The Directors-General of National Treasury and the Department of Small Business Development, Mr Dondo Mogajane and Mr Lindokuhle Mkhumane, are jointly convening a Metro Township Economic Development Symposium on the 18th and 19th August 2021. The aim of the Symposium is to galvanise the public, private sector, civil society actors and donors behind metro-driven evidence-based initiatives to revitalize township and well-located industrial spaces.
The Metro TED Symposium event on the 18th and 19th August is focused on forging the necessary public, private, civil society and donor partnerships around evidenced-based metro priorities and interventions for the development and revitalization of their townships and well-located industrial spaces. It is believed that co-ordinated and focused action will increase collective impact and in this way address some of the persistent challenges that have yet to be tackled.
Whilst the Symposium event takes place in the wake of the recent civil unrest and the extensive devastation that has resulted, it was planned beforehand based on the recognition of the urgency to address the continued marginalization of, and underinvestment within, these spaces within our cities. With irreversible processes of urbanization underway within our country, townships and informal settlements are becoming the stepping-stones of many of the rural poor into our cities in the hope of a better life.
However, the experience of many of these hopefuls is one of a living environment that is spatially fragmented from the rest of the city, with infrastructure and service delivery backlogs or decay, high levels of poverty, tenure insecurity and unemployment, and many localized and competing micro entrepreneurs or survivalist enterprises. Townships remain highly vulnerable city spaces, illustrated in the uneven impact of the economic fall-out of the Covid-19 pandemic on the residents – especially women and youth.
The Symposium event is focused on the eight metropolitan municipalities given the fact that they bear the burden of urbanization within the country and are home to than 40% of the population. They also collectively contribute more than 50% of GDP and employment. National Treasury's Cities Support and Neighbourhood Development Partnership programmes have partnered with the metros in piloting bottom-up and spatially and developmentally integrated approaches to township economic development and the revitalization of well-located industrial spaces.
Metros have direct planning, regulatory, delivery and management responsibilities within our townships. However, they are not the sole development and economic actors within these spaces. National and provincial government and agencies also have regulatory, infrastructure planning and investment, asset creation and management, safety and security and business support responsibilities. Private sector investors, both within and external to these spaces, together with civil society and donors all drive and sustain the township and city economies.
The fact that our townships remain marginalized and under-developed and that the recent civil unrest was so wide-spread and devastating, is undeniable evidence that we are collectively failing to attain our national vision of liveable, safe, resource-efficient and economically inclusive cities. Indeed, until city townships and residents are fully integrated into the broader urban fabric and economy, this vision cannot be realized.
Symposium Event Programme
The National Treasury and the Department of Co-operative Governance in collaboration with the Development Bank of Southern Africa will co-hosted the Urban Investment Partnership Conference on the 27 - 28 August 2015 at Gallagher Convention Centre in Johannesburg. The Conference brought together senior officials from cities, national departments and investors to lay a foundation for deeper partnerships for inclusive urban growth.
The course aims to highlight the potential of transport as a transformative tool in cities transforming the way cities think about both land use and citizen mobility. It seeks to enable metropolitan political and administrative leaders to get to grips with current challenges, learn techniques and tools, and be inspired to lead and implement change in urban mobility and land use management so as to connect, integrate and transform our cities into more inclusive, productive and sustainable cities.
The course on City Economic Development was the third in the series of Executive Leadership Courses, held between Sunday 9th and Friday 13th November 2015. The focus was on city economic development strategies and practice with the purpose of building a greater understanding of the limits and possibilities of city-level economic action among the political leaderships and senior management of city governments; improving the sense of personal agency and responsibility among city leaderships, especially in respect of city economic development; and increasing the city voice in national policy debates and action.
The ELP on Accelerating City Transformation for Inclusion, Growth and Sustainability continues to improve on the high standard of our previous programmes providing a week long immersive learning event that builds both on the leadership capabilities and technical knowledge in your cities. We are excited by the opportunity to bring the new leadership teams, across our cities, into a common understanding of the urban challenge facing them, and engage on some of the programmatic responses, in a manner that strengthens the political-administrative interface in individual cites and builds a sense of community across leadership of our eight (8) metros.
