PROPOOR SERVICE DELIVERY WITH AN EMPOWERMENT

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PRO-POOR SERVICE DELIVERY WITH AN EMPOWERMENT
JOB CREATION FOCUSCITY OF TSHWANE

• Dr Hein Wiese
• Strategic Executive Officer

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CONTENT

• Focusing on critical mass
• Broadening economic base
• Co-ordination prioritization of projects
• Objectives of EDA
• Building PPPs
• Making economic development a reality

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AUDITING STRATEGIES PLANS

• We dont have Great LA, because we have Good LA
• It is possible to turn Good into Great in the
  most unlikely situations
• It is not to contrast the Good-to-Great LA
• What do the Great LA share in common?

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CHALLENGE
Great results
Whats inside the BLACK BOX
Good results
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Employment Population
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TSHWANE THE MOST PROSPEROUS METRO
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SECTORAL CONTRIBUTION TO SAS GGP(CONSTANT
PRICES)
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SECTORAL CONTRIBUTION TO TSHWANES ECONOMY
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BIG VS SMALL
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SETTING THE CONTEXT

• Key characteristics of success
• Successful cities provide high quality living
  experiences in which people want to settle
  invest
• Successful cities are wellconnected
• Successful cities provide agglomeration benefits
• Tshwanes challenge is to ensure all people have
  access within current context of prosperity
  poverty duality

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A DUAL CITY

• Need The North
• 67 of households live in formal dwellings
• 46 had access to piped water in their homes in
  1996 (although 95 now has access to a water
  scheme, but not necessary piped water in the
  home)
• 58 (up from 47 in 1996) have access to
  sanitation 68 (up form 59 in 1996) have
  access to electricity.
• Tshwane inherited some 72 500 additional
  households requiring basic municipal services

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A DUAL CITY

• Governance complexity
• Cross boundary with 2 provinces
• Sphere of influence over three provinces
• Urban efficiency
• Shape of city makes municipal service delivery
  inefficient
• Low densities
• Discontinuous
• Vast
• Inequality

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WHERE TO INVEST?

• Areas of greatest need?
• Areas of greatest potential for successful
  growth?
• The North of Tshwane unites need with potential
• The North can gain leverage from the strong
  diverse base of the rest of the Tshwane economy,
  with which it already intersects.

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Babelegi
Winterveld

• DEVELOP THE NORTH
• Rudimentary household services
• Public facility/ space clusters
• Circular public transport
• Urban agriculture

Shoshanguwe
Ga-Rankuwa

• DEVELOP THE URBAN PORT
• Rosslyn
• Dinokeng
• Bon Accord
• Wonderboom Airport

Dinokeng
Capital/ Inner City

• CELEBRATE THE CAPITAL
• Cultural heritage
• Housing

Atteridgeville
Mamelodi

• MAINTAIN THE REST
• Guide the market
• Strengthen links between north and south

Centurion
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STRATEGIC FRAMEWORK
Developing the North
Celebrating the capital
Strengthening economic clusters
Building Social Cohesion
Maintaining existing Urban Areas
Sound Financial Fundamentals
Strong Developmental Municipal Institution
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COLUMN 1 STRENGTHENING CLUSTERS

• Automotive, Metal Industries Defence clusters
• Support for research development, teaching
  knowledge based institutions
• International marketing networking
• Engagement with major economic stakeholders
• Structured BEE SMME support
• Supporting Blue IQ initiatives

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COLUMN 4 CONTINUED DEVELOPMENT OF EXISTING URBAN
AREAS THROUGH MAINTAINING SERVICES

• Maintenance expansion of service partnerships
• Strengthening economic development promotion
• Expedited development approval mechanism
• Support Blue IQ initiatives
• Maximising infill opportunities

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KEY OBJECTIVES

• Creation of short, medium and long term - Jobs
• Sector specific development SMMEs
• Black Economic Empowerment
• Extended Public Works Programme
• Growing the economy of CoT by 5 over 5 years
• Reducing unemployment rate by 5 over 5 years

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TRUE PARTNERSHIP
Growing the City Together
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SERVICE DELIVERY PRINCIPLES OF BATHO PELE

• Consultation
• Service standards
• Access to services
• Courtesy
• Information
• Openness transparency
• Value for money
• Economic empowerment

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PROGRAMMES

• Economic Development Agency
• Entrepreneurial Development Centres
• Skills Development Centres
• Incubators / Production Centres
• Tshwane Manufacturing Advisory Centre
• Trade Investment Centres

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CLUSTER ONEMICRO ECONOMIC DEVELOPMENT

• Focusing on Development. Costly. The Initial
  Investment is high with long term benefit.
  Linkages with the Extended Public Works
  Programme, DBSA, IDC, IDT, NDA, NEF
• Promotion of community-based, informal sector
  micro-enterprise development
• Promotion of formal sector SME establishment
  growth
• Promotion of inward investment development
  facilitation
• Promotion of rural economic development
• Management of the socio-economic impact of
  HIV/Aids
• Promotion of agricultural development

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CLUSTER TWOMICRO ECONOMIC DEVELOPMENT

• Development for Growing the Economy
• Linkages to the National, Provincial
  Manufacturing Trade Policies Programmes (IDC,
  DBSA, TISA, GEDA, Provincial Government, SADC
  schemes NEPAD)
• Promotion of various industrial service sectors
• Business retention, expansion attraction
• Promotion of trade exports

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CLUSTER THREECONTINOUS PROCESS

• Creating an enabling environment through
  interpretation implementation of policy
  legislative directorates, BEE, EE AA
• Promotion of strategic spatial development
  initiatives
• Research, policy impact assessment information
  management
• Promotion of gender-responsive economic
  empowerment
• Promotion of a diversified spectrum of financial
  venture capital, equity investment corporate
  venturing institutions
• Promotion of localization Tshwane economic
  branding

