THE MSUNDUZI MUNICIPALITY AN ECONOMIC DEVELOPMENT STRATEGY FOR A GROWING CAPITAL CITY

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THE MSUNDUZIMUNICIPALITY AN ECONOMIC
DEVELOPMENT STRATEGY FORA GROWING CAPITAL CITY
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INTRODUCTION

• City has a rapidly growing economy
• Poverty and unemployment remain key issues
• Strategy must further develop the economy and
  generate sufficient employment

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MARCH 2000 CONFERENCE

• First ever investment conference in the city
• Potential growth sectors were identified, viz.
  tourism and aluminium downstreaming
• Key properties were put out for development
  proposals

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HULETT ALUMINIUM
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ALLTUBE FACTORY
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INCENTIVES PACKAGE

• City announced a new concessions package
• New and expanding business qualified
• Concessions were extended to both industrial and
  commercial activities

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INVESTMENT FACILITATION TEAM

• Multi-disciplinary team approach
• Team meets twice monthly and deals with
  concessions applications and development
  proposals
• One-stop facilitation approach has been well
  received by developers
• The Msunduzi Municipality is the most
  co-operative, knowledgeable and proactive I have
  ever dealt with. Jim McLean, MD Liberty
  Properties, Developers of the Liberty Midlands
  Mall.

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TOTAL INVESTMENTS

• Since 2000 40 new investments and 40 expansions
  have received concessions
• Total investments exceeds R4 billion
• 7000 new jobs created

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FLAGSHIP PROJECTS

• Golden Horse Casino and Hotel Complex
• Liberty Midlands Mall, regional shopping centre
• CBD Extension Node development
• Freedom Square Development

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GOLDEN HORSE CASINO AND HOTEL
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REGIONAL SHOPPING CENTRE
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MOTORWORLD
CBD EXTENSION NODE
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CAPITAL CITY STATUS

• Capital coalition formed to lobby support
• City declared the sole capital in April 2004
• Government departments relocated to the city

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PREMIERS OFFICES
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MOTOR VEHICLE COMPONENTS SECTOR

• Currently about 11 companies in the sector
• Approximately 40 motor components made in the
  city

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MOTOR VEHICLE COMPONENTS SECTOR
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BUSINESS CONFIDENCE

• At an all time high
• Business turnover has doubled since 2003
• Insolvencies have halved
• Job creation is steadily increasing
• Confidence index is at 85

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EPI GRAPH
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TOWARDS AN ECONOMIC DEVELOPMENT STRATEGY

• Knowledge and Exchange programme comes at an
  opportune time
• Virginia Beach experiences will be valuable
• Action Plan identifies actions steps and time
  frames, and goals

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ACTION STEPS

• Appoint a consultant
• Hold economic development strategy workshops
• Review all studies and plans done to date
• Development of the strategy
• Obtain council approval as part of the IDP
• Develop project implementation timeline

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SHORT TERM GOALS

• Staffing to manage development initiatives
• Business retention and expansion programme
• Development of tourism products

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TOURISM PRODUCTS
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PIETERMARITZBURG RAILWAY STATION
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SHORT TERM GOALS

• Increase funding for tourism sector
• Creation of industrial sites
• Creation of city improvement districts
• Implementation of informal and street trading
  plan
• Compilation of an economic data base

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FREEDOM SQUARE
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LONG TERM GOALS

• Monitoring the citys economy and amending the
  strategy periodically
• Investigate the creation of new revenue streams

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PROGRESS MADE TO DATE

• 80 of District turnover generated by Msunduzi
• District and Msunduzi strategies must be aligned
• Agreement reached on a District-wide economic
  development strategy
• Joint funding between Msunduzi and the District
• A consultant has been appointed
• Project team has been established

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TERMS OF REFERENCE

• Phase 1 information gathering
• Phase 11
• Visioning and strategic planning
• Processes
• Policy Framework

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CONCLUSION

• The strategy will form part of the IDP
• Key areas of the strategy should be included as
  KPIs in performance agreements
• Strategy must
• meet national goals of halving unemployment by
  2014
• Contribute positively to the financial viability
  of the municipality
• Yield a globally competitive and job creating
  economy
• Contribute substantially to a better life for ALL
  the people of Msunduzi