STATEMENT BY THE MEMBER OF MAYORAL COMMITTEE FOR DEVELOPMENT PLANNING & URBAN MANAGEMENT CLLR RUBY MATHANG ON THE OCCASION OF THE 4th ANNUAL HALALA JOBURG AWARDS AND JDA 10 YEAR CELEBRATION.
Programme Director
Members of the Mayoral Committee
Fellow Councillors
Members of the Johannesburg Development Agency Board
Halala Joburg Awards Nominees
Members of the Johannesburg Development Agency Management Team and staff
Managers and Officials of the City of Johannesburg
Property developers
Members of the Media
Distinguished guests
Ladies and Gentlemen
Ten years and three months ago the Johannesburg Development Agency was registered as a company that is wholly-owned by the City of Johannesburg. The primary objective for the JDA initially was to promote area regeneration and growth through the development and promotion of efficient business environments by unlocking the economic potential of defined geographical areas. At that time, the focus of the JDA was exclusively on turning the inner city around to make it into a lively centre of formal and informal business, the creative arts and residence for inner city communities.
In these ten years the Johannesburg inner city has been transformed. In the 1990’s, the historic city centre was widely regarded as a no-go area for formal business and tourists alike, and for an economic hub of its size and importance, the inner city was painfully short on facilities, attractions and events.
Visitors from other parts of the country and abroad, went out of their way to avoid South Africa’s largest central business district. The City of Johannesburg was faced with an immense developmental challenge, compounded by severe financial constraints. To restore confidence in the inner city, the Municipality needed to find ways to encourage the private and public sector to invest in the future of Johannesburg. Urban regeneration became an important city development strategy.
While many challenges remain, the overall urban regeneration results achieved by the City of Joburg are clearly evident and extremely positive. Investment in the inner city and Soweto has blossomed, and new transport networks have revolutionised our approach to public transport. Johannesburg has also asserted itself as the cultural hub of Southern Africa as new iconic public structures, buildings, squares and art-works have emerged from the urban landscape. The vibrant, confident and modern Johannesburg that hosted the FIFA World Cup final in 2010; serves as an important reminder of all that has been achieved and what the City of Johannesburg should strive to sustain.
The Johannesburg Development Agency has played a critical role in facilitating and investing in the transformation of Johannesburg. Many of the landmark initiatives and buildings that characterise the new Johannesburg, would not exist had it not been for the funds and support provided through the JDA. The eland that graces Jan Smuts Avenue; the iconic Nelson Mandela Bridge that connects Braamfontein and the inner city; the award-winning Constitutional Court buildings; the Ellis Park sports precinct; Newtown cultural precinct; and the Rea Vaya bus rapid transit system that brings the people of Johannesburg together. These and many more projects are all testament to the efforts of the JDA team, its partners and service providers.
The JDA has been involved in more than 50 developments in its first 10 years. These projects extend across all regions of Johannesburg and all aspects of city life – from the provision of buildings and transport infrastructure to the installation of parks and art works. In some cases, the JDA facilitates funding and manages the projects directly, and in others, it works as an active partner with other public or private sector investors.
The JDA has facilitated and managed investment in critical commercial and cultural infrastructure projects in order to stimulate the growth and development of business and tourism in specific urban localities. This includes support to specific sectors of historical importance to Johannesburg – such as the fashion and jewellery industries. One of the first tasks given to the JDA was to transform the old Johannesburg Fort and Prison into the home of South Africa’s highest court. The resulting Constitution Hill development is now a major cultural, historical and tourist attraction.
In addition to new investments into buildings and infrastructure, the JDA aims to turn back urban decay in some of Johannesburg’s more established urban nodes and streets. The redevelopment and regeneration of these areas requires a balance between residential and non-residential development as well as socio-economic support. The JDA’s efforts thus far have focused on restoring the inner city and it surrounds, as well as parts of Soweto, Orange Farm and Diepsloot.
The Braamfontein area in the Johannesburg inner city provides a clear demonstration of how well-targeted investment, local government support and a strong partnership with the private sector can be deployed to turn around urban decay. Since 2002, the City has since invested more than R55 million into creating pedestrian-focused and other public spaces, encouraging the development of mixed-use facilities and promoting a clean and safe environment for the area’s residents and visitors. The area is now awash with beautiful open spaces, tree-lined streetscapes, public art and is well-lit and clean. Braamfontein remains the fourth-largest node for office space in Johannesburg and over the first five years of City’s support, vacancy rates improved by more than 30%.
The JDA also provides cross-cutting support to a wider spectrum of city residents through investment in the city’s logistics infrastructure – forging connections between nodes and building effective transport linkages in JDA developments. In the lead up to the 2010 FIFA World Cup, the JDA was given the responsibility for the management of several important transit developments that will substantially enhance the commuter transport system in Johannesburg, including the implementation of the Rea Vaya Bus Rapid Transit system.