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LED PROCESS IMPLEMENTATION PLAN

• Appointment of EDA Steering Committee
• Confirm availability of financial resources
• Identify 3 facilitators
• Finalize report to Mayoral Committee
• Mobilize funding
• Implementation within two months

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IMPLEMENTATION PLAN
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URBAN AGRICULTURE
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BBBEEINTRODUCTION

• Constitution mandates LG to transform itself so
  it can play a developmental role
• National policy is based on the belief that
  strategies for economic growth, development,
  BBBEE are mutually supportive strategies
• BBBEE Act 53 of 2003 seeks to promote ownership,
  control management of enterprises by Black
  people incl women, youth people with
  disabilities
• Tshwane Business Week 2003 resolved that BBBEE be
  prioritised in LED
• CTMM has no overall strategy on BBBEE

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BBBEEGOALS OBJECTIVES

• Develop a BBBEE plan of action
• Use its local economic development service
  delivery activities
• CTMM must comply with EE Skills Development Act
• Establish partnerships for growth, development
  transformation PPPs
• Develop a BBBEE Charter for Tshwane

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BBBEEMONITORING REPORTING

• Balance score card will be used to measure
  progress
• Reviewing the milestones of BBBEE projects
• CTMM engage in discussions with its stakeholders
  to develop a consensus around the use of specific
  tools systems for black economic empowerment
  targets objectives

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EDAROLE OF EDA

• Full the gap in LED as delivery vehicle for
  development projects
• Co-ordinate manage public resources, potential
  investors regional investment opportunities
• Extension of the development role of local
  government
• Supporting the networks that catalyze local
  economic development

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EDAKEY CRITERIA FOR IDC

• Poor under-developed areas
• Rural bias
• Jobs to be created
• Empowerment opportunities created
• Local business development opportunities
• SMME development opportunities
• Social, economic, environmental physical
  benefits
• Use of un/under utilized assets

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EDAPROCESS
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STRATEGY

• Strategy is not rocket science. Its common
  sense creativity combined. The best ideas are
  so obvious that everyone overlooks them, or so
  extraordinary that no one thinks about them.
  Either way, its how you execute them that
  finally matters.
• (Manning, T. 1998. Radical strategy)

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STRATEGY TO IMPROVE ECONOMIC GROWTH

• Value-added production Realigning the
  manufacturing sector away from traditional heavy
  industries towards sophisticated, high
  value-adding
• Smart industries Creating an environment in
  which ie information technology,
  telecommunications, research development and
  bio-medical industries can thrive
• Financial services Developing the finance
  business service sector by focusing on,
  technology, business services business tourism

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STRATEGY TO SPECIFIC CLUSTERS

• Automotive Blue IQ project where Tshwane are
  hosting 40 of all automotive activities in SA
• Information, Communication and Technology
  Innovation Hub Blue IQ project, currently in
  the process of bulding the site at CSIR
  University of Pretoria
• Medical Pharmaceutical a new focus area
• Biotechnology a new focus area
• Education research development well
  developed
• Tourism to be developed based on Government and
  business tourism
• Metals well developed but need new focus after
  ISCOR has down scalled
• Agriculture processing Urban agriculture in
  the process of attracting investors for business
  case plans

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IMPROVING OUR PERFORMANCE?

• Major new investment growth private sector
  partners
• World class research development industry
  relationships with centres of excellence
• New export markets Trade Point
• Tourism boost improved co-ordination
• World class education levels new investment in
  facilities
• Priority for infrastructure projects for target
  sectors
• Strategic land developments incentive
• Small business initiatives services to assist
• Integrated development planning process

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ROLE OF CTMM

• Influence the components of Porter Diamond
• Improve the quality of the inputs (factors) firms
  can draw upon define a competitive environment
• Incentives is important part in shaping the
  pressures
• Working in tandem with favourable underlying
  conditions in the diamond
• Create environment where business can gain
  competitive advantage
• Catalyst challenger
• Encourage companies

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AUTOMOTIVE CLUSTER
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PREFERENTIAL PROCUREMENTKEY RECOMMENDATIONS

• Preferential procurement policy should be
  reviewed updated in line with applicable
  legislations best practice
• Preferential procurement should be integrated
  seamlessly with procurement
• More preferential procurement strategies should
  be incorporated to reduce undue reliance on price
  preference
• Comprehensive targets for preferential
  procurement should be set

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PREFERENTIAL PROCUREMENTKEY RECOMMENDATIONS

• Preferential procurement process should be mapped
  procedures documented
• Cross functional responsibility on preferential
  procurement implementation
• Preferential procurement performance targets
  should be incorporated into performance contracts
  of staff committees
• Preferred BEE supplier database should be created
• Monitoring reporting should be implemented

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HOW DOES IT ALL FIT?
Medium-Long Term Strategy
3-5 year IDP
MTIEF Review
Budgets
MTIEF
Sectoral plans
Gov Grants
City Development Strategy
IDP
Community input
IDP Review
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RE-ENGINEERING

• Dont reengineer but say that you are
• Do not spend a lot of time analysing
• Proceed with strong committed leadership
• Bold imaginative thinking
• Once decided, implement
• The wrong style of implementation waiting to
  get all ducks neatly lined up in a row
• Attend to the concerns of the people
• Hammer, Michael. 1995. The Reengineering
  Revolution, the Handbook.

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THANK YOU

• Dr Hein Wiese
• Strategic Executive Officer
• Economic Development
• City of Tshwane Metropolitan Municipality
• Tel [phone]
• heinw_at_tshwane.gov.za