Deputy Minister Andries Nel: Highway Africa conference 2015

Remarks by Deputy Minister Andries Nel at the Highway Africa: "Journalism & the City" welcome reception at Rhodes University

Programme Director,
MTN Executive: Corporate Affairs, Mr Chris Maroleng
Deputy Vice Chancellor: Research & Development, Dr Peter Clayton 
Professor Anthea Garman, 
Chairperson of SANEF, Mr Mpumelelo Mkhabela
Mayor Parks Tau, SACN
Mayor Mpho Nawa, Deputy Chair of SALGA
Distinguished guests,

African cities are on the rise. With a population exceeding a billion and an economy that is expected to double from US$2 trillion to US$4 trillion before 2025, Africa is seen as the next golden opportunity of economic growth.

Over half the world’s current population are urbanised, contributing in some cases up to 80 percent of a country’s Gross Domestic Product (GDP). It is estimated that by 2025 cities will contain over 4 billion consumers, and over 50 percent of these will be in emerging market. 

By 2030, more than half of Africa’s population will live in cities, with this number expected to increase to over 60 percent by 2050. Africa’s growing middle class, and a young population coupled with increasing technological innovation are accelerating the rise of cities as engines of economic growth.

The United Nations estimates that 71.3% of the South African population will live in urban areas by 2030. That figure will reach nearly 80% by 2050. Urban centres dominate the country’s economy, as cities and large towns produce over 80% of the national gross value added (GVA). 

Metros are growing twice as fast as other cities and towns and also have much higher (by about 40%) average incomes, compared to the country as a whole. SA urban population is growing larger and younger. Two-thirds of SA youth live in urban areas.

SA cities are shaped by the apartheid legacy: racial segregation, poverty, exclusion from social & economic opportunities.

Despite phenomenal service delivery gains since 1994, spatial patterns in SA have stubbornly resisted transformation.

Despite this ‘urbanisation of poverty’ is increasing, especially in townships, informal settlements and inner cities.

Urban areas are dynamically linked to rural areas - flows of people, natural and economic resources. 

Urban and rural areas are becoming increasingly integrated, as a result of better transport, communications & migration.

Interdependence of rural and urban spaces needs a comprehensive, integrated approach to urban development.

Safety, particularly in public spaces, is an essential ingredient for the creation of live-able and prosperous cities.

Urban spaces need to be designed & managed in a way that makes citizens feel safe from violence and crime.

We want cities to be inclusive, resilient and liveable. We need a new deal for South African cities and towns.

We believe that that new deal is the Integrated Urban Development Framework (IUDF) that builds on the National Development Plan's (NDP) vision for urban South Africa.

The NDP places 'transforming human settlements and the national space economy' at its centre.

By 2030 SA should see reviving rural areas & creating more integrated, balanced & vibrant urban settlements. 

To achieve this the country must clarify and relentlessly pursue a national vision for spatial development.

We must sharpen the instruments to achieve this vision & build the required capabilities in the state & among citizens.

It provides a new approach to urban investment by the developmental state, guiding the private sector & households.

Vision: Live-able, safe, efficient cities - socially integrated, economically inclusive & residents participate actively in urban life.

We recognise that SA has different types of cities and towns, which have different roles and requirements. To achieve this vision, four strategic goals are introduced: Access, growth, governance & spatial transformation.

Implementing these goals requires 8 policy levers that are premised on an understanding that:
(1) Spatial planning forms the basis for achieving integrated urban development.
(2) Integrated transport informs
(3) targeted investments into integrated human settlements, underpinned by,
(4) Integrated infrastructure systems &
(5) efficient land governance, which jointly can trigger
(6) economic diversification & inclusion, and
(7) empowered communities, which will demand
(8) deep governance reform to enable and sustain the above. 

The IUDF policy levers address in combination all of the structural drivers that promote the status quo.

Inclusive economic development is the backbone the NDP's economic policy to deal with poverty, unemployment and inequality. 

Cities cannot succeed without the energy of citizens. The power of cities stems from bringing together social and cultural diversity. 

Democratic-citizenship is at the core of the ‘active citizenship’ agenda advocated by the NDP.

Urbanisation is not simply about people moving to cities and financing the infrastructure that is needed.

Urbanisation also incorporates the ability of people to move around, find jobs and work in cities raising their individual productivity in the process. It is about the concentration and the development of human potential. Sustainable growth is about creating cities that provide a quality of life and longevity for everyone. 

The main driver of inclusivity is economic growth, which means creating opportunities for entrepreneurship. This is a complex issue and is not simply about including entrepreneurs in the established economy. It is about breaking down the barriers, allowing changes to take place, and thereby growing inclusivity. Focusing private sector engagement on the poorest is necessary to confront the challenge of achieving economic growth with equity.

Cities have different strengths that need to be harnessed in order to unlock national growth and urban development, namely:

  • Prioritisation on urban development
  • Reaping the urban dividend
  • Sustainable growth and long term planning

Because of our historic past, our analysis of urbanisation focuses on the spatial relationship between urban population growth, employment trends and access to housing and basic services.

The Department of Cooperative Governance has also adopted a practical approach to managing the challenge of improving service delivery across all municipalities. The Back-to-Basics (B2B) Approach has been adopted to ensure a well-functioning and efficient local government system in support of the national developmental agenda. 

The Back to Basics approach adopts the non-negotiable basics of urban management and governance to have an impact on the lives of ordinary South Africans. It is about striking a balance between getting the basics right and keeping on track with the global discourse in order to remain competitive. The five pillars of the B2B approach are:

  • Putting People First,
  • Service Delivery,
  • Good Governance,
  • Sound Financial Management and
  • Capable Institutions and Administration.

These  pillars are aligned to the City Prosperity Index developed by the UN HABITAT, as well as some of the elements of the MasterCard African Cities Growth Index. The B2B approach has had some success in the last year since it was launched.

The notion of prosperous cities, provides an all-encompassing approach that can help us to create inclusive, safe, resilient and sustainable cities, in line with the objectives outlined in the NDP. Managing urban areas is one of the most important development challenges of the 21st century. 

Our success or failure in building sustainable cities is intrinsically linked to our prospects as a country. 

From 29 November to the 3 December the City of Johannesburg hosts the Africities Summit, which aims to improve African local government’s response to the challenges of urbanisation and enable them to shape the African cities of the future.

Let us build partnerships in practice. Cities must be hubs of development and innovation. Cities are inclusive institutions.

Success or failure with spatial transformation & integrated urban development will mean the difference between being a nation united in our diversity or being people living together separately.

For further information contact: 
Mpho Lekgoro
Cell: 071 607 3081
E-mail: mphol@cogta.gov.za

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