Theme: Strengthening Social Maturity by Advancing Social Cohesion in Pursuit of a Prosperous and, therefore, A Livable and Delivering City
Madam Speaker, Cllr Patricia Kumalo
Chief Whip of Council, Cllr Robert Mashego
Fellow Councillors
Members of the Mayoral Committee
Leaders of Opposition Parties in Council
The City Manager, Mr Khaya Ngema and our Senior Management
Leaders of Labour, Business and Civil Society
Members of the Media
Fellow Residents of Ekurhuleni
Distinguished guests
Ladies and gentlemen
Avuxeni! Good morning! Sanibonani! Molweni! Dumelang! Goeie Môre!
I am humbled and greatly honoured to once again reflect on the state of this beautiful City. This year’s reflection is unique in that it takes place as we move towards the end of this present term of local government office in 2016.
It takes place at a great moment in time in our history – exactly 42 days since the 25th anniversary of the release from prison of the country’s first democratically elected president - our beloved Dr Nelson Rolihlahla Mandela.
This year also marks 30 years since the slaying of our very own artist and revolutionary Thami Mnyele who was killed in his sleep by the apartheid army when they carried out an aggressive onslaught in Botswana on those of our people, who they themselves had driven into exile.
Our hearts are still very heavy at the untimely loss of Minister Collins Chabane and his protectors, sergeants Lesiba Sekele and Lawrence Lentsoane. Minister Chabane displayed heroism, an incredible sense of discipline and great capacity for selflessness both as a minister and as an ANC cadre.
Let me also pay tribute to the martyrs of our struggle; JB Marks and Moses Kotane who were reburied at the weekend. These were ancestors of the ANC’s tripartite alliance who understood that the stronger the alliance was, the better the chances of fulfilling the historic mission of the ruling party, which is to
provide a better life for all.
Honourable Speaker
The ongoing senseless illegal mining-related murders that continue to bedevil our area are giving us sleepless nights and seem to be escalating. Just this weekend the municipality had to assist with the burial of several victims of these senseless killings. These people, including an 18-month old toddler,
were mowed down by unknown gunmen in Chief Albert Luthuli 10 days ago.
The illegal mining activities call for urgent and aggressive attention from all of us. On many occasions these seem to have an element of xenophobia – which cannot be allowed in a city that is a major player in the socio-economic environment of Africa.
Honourable Speaker
As I deliver this State of the City Address, I am mindful of the fact that our people are keen on getting a status update following the mandate to advance the struggle for a better life which they gave us in May 2011. Once again they took us into their thoughts during the recent SOCA Tips Campaign, when
they highlighted their expectations. Indeed I must thank them for their contribution and interesting views. Enkosi kakhulu bahlali. Baia dankie. Thank you. Siyabonga.
Today as we report back I sincerely hope that we will fulfill the reason why we were the correct choice back in 2011, and why we remain the right people to carry the baton beyond 2016. When we kickstarted our journey in 2011 we adopted the theme: Strengthening Social Maturity by Advancing Social Cohesion in Pursuit of a Prosperous City and, therefore, A Livable and Delivering City because we understand that Ekurhuleni is a microcosm of the past, present and the co-architect of
the future.
We opted for this theme because the ultimate future of this country lies in a cohesive and socially matured society. Indeed we must continuously examine the path we are undertaking towards this maturity.
As explained before, our case of social maturity also derives from the location of Ekurhuleni as an arrival city and meeting point of South Africans and citizens of the world from all walks of life. This social maturity we refer to is a culmination of decades of struggle. It is for this reason that we should always remember where we come from, so that the gains made thus far are not taken for granted.
Madam Speaker and fellow Councillors
Let me remind this august house that the cause of our liberation, repudiated in practice by the colonial state and the minority regimes that misgoverned our country for well over a century, found a home in the acquisition of our freedom.
The national liberation movement led by the ANC championed democracy because our forebears recognised its intrinsic value as the basis for good, accountable government coupled with justice.
Our forebears sought to advocate for human supremacy. They mocked racism as a mark of human purity. They despised division as a form of human security. Our forerunners ridiculed sexism as an indicator of human capability. They had a scant respect for fascism for there is nothing worse in corroding foundations of human triumph.
Ladies and gentlemen
These men and women who came before us opted for a contrary pursuit to apartheid. They opted for foundations of human cohesion which finds expression in unity, non-racism, non-sexism, democracy and prosperity - the inevitability of all these principles of the supreme human order.
