18 minute read
Local Economic Development
DRIVING ECONOMIC GROWTH TO THE BENEFIT OF ALL
The goal of stimulating local economic development is to create a prosperous, diverse economy with extensive employment opportunities and sustainable growth. EThekwini Municipality has identified and implemented numerous programmes to feed the economic potential housed within its bounds.
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Constant shifts in government’s policy environment requires the alignment of goals, strategies, plans and projects in real time. Few policy adjustments are of greater importance than those that identify and capacitate the tools that ensure economic development on a local and regional scale.
The role of eThekwini’s Economic Development Unit is to align with the national policy packages and to further carve out the local interventions that can support these goals. This requires a regular review of the City’s Economic Development and Job Creation Strategy, which was most recently reviewed for the period 2019 to 2025, together with an implementation plan that forms the basis of the City’s implementation of its economic mandate.
Economic intelligence is also provided to the municipality and its strategic partners in implementing economic development. Some of the roles of the Economic Development Unit include feasibility studies, the application and development of decision-making tools, and monitoring the performance thereof. A pivotal player in the area of investment facilitation is eThekwini’s investment promotion agency (IPA) Invest Durban.
Numerous interventions and plans have been identified across the ambit of municipal activity to aid in and facilitate the growth of the local economy. A breakdown of these key programmes follows.
Innovation programme The world is starting to see rapid advancements in various aspects of life – in both the workplace and at home – which is having a disruptive impact on jobs. Known as the Fourth Industrial Revolution, this entails the internet of things, robotics, artificial intelligence and 3D printing, which hold both opportunities and threats for jobs and societies. Cities that can skill their populations, particularly the youth, will reap the rewards while those that fail to respond will experience further disruptions in the labour market. Against this backdrop, Innovate Durban was established. This innovation programme has the objective of
keeping business abreast of changes and ensuring the retention or creation of jobs.
Investment promotion and marketing Invest Durban’s marketing and promotion programme seeks to proactively focus on the following: • Brand and location: Cities that are able to successfully attract FDI typically have a good international image, while best practice IPAs generally have a clear brand so as to get on to the radar screening of potential investors (World Bank Group, 2015). Given the lessons from best practice, the City has developed a clear brand image for the
IPA that has been determined as Invest
Durban and will be the mandated IPA to drive implementation of this strategy and act as the ‘first-stop shop’. • Market entry strategy: The market entry strategy for
Invest Durban is the development of highquality investor propositions that will be tailored specifically towards the target sectors and markets, updated annually, and accompanied by supporting research material (detailed industry research, database and statistics, benchmarking, etc.).
Investment facilitation and servicing Investment facilitation and servicing attempts to convert investor interest into a decision to invest, by providing information and assistance to potential investors during the location selection process. Once Invest Durban has succeeded in elevating Durban on to an investor’s long list, the role of the IPA moves into facilitation and the servicing of investor needs.
Policy support and advocacy Market research and intelligence (specifically relating to targeted sectors and markets) is essential for the success of the IPA and, as such, gathering of such research and intelligence will be embedded as a core function of Invest Durban. This information will ensure that the promotional activities and decisions of Invest Durban are guided by the latest intelligence, and that information that is crucial in influencing investors’ decisions is up to date, packaged and disseminated to the potential investors. In addition, the IPA will package and present market intelligence to key private and public sector stakeholders within the City in order to constructively inform policy, strategy and operational improvements in the investment climate.
Catalytic Projects
Another key strategic focus area is to leverage, influence and facilitate key infrastructure development and maximise the local benefit.
The purpose of the City’s Catalytic Projects Unit is to manage and oversee the implementation of a series of land development catalytic programmes and projects within eThekwini as part of the spatial transformation agenda informed by the approved IDP, SDF, LAP and Precinct Plans. It also provides a one-stop shop for project prioritisation, planning, scheduling, coordination and implementation. The objectives are to promote economic growth, poverty alleviation, social cohesion, and empowerment goals within the eThekwini region.
Urban renewal The Durban inner city represents the most transformed space in the municipality. During apartheid, people of colour were once prohibited from the city centre, yet today the inner city reflects a region-wide demographic profile. The city centre is now a place of home, work, school and access to a range of private and social amenities to some 70 000 people.
The Urban Renewal Programme is largely informed by the Inner-city Local Area Plan and Regeneration Strategy. However, given the vast scale of interventions and a small start-up resource base, prioritisation is key for the inner city. In addition, specific institutional arrangements and resources to provide focused and innovative attention to all the precincts within the inner city in collaboration with partners remains important.
Enterprise and sector development Stimulating and supporting key sectors that promote economic growth and create jobs is vital to the region’s socioeconomic development.
The City’s allocated programmes strive to stimulate economic growth in key activity sectors aligned with the KwaZulu-
DID YOU KNOW? EThekwini Municipality has more than 1 500 registered cooperatives in its database. It sees small businesses as vital contributors to the health of the economy, offering a diversity of opportunity in society
Natal Industrial Development Strategy, namely the automotive sector, ICT, BPO, tourism, agriculture and agri-processing, chemicals, metals, creative industries (crafts, film, TV and music), clothing and textiles, the maritime sector, as well as wood, pulp and paper.
Facilitating industry skills and economic inclusion The skills challenge currently exists permeates all facets of society and addressing it requires coordinated and targeted intervention from all spheres of government, the private sector and society. This programme aims to respond to the need for a larger and more skilled workforce, while encouraging young professionals, artisans, etc. to stay within eThekwini.
In addition, inclusion is important in ensuring that women are integrated effectively into the workplace. As such, key interventions include the implementation of empowerment initiatives, the creation of partnerships and investing in strategic skills development.
Enterprise development Small businesses are vital contributors to the health of the economy and offer a diversity of opportunity in society. Small businesses boost productivity, increase competition and innovation, create employment and prosperity, and revitalise communities. Through focused programmes, a platform is created for small enterprises to develop into sustainable businesses.
The municipality has more than 1 500 registered cooperatives in its database. A total of 600 cooperatives have been capacitated through the Cooperative Development Programme, within the
last five years, through various interventions. A total of 480 cooperatives have been provided with procurement opportunities in various work streams for a period of 36 months. More than 5 000 jobs have been created through these procurement opportunities.
Promoting investment in priority nodes and corridors Various projects are based on ‘new urbanism’ principles that aim to reverse the effects of the apartheid city, by creating all-inclusive live, work and play environments within a historically racially segregated municipal area. The key tenets of these programmes are those of inclusive settlements and sustainable residential densities, alongside mixed-use business activities and recreational uses – to focus primarily on town centre renewals and tourism nodes and corridors.
Ensuring township development Due to the apartheid legacy, the former township areas were developed as dormitory residential areas with an insular focus, hosting almost exclusively minor retail activities and basic social services. As a result, they have weak and underdeveloped economies, and are not well integrated into the existing economy. Programmes are under way that aim to improve the business environment within the township areas and create a conducive environment (through active facilitation and direct interventions) for growth.
Managing the informal economy This programme speaks to supporting the informal economy through initiatives such as the provision of infrastructure support and development to informal trade, the provision of advisory and information services to product owners and visitors, and to ensure competitiveness through gathering business intelligence and improving product quality.
Managing the fresh produce market The role of the Durban Fresh Produce Market is to facilitate the distribution of fresh produce. Commercial farmers, small and emerging farmers are dependent on the bulk fresh produce market in order to sell their fresh produce. This platform creates business opportunities for big, small and emerging businesses, inclusive of informal traders, from where they can purchase their fresh produce. The bulk market contributes extensively towards both creating and sustaining jobs in the fresh produce sector.
Review of business licence regulatory framework and processes In terms of the Businesses Act (No. 71 of 1991), many businesses require a business licence in order to operate various enterprises in the services sector. These may relate to food, medical and health services or products. The licensing of businesses and the processes involved must align with the KwaZulu-Natal Economic Strategy. Of particular relevance and allied to the four pillars of the provincial strategy is the ‘stepwise rise to prosperity’ concept and focused programmes aimed at supporting small businesses and black entrepreneurs. Regulatory frameworks must be aligned to economic policy and strategy in a manner that promotes the policy objectives of the Spatial Economic Development Strategy. Durban Film Office The Durban Film Office (DFO) is a specialpurpose vehicle of eThekwini Municipality and is mandated to position Durban as a globally competitive film city, with a view to boosting tourism, job creation and the development of core skills and SMMEs. The DFO strategy for the next five years will therefore specifically focus on projects that seek to unlock opportunities to fast-track the establishment of commercial film and television hubs, with a particular focus on growing the digital media capacities of the City.
