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) ................