Our leaders remained imprisoned in the conviction to pursue foundations of human cohesion without which human endurance and triumph would perpetually remain a pipe dream. Those who came before us knew very well that without the foundations of the human cohesion, the prospects of the human triumph would be the subject of an uncertain future. I want to submit that their main contention was that if death was a price to pay for becoming a cohesive nation - so be it.
They did this because they were clear that our prosperity as a nation would remain trapped in the absence of this truth.
Today we stand to celebrate the installation of the Constitution of the Republic from which the foundations of our national cohesion derive security. For this reason we remain indebted to our forerunners to live and die for the freedoms consequent upon the foundations for which our great grandmothers and fathers paid a price.
We, therefore, commit to reconfigure our apartheid spatial patterns. We will throw our energy behind the revitalisation of the township economy. We shall spare no effort as we invest in infrastructure development. We shall stop at nothing to provide quality, sustainable and equitable services.
We commit to doing all these things for we remain indebted to protect, with our lives, the freedoms consequent upon the foundations for which those who came before us paid a price.
Distinguished guests
There can be no better way to express the unwavering conviction of our forebears behind our movement's historic mission which laid the foundation for our constitution, than through the words of Chief Albert Luthuli when he said, “Ours is struggle against a racial system not a race.” The Chief is further quoted as saying, when stating his critical view about the PAC revolutionary stance when they left the ANC, "We cannot fight a racially exclusive oppression through a racially exclusive resistance."
The resonation with Chief Luthuli’s views later found affirmation in the words of Tata Nelson Mandela during his trial when stating his attitude towards both white and black domination.
Honourable Speaker
No one can find a better way to articulate the basic tenets of the New Nation as viewed by our forebears when founding the people's movement, the ANC. The ANC philosophy enjoins South Africans whilst obligating ANC members in particular to despise human division from whatever angle it expresses itself. For more than 20 years hitherto our people have pursued a common life across the trivial distinctions of colour and ethnicity to a great measure.
These are the people who for the significant length of time resided, schooled and played separately. Most of us across racial and ethnic groupings were born to believe that living apart on the basis of these trivial lines was the will of God. To date our people are celebrating Charlize Theron, Quinton de Kock, Lucas Radebe, Nelson Mandela, Oliver Tambo, Chris Hani and many more South African greats across colour and ethnicity in pursuit of the human course.
As we gather today our people are queuing together for payment at shopping centres, they are dining, playing and relaxing together in venues of hospitality. All this they are doing without consideration of colour or ethnicity. Whilst we are not yet in the destination aspired by our forebear, we dare not disregard these irrefutable manifestations of a maturing nation.
Residents of Ekurhuleni
It must be acknowledged though that it will be less than candid to deny the historic fact that amongst us there are still Thomases, who live in the present on the platform of the past. We know as we sweat every hour to consolidate and further deliver conditions of national cohesion, we do so to vindicate the believers of the present whilst complicating dwelling in the past during the present. We are obligated to the sacrifices of our forebears never to betray this cause.
Every day, every hour and every minute we spare no effort in focussing our nation on the objectives of a cohesive society, which is the only way to secure the energy we need to become a solid independent nation.
Distinguished guests
The year 1994 marked the dawn of the historical democratic elections for South Africa. Millions of our people welcomed this milestone by queuing for hours to exercise the hard fought basic human right of choosing their own leaders. The ANC emerged victorious with a landslide victory and became the people’s preferred government.
For the past 21 years the people of South Africa have repeatedly entrusted us with the responsibility of delivering a better life for all because they believe that we are equal to the task. Indeed we have made some great strides since then, hence the continued endorsement by the masses.
The ANC government has been hard at work since the first democratic elections driving the process of repealing the de-humanising apartheid legal framework. However, the pervasive and overwhelming nature of apartheid laws continues to strike us to this day. Yes, we defeated apartheid but reversing its legacy still remains our programme of action – hence our continued aggressive confrontation of unemployment, poverty and inequality.
We must continue taking radical steps to eradicate the psychological, social, economic and spatial manifestations of apartheid, because without us doing so the battle would not have been won.
Honourable Speaker
I can say without fear of contradiction that this ANC government has managed to equalise and broaden access to government services across all races. The ANC should also be applauded for initiating the Truth and Reconciliation Commission, a critical tool which played a fundamental role in assisting all South Africans to deal with the violence and human rights violations that took place in the past.
In an attempt to cement the values of democracy, South Africans went on to put in place one of the best constitutions in the world because our constitution-makers understood our history very well.