Durban Tourism The role of Durban Tourism is to promote the City as a premium lifestyle destination locally and internationally. The key drivers forming the strategic focus of increasing tourism to the City – beyond the traditional seasonal holidaymakers of the past – are sport, events and MICE (meetings, incentives, conferences and exhibitions).
Durban Tourism will work cooperatively with all role players in the tourism field – from hotels to activity organisers, to commercial enterprises and event organisers – to ensure that maximum leverage is obtained for the City and its stakeholders. All the activities it undertakes are intended to be quantifiable in terms of their economic impact and it will continue to raise the profile of the Durban brand through sustainable marketing in burgeoning niche markets such as business and incentive tourism.
Achieving excellence in our industry
Founded in 1997, we’ve set our sights on being an industry leader and preferred contractor in the greater KwaZulu-Natal region. We make sure that quality, HSE and skills development are at the core of what we do.
Areas of civil engineering expertise
• Project Management • Bulk Earthworks • Water & Sewer Reticulation • Canalisation • Roads Construction & Stormwater Drainage • Industrial & Residential Paving • Sports & Synthetic Turf Fields • Township Developments • Buildings • Heavy-Duty Container Parks • Landfill Sites & Waste Transfer Stations • Motorsport Street Circuits • Turnkey Projects • Retaining Walls
DevTech Civils is a proud...
BBBEE Level 1 Contractor cidb 8CE graded company
BBBEE Level 1
Some of our notable clients
eThekwini Municipality, Richards Bay Industrial Development Zone, Tongaat Hulett Developments, KZN Department of Transport, Gold Circle, Transnet, Durban Solid Waste, GO!Durban, and many more.
Founded in 1997, DevTech Civils has grown to become a cidb 8CE Contractor and Level 1 BBBEE Contributor with a vast range of expertise in civil engineering works.
The extensive expertise, diverse and inclusive organisational structure, and cidb grading of DevTech Civils all come together to make the company an ideal partner on civil engineering projects up to the value of R200 million.
DevTech Civils tenders for work in both the public and private sectors, with systems in place to ensure that each awarded project receives the proper organisational structure and management processes for timeous delivery of a successful contract. DevTech Civils’ areas of expertise include: • project management • bulk earthworks • water and sewer reticulation, as well as canalisation • roads construction and stormwater drainage • industrial and residential paving • sports and synthetic turf fields • township developments • buildings • heavy-duty container parks • landfill sites and waste transfer stations • motorsport street circuits • retaining structures • turnkey projects. The company strives to achieve excellence on all its projects with the integrated management of all elements involved in bringing tenders to life. Time, project scope, cost, quality, HSE (health, safety and environment), production, stakeholders, training and skills development are always considerations at the forefront of every project undertaken.
Delivering quality lies at the heart of every well executed civils project, and at DevTech Civils, quality is never compromised. The Quality Management System within the organisation controls all aspects of construction activities, ensuring compliance to the applicable quality standards.
A keen municipal partner DevTech Civils has long been a keen partner to eThekwini Municipality, delivering work on key projects within the municipal area and the wider KwaZulu-Natal province.
Key projects undertaken for eThekwini include the realignment of the Inanda arterial between Seacow Lake Road and Chris Hani Road – to accommodate and expand the GO!Durban BRT service – as well as the second phase of the Vusi Mzimela (Bellair) Road upgrade, which entailed extensive bulk earthworks. The former was valued at over R60 million, while the latter had a budget of over R35 million.
In executing public sector tenders in the wider region, DevTech Civils provided extensive bulk earthworks and allied services for the Richards Bay Industrial Development Zone, on a project valued at nearly R140 million, as well as upgraded Main Road P489 for the KwaZuluNatal Department of Transport (at a value of nearly R44 million).
The company has also executed numerous projects for private sector clients such as Easigas, Basil Read, Gold Circle, Tongaat Hulett and BPB Sindi Civils, among others.
With over 24 years of experience and a proven track record of delivering civil works on almost any scale imaginable, DevTech Civils stakes its claim as KwaZulu-Natal’s preferred civil engineering contractor.
Pholela Special Needs School Building a nation
Temi Construction is a 100% Black-youth-owned and 50% woman-owned company that delivers the highest quality work on every project it undertakes.
