Local Economic Development

From Strategy to Im plementation: Alexandra Renewal Programme.

September 2008 - D. Louw Local Economic Development Defining the Context

September 2008 - D. Louw Local Economic Development

Historical

• planning •Struggle •Neglect

September 2008 - D. Louw Local Economic Development

Location:

Greater Alexandra is located on prime and valuable land within the principal growth corridor of , South .

Adjacent to the financial capital of () and to key arterial roads (the main highway linking Johannesburg to ) and the Station (linking Sandton to Pretoria and OR Thambo International).

350 000 peop le live in 8 500 forma l houses, 34 000 shacks, 3 hostel complexes and 2 500 flats at a densityyppp of 770 people per hectare.

September 2008 - D. Louw Local Economic Development Vision The Alexandra Renewal Project seeks to fundamentally upgrade living conditions and human development potential within Alexandra by:

Substantially reducing levels of unemployment. Creating a healthy and clean living environment. Providing services at an affordable and sustainable level. Reducing levels of crime and violence. Upgrading existing housing environments and creating additional affordable housing opportunities and. De-densification to appropriate land.

This will be undertaken in a manner which encourages high levels of community involvement, civic pride and sustainable local authority administration. September 2008 - D. Louw Local Economic Development

Reduce Unemployment

¾Facilitate processes to avail economic opportunities. ¾EittittEngage private sector investment. ¾Sensitize market developers towards economic opportunities within Alexandra

September 2008 - D. Louw Local Economic Development Integgpration of Spheres

PHYSICAL DEVELOPMENT

SOCIAL INSTITUTIONAL DEVELOPMENT DEVELOPMENT

ECONOMIC DEVELOPMENT

September 2008 - D. Louw Local Economic Development Socio-Economic Context

September 2008 - D. Louw Local Economic Development

Population Distribution

100,000

80,000 72,389 0,015 ple 60,000 66 43,875 41,989 40,000 ,972 mber of Peo 5 9,996 9,584 88 uu 22 2 2 N

20,000 20,01 10,843

0 Babies Children Children Children Adults Adults Adults Adults Adults 2-6 7-13 14-18 19-24 25-34 35-49 50-64 65+ Years Years Years Years Years Years Years Years

September 2008 - D. Louw Local Economic Development Number of Employed and Unemployed

100,000 ,547 17 44 77

80,000 7 68,

60,000 f people 7 oo 40,000 27,80 Number 15,572

20,000 68 13,216 88 3, 0 / ork ork rs ork lling ast- yed: nce ired Full- : not Time ee ee tt ww oo ww aa PP WW dd S re Work Unempl Pension king For employed Employe ime/Freel oking for ngs/Piece oo nn TT oo l U Thi Lo September 2008 - D. Louw Local Economic Development

Household Income Groups Only 7% of Alex households (6,510 households) earn more than R5,000 per month. 20% (18,905 households) exist on less than R1,000 per month. 50

40

30 households 77 ff 20 15. % o 11.6 11.5 11.4 10.3 10 9.6 6.9

0 Up To R699 R700 - R1 000 - R1 R1 400 - R1 R2 000 - R2 R3 000 - R4 R5 000+ Per Month R999 Per 399 Per 999 Per 999 Per 999 Per Per Month Month Month Month Month Month September 2008 - D. Louw Local Economic Development Alex vs and House ho ld incomes in Alex in 2005 (R2448 per mon th) are we ll be low the na tiona l average and the Gauteng average of 2004. They also remain well below the Gauteng average and the average for black households in Gauteng while being marginally abov e the national av erage for black hou seholds.

Average Household Income 2004 South Africa Gauteng R's pm R's pm Total 4092 6714 Black 2410 3806 Source AMPS 2004

September 2008 - D. Louw Local Economic Development Where are persons employed?

Not answered Alex 6% 23%

Johannesburg 21% 37% of those who are employed (full- time, part-time or doing piecework) work in Alex. Greater Alex 14% Johannesburg and Kempton Park 8% Sandton are other areas in which Alex Sandton residents work. 20% 8%

September 2008 - D. Louw Local Economic Development Shopping Habits Residents are shopping for food inside Alex but clothing and electrical goods are purchased elsewhere.

100 Shopping Inside Alex Shopping Outside Alex

80 80 80 70

60 dults aa 43 40 % of % of

23 21 20

0 Groceries Clothes Electrical Goods

September 2008 - D. Louw Local Economic Development

September 2008 - D. Louw Local Economic Development

Current Approach 1) Spatial integration. ¾Sub-regional. ¾Nodal.