Honourable members know that the country’s Constitution, which is one of the greatest achievements of our liberation movement and our country, has its roots in key ANC documents such as the 1923 Bill of Rights, the 1943 African Claims and the Freedom Charter.
Fellow Councillors
Despite our successes so far, it is very important that we do not become arrogant and lose sight of why we remain the people’s choice. That is why the Minister for Corporative Governance and Traditional Affairs Mr Pravin Gordhan is making a clarion call for ‘Back to Basics’.
We must go back to basics with a firm understanding that the struggle that began with the Congress of the People in Kliptown, Soweto, with the adoption of the Freedom Charter in 1955 continues. The dedicated men and women who participated in this historical process shared one vision and mission – to create a South Africa where all can co-exist regardless of colour or creed, and enjoy the benefits of being South African.
We must, therefore, frustrate any efforts that seek to take us back to the dark days of racial discrimination and condemn incidents of racism at all costs. Racism is a cancer to any society and must never be allowed to rear its ugly head.
It is, therefore, no fluke that we have themed this year: THE YEAR OF THE FREEDOM CHARTER AND UNITY IN ACTION TO ADVANCE ECONOMIC FREEDOM. We did this because we fully understand that it is this charter that continues to guide us towards the promised land.
As we take this city forward, central to our agenda should be the successful advancement of our country away from the divided past towards the realization of the vision contained in the Freedom Charter – whose 60th anniversary we celebrate this year – ‘a South Africa that belongs to all who live in it, black and white.’
Honourable Speaker
When we took office in 2011, we did so on the back of priorities and commitments contained in the elections manifesto of the ruling African National Congress, which directed us to:
- build local economies to create more employment and sustainable livelihoods;
- improve local public services and broaden access to them;
- build united, non-racial and integrated safer communities;
- promote community participation in local government; and
- build a more effective, accountable and clean local government that works closely with provincial and national government.
In pursuance of this agenda we adopted the three-dimensional value beam.
The first dimension directs us to maintain the high standards of quality services enjoyed by our welloff residents, while at the same time extending and improving services to those in less affluent communities. The second dimension of transformation is informed by our will to ensure that everything we do should transform and develop our society. Thirdly, our resolve is that all this is necessary because we must ultimately become the destination of choice for investment.
We went on to formulate an inclusive and broad-based Growth and Development Strategy (GDS 2055), which is anchored on five strategic imperatives, namely:
- Re-Urbanise – to achieve sustainable urban integration;
- Re-Industrialise – to achieve job-creating economic growth;
- Re-Generate – to achieve environmental well-being;
- Re-Mobilise – to achieve social empowerment; and
- Re-Govern – to achieve effective cooperative governance.
Honourable Speaker
Effective implementation of these strategic imperatives, we submitted, should result in a future that can be defined in three inter-connected ways.
These being:
- a delivering City – between 2012 and 2020, the form of which will be a well-managed, resourced and financially sustainable city;
- a capable City – between 2020 and 2030, characterised by an inclusive industrial economy and meaningful reduction in unemployment and poverty; and
- a sustainable City – between 2030 and 2055, where we shall have a clean, green and sustainable African manufacturing and logistics complex in a liveable and dynamic city, highly integrated in its city region - Gauteng.
Honourable Speaker
Allow me to share some critical facts about our city.
Ekurhuleni has a population of about 3,2 million inhabitants, of which over 65% are below the age of 34 years. Although this distribution could be an advantage to the city due to longevity and youthful exuberance, the reality that we face is contrary. Some cold hard facts demonstrate that only 15% of the population in Ekurhuleni has post-matric qualifications, whilst 4% have no schooling at all. Edenvale has the highest portion of post matric population in the region at 41%, followed by Kempton Park and Alberton with 35% and 28%, respectively. Three per cent of our people have primary school education and 35% have some
secondary schooling, while a paltry 35% possess a matric certificate.
Relative to towns, former disadvantaged areas generally have higher numbers of people with no schooling – mainly primary school being the highest our people have achieved.
The official unemployment rate in Ekurhuleni was hovering at 23% between 1995 and 2013. As things stand right now it is at a stubborn 28%. The bulk of the people of Ekurhuleni are employed in the formal sector within the City, with 72% being formally employed in 2013. The number of people employed in the informal sector has been increasing over time since 2003. Formal employment has also been on the increase despite a slight decline in 2009 as a result of the economic downturn.
