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Upgrading for Growth

Upgrading for Growth. Ekurhuleni, South Africa. Duma Nkosi, Executive Mayor Neville Chainee, Executive Director, Housing. Location. Ekurhuleni: City of Potential. Adjacent to Johannesburg Fastest growing city in South Africa – 4.12% per year

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Upgrading for Growth

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  1. Upgrading for Growth Ekurhuleni, South Africa Duma Nkosi, Executive Mayor Neville Chainee, Executive Director, Housing

  2. Location

  3. Ekurhuleni: City of Potential • Adjacent to Johannesburg • Fastest growing city in South Africa – 4.12% per year • Contributes more than 20% of the gross geographic product of Gauteng, South Africa’s most productive province • 1,889 square kilometres • Population nearly 3 million

  4. National Policy Framework • A pro poor agenda – application of upgrading for growth principles in all projects • Government policy to upgrade all informal settlements by 2014 • Capital subsidy of about $8,000 per plot for low income earners, either for contractor-built or self-built house and infrastructure • Achieve spatial integration and mixed income communities • Promote urban renewal to create sustainability

  5. City Development Strategy • Integrating marginalised communities • Basic water supply and sanitation by 2010 and electricity by 2012 • Developing sustainable solutions, especially energy • Mining and heavy industrial legacy - treatment and rehabilitation of environmentally hazardous areas • Effective land management – need to balance public and private interests • Mixed Land Use Concepts

  6. Comprehensive Sustainable Human Settlement Plan • Matching backlogs, informal settlements and waiting list for suitable land for housing • Integration of information and future plans with other line departments (Engineering and Social Infrastructure) • Funding model – 8 year roll out budget plan

  7. 104 informal settlements 180 000 households in informal housing (45 000 on serviced stands but still in shacks) 217% increase in households earning zero income between 1996-2001 Informal settlement challenges in Ekurhuleni

  8. Informal settlements Red areas represent the informal settlements in Ekurhuleni An informal settlement – designed and developed by the residents

  9. Making the best of difficult circumstances

  10. Upgrading for Growth Project • To develop communities through promoting the five development capitals: • Social Capital • Human Capital • Physical Capital • Financial Capital • Natural Capital • To use upgrading of infrastructure and housing as springboard for • Economic empowerment • Gains in health and welfare of residents

  11. Household Survey: Findings • Almost 50% of households want to remain where they are currently located • Approximately 30% want to move closer to the city centre • 50% of households consist of 1 or 2 persons • 34% unemployed • Only 4% self employment • Low skills – 9% completed secondary education, under 2% with any tertiary education

  12. Upgrading for Growth: Implementation principles • Must be sustainable • Linkages between human development and physical development • Integrate energy, economic development and housing needs • Should explore the potential within the current legislative environment to maximize potential for innovation – need to review current standards and regulations • Requires a re-think of current “silo” structure of municipal departments

  13. UFG Settlement Design Principles • Minimise disruption • Maximise economic opportunity • Maximise linkages • Encourage participation • Permit variety and freedom • Ensure that solutions are affordable • Promote economic development • Promote energy efficiency

  14. Promote Economic Development • Leveraging investment by major companies • Outsourcing • Linkages with other companies • Supporting small business with grants and technical assistance • Create an enabling environment for small business • Permitting home-based enterprises etc • Appropriate town planning principles and practice • Training

  15. Promote Energy Efficiency • Explore appropriate energy sources for the poor • Assist households to use energy more efficiently • More efficient appliances • Low cost solar water heating • Support passive energy saving methods • Ceiling insulation • Correct orientation of house

  16. UFG Key Issues • Community workers to bridge gap between informal settlement residents and municipality • Creation of a human settlements department • Improve collaboration between sectors of housing, economic development and energy • Address land management issues • Migration and urban growth • Role of local government in upgrading

  17. Global lessons for South Africa • Can upgrading be used to leverage other types of investment? • How can local governments be most effective in stimulating LED? • In your experience does it make sense to apply appropriate and fair building and planning standards equally to rich and poor? • What has been the experience with housing vouchers and similar systems in self-help housing?

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