Jason Ngobeni Executive Director

1. Jason Ngobeni Executive Director 11 March 2009

2. Agenda • Overview of DED • Catalytic projects • Some key achievements of DED • Q&A

3. Overview Department of Economic Development is command centre for economic growth in the city: Engage proactively with all role players; Creating an enabling environment for accelerated, shared and sustainable growth Department is responsible for: Overall coordination & strategic direction of economic development in the city 3

4. Mission A CITY ECONOMY THAT PLAYS A ROLE AS THE KEY ECONOMIC HUB ON THE CONTINENT, AND A NATIONAL ECONOMIC GROWTH LEADER, BY ENSURING SUSTAINABLE SHARED GROWTH THAT BENEFITS ALL. 4

5. Economic Development Goals Diversification of the local economy, so that it rests on a broad base of economic sectors, rapidly forming A local economy with strong links to the national, regional and global economy A robust and growing domestic market for locally produced gods and services and sustainable expansion of household demand Equitable sharing of the value gains from economic growth and geographic spread of economic activities For increased competitiveness of City firms, continuous improvement in the general business environment 5

6. Towards 9% Economic Growth • Identify the most important sectors / clusters / industry segments. Provide sustained support to sectors we have already selected but also look for new niche sectors. • Continue to reduce costs of doing business (for example providing cheap broadband infrastructure). • Take advantage of beneficiation opportunities (especially around Jewel City) • Build the commercial ladder for SMME development, and intervene decisively through provision of appropriate finance, ensuring a built environment that facilitates growth etc • Scale up area interventions: package land with unique advantages; respond to demand for industrial land by reconfiguring brownfield sites; act now to build City Deep as freight and logistics hub; publicly commit to inner City as core node 6

7. Departmental Overview • MMC : Finance and Economic Development • Executive Director: Department of Economic Development • Special Projects Directorate • Soweto Empowerment Zone • Expanded Public Works Programme • Targeted Beneficiaries Unit • Economic Research Unit

8. Sector Support, Growth and Sustainability Projects Directorate Financial and Business Services Business Tourism Retail and Wholesale Business Process Outsourcing Information and Communication Technology Freight and Logistics Creative Industries Manufacturing Mining and Beneficiation SMME Development and Support Directorate Enterprise Development and Support Skills Development Financial Assistance and Support Departmental Overview 8

9. Departmental Overview • Spatial Economic Development Directorate • Nodal Economic Development • Economic and Industrial Support • Inner City Economic Development • Trade and Investment Promotion Directorate • Investment Promotion and Facilitation • Trade Promotion • Investor Relations • Policy and Programme Integration • Policy Development • Programme Integration • Economic Regulations 9

10. Departmental Overview • Municipal Owned Entities Support and Administration • Johannesburg Property Company • The Johannesburg Fresh Produce Market • Johannesburg Tourism Company • Metro Trading Company 10

11. Jozi Equity Fund Funding SMME City Suppliers • Implementation of the Jozi Equity Fund has started. • Access to finance is key challenge to SMME growth • Joburg 2030 Strategy identified importance of developing SMME sector toward achieving 9% economic growth target by 2014 • City has identified a funding gap and need to support its own projects by developing SMME / black owned businesses as suppliers • Equity funding as opposed to debt

12. Dirang ba Bohle Community Micro Finance • Micro finance institution (MFI) • To assist emerging entrepreneurs in Joburg have access to financial services and credit extension • Intl. experience shows that countries that use MFIs as vehicles to bring finance to the poor have economically benefited in that these institutions contribute to socio economic development of their citizens. • Benefits include • enhancement of entrepreneurship, • enabling marginalized citizens to engage in economic activities and become more self-reliant • Increased employment opportunities • Increased household income • Wealth creation

13. Soweto Empowerment Zone Soweto SMME Industrial Park • An industrial park to support, promote and formalise Soweto-based SMMEs situated at the major gateway to Soweto • Cluster model – promoting links to established businesses • Not an incubator • Strategic approach • Focus on attracting and developing a cluster of related and complementary businesses • City supplier contracts to be directed toward SEZ clusters