Honourable Councillors
The main source of employment within Ekurhuleni between 2001 and 2013 was wholesale and retail trade, with catering and accommodation leading at 25%. This was followed by finance, insurance, real estate and business services at 18%, manufacturing at 15%, community, social and personal services at 15%, and government at 11%. Almost a quarter of the population is employed in elementary occupations such as domestic work, street trading, and general work in the fields of agriculture, mining and construction. At 15% are service workers at shops and markets. Technicians, professionals, legislators, senior officials and
managers combined account for almost 26% of employment in the City.
Our region’s GDP stands at about R254 billion (current prices), contributing 8% to the country’s economy and 25% to the economy of Gauteng. Our Gross Value Add (GVA) grew at an average of 10,1% per annum between 2001 and 2013 - slightly behind the national and provincial growth rates.
The town of Kempton Park was the largest GVA contributor at 12%, with Nigel being the lowest with 1%.
Distinguished guests
These facts paint a disturbing picture of the City, but as Gauteng Premier Mr David Makhura pointed out in the State of the Province Address, the reconfiguration of the Gauteng City Region’s (GCR) space and economy along the five development corridors that have distinct industries and different comparative advantages – coupled with our own plans as contained in the GDS 2055, there is a clear plan to turn this situation around.
The speech by the Premier also set the tone that our agenda for the next five years as the Gauteng City Region should be anchored on strengthening the economy. Indeed an improved Ekurhuleni economy will assist us in the fight against unemployment, poverty and inequality.
Fellow Residents
Ekurhuleni is now a much better place since its advent in 2000, with an even brighter unfolding future. Allow me to qualify this by telling you the transition story of this City which creates the basis for the interventions that we have undertaken and continue to employ to this day. It is this history that demonstrates how the City of Ekurhuleni has navigated its way to where it is today.
As honourable members, and the community would know, Ekurhuleni was established with a distinct set of fragmentations compared to other metros making it unique in its own right.
The fragmentation embraced the following:
- A legacy of nine towns and 17 townships with no single large administration as in the case of the former cities of Johannesburg, Cape Town, Pretoria and Durban – which had to coalesce around relatively mature big city administrations;
- A fragmented and dispersed urban structure of towns and townships with no identifiable city centre and the displacement and fragmentation caused by the superimposition of a regional freeway system;
- A declining manufacturing base combined with deteriorated town centres and a stagnant to declining property market with its impact on property rates;
- Extreme social isolation and fragmentation as the worst excesses of apartheid planning placed ever larger townships on the periphery of a weakened urban spine with deteriorated public transport;
- High levels of poverty and homelessness for the majority of citizens;
- Ageing infrastructure together with vast service areas;
- A diffuse and problematic civic identity gravely challenged by the relics of the former East Rand identity;
- Unstable labour environment; and
- Fragmented planning systems and department silos.
It is this fragmentation that necessitated an attitude of gritty determination and hands-on innovation that promised a rapid catch up with our sister metros in the GCR and eventual leadership in key areas, guided by a powerful GDS 2055 vision and transition path.
Considering our relative disadvantages and the fact that 77% of the population lived below the poverty line in the area, Ekurhuleni had to perform wonders to improve the standard of living. This is despite the fact that over the first 10-year period (2001 – 2011) the population of Ekurhuleni had increased by an overwhelming 28% - with some 700 000 people coming from all over to seek opportunities and a better life.
Honourable Speaker
Despite all that, we managed, in a very short space of time, to achieve many accolades and stamp our authority as a major player in the GCR and South Africa at large. This is confirmed by the 2011/12 and 2012/13 Household Satisfaction Surveys conducted by the Gauteng City Region Observatory (GCRO) which state that the overall municipal performance of Ekurhuleni has increased by 6% in terms of respondents’ satisfaction. We must persevere with our hard work and improve on this public endorsement – for that is the mandate from our electorate.
On this note, ladies and gentlemen allow me to highlight some of the challenges we had to tackle in undertaking this journey since 2011. We had to encounter huge infrastructure backlogs; lack of comprehensive transport strategy and implementation plans; insufficient provision of human settlements; and lack of clearly defined nodes to stimulate economic growth. There was unreliable waste collection; illegal dumping was getting out of hand; inadequate and ineffective sports and recreation programs; and the general lack of taking care of our environment and open spaces.
