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Jason Ngobeni Executive Director . 11 March 2009. Agenda. Overview of DED Catalytic projects Some key achievements of DED Q&A. Overview. Department of Economic Development is command centre for economic growth in the city: Engage proactively with all role players;

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Jason Ngobeni

Executive Director

11 March 2009

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

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







economic development goals
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


towards 9 economic growth
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


departmental overview
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
departmental overview8
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


Mining and Beneficiation

SMME Development and Support Directorate

Enterprise Development and Support

Skills Development

Financial Assistance and Support

Departmental Overview


departmental overview9
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


departmental overview10
Departmental Overview
  • Municipal Owned Entities Support and Administration
    • Johannesburg Property Company
    • The Johannesburg Fresh Produce Market
    • Johannesburg Tourism Company
    • Metro Trading Company


jozi equity fund
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
dirang ba bohle
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
soweto empowerment zone
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
inner city property scheme
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
skills hubs
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
bpo precinct
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
joburg broadband network
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
export development
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
urban development zone
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
  • 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
  • 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
  • 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.
thank you
Thank You

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