The purpose of this training workshop was to assist municipal officials conceptualize and practically apply lessons on the leveraging of private sector investment into their catalytic metropolitan projects. A key output was to facilitate dialogue between city officials and private sector developers/investors. It aimed to specifically focus on how cities could leverage their real estate assets to enable private sector investment in urban core areas and create collaborative partnerships.
Workshop Agenda Workshop Report
Day 1City Presentations
Catalytic Urban Final Agenda
Day 1: Catalytic Land Development - Inception and Concept
08h00 - 08h30: Welcoming remarks
08h00 – 08h10: Ambassador Helene Budliger Artieda (Embassy of Switzerland)
08h10 – 08h20: Paul Noumba Um, World Bank Country Director for South Africa
08h20 – 08h30: Malijeng Ngqaleni, DDG Head of Intergovernmental Relations National Treasury
08h30 – 08h45: Overview of 3 days (Moderator)
08h45 – 10h30: Key City Challenges for SA, and policy responses to these challenges
08h45 – 09h10 (1A): Understand National Treasury perspective on challenges facing SA cities and how they are responding to these challenges, Presenter: David Savage (Program Head: CSP, National Treasury)
09h10 – 09h45 (1B): Cities' perspectives on urban land redevelopment challenges and their responses, City Feedback
09h45 – 10h20 (1C): Provide cities with an overview of the Catalytic Land Development Program Preparation and its stages, Presenter: Dr Johan Coetzee (National Treasury)
10h20-10h30 – Q&A
11h00 – 11h45: Transit-Oriented Development
11h00-11h30 (2A): Clarify the TOD concept and its policy implementation in SA; demonstrate the impact of TOD principles on physical planning and the viability of property developments; demonstrate how integrated transport and urban planning can create value for cities. Presenter: Stan Wall (HR&A) and Yondela Simela (City of Johannesburg)
11h30-11h45 – Q&A
11h45 – 12h25: Transit-Oriented Development
11h45-12h05 (2B): Discuss SA case studies for TOD - successes, failures, future opportunities, Presenters: Thamsanqa Hlongwane, Senior Manager, Property Investments (Intersite)
12h05 - 12h25: Q&A
12h25 – 13h00: Lessons/Outcomes from TOD projects
12h25-12h45: Lessons learned from the Neighborhood Development Programme's TOD support to municipalities. How to use outcome-based TOD planning to create an enabling environment for private sector investment in emerging and declining nodes. Speaker: David Van Niekerk, NDPG (National Treasury).
12h55-13h15 – Q&A
14h00 – 14h40: South Africa's Regulatory Framework: Constraints and Opportunities for Real Estate Transactions
14h00 – 14h40: Explore how city-focused legislation enables and/or constrains the city's ability to partner with the private sector and/or award projects to the public or private sector, and impacts the use of innovative financing mechanisms
Panel Discussion: James Aiello, TV Pillay and Wayne McCommans (National Treasury)
14h40 – 15h00: Q&A
15h00 – 15h45: Objective Setting for Catalytic Land Development
15h00-15h35: Demonstrate importance of setting catalytic program and project objectives, refining the objectives throughout the program/project and the economic, fiscal and social impact that these objectives can have on a program/project. Speaker: Alberto Gomes Silva (Porto Maravilha) Porto Maravilha Overview
15h35 – 15h45: Q&A
16h00 – 16h45: Economic and Social Inclusion and Urban Regeneration
16h00 – 16h30 :Discuss the unintended impacts of urban regeneration, such as social exclusion and gentrification; and how cities can try to minimize the impacts. Speakers: Dr. Geci Karuri-Sebina (SA Cities Network), Global Examples: Valerie Santos and Alberto Gomes Silva
16h30 – 16h45: Q&A
16h45 – 17h45: City Breakaways
Integrate knowledge from experts into a city's catalytic programs and projects and a case study Speaker: Cities
17h45 – 18h00: Summary of the Day, Moderator
Day 2: Program Pre-Feasibility and Feasibility
08h45 - 09h00: Outline for the day, Moderator - Stan Wall
09h00 – 09h45: Real Estate Market Update
09h00-09h35 - Provide cities with a high level overview of current market trends Speaker: Zandile Makhoba; Head of Research (JonesLangLaSalle) SA Property Market Update
