MSUNDUZI MUNICIPALITY
LOCAL ECONOMIC DEVELOPMENT
STRATEGIC PLAN
DECEMBER 2014
PREPARED BY:
Local Economic Development (LED) Division The Msunduzi Municipality P/Bag x 321 Pietermaritzburg - 3200 Tel 033 392 3000 Fax: 033 392 2739 Email:: [email protected]
The Msunduzi Local Municipality’s Local Economic Development (LED) Strategic Plan 2014
Published by The Msunduzi Municipality
Local Economic Development (LED) Division
Key Contact: Mr. Sipho Zimu Process Manager: Business Retention, Expansion & Attraction Msunduzi Local Municipality P/Bag X 321 Pietermaritzburg – 3200 Tel: 033 392 3000; Fax: 033 392 2739 E- [email protected]
MSUNDUZI MUNICIPALITY LOCAL ECONOMIC DEVELOPMENT PLAN
TABLE OF CONTENTS
1. INTRODUCTION ...... 1 1.1. PURPOSE OF REPORT ...... 1 1.2. BACKGROUND ...... 1 1.3. CONTENTS OF REPORT ...... 2
2. THE ECONOMIC STATUS QUO ...... 3 2.1. THE NATIONAL AND PROVINCIAL POLICY ENVIRONMENT ...... 3 2.2. MSUNDUZI IN THE REGIONAL SPACE ECONOMY ...... 8 2.3. THE MSUNDUZI ECONOMY...... 13 2.4. THE MSUNDUZI SPACE ECONOMY ...... 15 2.5. ECONOMIC IMPLICATIONS ...... 23 2.6. THE SOCIO-ECONOMIC SPACE ...... 23
3. THE GROWTH MODEL ...... 33 3.1. INTRODUCTION ...... 33 3.2. THE GROWTH SCENARIOS ...... 33 3.3. 2050 POPULATION GROWTH AND IMPLICATIONS ...... 35 3.4. 2050 ECONOMIC GROWTH AND IMPLICATIONS ...... 41 3.5. STRATEGIC ISSUES FOR CONSIDERATION ...... 45
4. THE STRATEGIC FRAMEWORK FOR LED ...... 46 4.1. THE STARTING POINT...... 46 4.2. RE-THINKING MSUNDUZI’S POTENTIAL ...... 46 4.3. THE LED OBJECTIVES ...... 47 4.4. THE LED VISION ...... 47 4.5. THE LED ROLE / MISSION OF THE MUNICIPALITY ...... 47
5. UNPACKING THE STRATEGIES ...... 48 5.1. INTRODUCTION ...... 48 5.2. STRATEGY 1: KEY SECTOR FOCUS...... 49 5.3. STRATEGY 2: LAND IDENTIFICATION AND DEVELOPMENT ...... 57 5.4. STRATEGY 3: NURTURING THE INFORMAL ECONOMY ...... 65 5.5. STRATEGY 4: BUSINESS RETENTION AND INVESTMENT PROMOTION ...... 73 5.6. STRATEGY 5: DRIVE IMPLEMENTATION OF CATALYTIC PROJECTS ...... 77
6. IMPLEMENTATION, MONITORING AND EVALUATION ...... 86 6.1. INTRODUCTION ...... 86 6.2. TOWARDS AN IMPLEMENTATION PLAN ...... 86 6.3. MONITORING AND EVALUATION ...... 90
BIBLIOGRAPHY ...... 92
ANNEXURE A - WARD LEVEL DEMOGRAPHIC AND SOCIO-ECONOMIC INFORMATION – 2011 CENSUS STATSSA ...... 94
DRAFT 1 - DECEMBER 2014 i
MSUNDUZI MUNICIPALITY LOCAL ECONOMIC DEVELOPMENT PLAN
LIST OF TABLES:
