Real Estate Investor Magazine South Africa Real Estate Investor Magazine - August 2017 | Page 13

HERMAN MASHABA
The rebirth
The Johannesburg CBD has long been a headache for
those who need to make use of the space. Mashaba
explained it well in May when he said that “the
Johannesburg inner city has suffered from gross neglect,
with crime, drugs and filth becoming commonplace.”
In a comprehensive effort to turn this around, the
City is allocating R131 million towards an increased
JMPD visibility ‒ particularly in those areas that have
been identified as crime hotspots. Upon entering office,
the Mayor discovered that the City was operating with
a JMPD shortage of 1  500 officers. R31 million was
then allocated towards recruiting and training officers
to make up for this.
Inner‒city housing is another key factor in revitalising
the CBD. R9.5 million is being spent on providing
shelters for the displaced and poor, while a target of 2 000
has been set for the construction of rental accommodation
units in the 2017/18 fiscal year. Another 5 000 mixed‒
housing development units are also being planned.
The Johannesburg Social Housing Company
(JOSHCO) oversees the provision of “affordable
housing to families who would otherwise be unable to
afford a home.” Commonly referred to as “gap” housing,
this refers to households who earn between R3500 and
R7500 a month. In order to do this, the City plans to
not only build new developments, but also to “purchase
inner‒city buildings and undertaking repairs and
maintenance of City hostels and flats.” This is being
supported by a commitment of R219 million in the
adjusted budget announced in May.
A global trend in inner‒city redevelopment and
rejuvenation has shown us that a CBD cannot be revived
with housing alone. The aforementioned SME Hubs
have a major role to play, with the JOSCHCO plans
to redevelop existing infrastructure providing much‒
needed affordable commercial spaces. The SME Hubs’
goal is to assist in excess of 2 000 SMMEs a month by
the end of Mashaba’s term. This will result in a four‒fold
increase in the current size of the programme.
JOSHCO is allocated an operating budget of R152
million and a multi‒year capital budget of R1.9 billion,
with the aim of providing these affordable solutions. The
Site and Service Housing Development Approach is also
receiving attention, with plans to provide beneficiaries
with fully serviced plots on which to build their own
homes. This is made possible with a R66 million
allocation in the 2017/18 budget.
A call for efficiency
All of these plans are in vain if not coupled with increased
efficiency. One way in which Mashaba is looking to
achieve this, is through skills audits. The first phase
showed “massive potential within the City to develop
www.reimag.co.za
individuals with the skills necessary for a competent and
professional staff capable of delivering quality services
to residents.” In conjunction with this, the Mayor’s
office has also launched a full‒fledged attack against
corruption. As at the 30th of June 2017, 1  920 cases
of corruption has been reported. 314 People have been
arrested, over 100 employees suspended, 12 resigned,
and 7 were dismissed. The internal investigations unit of
the City has, to date, exposed and prevented fraud and
corruption estimated at over R2 billion.
The Mayor admits that, in order to reach the targeted
5% economic growth, unnecessary red tape must be cut. 20
Key performance standards have been identified, including
the fast‒tracking of building plan approvals, rezoning
applications, the installation of new meters, and clearance
certificates. R3.6 million was allocated to Development
Planning, allowing these points to be addressed.
The City’s fight against potholes has been well‒
documented. Over the past year the City has fixed
117,483 potholes, resulting to a significant increase of
26,945 or 22% more pothole repairs compared to the
previous period (2015/2016).
An additional R88 million in funding was allocated to
the Johannesburg Road Agency in the adjusted budget.
In line with this, R51 million was also earmarked for the
purchase of new busses for Metro Bus, with an additional
R5 million being spent on the refurbishment of the
current fleet. As the Mayor explains, road infrastructure
is a vital part of improving the city, since “road and
transport infrastructure is a way for people to access jobs,
a way for businesses to access markets and one of the
ways we create connected and integrated communities.”
The city of opportunity
As we have seen in cities like Cape Town, an effort to
rebuild a city brings about many opportunities for investors
and developers. An example of this is Propertuity. With
the aim of creating affordable, inclusive, and sustainable
residential and commercial spaces in South Africa, the
developers are making strides in bringing life back into
city centres in Johannesburg and Durban.
There is a worldwide movement towards more
sustainable and collaborative cities, with a renewed focus
on the importance of integrated transport, residential,
and commercial sectors. In order to do this, however,
drastic measures need to be taken.
While it remains to be seen if the City of Johannesburg
will be able to rise from the ashes, the Mayor’s passion
for change is infectious. This kind of thinking is what
will, in time, drive investors to the city.
SOURCES
City of Johannesburg
AUGUST 2017 SA Real Estate Investor
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