By Anish Abraham
The second State of the Cities report provides a comprehensive analysis of the country's urban centres, identifying the strengths and weaknesses in the way various municipalities manage urbanisation and economic activity.
South African Cities Network, a grouping of local cities, has released its second State of the Cities report, a comprehensive document that outlines the vast developmental challenges facing the country's largest urban centres.
The nine municipalities that form part of the Cities Network are the City of Johannesburg, Tshwane (greater Pretoria), Ekurhuleni (former East Rand), eThekweni (greater Durban), Nelson Mandela (greater Port Elizabeth), Cape Town, Buffalo City (greater East London), Mangaung (greater Bloemfontein) and Msunduzi (greater Pietermaritzburg).
The network was formally registered in October 2002, and the first State of the Cities Report was released in 2004.
The report considers various developmental issues around urban management, including population dynamics, economic activity and productivity, spatial development and service delivery.
It seeks to look into cities in a more holistic manner, stating, "Cities are more than their local authorities – they are spaces shared by business, communities, residents and other spheres of government."
Population and economy
One of the findings is that city populations have grown considerably since the 90s, at an average annual rate of almost two percent. Though it is slower than the growth of South Africa's cities in the previous 50 years, the decline is in line with the slowdown in the national population growth rate.
The decline is blamed on reduced fertility rates, as well as the impact of the HIV/Aids pandemic.
According to the Human Sciences Research Council, the City of Johannesburg has the highest population, at 3,29-million, followed by eThekweni (3,16-million). Ekurhuleni is in fourth place (behind Cape Town), with a population of 2,52-million.
The report warns, however, that despite the slowdown in population growth, the rapid decline in average household size will result in a significant increase in the number of households within municipalities.
The City of Johannesburg leads in that regard, being the only city with more than a million households, with an average household size of 2,9. Second and third on the list are the eThekweni Metro (861 540 / 3,7) and Ekurhuleni Metro (836 004 / 3).
"It will have serious implications on municipal service delivery," the report states.
Economic growth in the nine cities has also been higher than the national average, coming in at 3,8 percent between 2001 and 2006, compared with the 3,7 percent for the national average. However, most of this growth has been concentrated in Gauteng, with the rate varying between 4,7 percent and 5,3 percent.
Affirming that the country continues to shift towards a services-based economy, the report adds, "Growth in cities is particularly driven by the commercial and financial sectors, but also construction and transport in several cases."
The major sectors contributing to Joburg's economy include Finance (at 33 percent), Commerce (18 percent) and Services (17 percent).
Joburg has also been able to make a dent in local unemployment levels, with the rate said to have declined from 26 percent in 2001 to the current level of 23 percent. The number of unemployed persons is recorded as 366 371.
According to the report, the nine cities have experienced a good increase in property values, water and electricity connections and access to formal housing for the previously disadvantaged. With the exception of Ekurhuleni and Cape Town, however, there was a drop in the percentage of households benefiting from refuse collection.
A sustainable city
The report highlights the inefficiencies in South African cities, caused by apartheid spatial planning, which focussed more on racial segregation than economic benefits.
"South African cities are characterised by sprawl, which is unsustainable due to high infrastructure costs, high transport costs and under-utilisation of scarce land," the report states.
Many municipalities are seeking to redress the situation through densification and inner-city renewal programmes, bringing residents closer to areas of economic activity. As a fiscal incentive, investors who move in and upgrade properties within designated Urban Development Zones will benefit from tax rebates.
Government also aims to make communities more inclusive, through its Breaking New Ground Programme. In terms of the programme, newly created communities will be mixed-use, mixed-income developments, supported by adequate social infrastructure such as clinics, schools, parks and libraries.
The report criticises municipalities for having seen HIV/Aids as the sole responsibility of health departments. "This narrow interpretation obscures the complex inter-relationships between the pandemic and population movements, urban poverty, access to housing and services – and the increasing inability of the poor to pay for those services," the report explains.
However, Cities are now taking a multi-sectoral approach to combating the pandemic, with increased political and administrative co-operation and support.
Economy
Another legacy of apartheid is the lack of an efficient, affordable and safe form of public transport, with residents having to depend on minibus taxis, buses and commuter trains, while those who can afford it opt for private vehicles.
The report shows that while rail usage has remained constant, bus use has declined, the biggest gainers thereof being the taxi industry. Despite being the transport of choice for most of the poor living on the urban periphery, taxis are unsubsidised and lead to high costs for commuters.
According to Joburg's Integrated Transport Plan, 46 percent of commuters in the metro spend more than 10 percent of their monthly income on transportation costs.
"Car ownership is also increasing rapidly, worsening conditions on the roads," the report also warns. For the past two years, South Africans have been buying a record number of private cars monthly.
Municipalities have to address public transportation, through their Integrated Transport Plans, while newly created Metro Transit Authorities will be responsible for transport plans and policies, financial planning and promoting public transportation.
Sorting out public transport is all the more vital with the hosting of the Soccer World Cup in 2010, with up to 350 000 ticket-holding tourists expected to flock to major centres, while a further 150 000 visitors from other African countries could be expected to attend outdoor "fan-fests".
"At the peak of World Cup 2010, it is expected that up to 40 percent of all international visitors (up to 200 000 people) will be in Gauteng at any given time," the report states.
The report also calls for greater co-operation between municipalities, large companies and parastatals, to get freight off South Africa's roads and on to the railways.
It is not all doom and gloom though, as many of the larger municipalities are rising up to the challenges they face. "10 years ago, a few urban centres in South Africa had explicit economic development programmes. Today each Cities Network member has some form of an economic development strategy," the report states.
Interventions have also been put in place to support the ‘second economy', including affirmative procurement policies, SMME support initiatives, skills development, as well as the promotion and management of informal trading.
Metros have also looked into wireless broadband solutions to reduce internal telecommunications costs, while others are even considering reselling bandwidth on to residents, bringing down the associated costs and making business easier.
Smaller municipalities still face problems, though, as their economic development units consist of only one or two officials and do not have sufficient budgets.
Ten challenges
The vital role played by the country's urban centres can be realised in that 21 key urban areas, covering two percent of land, are responsible for as much as 70 percent of South Africa's economic output.
In conclusion, the report puts forward 10 main challenges facing the nine cities within the network, as well as other major urban centres in the country:
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