McKinsey Global Institute (top 600 cities) has identified three critical factors why larger Cities have more advantageous conditions for economic success:

◦ Larger cities attract the most human talent.

◦ Larger cities attract more investmentsFDI in emerging markets tend to go to areas that have:Market access, better infrastructure, efficient services and financial incentives

◦ City network stimulates economic growth Cluster of smaller economic centres/precincts drive or generate

economic growth

◦ Durban is considered as a middleweight City with a population of 3,4 million as at 2011.

◦ Durban hosts a number of academic institutions, e.g. UKZN, DUT, MUT, Etc.

◦ Durban is a port City – biggest port in Africa.

◦ Multi National Companies (MNCs) located in Durban – Toyota, Volvo Trucking, Mondi Paper, Etc.

◦ King Shaka Airport and Dube Trade Port

◦ Durban is the gateway to the SADC market

Percentage contribution of Metros to South African GDP, 2011

Source: IHS Global Insight, July 2012

◦ In 2012 the MGI ranked our City as number 238 in the World in the category of fastest growing urban areas.

◦ The Economist Intelligence Unit ranks the competitiveness of 120 of the World’s major Cities – Durban was ranked at number 94 in March 2012.

◦ City’s draft economic development strategy - economically active people as % of population = 31% in 2011

◦ Economic growth rate reduced from 6% in 2006 to 3.4% in 2011

◦ Unemployment reduced from 34.7% in 2001 to 20.4% in 2011 but it still remains high

Policy framework – investment policies, regulations, rules on entry and exit.

Economic conditions – local and regional markets, availability and quality of raw material, cost of doing business and physical infrastructure.

Service offerings and facilities – investment promotion services, investment incentives and social amenities.

There is a lack of significant private and public sector investment in eThekwini, which hinders the City’s development agenda.

◦ Low economic growth; lack of job creation; lower rates base; slower reduction in poverty and inequality.

A study in eThekwini on aspects which impede investment and development with specific reference to the legal framework, institutional framework, mechanisms, capacity, and professionalism.

COMMISSION FINAL RECOMMENDATIONS LIST:

Investment Promotion Agency Corporate Plan Development Facilitation Centre Policy and Legal Framework Local Economic Development Zones Attitudinal Changes

New Growth Path – target of 5 million jobs by 2020 and an economic growth rate of between 4% to 7% p.a.

Ethekwini’s Draft Economic Development Strategy (EDS) – sets out a target of 45 000 job opportunities annually, while the local economy is currently creating approximately 21 726 job opportunities per annum.

Economic Growth Rate – EDS sets out an economic growth rate target of 4% to 7% between 2012 to 2014, while the local economy grew at 2.9% and 3.4% in 2010 and 2011 respectively.

An in-depth review of the BPCC 1999 recommendations,

A review of the present investment situation in eThekwini in terms of: economic, governance, legal and organisational structure,

Assessing the cost of doing business in Durban.

• DCM Sustainable Dev• Economic Dev• Planning• ETA• Water, Real Estate, Electricity, Etc

Phase 1: Appointment of Commissioners

Phase 2: Review of the 1999 recommendations and survey on investment trends in the City

Phase 3: Research on factors conducive to and factors constraining development in the City: How effective are our business retention and expansion programmes?

Phase 4: Benchmarking on City’s offerings and institutional models against international best practice: what do we offer and how is our turnaround time?

Phase 5: Recommendations

Call for written submissions on their experience in dealing with development applications

Sector and stakeholder consultations on the project objectives

Public participation on reviewing the City offerings

a. A proactive strategy of channelling development and investment proposals

b. Consolidation and packaging of infrastructure plans to support development

c. Identification of alternative sources of funding infrastructure

d. Comparative analysis on the cost of doing business in Durban

e. Identification of and packaging of land parcels with investment potential

Project Secretariat – Ms Phumelele BiyelaEmail address: phumelele.biyela@durban.gov.zaTel number: 031 311 4311

Project Manager – Mr Ndumiso MlamboEmail address: ndumiso.mlambo@durban.gov.za Tel number: 031 311 4311Cell number: 083 554 1110

Making the ‘step change’ from good to great!