Information and Research

uShaka Marine Socioeconomic Impact Study

EThekwini has identified the need to understand in greater detail the impact of uShaka Marine Worlds’ development and influence on the local economy, by examining the impact on personal income, business production, tourism visitor numbers, sales, and tax collections in the immediate area and the Metro as a whole. In addition to this, eThekwini has identified that many impacts ascribed to uShaka are social goods, and these are not as easily defined by economic models, and rather require a detailed qualitative review process. Many of these social benefits (like domestic tourism services) do have an economic value, and this study sets out to identify the social impacts and provide realistic valuation to them.
This will result in a comprehensive Socioeconomic Impact Assessment of uShaka Marine World which will demonstrate the impacts of a range of variables in different sectors and spheres of the local economy. Currently the inception report has been written and the project is in its second month. Please note that final reports will be posted once they have been approved by Council.

EThekwini Municipality Economic Review for 2010/2011

Developing a comprehensive understanding of the total range of economic indicators is critical for eThekwini Municipality’s due diligence processes as well as strategic planning processes going forward. It is necessary for the review to contain a thorough overview of the economic data at hand, but it is also crucial that this data is assessed and interpreted so that current economic and social policy can be influenced by the results of the review.
The aim of the study is to compile a thorough socio-economic review that places eThekwini in a provincial, national and global context, providing information that will influence policy in a way that will benefit economic development and ultimately, job creation and poverty alleviation.
The draft report is now available and an Executive summary of that report can be found here.
River Horse Valley Residential and Business Estate (RHV) Socioeconomic Impact Study
The RHV is a joint venture between Tongaat Hulett Developments and the eThekwini Municipality. The 160 hectare development was initiated in 1994 with an application for the rezoning of agricultural land to mixed- and light industrial use. Following the rezoning of the land, a proposal was presented by Tongaat Hulett Developments to develop the area as a new economic node for the city. Construction of the R1.6 billion development began in April 2002. Some of the aims of the development were to enhance the concept of the activity corridor as a business node and bring the workplace closer to the workforce. It was also intended to unlock services in the northern corridor which at the time ranked highest in terms of backlogs.
The promotion of spatial efficiency with regard to KwaMashu, Inanda and Ntuzuma was also envisaged in addition to unlocking the development node of Phoenix. The link road was also meant to act as a catalyst to providing access and alleviating traffic congestion along the KwaMashu and Inanda arterial routes.
Following the successful sale of all the properties in the Riverhorse Valley Business Estate, the eThekwini Municipality funded this study to determine the socio-economic impact of this development on the immediate site, the surrounding area, and the eThekwini economy at large.
Some key findings are:

• The Estate generates annual rates amounting to R83.5-million and this will increase as the development of sites in the Estate continues.
• The development of the Estate supports densification and the development of critical infrastructure.
• Black Economic Empowerment and small business development targets have not been achieved.
• More than 17000 people are employed at the Estate with over 12000 being permanent and a contract workforce of just over 4000.
Please click here for the Full Report

 Participatory Planning LED

The eThekwini Municipality is in the process of initiating participative local economic action planning within informal settlement precincts within the Municipality. This forms part of a broader development programme focusing on all 17 zones within the eThekwini Municipality area. The Project Preparation Trust (PPT) has been appointed to provide advisory services for Local Economic Development (LED) plans and also to assist eThekwini Municipality in conceptualising, designing and initiating LED plans for six prioritised zones in the Municipality. The PPT has also been appointed to assist in appointing, briefing, orientation and induction of LED Practitioners undertaking LED plans, as well as to assist LED practitioners to set-up and manage the programme of pilot LED plans.
The objective of this project is to provide a conducive business environment for local economic actors in the 17 zones and move to a different mode of LED which is not primarily about projects and government funding, and focuses instead on creating more enabling environments for LED actors to do things for themselves. This project will also focus strongly on local participation and locally driven processes.
The overall objective of this project is to facilitate the development of empowering LED plans which:

Build local LED professional expertise and capacity, Maximise local enterprise and employment arising from public sector investment, Build on available local assets and resources, and Create a more enabling environment for both formal and informal economies in the eThekwini area. The Municipality has appointed service providers to assist the City in identifying the informal settlement precincts and sub-precincts in all the 17 zones.
The service provider that was appointed to identify precincts and sub-precincts in 6 piloted areas has submitted their final report and handed over the project. In December 2012 we had the induction of the three appointed service providers for the LED plans and on the 22nd January 2013 they will start their fieldwork for the period of 4 months. 
Economic Development through Sport
Sport began as a leisure time activity reserved only for a few declared amateurs, and in the 20th century it has become a social phenomenon for the masses. Sport is a dynamic and fast growing sector with an underestimated macro-economic impact. Sport has been recognised as having the potential of contributing to the development of individuals but it has often been forgotten as a tool for socioeconomic development and empowerment. The EThekwini Municipality’s Economic Development and Investment Promotion Unit and Sport and Recreation Unit commissioned a study on Economic Development Through Sport.
The purpose of the study was to explore sport in our local communities and schools to assess the extent to which it contributes to the economy of the City and also to the healthy lifestyle of our communities. Beyond exploring the economics of sports, this study is essential to assist the City in reviewing its involvement and approach to sports development, identifying and addressing challenges pertaining to the existence of a sports sector, as well as exploring the complimentary management responsibilities for this sector. Lazarus Development Co-operation Consultants were appointed to undertake the study and the report has been completed.
In December 2012 a close up session was held with the consultants and relevant stakeholders. After the African Cup of Nations (AFCON) Tournament we will have numerous workshops with different stakeholders to plan the way forward. 
EThekwini Business Fair

Durban Business Fair is held yearly in September during Celebrate Durban. Durban Business Fair gives a platform to SMMEs, Corporates, Government departments and Financial Institutions to showcase their products and services.