TABLE 2.1: 2012 STRUCTURE OF THE MSUNDUZI ECONOMY BASED ON GVA CONTRIBUTION PER SECTOR ...... 13 TABLE 2.2: POPULATION GROWTH IN WARDS AND MANAGEMENT AREAS 2001 TO 2011 ...... 24 TABLE 2.3: 2011 AGE DISTRIBUTION IN MSUNDUZI MANAGEMENT AREAS ...... 26 TABLE 2.4: 2011 LEVEL OF EDUCATION OF WORKFORCE IN MSUNDUZI MANAGEMENT AREAS ...... 27 TABLE 2.5: 2011 EMPLOYMENT STATUS OF WORKFORCE IN MSUNDUZI MANAGEMENT AREAS ...... 28 TABLE 2.6: 2011 EMPLOYMENT SECTOR OF WORKFORCE IN MSUNDUZI MANAGEMENT AREAS ...... 29 TABLE 2.7: 2011 MONTHLY INDIVIDUAL INCOME OF WORKFORCE IN MSUNDUZI MANAGEMENT AREAS ...... 30 TABLE 2.8: 2011 HOUSEHOLD HOUSING STRUCTURE IN MSUNDUZI MANAGEMENT AREAS ...... 31 TABLE 3.1: 2014 TO 2050 GROWTH RATES ...... 37 TABLE 3.2: 2050 POPULATION AGE DISTRIBUTION FOR MEDIUM GROWTH SCENARIO ...... 39 TABLE 3.3: ADDRESSING THE 2011 TO 2050 HOUSING NEED ...... 41 TABLE 3.4: A COMPARATIVE 2010 ECONOMIC STRUCTURE FOR MSUNDUZI (GVA IN RM) ...... 42 TABLE 3.5: IMPACT OF VARIOUS ECONOMIC GROWTH RATES ON MSUNDUZI GVA (RM) (2011 TO 2050) ...... 42 TABLE 3.6: 2011 AND 2050 STRUCTURE AND VALUE OF ECONOMY IN GVA (RM) ...... 43 TABLE 3.7: LAND IMPLICATIONS...... 44 TABLE 5.1: MAJOR MANUFACTURING COMPANIES IDENTIFIED IN MSUNDUZI AND REGION ...... 50 TABLE 5.2: A GUIDELINE FOR THE ESTABLISHMENT OF A GREEN ECONOMY ...... 56 TABLE 5.3: LEASE ANALYSIS PER CATEGORY ...... 59 TABLE 5.4: PRELIMINARY CATEGORIES AND TYPES OF INFORMAL BUSINESSES ...... 68 TABLE 5.5: DRAFT MSUNDUZI INFORMAL ECONOMY STRATEGY ...... 71 TABLE 5.6: DEVELOPERS REBATE ...... 75 TABLE 6.1: CONSOLIDATED LED PROJECT LIST FOR CONSIDERATION...... 87
LIST OF MAPS:
MAP 2.1: THE MSUNDUZI MANAGEMENT AREAS ...... 18
LIST OF DIAGRAMS:
DIAGRAM 2.1: THE 2006 NATIONAL SPATIAL DEVELOPMENT PERSPECTIVE ...... 3 DIAGRAM 2.2: NATIONAL INFRASTRUCTURE PLAN PERSPECTIVE ON SPATIAL DISTRIBUTION OF POPULATION ...... 4 DIAGRAM 2.3: THE VISION FOR THE DURBAN-GAUTENG FREIGHT CORRIDOR ...... 5 DIAGRAM 2.4: 2011 STRUCTURE OF THE ECONOMY BASED ON GVA CONTRIBUTION PER SECTOR ...... 9 DIAGRAM 2.5: 2011 MUNICIPAL CONTRIBUTIONS TO GVA ...... 10 DIAGRAM 2.6: UMGUNGUNDLOVU SOCIO-ECONOMIC CHARACTERISTICS...... 10 DIAGRAM 2.7: DEVELOPMENT OF PIETERMARITZBURG 1944 TO 1968 ...... 15 DIAGRAM 2.8: PIETERMARITZBURG THE MODEL APARTHEID CITY ...... 16 DIAGRAM 2.9: RACIAL SEGREGATION IN PIETERMARITZBURG ...... 17 DIAGRAM 2.10: 2011 POPULATION DISTRIBUTION IN MSUNDUZI MANAGEMENT AREAS (TOTAL 618 533) ...... 24 DIAGRAM 2.11: 2011 GENDER DISTRIBUTION IN MSUNDUZI MANAGEMENT AREAS ...... 26 DIAGRAM 2.12: 2011 AGE DISTRIBUTION IN MSUNDUZI MANAGEMENT AREAS ...... 27 DIAGRAM 2.13: 2011 LEVEL OF EDUCATION OF WORKFORCE IN MSUNDUZI MANAGEMENT AREAS ...... 28 DIAGRAM 2.14: 2011 EMPLOYMENT STATUS OF WORKFORCE IN MSUNDUZI MANAGEMENT AREAS...... 29 DIAGRAM 2.15: 2011 EMPLOYMENT SECTOR OF WORKFORCE IN MSUNDUZI MANAGEMENT AREAS...... 30 DIAGRAM 2.16: 2011 MONTHLY INDIVIDUAL INCOME OF WORKFORCE IN MSUNDUZI MANAGEMENT AREAS ...... 31 DIAGRAM 2.17: 2011 HOUSEHOLD HOUSING STRUCTURE IN MSUNDUZI MANAGEMENT AREAS ...... 