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Final Layout with Pics Chapter 2 Context INFRASTRUCTURE In this chapter the background to the 2003/04 Annual Report is contextualised in that the City’s profile is outlined, the key challenges are defined and the vision, strategy and priorities of the City of Johannesburg are described. The chapter also gives an overview of the political governance arrangements and the City’s administration. A PROFILE OF THE CITY The Johannesburg metropolitan area extends from Orange Farm in the south to Midrand in the north. It is adjacent to two other metropolitan areas, namely Tshwane to the north and Ekurhuleni in the east as illustrated in Figure 2.1. In comparison Johannesburg has the smallest land area (1 620 km2) of these metropoles, yet it has the largest population (approximately 3,2 million people), which makes it the most densely populated (average 1 975 persons per km2) and most urbanised municipality in South Africa. 12 ECONOMIC HUB Nokeng sa tae mane Tshwane Kungwini Mogale Randfontein Johannesburg Ekurhuleni Westonaria Merafong Lesedi Emfuleni Midvaal Figure 2.1 Johannesburg in the context of Gauteng Johannesburg’s population is growing at a rate of 4,1% per year, which exceeds the 0,9% per annum previously predicted. As a result the City has already exceeded the projected figures for 2010 and at this rate, the City’s population could double in the next 17 years. 13 Chapterchapter 62 Context The City of Johannesburg Metropolitan Municipality (CJMM) was established on 19 September 2000, as gazetted in a Provincial General Notice, number 6569. The municipality, established in accordance with section 12(1) of the Local Government Municipal Structures Act of 1998, on the day that the results of the first election of the Council of the Metropolitan Municipality were declared in terms of section 64 of the Municipal Structures Act, 27 of 2000. CHALLENGES Johannesburg is the most powerful economic hub on the African continent. The City’s services and infrastructure compare well with cities in the developed world in terms of safe drinking water, a reliable electricity grid, multilane freeways, skyscrapers, conference centres, golf courses and telecommunication systems. Johannesburg is, however, faced with a range of development challenges such as globalisation and urbanisation. Further to this, there are serious local concerns, e.g. how to alleviate poverty and increase education levels and reduce unemployment and crime. Other challenges revolve around the management of the impact of HIV and AIDS, basic needs such as the provision of primary health care, housing and services, and, above all, how to stimulate economic growth. Despite all the challenges facing the City, the performance of the City compares well with those for other cities, the Gauteng province and the country as a whole. The City’s unemployment rate of 33% is also below the national rate of 42%. A more detailed breakdown of unemployment rates for metropolitan municipalities is provided in Figure 2.2. Figure 2.2 Unemployment rate for metropolitan municipalities, 1996-2002 Unemployment rate 50% 45% 40% 35% 30% 25% 20% 15% 1996 1997 1998 1999 2000 2001 2002 City of Cape Town Nelson Mandela eThekwini City of Tshwane City of Johannesburg Ekurhuleni Gauteng National total 14 The average income per person in Johannesburg is R37 768 per annum, compared to R27 352 in Cape Town, R27 032 in Tshwane and R16 259 in eThekwini. The average income per household in the City (which is more than R140 000 per annum) is by far the highest in the country. Johannesburg also displays the highest Gross Domestic Product (GDP) per capita, as illustrated in Figure 2.3. Figure 2.3 GDP per capita for metropolitan municipalities, 1996-2003 Gross value added (1995 prices Rand) 40 000 35 000 30 000 25 000 20 000 15 000 10 000 5 000 1997 1998 1999 2000 2001 2002 1996 City of Cape Town Nelson Mandela eThekwini City of Tshwane City of Johannesburg Ekurhuleni Gauteng National total Between 1996 and 2001 the City Development Index (CDI)1 showed that Johannesburg improved from 81 to 84, primarily because of the increase in income per capita. Johannesburg also has the highest Human Development Index (based on income per capita, literacy and life expectancy) in the country, as depicted in Figure 2.4. 1 The CDI measures development in cities based on income per capita, access to services, waste removal, health and education. The index is used to compare the level of development within cities, between cities and progress over time and is a number between 0 and 100. 15 Chapter 2 Context Figure 2.4 Human Development Index for metropolitan municipalities, 1996-2002 Human Development Index (HDI) 0,72 0,70 0,68 0,66 0,64 0,62 0,60 0,58 0,56 0,54 1997 1998 1999 2000 2001 2002 1996 City of Cape Town Nelson Mandela eThekwini City of Tshwane City of Johannesburg Ekurhuleni Gauteng National total Despite the relatively good performance of Johannesburg, there are major discrepancies in the income distribution in the City. While the average annual household income in four of the City’s wealthiest administrative regions doubled between 1996 and 2001, the number of households that reported ‘no income’ increased from approximately 50 000 to nearly 200 000. Another such discrepancy relates to service delivery, where the total number of households with access to electricity increased by 200 000 between 1996 and 2001, while in the same period the proportion of households with access to this service decreased by 7% from 86% to 79%. This is primarily because of the rate of people migrating to the City, and this rate outpaces extensive efforts in delivering basic services. The challenges faced in terms of rapid population growth and the growth of informal settlements result in difficulties with the management of the biophysical environment. Environmental challenges facing the City include air quality management, protection of water resources, waste management, provision of land and open spaces and plant and animal biodiversity management. The air quality management challenges are a result of households depending on fossil fuel for heating, the use of private vehicles, dust from unrehabilitated or operational mines and other forms of industrial air pollution. All of which leads to elevated levels of emissions such as CO2, NOx and PM10. The river systems in the City also show evidence of high levels of sewage and mining pollution. This is worsened by contaminated stormwater run-offs, increased littering and illegal effluent discharges from industry and wastewater treatment works. 16 The City also has a high level of waste generation. The five landfill sites that the City depends on for waste disposal cannot cope with the current rate of waste generation. Current projections show that the existing landfills will reach their half-life by 2010. Statistics indicate that only 1,38% of Johannesburg is formally conserved as natural areas for biodiversity conservation. This is far below the 10% recommended by the International Union for the Conservation of Nature. There is therefore a need to increase the percentage land that is reserved for biodiversity conservation, if compliance with international guidelines is considered. VISION, STRATEGY AND PRIORITIES The City of Johannesburg created Joburg 2030 in response to development and economic challenges. In Joburg 2030 the long-term vision is described as follows: ‘In 2030 Johannesburg will be a world-class African city with service deliverables and efficiencies which meet world best practice. Its economy and labour force will specialise in the service sector and will be strongly outward oriented to ensure that the City’s economy operates on a global scale. The strong economic growth resultant from this competitive economic behaviour will increase city tax revenues, private sector profits and individual disposable income levels, such that the standard of living and quality of life of all the City’s inhabitants will enhance in a sustainable manner.’ The main focus of this vision is on developing a world-class African city to enable businesses in the City, and all its inhabitants, to enjoy sustainable economic growth and an improved quality of life. It is intended that the City will not only operate as a provider and administrator of services, but also act as a key agent for economic development. The Executive Mayor also identified six Mayoral Priorities as medium-term priorities underpinning the long-term vision. These priorities are: ● Good governance ● Economic development and job creation ● Inner city regeneration ● Public safety ● Service delivery excellence, customer care, Batho Pele ● HIV and AIDS To provide focus to the service delivery efforts, the following strategic agenda underpinned the work of the City during the 2003/04 financial year: ● Effective financial management ● Sustainable development and environmental management ● Service delivery excellence, customer service and Batho Pele ● Access to basic services ● Public safety and by-law enforcement ● Housing delivery ● Transportation ● Economic growth and development ● Good governance and building democracy 17 Chapter 2 Context ● Strategic management ● Fighting poverty and promoting human development ● Entity management ● HIV and AIDS prevention and management GOVERNANCE The concept of ‘governance’ encompasses the political domain and highlights the role of the Executive Mayor and the Mayoral Committee, the Council, the Council’s Speaker and the Council’s Chief Whip. All of them play a vital role in the governance of the City through the exercise
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