Upgrading for Growth

Ekurhuleni, South Africa

Duma Nkosi, Executive Mayor

Neville Chainee, Executive Director, Housing

Location

Ekurhuleni: City of Potential• Adjacent to Johannesburg

• Fastest growing city in South Africa – 4.12% per year

• Contributes more than 20% of the gross geographic product of Gauteng, South Africa’s most productive province

• 1,889 square kilometres

• Population nearly 3 million

National Policy Framework• A pro poor agenda – application of upgrading for

growth principles in all projects• Government policy to upgrade all informal

settlements by 2014• Capital subsidy of about $8,000 per plot for low

income earners, either for contractor-built or self-built house and infrastructure

• Achieve spatial integration and mixed income communities

• Promote urban renewal to create sustainability

City Development Strategy• Integrating marginalised communities• Basic water supply and sanitation by 2010 and

electricity by 2012• Developing sustainable solutions, especially

energy• Mining and heavy industrial legacy - treatment

and rehabilitation of environmentally hazardous areas

• Effective land management – need to balance public and private interests

• Mixed Land Use Concepts

Comprehensive Sustainable Human Settlement Plan

• Matching backlogs, informal settlements and waiting list for suitable land for housing

• Integration of information and future plans with other line departments (Engineering and Social Infrastructure)

• Funding model – 8 year roll out budget plan

Informal settlement challenges in Ekurhuleni

• 104 informal settlements

• 180 000 households in informal housing (45 000 on serviced stands but still in shacks)

• 217% increase in households earning zero income between 1996-2001

Informal settlements

Red areas represent the informal settlements in Ekurhuleni

An informal settlement –

designed and developed by the

residents

Making the best of difficult circumstances

Upgrading for Growth Project

• To develop communities through promoting the five development capitals:– Social Capital– Human Capital– Physical Capital– Financial Capital– Natural Capital

• To use upgrading of infrastructure and housing as springboard for– Economic empowerment– Gains in health and welfare of residents

Household Survey: Findings • Almost 50% of households want to remain

where they are currently located • Approximately 30% want to move closer to the

city centre• 50% of households consist of 1 or 2 persons• 34% unemployed• Only 4% self employment• Low skills – 9% completed secondary education,

under 2% with any tertiary education

Upgrading for Growth: Implementation principles

• Must be sustainable• Linkages between human development and

physical development• Integrate energy, economic development and

housing needs• Should explore the potential within the current

legislative environment to maximize potential for innovation – need to review current standards and regulations

• Requires a re-think of current “silo” structure of municipal departments

UFG Settlement Design Principles

• Minimise disruption• Maximise economic

opportunity• Maximise linkages• Encourage participation• Permit variety and freedom• Ensure that solutions are

affordable• Promote economic

development• Promote energy efficiency

Promote Economic Development

• Leveraging investment by major companies – Outsourcing– Linkages with other companies

• Supporting small business with grants and technical assistance

• Create an enabling environment for small business– Permitting home-based enterprises etc– Appropriate town planning principles and practice

• Training

Promote Energy Efficiency

• Explore appropriate energy sources for the poor

• Assist households to use energy more efficiently– More efficient appliances– Low cost solar water heating

• Support passive energy saving methods– Ceiling insulation– Correct orientation of house

UFG Key Issues

• Community workers to bridge gap between informal settlement residents and municipality

• Creation of a human settlements department• Improve collaboration between sectors of

housing, economic development and energy • Address land management issues• Migration and urban growth• Role of local government in upgrading

Global lessons for South Africa

• Can upgrading be used to leverage other types of investment?

• How can local governments be most effective in stimulating LED?

• In your experience does it make sense to apply appropriate and fair building and planning standards equally to rich and poor?

• What has been the experience with housing vouchers and similar systems in self-help housing?