Fellow Residents
In pursuit of being a livable city, we have done a lot of work over the years. Access to electricity improved by 7%; flush toilets by 3.5%; and clean water inside dwellings by 14,1 %. The population in formal housing has gone up 7% and access to weekly refuse removal grew by 0,5%. The Municipality has extended access to clean water to all our people including those living in informal settlements. This includes the 27,119 additional households provided with minimum water
supply during the past three years. In addition, the quality of our water has continued to improve, maintaining the blue-drop status for the past three years in a row.
I can say with unwavering pride that our water remains the best water to drink in the country to date. This must be attributed to the metro’s boldness to invest around R12 million on water quality management each year.
Honourable Speaker and Fellow Councillors
In pursuit of providing adequate services and decent housing to all our people, 98 000 houses were delivered in this region between 1994 and 2013. This figure includes a total of 2 446 houses constructed since 2011 by the Metro, as well as a total of 13 649 houses constructed by the Gauteng Provincial Government in the same period. In the current financial year, with the available funding provided by the Provincial Government, we are already building 270 houses out of a projected target of 305.
Further to this, we serviced nearly 120 000 stands in the same period. In providing our people with security of tenure, I am pleased to announce that the Municipality has, over the years, established 30 residential townships under the subsidised human settlements programme. This move has given full title and ownership of land to 21 656 people. Furthermore, a total of 11 711 households have received title deeds to date.
The number of households in informal dwellings continues to decline. Between 1996 and 2011 we experienced a drop from 29.1% to 21.5%. Despite a recorded 85% access to flush toilets, all our informal settlements continue to receive incremental access to clean water, sanitation, refuse removal, area lighting, roads and primary health care – restoring dignity to more than 250 000 people.
Distinguished guests
The safety and security of our communities is an issue for all of us as a people of Ekurhuleni. We have to continue working together to create safer communities. Ultimately we must create an environment where our people can be assured of their safety and that of their property; where the young and old are not scared to walk the streets at night for fear of being mugged; where women can spend time in a park without fear of being raped; and where drug dealers and other peddlers of crime are flushed out of society.
We have seen great progress in our policing and by-law enforcement over the years. In a short space of time the safety of our communities and our state of readiness to mitigate all forms of disasters steadily progressed to meet international standards.
People of Ekurhuleni
In the past we committed to, among others, establish a fire-fighting reserve force to assist in informal s ettlements; build new fire stations where there was historically none; and introduce the communitybased Peace Corps in each of the 101 wards for community safety purposes. We also committed to
improving our response times for life threatening emergencies in order to improve the general quality of life of our communities.
It gives me great pleasure to inform you that indeed we have walked the talk. Today I can confirm that 1 010 peace corps (10 per ward) have been recruited, trained and placed in identified hot spots dealing with scholar patrol, traffic control and foot patrols; a fire-fighting reserve force of 600 members has been established and they have been instrumental in the reduction of fire incidents in informal settlements to date; and we have employed an additional 170 fire fighter and emergency care practitioners to increase capacity.
It is a sense of great pride that I can publicly declare that all our previously disadvantaged communities will have fully functional fire stations by June next year when the KwaThema Fire Station, which is under construction, is completed and operationalized. Since 2011 the City has spent R46.8 million in the construction of new fire stations in Tsakane and Zonkezizwe, and disaster management satellite offices in the Kempton Park and Tsakane.
Honourable Speaker
We come from a history where there were major delays in responding to life threatening emergencies either because there were insufficient ambulances or because of distance between the victim and the emergency facility. Bold steps had to be undertaken in this regard. Since 2011 we have bolstered our
ambulance fleet with 69 new ambulances - with the City purchasing 48 of these in 2013 and 2014, and the rest coming from the provincial government.
In addition we procured nine fire engines and one disaster bus. This intervention has tremendously improved our response times.
Just to share some few facts:
- Emergency Calls responded to within 15 minutes increased from 15.78% to 58.49%; and
- Emergency medical calls responded to within an hour increased from 4.44% to 100%.
Honourable Councillors
The people of Ekurhuleni can attest to the fact that the EMPD has made some serious and meaningful inroads to creating safer communities since its establishment in 2002. However, before I dwell on the good story we have to tell in this regard, I wish to take this moment to salute the 55 members who have lost their lives since 2011. They must forever be respected for having taken the oath to serve the people of this city.
Let me now share some of the remarkable successes of the EMPD since 2011: a total of 13 824 operations were conducted between 2011 and 2014 resulting in the nabbing of 18 110 suspects; and 1 149 stolen cars were recovered in the same period– meaning in the region of 287 cars were recovered per year between 2011 and 2014.