In its first ten years of existence the JDA has managed investments of over R5.8 billion. The JDA receives funding from the City for its expenditure on capital projects as well as its operational expenses. Generally, funding for JDA capital projects comes from four main sources: The City of Johannesburg, Provincial government grants (mostly through Blue IQ), National government grants (including the Neighbourhood Development Partnership Grant and the Public Transport Infrastructure and Sytems grant), and ad hoc funding from other public and private sector partners.
Public investment made and managed by the JDA seeks to support and attract private investment into strategic parts of the city. Through its urban renewal activities, the JDA works closely with private investors to upgrade urban infrastructure and in doing so, seeks to lower the risk and cost of doing business through Area Based Initiatives (ABIs). The objective of these ABIs is to create a neighbourhood identity, raise land value; engage the private sector; create new land uses and sub-markets and put in place structures that leverage private sector finance.
Between 2001 and 2008, total private sector investment in key JDA development areas (measured by property transactions) totalled R7.5 billion, against total JDA investment of R393 million. This excludes private investment of around R5.8 billion in refurbishment and conversion activities that took place in these areas. It is clear, the efforts of the JDA have increased the attraction and lowered the risk of investment in a wide number of previously depressed locations; and this has resulted in a substantial influx of private capital and business activity.
The development of integrated transport links is also likely to have a wide ranging impact on private sector development, not only along the corridors where direct investment has occurred, but through the city-wide efficiency gains that will emerge from the implementation of a comprehensive and effective transport system. It is too early to measure the impact of these sizeable initiatives.
Although the JDA was initially established to promote area-based development through inner city regeneration projects, the City of Johannesburg quickly appreciated the need to expand the role of the JDA to include ‘development facilitation’. The Newtown experience clearly justified this shift in thinking and approach. In general, development facilitation refers to the planning, designing, coordination, consultation and facilitation functions undertaken by a development agency during its area based interventions. In the case of the JDA, development facilitation has become a key aspect of project implementation across all of its locations and functions. The achievements of the JDA over the last 10 years are best seen through the eyes and feet of city residents and visitors – the true value of the parks, entertainment, lighting, art-works, paving, museums and infrastructure that has been delivered over this period cannot be measured in numerical terms.
The City of Johannesburg has been transformed since 1994, and over the last decade, the JDA has played a key role in enhancing the image, efficiency and profitability of the City across key urban nodes throughout Johannesburg. The JDA does not and cannot work alone – but in working with public and private partners, and the people of Johannesburg, it has helped to develop areas that are greener, friendlier and more active than they were before the JDA got involved. All of this has been achieved at relatively low-cost and with relatively high impact. In taking Johannesburg to its stated goal to be a World Class African City, the achievements of the past will need to be replicated, expanded and sustained; and many more obstacles will need to be overcome. The City of Johannesburg is fortunate to have at its disposal a team of experienced, skilled and committed development practitioners in the JDA.
Tonight as we celebrate inner city regeneration in Johannesburg, I challenge you to reflect on what we have achieved together, how we have done this, and how we can sustain these results and take the inner city into a bright new future. Let us remember that the City alone can clearly not rejuvenate all areas of decay, hence the need to identify those stakeholders who through their investments and effort are contributing to significant regeneration in the Inner City and elsewhere through the Halala Joburg Awards Programme.
The Halala Joburg Awards give recognition to pioneering people, projects and places that inject momentum into the City’s regeneration efforts, and strive to improve the quality of life in the inner city and ensure that the vibrant heart of Joburg continues to beat a steady rhythm of growth and development.
Since inception the Halala Joburg Awards have recognised 21 companies and individuals. The number of nominations received grows each year which is a major indicator of that the inner city has regained investor confidence. It is my understanding that the very high calibre of nominations we receive each year makes the adjudicators’ job a difficult because every year there are better and better developments taking shape in the inner city.
I would like to express our gratitude as the City of Joburg to all investors in the inner city, all previous Halala Joburg Awards nominees and laureates for believing in the potential of the inner city and making the inner city what it is now. Your passion and commitment to the inner city is commendable. Not only do you restore historically significant buildings and find creative ways of reinventing spaces, you also introduce sustainable and environmentally sound building practices. Your belief in making this City work is what makes you our invaluable partners. The City’s commitment to the inner city partnership is still unwavering. The new mayoral term will see to the continuation of the engagements with our partners and the implementation by the JDA of the regeneration projects funded through the inner city fund.
To me and the City of Johannesburg it does not matter whether you walk out of this ceremony with a trophy in your hand, to us you are all winners. And thank you for making Joburg great!
Congratulations to the Halala Joburg Awards 2011 nominees!
Thank you.