Note to Editors: The following remarks were delivered by the MMC for Development Planning, Cllr Belinda Echeozonjoku, on behalf of the Executive Mayor, Cllr Mpho Phalatse, at the 132nd AGM of the Johannesburg Chamber of Commerce and Industry.
Programme Director
JCCI CEO, Ms Bernadette Zeiler
President, Mr Shawn Theunissen
Vice President, Ms Connie Mashaba
Vice President, Mr Duncan Bonnett
Honorary Treasurer, Mr Aurelio Grech-Cumbo
Distinguished Guests
Good afternoon
It is a pleasure to be afforded a platform to address the 132nd Annual General Meeting of the Johannesburg Chamber of Commerce and Industry – allowing us to deliberate on the challenges faced by businesses in the City of Johannesburg, and the opportunities that the Multi-Party Government is unlocking.
This is a challenging time for all companies, particularly in the face of and the costs associated with rolling blackouts (which were again activated this week), taxes, the cost of utility services, safety and security, access to transport, red tape and outdated policies that impact on the cost of doing business.
The aforementioned issues facing businesses like yours, is why the Johannesburg Multi-Party Government has, as one of its seven Mayoral Priorities, identified making Joburg a business-friendly City.
The seven Mayoral Priorities, which work transversally or across Departments and Entities, are:
1. A City the gets the basics right
2. A safe and secure City
3. A caring City
4. A business-friendly City
5. An inclusive City
6. A Well-run City
7. A Smart City
With our efforts focused on these key areas, we are confident that we can, and we are determined to build a City of Golden Opportunities.
Overall, despite pockets – large and small – of excellence, Joburg is a broken City that we are repairing and rebuilding.
We have seen great regression over the last decade. We have also seen many of our residents leave the City - migrating to towns and cities that can among other things, keep the lights on, keep water running, and guarantee their safety and security.
With this, they have taken their businesses, their families and much-needed municipal revenue with them.
Programme Director,
We do not only want businesses and people to stay in Joburg, but we also want those who have left to come back.
I want my children and your children to have access to the best services and opportunities that Joburg has to offer.
I want to see Johannesburg thrive; and we have a once-in-a-generation opportunity to make this happen, and we – government and business - all have a duty to make this happen.
With our R77,3-billion now active for a month, we are starting to see and feel a different Joburg.
We have allocated R1,2-billion of this to City Power’s capital expenditure, and a further R1,6-billion to its operational budget.
We realise that building an economy, a City – a City of opportunities – requires a reliable, affordable, and sustainable supply of energy.
This money will go towards stabilising and upgrading the City’s electricity infrastructure, so that we can bring IPPs on board within the next 18 to 30 months.
Distinguished guests, Johannesburg is the economic powerhouse of Gauteng, South Africa, and the entire African continent.
The City's contribution to the national economy is almost 16%, while it contributes to 40% of Gauteng’s economy.
This is the City where the money is and where the deals are made.
It's the first stop for any big-thinking business.
Everything you need to operate is here – the infrastructure, the finances, and the people. And now, you have the right government that wants to work with you and for you.
Johannesburg is the hub of South Africa and southern Africa's transport networks, particularlly road and air.
It has a large concentration of some of the most highly-skilled people in the country and in Africa.
The City of Johannesburg is a provider of economic infrastructure, ladies and gentlemen.
It has an important place in the structure of the enablement and support of economic development among its public sector partners, both government and public sector agencies.
It has unique assets, resources and regulatory responsibilities giving it a particular kind of leverage and opportunity.
Distinguished guests;
Major challenges confronting Johannesburg today include those involving joblessness, crime, poverty, overcrowding, housing, traffic, the climate crisis, public education, and inequality in access to resources and opportunities.
Crime and the global economic slump and deteriorating services are a big challenge. But under the city’s nine-party Multi-Party Government the services are starting to improve.
Several of these challenges stem directly from the fact that large numbers of people are living in a relatively small geographical area of space.
Amongst our biggest challenges has been implementing a coordinated infrastructure upgrading programme that reduces the costs of maintenance and operation, and thereby reduces the cost of rates and taxes and other costs of doing business.
It also requires a very well-devised demand management strategy and energy and water conservation programme to reduce utility services costs. These interventions will require large amounts of public sector financing and the additional mobilisation of private finance will be essential.
Distinguished guests;
Johannesburg has a significant responsibility to the national economy: to sustain and improve business competitiveness; foster economic diversity and resilience; and promote employment and enterprise growth.
We have the responsibility of improving the well-being of over 6 million residents and their communities, particularly those who are economically vulnerable and do not have rightful access to the economy and meaningful work. This includes the large number of youth out of work, unemployed workers, the recently retrenched because of the downturn in the economy, and those structurally or effectively de-skilled or unskilled.
In relation to economic infrastructure the local economy faces an enormous backlog in infrastructure spending: in the repair and maintenance and replacement of existing infrastructure.
But as previously mentioned, we are prioritising our spend on City Power infrastructure.
Furthermore, in OpEx numbers, the following amounts have been allocated for economic infrastructure programmes:
• R918-million for roads
• R795-million for water
• R600-million for sanitation facilities
We also face a significant backlog in the provision of new infrastructure to parts of the city that have previously had a poor level of service or are un-serviced.
There nonetheless exist opportunities for the private sector, as we work with some of the sharpest minds at National Treasury to fast-track our Private Public Partnerships framework.
Distinguished guests;
The City’s primary regulatory authority in the economy is related to land-use planning, issuing land-use rights and environmental impact approvals. It can use these to shape our urban structure and is indeed doing so, to induce greater urban efficiencies.
However, to do this effectively to do this, we need to understand the spatial economy: flows of goods and services, and most importantly, the detailed structure and motivations of the property market in its various segments.
Distinguished guests;
In leading the largest multiparty coalition (made up of nine diverse parties) in the country, we have achieved the following during our short term in office:
The Multi-Party Government has approved a R77,3-billion budget.
Through Operation Buya Mthetho (Bring Back the Law), we have taken a tough stance on delinquent ratepayers, which has enabled us to surpass our target of collecting R4-billion in revenue each month. Therefore, bettering our ability to our job as the local government and ensuring that residents get value for money from the City.
We have approved the building of 10 new clinics to care for residents.
Trained 1800 new JMPD Officers and deployed them to key economic nodes of the City’s seven Regions.
Adopted a new hybrid work policy
Built stronger relations with Provincial and National Governments in strategic areas like safety and infrastructure protection.
Convened a successful two-day Joburg Energy Indaba, followed by a study tour of Cape Town. This is the start of reducing our dependency on Eskom.
We appointed new and capable boards of the City’s 13 Entities.
A Re Sebetseng, the Mayoral Accelerated service delivery programme for a cleaner and safer Joburg has been Region B, D and G #AReSebePtseng campaigns for a cleaner and safer Joburg.
We staved off the attempted collapse of the City’s anti-corruption and security unit, the Group Forensic and Investigation Services (GFIS).
We are building stronger bonds with residents, business, and other City stakeholders, well-knowing that for Joburg to flourish it requires us all to roll up our sleeves and get to work – together!
Esteemed friends and partners of Joburg,
We need to grasp the opportunities, now, and with both hands.
We all want to see Joburg thrive as a global city.
I thank you!
ENDS
For media queries, please contact:
Mabine Seabe
Director: Mayoral Communication
Private Office of the Executive Mayor
084 677 7851
04/08/2022