With the rate of drug abuse sky rocketing among our communities, the metro police have been vigilant, making arrests week in and week out – with their biggest single arrest being the nabbing of a man of Nigerian origin in Springs who was found in possession of the drug Cat worth R1.5 million earlier this year.
As the scourge of drugs continues, I am happy to announce that we will soon be establishing a more specialised Drugs Task Team. The metro police’s public order policing unit continues to play a critical role during service delivery protests and they are always hard at work mitigating and managing various acts of land grabbing as and when they threaten to unfold.
Fellow Residents
We have heard the cries of our communities that the EMPD is not doing enough to deal with traffic when the traffic lights are off. Indeed this is not acceptable. Our police must do traffic control every time the need arises. Before I step off the EMPD story, let me inform our people that our quest to bring policing closer to
communities continues. To date we have rolled out 22 metro police precincts and three more are under construction.
Distinguished guests
In the current term of office we have had to manage the transition from a City that is fragmented, reactive, slow, complex, in-equitable, risk averse, with a spending focus, and conservative to lay the foundations for the Delivering City in the 2016 - 2021 term, that is cohesive, pro-active, fast, modern, simple, equitable and risk managed with an investing focus.
Already we can distinguish the following institutional drivers in the current term:
- An Organic Driver - we engage intensively with communities and customers to understand their needs;
- A Customer Service Driver - we have developed a range of response mechanisms to address the needs of communities; and
- The Modernisation Driver - we are developing systems to provide sustained service delivery and continuously improve such.
Honourable Speaker
In the State of the Nation Address the President of the Republic, Honourable Jacob Zuma, reminded us that, “Local government is everybody’s business. We have to make it work.” It is at the back of this statement that we must internalise the thrust of the Back to Basic programme, which seeks to promote good governance and effective administration through cutting wastage by spending public funds prudently; hiring of competent staff; and ensuring transparency and
accountability of municipalities.
Lest we forget that our people need water, electricity, waste removal, houses, roads, sanitation and a host of other services. We must continuously demonstrate our steadfastness in our commitment to the vision of the Freedom Charter and the objectives of the National Development Plan (NDP). On this note I urge the people of Ekurhuleni to rally behind the NDP, to drive its implementation and to work with our government to eradicate poverty, reduce unemployment and eliminate inequality by 2030.
Indeed as I alluded earlier, in 2011 we made a number of commitments. I beg for your indulgence as I report back to our communities on these.
RE-INDUSTRIALISE TOWARDS RADICAL SPATIAL, SOCIAL AND ECONOMIC
TRANSFORMATION
Honourable Speaker
It is well documented that the City of Ekurhuleni, as a microcosm of South Africa and Gauteng, is experiencing high levels of unemployment, poverty and inequality. These triple developmental challenges are the root-cause of most of the socio-economic ills that continue to ravage our communities. In the spirit of the Freedom Charter and Unity in Action to Advance Economic Freedom, we remain committed to effect radical social, spatial and economic transformation during our lifetime.
In our effort to systematically intervene towards radical transformation, we have rationalised and aligned the city’s flagship programmes to the imperatives of the GDS 2055. By implication, this means that we have prioritized radical socio-economic and spatial development as a cross-cutting imperative to achieve the objectives we have set ourselves in the area of economic transformation.
In order to achieve this imperative, the Ekurhuleni Aerotropolis programme has been adopted as an overarching flagship programme which encapsulates other flagships such as the Digital City, IRPTN, Beautification of Lakes and Dams, Urban Regeneration, Development of Township Economies and the Revitalization of the Manufacturing Sector among others, to drive the radical economic development and transformation agenda of Ekurhuleni.
We realise that these interventions shall not have the envisaged impact if they are not coupled with a systematic programme to crowd-in strategic investment into the City. We must put a consented effort towards the redistribution of the wealth of the city as envisaged in section 217 of the Constitution of South Africa.
Furthermore, we have also resolved that in as much as our budget will be leveraged to advance this socio-economic programme, it is inevitable that a city such as ours, should adopt a posture that is welcoming to strategic partnerships and private sector investments.
AEROTROPOLIS DEVELOPMENT PROGRAMME
Captains of Industry
In September 2013, we announced the appointment of a consortium that had won the contract to develop a 30-year Ekurhuleni Aerotropolis Master Plan. There is no doubt that the Aerotropolis concept is now mainstreamed in the city and has ignited a new wave of investments in and around the airport catchment area.