09h45-10h15: Understanding Private Real Estate Investment: Brownfield/Infill Housing
9h45-10h05 - Discuss opportunities/pitfalls of inclusionary zoning, business models for mixed income housing developments, issues encountered with various typologies of tenure and density, Speaker: Rory Gallocher, Chief Executive Officer (Social Housing Regulatory Authority) SHRA Presentation
10h05 – 10h15: Q&A
10h15-10h45: SA's national transport agencies and their business models
10h15-10h30: Provide insight into how other transit agencies in SA think about TOD and other development. What are the incentives that drive these agencies, and how do we negotiate cities' v agency needs? Speakers: Sisa Maboza; Startegic Network Planning (PRASA); William Dachs (Gautrain Management Agency)
10h30 – 10h45: Q&A
11h25 – 12h10: Measuring the social, fiscal and economic impact of land (re)development programs and projects
11h25-11h45: Discuss how to quantitively demonstrate economic, social and fiscal returns and conduct pre-feasibility assessments of impact, Speaker: Stan WalL (HR&A Advisors)
11h45-11h55: Worked Example, Speaker: Yasmin Coovadia, (National Treasury)
11h55 – 12h10: Q&A
12h10 – 13h30: Creating Real Estate Market Feasibility Studies
12h10-12h45: Demonstrate how city objectives are applied within its market demand context, and the costs and other impacts to achieve the objectives. Speaker: Stan Wall, HR&A Advisors
12h45 – 13h15 - Case Studies for Cornubia, King Edward and Leralla - methodologies used and lessons learnt, Speaker: Implementing cities to present (10 mins each)
13h15 – 13h30: Q&A
14h30 – 15h00: Development Charges
Discuss the scope of proposed changes to Development Charges guidelines and impact on the cities, including: timeline, reporting, DC calculation, Speaker: Judy Mboweni (National Treasury)
15h00 – 15h45: Using Land-Based Financing
15h00 – 15h30: Leveraging municipal land value increments, multiple tools and approaches for urban planning (housing, transportation), Speakers: Enrique Silva (Lincoln Institute of Land Policy); Helen Rourke (Development Action Group) Latin America and Land Value Capture
15h30 – 15h45: Q&A
16h00 – 16h45: Using Land-Based Financing Tools to raise funding
16h00 – 16h30: Development Charges and Sale of Development Rights, Speaker: Paulo Sandroni (Lincoln Institute of Land Policy) Origins of land value capture in Brazil
Integrate knowledge from experts into a city's catalytic programs and projects, Speakers: Cities
17h45 – 18h00: Summary of the Day, Moderator
Day 3: Catalytic Land Development: Finalization of Program Preparation and selected project preparation
08h45 - 09h00: Outline for the day, Moderator - Alberto Gomes Silva
09h00 – 10h30: Financing Catalytic Developments
09h00 – 09h30 (1A): Developer to provide insight into how they view and price for development risks in projects
09h30 – 09h45: Q&A
09h45 – 10h30 (1B): Using a single case study, show perspectives of various stakeholders in a catalytic land development program: city, land developer/infrastructure, vertical developer, banks, grant financiers (NT), Speaker: Jeffrey Wapnick, Managing Director (City Property)
10h45 – 13h00: Institutional arrangements to preparing the program and associated projects
10h45 – 11h15 (2A): Project portfolio, program and project management capacities required, sequencing of tasks, management of timelines and reporting/monitoring responsibilities, Speaker: Alberto Gomes Silva, Porto Maravilha (Rio de Janeiro)
11h15 – 11h45 (2B): Discuss various public sector-driven institutional forms that are used for implementing land (re)development projects, Speaker: Valerie Santos / Leila McKenna/Alan Dinnie
11h45 – 12h00: Q&A
12h00 – 12h30 (2C): Cities self-identify problem areas for project and program management efficiencies in their projects/programs/city, Speaker: Cities to compile and report
12h30 – 12h45: Q&A
14h00 – 15h30: City Presentations
Integrate knowledge from experts into city projects, Speaker: Report-back from each of the cities from 3 days
15h30 – 16h00: Workshop Summary, Speakers: David Savage / Robert McGaffin