2) Clust ers. ¾Auto. ¾Retail. ¾Care. ¾Construction. ¾Tourism. ¾Business outsourcing.

¾Urban agricultureSeptember. 2008 - D. Louw Local Economic Development

3) Institutional support

¾ Business support centre. ¾ Employment information centre.

4) Government

¾ Targeted procurement. ¾ Institutional support. ¾ Mainstreaming.

September 2008 - D. Louw Local Economic Development 1) Spatial Integration a. Sub-regional. • CitICity Improvement tDitit District • Street lighting • Policing • Sidewalk upgrading • Road/ bridge construction • Taxi ranks b. Nodal. • Trading space. • Services, production, retail

September 2008 - D. Louw Local Economic Development Pan Africa

• A mixed use taxi, retail and informal trading facility • Construction under way • 1000 taxi cappyacity • 350 informal trading stores • 16 000m² formal retail • 62% o f re ta il c lient s si gned up • Alex franchise opportunities

September 2008 - D. Louw Local Economic Development

2))Custes Clusters

– Strategic long term planning – Skill training Woman Youth Disabled – Linkages Private sector Labour – Life Orientation HIV/AIDS Literacy September 2008 - D. Louw Local Economic Development

September 2008 - D. Louw Local Economic Development Emppyloyment in ARP • 17 000 construction non permanent jobs during life span of project. • 1506 people worked on construction projects in March 08. • 785 l ocal Al ex peop le emp loye d dur ing March 2008. (52%) • 12% Female

September 2008 - D. Louw Local Economic Development

Institutional Support

• Business support centre.

- Business plan development. - Tax advice. - Legal advice. - Access to micro finance. - Business consulting. - SMME training.

• Employment information centre.

- Data base. - Career advice and monitoring. - Work broker/ppgyersonnel agency.

September 2008 - D. Louw Local Economic Development

Making Alex a Destination

Projects:

1. Heritage Interpretation Centre 2. First class rugby and athletics facility 3. International skate board track 4. Theat re 5. Football for Hope

September 2008 - D. Louw Local Economic Development Private Sector • High rate of investment back into Wynberg. • CID in progress in Kew. • National chain stores and banks in Pan Africa. • RMB finance in Housing. • Private sector investment in Pan Precinct • IttiMlbSthInvestment in Marlboro South • Gautrain

September 2008 - D. Louw Local Economic Development Training

• 2500 trained in construction • 500 trained in retail cluster • 150 in Tourism • 80 trained in auto • 1200 trained in Business Skills

September 2008 - D. Louw Local Economic Development Projects in Planning

• Alex RDP Flats = 200 RDP flats • Mar lboro = 250 RDP fl a ts + 750 Soc ia l Hous ing • East Bank Ext = 160 affordable rent • River Park = 420 affordable rent • Ritamore Land = 200 affordable rent • Lombardy East = 350 Social housing • + Helen Joseph = 2500 units • Phase 3 of M2 =300 units • Westlake = 350 social housing. • Marlboro Industrial = 500 affordable rent. • Lombardy East = 100 bonded houses • Kelvin = 300 bonded houses

September 2008 - D. Louw Local Economic Development

TABLE 8: LINBRO PARK: STANDARDS IN LAND USE BUDGET

NUMBER Population: 83177 Dwellin gs: 26254

USE STANDARD NUMBER OF FACILITIES Clinic 1/10 000 000 people people 8 Community Centre / Library 5 000 - 50 000 people 2 Municipal Offices 1/50 000 people 2 Hospital 4beds/1000 people @350 beds / hospital 1 Post Office 1/11 000 people 8 Police Station 1/25 000 people 3 Fire Station 1/60 000 people 1 24% of of population population is of is school of school going going age of age of which 65%go to primary school @ Primary School 1800/school, and 7 Secondary School 35% to secondary school @ 2000/school 3

Source: PLAN ASSOCIATES, 2008 September 2008 - D. Louw Local Economic Development

Challenges identified

• Develop clear social consensus on housing allocations. • Perceived and real corruption undermining allocations consensus. • Ensure quality of housing construction. • Gear up for Football for Hope • Ensure Alex a safe place. • Purchase new land.(Linbro Park) • Increase role of private sector. • Ensure greater government agency ppparticipation in LED pgprogram.

September 2008 - D. Louw