Employment Profile
2.4 Climate Change
2.6.9 Summary of Economic Trends and Issues
ISSUES UNDERLYING CAUSE SPATIAL IMPACT
Jobless growth in the formal economy
Decline in labor intensive industrial sector, associated with shedding of jobs
Decline and blight associated with closure of business in industrial areas
Land demand for expansion, and associated infrastructure requirements Infrastructure
limitations to economic expansion
Capacity limitations for port to expand
Aging and obsolete industrial infrastructure
Growth in road-based traffic, notably for container transport
Poor transport linkage between certain economic zones and installations
Infrastructure is inadequate to cater for growth
Pressure upon interface between port and city
Relocation of business from aging industrial areas to newly established areas
Congested transportation routes, mixing of industrial and residential traffic
Certain forms of development are precluded from economic zones where water, waste disposal, waste water treatment and energy supplies are inadequate to meet requirements of the Municipality
Development is focused along North.
South and west growth path with limited development in adjacent hinterland Changing locational
patterns
Outward expansion of industry
Relocation of service industry and light manufacturing to decentralized
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Growth in suburban retail markets
Emergence of specialist, bulk retailing activities
Growth in suburban high grade office space
business parks along north, south and west growth path
Relocation of higher income retailing functions to suburban locations
Emergence of specialist/value retail parks outside CBD’s
Decentralization of office (especially A- Grade) to suburban office parks
Changing nature of economic markets
Emergence of informal/small scale economy
Transformation of mass tourism and leisure markets
Emergence of niche tourism and hospitality industry
Growth of economic activity around commuter hubs, public nodes and activity corridors
Growth of street trading
Growth of economic activity around commuter hubs, public nodes and activity corridors
Growth in mass tourism and leisure focusing on seasonal utilization of the beachfront by day trippers
Deepening of the niche tourism and leisure industry via growth of elite/coastal tourism, business and convention
In the coming years the City has a number of priorities that it will pursue, most of which align with national government’s focus on infrastructure development and job creation. These include:
1. The development of the Northern Urban Development Corridor. This includes the development of Cornubia and support for development around Dube Trade Port/ Aerotropolis (Annexure 12).
2. In the Outer-West, development is to support the national Durban-Gauteng Corridor. This corridor is more than just a logistics route and there are significant development opportunities that these routes will make possible, including developments in Pinetown, Shongweni and Cato Ridge. The City will work with the Province and other Municipalities in proactively planning and opening up opportunities in this corridor.
3. In the Central area of the city (from the Durban Inner City to Pinetown), there will be further investments to support the inner city and entrench its role as a services center incorporating offices, sport and tourism uses, the civic heart and a residential community. It is also an area that supports the micro enterprises and all of these aspects will be strengthened. The planning in the back of port area will also be finalized. Pinetown is a key manufacturing node as well as an important CBD that needs to be revitalized.
4. In the Southern part of the city, the new dig-out port will be prioritized as well as the development of a logistics park in Illovo to support the automotive sector. The development of a dedicated freight route is also being investigated.
134 5. The City has a rural development programme and energy programme that focuses on key rural nodes,
energy projects as well as agricultural projects to stimulate the economies of the rural areas.
6. The City accessed about R700 million from National Treasury in terms of the Neighbourhood Development Partnership Grant (NDPG) to facilitate investments in the township areas. The programme has been progressing well and investments have been made at Bridge City, the Mpumalanga New Town Centre, Umlazi, Clermont-KwaDabeka and KwaMashu. The City will continue to support these initiatives.
7. There are programmes aimed at revitalizing the secondary CBDs, as well as projects aimed at developing tourism nodes and corridors. These include uMhlanga; iNanda Heritage Route, Hazelmere Dam, uMgababa, Kingsway Tourism Corridor as well as many others.
8. The planning and implementation of public transport programmes in conjunction with Province and National Government will receive significant attention.
9. The investment climate will improve with improved procedures announced by National Government and the City should support this by ensuring simplified and expedient local processes to support investment.
The Municipality is reviewing the first Best Practice City Commission (BPCC) and in addition – assess the current institutional mechanisms promoting and facilitating investment, with particular emphasis on the roles of the eThekwini Municipality. A BPCC Project manager has been appointed. The study is expected to inform the City leadership and officials about the current and new obstacles to investment in the municipal area, and provide a suite of recommendations and an implementation plan as a response.
The City has experienced an increased level of interest in investments, however, a key challenge for many of the developments are around sanitation infrastructure and transport.
10. The Premier recently announced the establishment of the Provincial Human Resource Development Council aimed at guiding skills development. The City plans to become involved in this to ensure the interests of our young people seeking employment are supported through various programmes anticipated from this initiative.
However, there are numerous local challenges which if addressed and implemented may ensure a steady growth path towards the magic 5-7% with many additional benefits such as increased employment, investment and a more inclusive economy where all citizens of eThekwini enjoy equal access to the opportunities to come. The City intends to undertake initiatives in the various priority sectors that directly create jobs or support those that do. The Industrial Strategy currently under review in the City will spell out which sectors we should be focusing on and where to locate same.
The City will also attempt to play a meaningful role in the major projects recently announced by national government for example the Dig-Out Port, Corridor development and expansions in the existing port need to be fast-tracked to ensure that we are able to reach GDP growth that exceeds 3%.
135 2.7 EThekwini Housing Sector (eHSP)
The eHSP aims to:
Set residential infrastructure as a city-building tool.
Describe strategies and programmes for residential infrastructure.
Prioritises programmes and investment locations.
Informs and aligns with corporate spatial targeting.
Be well aligned to the corporate planning tools of the IDP, SDF, and the BEPP.
The scope of the eHSP is currently limited to the housing topstructure and related engineering infrastructure for fully and partly subsidised residential infrastructure projects. It is recognised that there is a need for a more comprehensive human settlements plan that:
Encompasses economic infrastructure and other social infrastructure.
Encompasses the entire housing market, including private sub-markets.
Is developed and implemented by the Municipality as a collective.
2.7.1 Strategy Emphases The eHSP emphasises:
Universal access to basic services within the medium term, and freedom from fear of eviction for the poor.
Densification in Urban and Suburban Zones.
Increased focus on Transit Oriented Development.
Need an increased focus on Rental.
Increased focus on mainstreaming subsidised housing into the Property Market.
Mix of medium term big bangs and long-term steady programmes.