It should be noted that the implementation of the Aerotropolis programme in Ekurhuleni intends to balance the distribution of economic activity between the nine affluent areas and the 17 townships of Ekurhuleni. This will be achieved through a systematic spatial and economic programme to enable the geographic spread.
This way, our people will enjoy its benefits and improved quality of life from wherever they are without moving closer to the airport. The Aerotropolis concept has been very successful in airport cities of Asia, Europe and North America; hence the Ekurhuleni Aerotropolis programme offers a unique opportunity to apply lessons learnt at these airports to develop a truly African solution to our economic system.
Distinguished guests
Having leveraged the best global expertise in the development of the Aerotropolis programme in Ekurhuleni, the five-year Strategic Implementation Plan has identified 10 economic clusters that will be prioritized for development in Ekurhuleni.
Another good story is that the first wave of catalytic projects has been induced in the Catchment Area of the Aerotropolis namely:
- A R300 million PRASA Nerve Centre building next Kaalfontein station in Kempton Park as part of the R4 billion tender station upgrade programme by PRASA;
- The Air Traffic and Navigation Services (SOC) is developing its head office and training academy in Isando, Kempton Park.
- The Peermont Group’s R320 million extension of their Emperors Palace Casino and Resort, to mention but a few.
We have also recorded several interesting developments in and around the Aerotropolis Catchment Area, wherein the following projects have been planned and developed to date:
i. The Riverfields development in Kempton Park – which is a mixed-use development strategically located on the Portion of farm Witfontein 15-IR northeast of the existing Kempton Park CBD and the Albertina Sisulu Freeway (R21) situated between OR Tambo International Airport and Tshwane;
ii. Glen Erasmia Boulevard (430 residential stands) and Zimbali Cluster Development, in Kempton Park;
iii. Gleneagle Estate (392 residential stands), 4 cluster developments (to be developed), Clubhouse, tennis court, squash court and extensive parks;
iv. The Gleneagle Office Park, in Kempton Park which is currently being serviced and is practically sold out;
v. Plumbago Business and Logistics Parks, Kempton Park, which is fully serviced and in the process of being developed. John Deere and Blue Sky Logistics have already taken occupation.
To date, approximately R789 million has been invested in a number of projects along Albertina Sisulu Corridor creating at least 1,506 jobs. As a result, the R21 expressway now features iconic buildings that house companies such as John Deere, DB Schenker, DBZ Eng, DHL Global Warehouse, DHL Global Head Office, Wurth, Jonson’s Workwear, TAL Warehouse, Fast Freight, DHL Supply Chain, DB Schenker, Takealot and many more.
Honourable Councillors
It is envisaged that the Riverfields Retail Mall in Kempton Park shall be established on the southwestern intersection of the R21 and R25. This is a mixed-use and integrated development which includes residential, business, commercial, industrial, retail and other ancillary uses such as parks, recreational facilities, hotels, a hospital, schools and more.
Another mega project along the (R21) Albertina Sisulu corridor is the M-T Development mixed-use development which involves 21 industrial parks, medium density residential dwelling units, mixed land-use (business, retail, showrooms, residential), offices, warehousing and distribution and educational facilities. This project is estimated at R50 billion over 15 years.
Furthermore, 18 new mixed development projects ranging from industrial, commercial and residential are planned for the Pomona area.
INVESTMENT FACILITATION
Honourable Speaker
In addition to the identification of over 107 investment projects across Ekurhuleni through a process of strategic prioritization, we have identified 21 catalytic and eight strategic projects for implementation and investment over the next five years.
In order to realise these investment opportunities, I am happy to announce that since November last year Council has approved a 40% Rebate Facility on Bulk Contributions for Roads, which was a major stumbling block for strategic developments and investments into the city. This is but one intervention as we continue to package a bouquet of incentives to attract more investment.
Furthermore, the Metro has resolved to expedite the process to create a favourable investment climate by unlocking strategic land parcels, and respond positively to investors. To date 14 SLPs have been packaged.
The City is also at an advanced stage of organizing the Aerotropolis Investment Conference and Expo which is aimed at promoting the Aerotropolis catalytic projects to domestic and international investors.
As a Municipality our star is indeed rising and we are convinced that Ekurhuleni is poised to maintain its role as a major socio-economic player in Africa.
Leaders of Business
The City recently hosted the third edition of the Air Cargo Africa Conference and Expo which was attended by global, regional and domestic stakeholders. The main purpose was to understand the role we can play in air cargo and determine opportunities for the city and her people. It is reported that by 2014, South Africa handled almost 360 000 tons of air freight, wherein 90% of that volume was handled through the OR Tambo International Airport.
It is further projected that Air Cargo traffic that is handled through the OR Tambo International Airport will reach 550,000 by 2025, thus placing our airport as a key role-player in the regional logistics and air cargo activities. These increased air linkages between OR Tambo Airport and the African continent is critical in
fostering inward investment growth. This then means a major accelerator of growth for the Ekurhuleni Aerotropolis shall be the increase in the volume of foreign direct investment as South Africa, and OR Tambo in particular, continue to be generally viewed as the gateway to Africa and the world.
Esteemed guests
The 30-year Aerotropolis Master Plan will be finalised next month. This will soon be followed by a comprehensive public participation programme to integrate, educate and consult various stakeholders including business. This we shall undertake to substantiate the business-case for investments in Ekurhuleni going forward.
Furthermore, in order to embed collaboration between the three spheres of Government, landowners, developers and investors, we plan to host the Gauteng Premier’s GCR Aerotropolis Business Consultative Roundtable to engage business stakeholders and facilitate strategic partnerships and/or investment towards implementation before the end of this financial year.
REVITALIZATION OF THE MANUFACTURING SECTOR IN EKURHULENI
Captains of Industry
Ekurhuleni and its sister cities within the GCR contribute just under 34% of the entire GDP of the country, and an estimated 40.6% of South Africa's manufacturing is generated in the province. The Ekurhuleni Aerotropolis Master Plan identifies a range of opportunities to accelerate upstream and downstream economic activities that rely on Just-In-Time (JIT) Airport Connectivity. Each of the target industries has a function within the Ekurhuleni Aerotropolis and varying levels of interaction and reliance on the connectivity of the airport.
Over and above this, target industries that are integral to the growth of the South African economy form an important aspect of the success of the Ekurhuleni Aerotropolis. In this regard, the Ekurhuleni Aerotropolis Master Plan is a wide-ranging Economic Development Strategy. To date, the Ekurhuleni Investment Centre has registered and facilitated over 12 large-scale projects that are valued at billions of rands, and have the potential to create approximately 287,200 jobs over
the next 15 years.
Included in the 12 large-scale projects above, is the PRASA-Gibela rolling stock manufacturing project in Dunnotar wherein 3 600 locomotives shall be manufactured. Since the announcement of this national project, I am pleased to inform you that the Metro has since approved the leasing of 288 hectares to PRASA/GIBELA, and the Township Establishment has been approved.
Whilst we await the finalization of the EIA Record of Decision, work is underway between the technical teams of EMM, PRASA and Gibela to design the route for the required bulk infrastructure as well as finalise the services agreement.
We are also working with the Gauteng Provincial Government to leverage the two Special Economic Zone licenses that have been granted in order to expand the scope of the license so that it incorporates the Gibela Consortium project in Dunnotar, Tambo Springs Inland Port in Vosloorus and the Sentrarand Super Corridor in Etwatwa in order to leverage and maximise investment and development in these localities.
It is also worth mentioning that through this programme, the Premier’s 4-4-2 (TMR) strategy is best put to practice as the Gibela Consortium has made critical commitments on localization, skills development, employment, community development and enterprise development, which are earmarked for the people of our city primarily.
In this regard, in order to mainstream local companies in the rolling stock programme, work is underway to implement a comprehensive Black Industrialist Development Programme wherein prequalified manufacturing entities in the region shall be mainstreamed, and incubated over a period of time to become preferred suppliers to the project.
Just over a week ago the Metro, PRASA and the Gibela Consortium hosted the inaugural Supplier Day workshop at the Alberton Civic Centre wherein suppliers were given a comprehensive briefing on the project and the programme of action. Next month the Metro shall be handing-over the site to the Gibela Consortium. Soon after, we can expect a date for the sod turning.
Honourable Speaker
In order to consolidate our gains in this sector of the economy, we have formalised partnerships with Productivity SA to implement an industrial upgrade programme in those areas of industrial agglomeration. We shall also be hosting a Manufacturing Roundtable with strategic companies in Ekurhuleni as well
as launch the Ekurhuleni Business Council with local stakeholders and partners from civil society, business, academia, organised labour. This we are doing with the aim of developing joint programmes, quarterly stakeholder engagements and surveys to benchmark the performance and transformation in the sector.
