Speech by Finance MEC Ina Cronje on the occasion of Msunduzi Innovation and Development Institute strategic summit, Three Cities Hotel Conference Centre, Golden House Complex, Pietermaritzburg

“Expectations of a Capital City”

Conjuring up dream cities is certainly a very exciting activity. Initially one’s imagination runs wild: you create utopia as a celestial map, filled with green grass, parks, rooftop aerodromes and air cars, whizzing noiselessly and fume free like giant gnats. Electricity is generated with photovoltaic panels and air-conditioning by a geothermal heat pump system. All energy is derived from renewable sources. The parks are filled with happy children and people, having picnics and running around. In the background the Piet-my-vrou is calling his mate.

We cannot be blamed for dreaming big. Extraordinary progress has been made over the past century that has shaped our vision of future cities. And mind you, it does happen in sci-fi movies! The only problem with our dream city is that it does not have a past. Unless a city is built from scratch, like Brasilia in Brazil, we will always be surrounded by the evidence of earlier times. This is not bad but it has to be taken into account when we re-imagine our capital city.

The tale of pre-democratic Pietermaritzburg is actually the tale of four cities:

* the “white” city with its Voortrekker formal grid layout and the red-brick Victorian buildings
* the Raisethorpe/Northdale central business district with its mosques, temples and Indian markets
* the coloured suburbs of Woodlands and Eastwood
* Edendale valley in which more than half of Pietermaritzburg’s residents reside, mostly African

In South Africa apartheid has made the problems of urbanisation more complex. Pass laws made it illegal for black people to live in the white cities. Their illegal status made it impossible for them to rent a house so they often lived in a shack in the backyard of a friend. Unlike normal cities, the legacy of colonial and apartheid city planning is that the poorest live the furthest from work. This perpetuates poverty, as an exorbitant percentage of our poor people’s income is paid towards travelling to the workplace.

With the lifting of racial restrictions on where people may live and work, many unemployed people in the former homelands and the rural areas migrated to the major South African cities in search of work, bringing their families with them. The shortage of accommodation in cities has forced them to live in shack-towns or informal settlements on open land.

Today the living spaces of our people are no longer defined by the deliberate use of urban planning to separate communities, leading to alienation. As a result the demographics of our cities have started to change. According to a 2007 University of Cape Town /Unilever study entitled Black Diamonds: On the Move, more than 12 000 black middleclass families or 50 000 people are moving from the townships to the suburbs of South Africa’s metros each month.

Now let’s revisit our dream city: Mrs Khumalo looks through her kitchen window and inhales the fresh air. It is a beautiful day. It will take her two minutes with her new air car to her business site. Her exporting business is flourishing, so is the city. She can see the faraway cranes busily revitalising downtown with new offices and luxury apartments.

Not much further in the western corner of Msunduzi, Mrs Nxumalo also looks through her window. She has to push away the cardboard “curtain” that keeps the wind and rain out of her shack. It is a beautiful day, the sun is shining. If she is quick her son’s shirt will be dry before lunch time. This new shirt must help him to get a job. She had to shake out the last bit of maize meal for this morning’s breakfast. On her way to the river, she meets her neighbour, who complains bitterly about the stench of the garbage piled up outside their houses. The flies are becoming more than a pest, not to talk about the rats. They cannot see the cranes busily revitalising downtown with new offices and luxury apartments.

The city that we are re-imagining today cannot be a tale of four cities. The capital city of KwaZulu-Natal needs to serve its entire people when recreating itself. We have to turn around the current extreme unequal distribution of wealth and give all our people a fair chance to succeed. In addition the capital city must be prepared to serve an increasing number of citizens. According to the 2009 human development report of the United Nations the world’s population will grow by a third over the next four decades. Virtually all of this growth will be in developing countries.

While people of accepted working-age will decrease in developed countries due to an ageing population, projections of working-age populations show an increase in Asia and Africa. When we add increasing urbanisation it is clear that our capital will have to be prepared to cater for hundreds of thousands more people. A 2001 report by the World Bank identified poverty as becoming a predominantly urban issue in Africa. Our continent has the highest rate of urbanisation and the lowest rates of urban economic growth. By 2020 it is anticipated that 300 million urban Africans will be without water and sanitation.

“Cities, like dreams, are made of desire and fears,” says Italo Calvino, an Italian novelist. Our capital cannot be a chaotic crowded place but we expect it to be an efficient place that provides services to our people. No matter where we live, we need some essential things to survive: shelter (housing), food, and water. But life in a city requires more than that. Work opportunities, energy for buildings and street, a safe way of dealing with the waste, transportation so that people can get from one place to another, hospitals and clinics.

Citizens also need schools so that they can get an education; places for recreation such as museums, sports arenas, concert halls and parks, shops so they can buy what they need, from clothing to food. None of these appear by magic. Pietermaritzburg already has most of these elements. But we need to increase and spread our resources more equitably and the city has to redefine and re-imagine itself through place marketing in ways that will allow it to compete in the global marketplace.

I am delighted to see that the Msunduzi municipality has declared urban agriculture a strategic priority. This is in line with President Jacob Zuma’s opening state of the nation address and the ‘One Home, One Garden’ initiative that was launched earlier this year by our Premier, Dr Zweli Mkhize. It will go a long way to alleviate poverty and improve nutrition. The plan to establish 40 000 homestead gardens within the next five years will certainly contribute to healthier citizens and stretch household budgets. Ultimately it will bring health care costs under control.

Climate change will put our food supply under extreme pressure. What food we eat and how it are transported and distributed will become important questions. We also have to find ways to guarantee our food security and reduce the water and energy consumed in the whole process. Therefore it is imperative that small-scale urban agriculture include a plan for responsible management of water resources and the environment. When we finally run out of land – we can always explore vertical farming, which is being pioneered with great success in Italy and elsewhere. We are very fortunate to have an agriculture faculty at our Pietermaritzburg campus, as well as Cedara College of Agriculture, which can provide the city with research, data, facilities and expertise.

Currently there is plenty of arable land and Pietermaritzburg is aptly called the “Garden City.” Pietermaritzburg’s hinterland in particular used to be an important food basket. How on earth did we become a net importer of food? We produce less than a fifth of the food we eat. Transportation, storing and distribution, waste and pollution: from the farm land to the supermarket the price of potatoes increase tremendously. By growing food regionally the price of food can be cut drastically. And if you can produce wine in the midlands, anything will grow!

With the new drive of government to prioritise food security, it may be wise not only to encourage commercial farming but to add value to the raw materials. Food processing is a vital sector of the economy. According to the Gauteng Economic Development Agency there are approximately 4 000 food processing companies currently operating in South Africa, of which roughly half are based in Gauteng. Exports of processed agricultural products amounted to R17,2 billion in 2001.
The competitive trade areas which can be explored include: organically produced produce, essential oils, packaging, floriculture, and trade in medicinal plants, natural remedies and health foods. High value niche crops include the nutritious njugo bean, marogo and cowpeas. The new airport and trade port at La Mercy will certainly open export opportunities for the innovative.

Timber is a commodity grown in and around Pietermaritzburg. With the current market situation where timber is now in over-supply as a result of the recession, it may be a good time to look at local use. All schools need furniture, why can it not be manufactured locally? Job creating initiatives are desperately needed to create jobs, for people who are currently unemployed, as well as the expected new influx of unemployed migrants. In the sprawling Lagos, Nigeria with its rapid urbanisation, innovation has bred in the unlikeliest places, as United Nations educational Scientific and Cultural Organisation (UNESCO) journalist Amy Otchet found, “Behind the informal sector lies a powerful if not desperate spirit of initiative: Wheelbarrows are rolled out of a construction site at night to serve as rented beds at 20 cents a shot for homeless people seeking shelter under an overhang. When rain makes a market run with mud, kids wait with buckets of water to wash shoppers’ feet for a few coins.”

Let us plan ahead to prevent a situation where homeless people have to rent a wheelbarrow for shelter. But when we plan our new factories and plants let us consider where the bulk of our employees live. Currently employment is over concentrated in Mkondeni, Willowton and the inner city, while there is virtually no business activity in Imbali, Edendale and Vulindlela. As a result of this complete geographical imbalance virtually all of our industrial land is completely occupied.

This leaves us with very little choice but to develop land in other areas. Let us now match our developments with the availability of human resources. Professor Jeff McCarthy of the University of KwaZulu-Natal has identified the N3 as a primary development corridor. It needs to be carefully planned and cannot just be a ribbon type of development, consisting of offices and retail. Ladies and gentlemen, we are planning for the future; we have to think big if we don’t want to perpetuate the current situation. Perhaps we need new towns along the corridor with residential and employment for income groups and mixed use.

New developments require skilled labour. The capital is fortunate to have excellent schools, the University of KwaZulu-Natal, the Durban University of Technology and the Umgungundlovu Further Education and Training College with five campuses. I am pleased to read that the human resource development strategy, led by the Msunduzi municipality is aimed at increasing the pool of skills and employability of its residents and match these with the needs of local business and industry.

As a capital city we can even take it one step further. Our capital city must be a modern city, tapping into the knowledge economy to produce economic benefits for the first and second economies. It would be great if MIDI could establish a permanent research and development centre to enable residents to use all pockets of information and knowledge to the city’s advantage. High-technology businesses, telecommunications and virtual services, as well as educational and research institutions can all contribute to our economy. Knowledge economy does not refer to science knowledge only but to all forms of knowledge as long as such knowledge and or activities lead to economic growth and job creation.

We need better connection to the World Wide Web. Every business in the city needs to be on the web. In a smart city everybody has access to information and knowledge, also our people in Vulindlela. There is a dire need for that as the internet café in the Bessie Head Library has proven. It is used by more than 1 000 people every Saturday.

The research and development centre may also reduce the brain drain. It is a known fact that as soon as many of our talented young people have completed their tertiary education they leave the city to look for work elsewhere. Let us explore ways in keeping the expertise here. Of course there are other factors that drive our young people elsewhere. Instead of spending their money locally, they will seek entertainment in Durban. A 21 year old explained it to me, “Yes, there are clubs in Pietermaritzburg. But they are not great when it comes to a variety of music. And when you have finished clubbing and want a quick bite, there is no restaurant open.” Maybe there is a market to entertain our young people?

Pietermaritzburg has already become a city of events. The international sporting contests include the Comrades Marathon, Hansa Powerade Dusi Canoe Marathon, Midmar mile and recently the Mountain Biking World Cup and BMX World cup. But like our raw produce we need to add value to these events. Witnessing a local music shop being filled with visitors during one of these events, I could not help but wonder how great it would have been if the city could have offered them a concert by some great international musicians. Maybe it would have drawn even more friends and family members? We need to turn one day events into weeklong festivals, with enough to keep our visitors excited and occupied.

The city also attracts domestic visitors and tourists. The numerous contests that take place on national, provincial and school level result in thousands of feet entering our city. Add to that the sports academies, such as the Midlands Rugby Academy where sporting and life skills are imparted under professional guidance and another market opens up. The return of Maritzburg United in the professional soccer league has been celebrated. They are about to move to their new home at the Harry Gwala stadium. But they need local sponsorship. And with branding on television a sponsor will get good value for his or her money; any takers out there?

True to its character as the Garden City Pietermaritzburg has become home for the Sunday Tribune Garden Show. The show has become an exciting annual event and attracts more than 25 000 visitors during a three day period. This is but one of the many events other than sport that bring people to our city. Events range from the Royal Agricultural Show to the Hilton Arts Festival, Cars in the Park and Art in the Park.

Are we not capitalising on events because we have a shortage of hotel and conference facilities? These are opportunities that need to be looked at.
During the 2004 elections the African National Congress promised to give Pietermaritzburg capital status should it be given the opportunity to rule. The capital status included the moving of departmental head offices from Ulundi to the City of Choice. The party has indeed kept its promise. Several buildings that had been crumbling in a decaying urban scene five years ago have received ultimate makeovers. The refurbished buildings are all occupied by government.

According to information provided by the Department of Public Works responsible for the provision of office facilities to government departments, government now occupies 56 office blocks in Msunduzi, 27 more than in 2004. The 27 “new” buildings are not state-owned and approximately R4,7 million of rental flows in the city monthly. According to statistics provided by Provincial Treasury the number of head office personnel stationed in Pietermaritzburg has more than doubled from 2 590 people prior to 2004 to an estimated 6 554 for the 2009/10 financial year.

Many officials have bought property in the city and are contributing to the city’s rates base. The move has also been welcomed by the retail sector which has been benefiting from purchases that are made locally. It is crucial that Pietermaritzburg broadens its ratepayers’ base. In 1994 the city had 180 000 rate payers of which 25 percent paid their rates. At present we have 850 000 residents of which only 18 percent pay their rates. New development is not only necessary for job creation but also to lessen the burden on our rate paying residents. The capital needs new partners to increase revenue.

Needless to say no new developments can be encouraged if they are not financially viable. The municipality’s financial system and management should be in proper order. It is a given that all our municipalities, and especially our capital city, should have unqualified audit reports. I am pleased that the Msunduzi municipality has received unqualified reports for the past two years. We trust that the matters that still raise concern will be addressed and that the municipality will be more pro-active than reactive.

With all the existing feet and attraction of thousands of more people to our city, it has now become critical to take a serious decision about the city’s airport. It is problematic when aeroplanes can often not land during summer months because of poor weather conditions. Either Pietermaritzburg must live with the consequences of losing business opportunities or develop a better regional airport with a longer landing strip that can handle bigger aircrafts.

The safety of our visitors, employees and residents should be prioritised at all times. A healthy city is obviously a safe city and the various greening initiatives throughout the city are pleasing. But our people need to be protected against muggings, burglaries and other criminal activities. Therefore the safe city partnership is most welcome. The closed-circuit television (CCTV) cameras that have been installed in the central business area have certainly made a difference in bringing certain crime down. I am pleased to hear that more cameras will be installed in other areas.

I am also excited about the Children’s City 2020 that will give children a permanent physical presence in our capital. The provincial government has released the old, disused school of the former Boys Model School in Jabu Ndlovu Street for the trust to use. We hope to see it buzzing with a wide range of resources and activities dedicated to serving, preserving and celebrating childhood in Msunduzi.

In collaboration with all relevant stakeholders, it will house a one stop child trauma service, meeting and workshop facilities for organisations working with children, children’s theatre, consulting room for therapeutic services for children, library and functions rooms, as well as offices for MIDI and the African Centre for Childhood (ACC), a partnership for capacity building in childhood issues in Africa, and small organisations working with children and childhood issues. This is supported by the regional structures of United Nations Children’s Fund (UNICEF).

It is important to see the city through the eyes of children. Therefore I welcome the fact that MIDI also consults children to help the adults to imagine and shape the city. Maps may show play areas but in reality our children may not use them because they are occupied by taxis or drug users. The involvement of the community in local government is one of the criteria of the World Health Organisation (WHO) for a healthy city. It is a tremendous task for a city to provide the necessary infrastructure and services to its citizens. It is not something that can solely be done by the municipality. Some of this task is handled by the municipality, some by provincial government and some of it by private groups, such as businesses, non-governmental organisations (NGOs) or neighbourhood organisations. All of it, however, requires cooperation between the citizens and the government.

South Africa has currently three cities among the top 65 emerging markets index cities, a new study from MasterCard Worldwide that was released in October 2008. Johannesburg has been ranked eleventh, Cape Town 33 and Durban 37. The strong showing of African cities in general and South African cities in particular, indicates this area’s growing global prominence. With nearly 50 million people, a third of whom are under 14 years of age and 60 percent of whom are urbanised, South Africa is clearly on the move and worth watching. South African cities serve as important gateways to other African markets.

China alone has 15 of the 65 cities. The second most represented country is India with eight emerging markets index cities. India’s cities are led by the financial and commercial capital of Mumbai (19 overall). Remarkably rich in natural resources, Brazil is the largest country in Latin America in terms of size, population and economic might. Brazil has five cities in the Index. Today, healthy, growing cities have become vital to the success and longevity of nation states and their ability to attract outside investment.

Johannesburg, Cape Town and Durban all scored very high in the business environment dimension category. The measures that determine the scores reflect the quality of the business environment. It defines the commercial importance of a city within an emerging market. We will be watching future rankings to celebrate the day when Pietermaritzburg will also be included among the top 65. But first we will have to practice what world scientist Albert Einstein believed, “the world will not evolve past its current state of crisis by using the same thinking that created the situation.”

Our tale of four cities must become one story with a beautiful ending. The divided, bombed Berlin became a united dynamic, creative multicultural city; Dubai, a village in the desert, became the second largest and most prosperous city among the world’s fastest growing cities, today oil contributes only seven percent towards its gross domestic product. Does Pietermaritzburg have what it takes to succeed and play global roles? I can say yes. Not the municipality on its own, but together with all our partners.

“Five frogs are sitting on a log. Four decide to jump off. How many are left?
There are still five, because there’s a difference between deciding and doing.”

I thank you.

Issued by: Department of Finance, KwaZulu-Natal Provincial Government
20 October 2009


Province

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