Objectives of the Fair are as follows:

• To affirm eThekwini Municipality’s commitment to SMME’s promotion and
• To showcase high quality goods and services produced by SMME’s in the
eThekwini region,
• To build a common understanding on issues affecting business operations,
• To provide a networking opportunity for SMME’s and national, provincial and
local support agencies and structures,
• To capacitate and prepare SMME’s for exposure in various ways of marketing
and selling their products and services.

Service Providers will be appointed to conduct the socioeconomic impact assessment of the Business Fair 2012. The adjudication of the suitable service provider to conduct the socioeconomic impact assessment will be done early August 2012. The Durban Business Fair will take place on the 23-26 September 2012 at the Durban Exhibition Centre.
The research was conducted during the pre-fair, fair and post fair phases with the SMMEs that participated in the event. The inception report has been submitted and all data collection is complete. The draft report will be submitted on at the end of January 2013, and following consultation with key stakeholders the final report will be complete by the end of February 2013.
Durban Tourism Baseline Study

The Economic Development and Investment Promotion Unit and Durban Tourism are working together to produce a Tourism baseline study for eThekwini Municipality. The City of Durban has recently been identified as the city that will grow tourism the fastest in Africa in terms of visitor numbers and expenditure, according to a MasterCard Global Destination Cities Index that was released in June 2012. The project is currently in its initial stages of conducting a status quo analysis of the sector which will serve as a basis or inform the broader strategy at a later stage.
Medium and Large Manufacturing Firms Panel Survey
A survey was initially conducted in 2002/2003 including over 200 medium and large manufacturing firms in the eThekwini Municipal Area. This initial survey was funded by the World Bank and produced results that were able to inform policy makers on a number of pertinent issues.
The Municipality has seen a need to revisit this project by resurveying the firms from the initial project as well as conducting the survey with new firms. This is a large scale project that will involve the collection and analysis of data to evaluate characteristics and changes in the manufacturing production base and to identify the constraints to growth and employment in and around Durban, South Africa’s second major economic area. A re-survey of the firms would generate a unique manufacturing panel dataset in South Africa that would help assess firm-level dynamics around a number of economic dimensions.
The partnerships for the project are currently being formalised with key stakeholders and the pilot phase of the project is underway.
Green Economy
Identified as one of the key job drivers in the New Growth Path (2012), the green economy is an approach which the Economic Development and Investment Promotion Unit will accelerate over the coming 2012/2013 year. To this end, PSIR is involved in planning, research, targeting and coordination in greening of the eThekwini economy.

This vital, innovative and dynamic work echoes many of the activities already happening
around eThekwini.
 From the EDIPU green economy guiding framework, the focus areas identified for our attention over the year are:
• Waste (Research support to forums; continued support for Materials Recovery Cluster; waste-to-resources work)
• Tourism (Research support to Durban Tourism in their Responsible Tourism programme)
• Green procurement
• Support to the green services and industries sector
Work in all of these is currently underway.
Green Services and Industries Report: EThekwini’s Green Services and Industries report was released in July 2013. It presents the analysis and findings of the green services and industry sectors in our City.  One of the core phases of this project included the compilation of eThekwini’s green service and industry firms’ database. The purpose of this report is to provide a better understanding of the nature of these firms and explore the opportunities available within the various sectors, such as employment opportunities and system-wide sustainability benefits. Please click here to read more.

Job Monitoring

Job creation is a crucial pillar in tackling poverty, unemployment and inequality. In order to enhance job creation in eThekwini, it is necessary to have a better understanding of employment in the local economy as well as direct employment created by the Municipality itself. In our background research on job monitoring we have discovered that nationwide this process is lacking.
We are presently developing a consolidated job monitoring system which will use a combination of reported and modelled data and provide an overall analysis on the state of employment in eThekwini.
A paper on this system was presented at the eThekwini-University Symposium at the end of September 2012, and a regular brief on the Quarterly Labour Force Survey has been established. We expect to have a full job monitoring pilot system running before the end of the 2012/2013 financial year.
Investment Research

The eThekwini Municipality has identified investment as a major priority for the city. In order to accelerate investment in the city to stimulate development, the municipality will implement a number of actions over this 2012/13 financial year including research, streamlining, partnership building and others. This is a multi-stakeholder process and PSIR is one of the many key departments coordinating implementation.
At present the City has finalised an investment schedule and milestones for its investment tasks, the implementation of which is being overseen by an interdepartmental steering committee. All of the tasks are underway and are showing much progress.
Best Practice City Commission (BPCC) Review
Through the draft Economic Development and Job Creation Strategy, PSIR presented the concept of reviewing the BPCC (1999) and undertaking further research in the eThekwini Municipal Area in order to remove barriers and accelerate investment into eThekwini. This body of work has since progressed and in partnership with the Investment Promotion Department, a report was put to EXCO which was aimed at establishing the process. The City Manager has since taken a lead and appointed a Project Manager to drive this process. PSIR will be providing support to the process.
Youth Employment and Skills Development

With youth unemployment levels in South Africa being so high, and the major reasons for this being structural unemployment, we realised the need for this issue to be investigated further. The July 2012 issue of the EDGE includes papers written on youth (un)employment and scarce skills in eThekwini. In 2013 we aim to compile a detailed status quo report on what the City is doing in this regard. We will also continue to engage with key stakeholders on this issue.