32 DIAGRAM 3.1: MSUNDUZI 2030 AND 2050 POPULATION GROWTH FOR THREE SCENARIOS ...... 35 DIAGRAM 3.2: SPATIAL DISTRIBUTION OF GROWTH APPLYING A UNIFORM GROWTH RATE ...... 36 DIAGRAM 3.3: SCENARIO 2 – POPULATION GROWTH IN ABM AREAS OVER TIME (BASED ON ASSUMPTIONS) ...... 37 DIAGRAM 3.4: 2011 MSUNDUZI POPULATION PYRAMID ...... 38 DIAGRAM 3.5: 2050 MSUNDUZI POPULATION PYRAMID ...... 39 DIAGRAM 3.6: CURRENT AND PROPOSED 2050 DISTRIBUTION OF HOUSING TYPES ...... 40
DRAFT 1 - DECEMBER 2014 ii
MSUNDUZI MUNICIPALITY LOCAL ECONOMIC DEVELOPMENT PLAN
1. INTRODUCTION
1.1. PURPOSE OF REPORT
The purpose of the LED Strategy is to provide the Msunduzi Municipality with strategic guidance as to the longer-term implementation of local economic development in the Municipality. This strategic guidance is specifically linked with the future spatial development of the Municipality.
The current initiative aimed at developing the LED Strategy is an extension of the appointment for the development of the Spatial Development Framework (SDF). An important focus of the LED strategy is therefore spatial and economic transformation.
1.2. BACKGROUND
The Municipal Local Economic Development is a Sub-Unit of the Economic Development Business Unit and has four sections, Business Attraction and Retention, Municipal Enterprises in Airport, Forestry and Market, Property Valuation and Real Estate and Tourism. The focus of the Unit this year was to review and develop various sector strategies and align these to the broader Municipal Spatial Development Framework and Integrated Development Plan in order develop a sustainable City. Coupled with this initiative, was the production of the municipal land audit that has taken stock of various land parcels with appropriate development attributes. This will assist in leveraging investment and channelling resources where they will be best utilised. The sum of these initiatives has lead to the point where Economic Development plans can be laid to take the municipality into the future, although the strategy will need annual review and a major review after five years.
Msunduzi Municipality has prepared and developed its Local Economic Development Strategy and implementation plan. The LED Strategy is one of the critical steps towards achieving local economic development within Msunduzi Municipality.
Msunduzi Municipality acknowledges that as a Capital City of KwaZulu-Natal will need to be competitive and grow city’s economy and change the economic environment, hence the need develop an LED strategy.
Because of the size and economic dominance of Msunduzi Municipality; the following critical steps will need to be taken into account: