and marginalised groups.
Suggested interventions:
Create a Shelter Forum in liaison with the provincial government;
Develop capacity-building and step-down programmes in shelters;
Introduce mechanisms to subsidise fully rates and services of special groups; and
With the City's housing department, develop emergency and transitional shelters catering for these groups.
Early childhood development
There were 225 early childhood development facilities in the inner city, the majority of which were not suitable for such a function.
Suggested interventions:
Provide measurable support to 100 NGOs involved with early childhood development by December 2007; and
Scale up mobile early childhood development capacity over the next three years.
Migrants and refugee populations
The recently opened Migrant Help Desk was one of a number initiatives by the City aimed at this group. An important aspect was the need to interact with migrants in their own language, Gotz said.
Johannesburg would continue to consider the needs and interests of migrants, as well as work towards greater community understanding among all groups through specific educational campaigns, he confirmed.
Sports and recreation
Many facilities in the inner city did not function optimally and there was limited space to develop additional facilities elsewhere, Gotz confirmed. Joburg would, therefore, focus on the optimal usage of existing facilities.
Thabu Putu, the director of capacity at the University of the Witwatersrand, confirmed that the university would continue to work with the City on a number of projects in health, socio-economic development and research.
"At the moment we are deliberating with the City about opening our recreational facilities [to the public] on Enoch Sontonga Drive and at the Education Campus."
Suggested interventions:
Rehabilitate or refurbish all existing facilities by March 2010;
Assess future needs for sport and recreation by June 2008; and
Draft formal agreements with schools in the area as well as the Johannesburg and Witwatersrand universities for the shared use of their facilities.
Access to healthcare
The City recognised the need for improved access to healthcare facilities and outreach programmes "so that a meaningful impact on HIV/Aids can be made". Dramatic improvement to public health facilities would be the focus.
Suggested interventions:
Improve ambulance and emergency management services to the inner city by 2010;
Investigate the re-opening of Hillbrow Hospital by 2011; and
Ongoing support of NGOs doing health outreach work.
Access to education, training and libraries
The City envisaged free literacy training, free access to libraries and free internet access at inner city libraries by 2010. It was also suggested that all libraries provide active business information and linked to Labour Intelligence databases by 2010, Gotz said.
Another community development aspect that would receive attention was creating a comprehensive poverty alleviation and work creation programme, with priority consideration given to inner city populations.
To assist communities to take control of their environment and circumstances, the City would run a series of programmes and campaigns around civic education, environmental education, human rights and consumer rights.
"Within the next few years, by the time of the 2010 Soccer World Cup and the end of this council's term of office, we want the complete transformation of our inner city," Masondo said.
In closing the summit, the City manager, Mavela Dlamini, confirmed that the Inner City Regeneration Charter would act as a map of what Johannesburg would look like in 30 to 50 years time. Further collaboration on the charter was encouraged and concerns and suggestions, particularly solutions to problems, would be welcome.
Contributions to the charter can be directed to Graeme Gotz at GraemeG@joburg.org.za or to Neil Fraser at neil@urbaninc.co.za.
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