Ezimbuzini Market Trader Stalls
Springs Fresh Produce Market
Temi Construction was founded in 2010 by the late Bongi Majozi, a fearless female entrepreneur in relentless pursuit of delivering quality projects in the infrastructure sector. Since inception, the company has grown rapidly from a CIDB Grade 2GB to a Grade 9GB contractor, becoming an industry leader in the construction space through the execution of projects at scale. As the company has matured, so have its offerings, positioning Temi as an infrastructure specialist that aims to be a preferred end-to-end supplier. The company identified the challenges faced by the complex dimensions of the construction industry and therefore expanded its operations to address these.
Employing over 800 people, through permanent and subcontracted labour, Temi Construction is a registered home builder with the National Home Builders Registration Council, under the terms of the Housing Consumers Protection Measures Act (No. 95 of 1998). All projects the company undertakes successfully engage with local communities and SMMEs to meet and exceed the stipulated Contract Participation Goal requirements.
Chris Hani Baragwanath Academic Hospital
Further illustrating the commitment the company has to the people its work ultimately serves – its fellow South Africans, particularly those in need – Temi regularly partakes in various CSI initiatives and believes in giving back to communities to empower and equip them for the future where possible.
Notable building projects The driving forces behind Temi Construction’s successful projects are its two primary divisions, namely Building and Housing.
The Building Division specialises in projects that include new construction projects, renovations and major refurbishments to schools, hospitals, clinics, universities, sports fields, etc., ranging from R25 million and up.
To date, the Building team has successfully completed 20 projects, including KwaMnyandu Light Industrial Park (6GB), Ottawa Depot (6GB), Ezimbuzini Retail Stalls (5GB) and Waterloo Sports Facility (4GB).
Indicative of its consistent project pipeline, the Building Division’s teams are currently hard at work on various sites. These include: • DUT Indumiso Campus (9GB – combined tender with DUT Steve Biko):
Two new buildings are being constructed at the Durban University of Technology (DUT) Steve Biko Campus. These are a new engineering building comprised of two floors, navigated by a new lift, containing a total of 25 workshops and 12 computer labs, as well as a new lecture hall with three lecture rooms on the ground floor, three on the first floor and a lift. • DUT Steve Biko Campus (9GB – combined tender with DUT Indumiso):
Two new buildings are under construction at the DUT Steve Biko
Campus, namely a new multipurpose hall and a new student centre. • Dr WK Du Plessis School (8GB): This project entails the complete demolition and rebuilding of the Dr WK Du Plessis
School in Springs, Gauteng. • Chris Hani Baragwanath Academic
Hospital (9GB): Temi is presently busy with renovations and the construction of new buildings at the Chris Hani
Baragwanath Academic Hospital, which is divided up into two main sections,
namely the clinical areas (280 beds) and the residential areas (843 beds). • Joshco (6GB): A six-storey office refurbishment of the Old Pikitup Building is under way for the Johannesburg Social
Housing Company.
Flagship housing projects The Housing Division specialises in lowcost housing, BNG (Breaking New Ground) projects, gap and Flisp (Finance-linked Individual Subsidy Programme) housing, ranging from 350 houses and above. To date, the Housing team has successfully delivered 5 193 houses, with a further 600 houses currently under construction at the Brickvale Housing Initiative for Mogale City. Other flagship projects include: the Lawley Housing Project, which entailed the delivery of 909 houses; the Palm Ridge Housing Project, where the company built 650 houses; and the Etwatwa Housing Project, which saw 1 765 houses delivered.
The Temi team has also identified a major gap in the market when it comes to the building of RDP/BNG houses and those waiting to move into their new homes. The company therefore came up with the solution of providing temporary residential shelters, as well as various sanitation solutions.
The above projects are certainly not an exhaustive list. Temi has delivered on contracts for many notable clients, which include the Department of Infrastructure Development, City of Ekurhuleni, Coega Development Corporation, University of Johannesburg, Development Bank of Southern Africa, and Kgatelopele Local Municipality, to name but a few.
Industry recognition Temi Construction has also received industry accolades and awards for the projects it has delivered. These include the Govan Mbeki Award, as winner in the category of ‘Best Established Youth Contractor’ to recognise outstanding performance in the delivery of sustainable human settlements, and the Gauteng Premier Service Excellence Award, where the company took first place in the category of ‘Sustainable Development and Infrastructure Development’.
As a company, both acknowledged by its peers and appreciated by its clients for the quality work it carries out, Temi Construction always strives to embody the company’s core value, which takes the form of a promise to all its stakeholders: “We Deliver”.
