Report: SA cities doing well, but challenges remain

Thursday, June 23, 2016

Johannesburg - The latest State of the Cities Report, released by the South African Cities Network on Wednesday, indicates that South Africa’s major cities have been crucial in driving growth, generating almost two-thirds of the country’s economic activity and just over half of national employment.

SA cities are expected to be effective drivers of the National Development Plan, a 30-year development blue print for the country.

With job losses and the economic downturn affecting both the rich and poor, attention is increasingly focused on the role that cities play in stimulating and supporting economic development.

The report provides some good news though, as it shows that SA cities have significantly improved their service delivery and generally have good strategies in place to facilitate economic growth and social development.

Every five years, the South African Cities Network (SACN) reports on the state of South African cities through the State of the Cities Report. The report looks at city development and service delivery performance against local benchmarks and strategies, national urban development priorities, and international development targets.

The report influences national policy and strategy through messages about what is required to achieve the desired urban development outcomes. It is also used to advise and inform the plans and strategies of cities by generating specialised and technical evidence and insights.

Cities are drivers of economic growth

The latest report emphasises that cities are drivers of growth and development, which is why the Integrated Urban Development Framework (IUDF) places cities at the centre of achieving South Africa’s national development objectives. The IUDF, approved by Cabinet, will ensure that growth in urbanisation can still lead to liveable, safe, resource-efficient cities.

However, the report notes that the majority of urban dwellers are still socially, spatially, culturally and economically excluded. It also highlights the fact that cities are associated with promise and opportunity, but also exclude many people from participating in the economy and accessing opportunities in various ways. Yet, they continue to attract many from rural areas and less prosperous cities, towns and villages in South Africa and beyond. Not every one of them is lucky. Johannesburg, for instance, attracts more than 10 000 people every month according to Mayor Parks Tau. Not all of these people manage to find gold in the “city of gold”, as Johannesburg is known.  The result of this is increased poverty, unemployment, overcrowding and social tension.

The report notes the fact that most South African cities still largely benefit those who can afford to “buy” their rights and freedom to the city.

Recommendations

The report says while South African cities have been performing well and are relatively well-governed, they have functioned under dynamic and difficult circumstances, and therefore have had a mixed performance.

“South Africa’s institutions and systems need to be reconfigured in order to support positive urban growth – something that is echoed strongly in the Integrated Urban Development Framework. This includes a shared recognition and appropriate support across government for the role of cities; better intergovernmental cooperation across the public spheres and sectors; conducive relations with the private sector; the strengthened role and constructive participation of an active civil society; and greater use of the knowledge industry.”

The report adds that how South Africa is governed is critical in ensuring cities play a better role in the country’s success.

“Governance means all actors have a role to play, from the three spheres of government to the private sector, knowledge institutions and civil society.  Cities should be financed properly, make better use of revenue resources and improve their revenue collection. In all this, good leadership and management are critical, and special attention must be paid to sustainable development and encouraging active citizenship.”

Cities also needed to develop bold economic development strategies that include the informal sector and public employment programmes.  A need existed for cities, says the report, to expand economic activities and participation through innovation, skills development and targeted investments.  Importantly, cities should learn from one another’s strengths in order to improve their business climate.

Government welcomes report

The Department of Cooperative Governance and Traditional Affairs has welcomed the release of the report, saying it believes that it would “provide us with greater insights into how to build on our already successful cities”.

“The importance of the cities will also be a subject of discussion in October at the United Nations (UN) Habitat 3 Conference on Housing and Sustainable Urban Development, with the goal of determining the New Urban Agenda.

“Clearly, cities and urbanisation are firmly on the world's agenda. The UN indicates that 54 percent of the world’s population lives in urban areas. This is expected to increase to 66 percent by 2050,” a statement from the department said.

The department said the report provided an independent assessment of the state of cities.

“In many ways, it tells not only about the state of our cities but also gives us pointers to the future of our country. The challenges our cities face and the intervention we put in place to address these, will determine the future trajectory of our country’s growth,” said the department. 

The profile of major cities

When it comes to the profile of cities, the report notes that Buffalo City in East London has improved access to sanitation, but access to piped water and waste services has not increased.

The number of households that have access to sanitation services was at 91% in 2013.

Cape Town

The City of Cape Town has the second highest (after Johannesburg) percentage of households with access to piped water and refuse removal.

Of all the cities, Cape Town has the highest percentage of people who use the train but a large proportion of people still rely on private vehicles.

Between 2001 and 2011 the average household income doubled in Cape Town but the cost of living has also increased significantly. 

eThekwini

eThekwini has increased access to all basic services but the report says expanding access to water services in the rural outlying areas remains a challenge.

Between 2001 and 2011, eThekwini’s economy grew at a similar rate to that of Cape Town.

Mangaung

The report says in Mangaung, the economy is growing rapidly but unemployment remains a challenge and living in the city is becoming increasing unaffordable for many.

Mangaung has the lowest life expectancy of all the cities, which may be a reflection of its large rural areas.

Nelson Mandela Bay

The report notes that Nelson Mandela Bay has the lowest proportion of informal households compared to the other cities, having significantly reduced numbers between 2001 and 2011.

The city’s literacy level is comparable to the big metros. Life expectancy levels are the same as for Buffalo City.

City of Tshwane

Since 2011, Tshwane’s geographical area has tripled and now includes large rural areas, says the report. As a result, the city’s population density dropped from 908 persons/km2.

Tshwane has made progress in reducing poverty but inequality remains a challenge. – SAnews.gov.za