14. Inner City Property Scheme Economically driven regeneration • The Inner City Property Scheme financial and business model was approved in April 2008 • Reconfigures and upscales the “Better Buildings Programme” • Promoting BBBEEE through advancement of black property investors and community partnerships • Reduction of property arrears through effective revenue management

15. Skills Hubs Developing Skills • The Skills Strategy was successfully launched on the 12th August 2008 • Skills programme successfully completed the assessment of 2,042 RPL artisans which allows them further career advancement. • Skills Hub Initiative seeks to • accurately map target markets and match candidates with specific appropriate market opportunities. • Provide holistic integration of need for skills development in various economic growth areas • Consolidate existing skills development efforts and share resources • ICT Skills Hubs aim to • Develop ICT skills at locations close to poorer communities (Orange Farm, Yeoville) • Provide desktop services such as printing copying faxing email and internet services to community • Provide business training and support for local businesses • Incubate close corporations providing above services

16. BPO Precinct Customized Business Process Outsourcing District • Joburg competes with major international destinations that have built customized BPO districts, including infrastructure and incentives to attract FDI (India, Philippines, India & Mauritius) • Inner City offers favourable conditions for BPO precinct development: • Tax incentives to promote inner city regeneration • Good infrastructure • International gateway with traffic of 13 million people annually • Strong clusters of vendors and institional headquarters • Major projects that support BPO (Gautrain, Rea Vaya) • Access to skills facilities (such as Wits, UJ) • DED intends to take aggressive marketing approach to attract FDI and realize BPO job creation opportunities

17. Joburg Broadband Network A Municipal Broadband Network • Purpose of project • To implement a municipal broadband network to aid economic development through the reduction of telecommunications costs and the delivery of government services to Joburg residents • To establish Joburg as a digital smart city • Strategy • City to provide access to municipal property and assets • Service provider contracted to build and operate infrastructure • City has invested in infrastructure to support network needs of the City • Objectives • Increase and accelerate access to digital services through the massification of affordable broadband • Prepare for 2010 ICT needs • Stimulate socio economic growth

18. Export Development Enabling Emerging Enterprises Go Global • 154 SMME’s graduated in the Export Development Programme. • Targets businesses and entrepreneurs in identified key sectors who have the potential to enter the export market • Provides exporter training and education & institutional support • Assistance with SMME competitiveness and export-readiness • Assisting and facilitating SMME participation in export related activities: • International trade fairs • Exhibitions • Trade Missions

19. Urban Development Zone Joburg UDZ • Re –launch of the UDZ whose targets have been exceeded and whose cumulative figures now stand at over ZAR 5.7 billion. • Major cities from New York to Birmingham have experienced periods of urban decay – but they have not stayed that way. Johannesburg, particularly its core inner city region has not been immune from similar negative economic factors • To reverse this DED is promoting economic and fiscal incentives to investors in the Inner City and surrounds • UDZ incentive is an accelerated depreciation allowance to encourage private sector investment in construction, extensions, additions, improvements or refurbishment of buildings in specific zones

20. 2010 Soccer World Cup 20

21. 2010 Soccer World Cup 21

22. Achievements • 550 traders from Grow Your business Project run in conjunction with Wits University also graduated last quarter. • 700 students have been certified for BPO call centres • Launch of Joburg Shopping Festival • Secured hosting of Miss World pageant for 2008 and 2009 • Developed an Economic Development Policy and Strategy Framework

23. Achievements • Executive Mayor of Johannesburg, Councilor Amos Masondo, unveiled the City five year Soweto Economic Development Plan • The Greater Soweto Business Forum has been constituted; • The Annual Soweto Festival took place between 24 – 28 September 2008; • 69 EPWP projects are in the implementation stage and a total of 7108 job opportunities have been created

24. Achievements • The City's Broad Based Black Economic Empowerment Policy and Strategy Framework • The interim Broadband Policy Framework was approved in March 2008 which will regulate access to City's infrastructure by electronic communications operators. • Johannesburg Annual Economic Review 2008 • Council approved the implementation of the Jozi Equity Fund and the Dirang ba Bohle Micro Finance initiatives.

25. Thank You Proposed Logo