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At the higher education level, more graduates are studying business, management, the humanities and education than science and technology, design and engineering, which are the fields with critical skills and capability gaps. The high student attrition and low graduation rates also raise concerns that higher education outputs are not able to support city and national economic development and inclusive growth targets. City governments have already been involved in addressing the quality and performance at tertiary education institutions, and further collaboration between firms and higher education institutions is needed to ensure the appropriate supply of graduates in disciplines that are in high demand from firms. Such collaboration would also enable scientific excellence in universities to match the technological needs of firms, enhance firm-level competitiveness and contribute to greater city economic success and inclusion (Kruss et al., 2010). Innovation at city level Throughout history, cities have been the gateway to ideas and innovation. Dense urban spaces encourage greater interactions and conversations that lead to innovation. Innovation is a key determinant of economic competitiveness and resilience, enabling cities to adapt to economic developments and changes in technology and global demand (Lorentzen, 2010). Innovative activities include knowledge inputs or research and development (R&D), which is commonly measured by investment in R&D and R&D spending per capita, knowledge outputs (publications and patents) and the use of new knowledge (patents absorbed through licencing). In 2012/13, South Africa’s R&D investment increased to R23.9-billion, a real increase of 2.6% since 2011/12. This maintains the country’s R&D spending at 0.76% of gross domestic product (GDP), which is still below the global average of 1.8% and the OECD average of 2.4% (CESTII, 2014). In 2012 the main contributors to R&D investment at sectoral level were government (45.4%) and business (38.3%). Just under half of total government funding for R&D went to higher education, and 43% went to government institutions, including science councils. Two-thirds of business R&D is in the financial and business services (35%) and the manufacturing (31%) sectors (CESTII, 2014). At the city level, the three Gauteng cities and Cape Town spent more on R&D, based on GVA weights (Figure 3.13) than the other cities. These cities also produced the majority of scientific excellence in the country (as measured by science and engineering articles per million of population) and registered the highest number of domestic and international patents (Lorentzen et al., 2009). 106 State of South African Cities Report 2016
Figure 3.13: Estimated city share of gross expenditure on R&D based on GVA weights (2012) 20% 18% 17.2% 16% 14% 12% 13.8% 10.9% 11.5% 10% 8% 6% 6.5% 4% 2% 1.3% 2.4% 1.0% 1.8% 3 BUFF CPT EKU ETH JHB MAN MSU NMB TSH Source: Quantec Research (2015) However, when the city gross expenditure on R&D is weighted by the city’s population, a different picture emerges (Figure 3.14). Figure 3.14: Estimated city gross expenditure on R&D based on population weights (2012) 4 000 3 500 3 000 R 2 964 R 3 613 R 2 778 R 3 881 R 14 725 Rands 2 500 2 000 1 500 1 000 500 R 953 R 180 R 304 R 836 R 169 BUFF CPT EKU ETH JHB MAN MSU NMB TSH ALL METROS Source: Quantec Research (2015) In 2012, Tshwane spent the most on R&D, followed by Ekurhuleni, Cape Town and Johannesburg. Nelson Mandela Bay spent the least of all the cities, equivalent to just 4% of what Tshwane spent per person. This is certainly an important contributing factor to the listless economic activity in South Africa’s eastern metropole. PRODUCTIVE CITIES 107
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State of south african cities Repor
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The cities covered in the SoCR Limp
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FOREWORD by the Chairperson of the
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Buffalo city ekurhuleni ethekwini J
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Overview: State of South African Ci
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CH3 PRODUCTIVE CITIES Spatial trans
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INTRODUCTION Our cities: status quo
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State of Cities Reporting Over the
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Figure 1.2 shows the projected grow
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The consequence of this rapid urban
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LEARNING ACROSS BRICS: from city-re
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Addressing these challenges require
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TRANSFORMING OUR WORLD: THE 2030 AG
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Key issues for South African cities
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! ! ! ! ! ! ! ! ! ! ! ! Cities and
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Figure 1.8: Population change total
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Figure 1.10 shows that, while popul
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Significant densification through b
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Increased densities and demand have
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Global networks versus domestic res
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Informed by five years of research
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Key Messages 1 2 3 4 5 Spatial tran
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In cities, economic and social ineq
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Undesirable current spatial configu
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neighbouring municipalities are not
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! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !
Page 56 and 57: Built environment investments not s
Page 58 and 59: The cost of fragmentation In additi
Page 60 and 61: associated land uses benefit all, n
Page 62 and 63: Local government is best placed to
Page 64 and 65: Competing land interests need to be
Page 66 and 67: PRE-1994 building POLICY 1994-2003
Page 68 and 69: The 2011 State of South African Cit
Page 70 and 71: The most recent National Household
Page 72 and 73: Figure 2.6: Alternate transport-urb
Page 74 and 75: SPATIAL TRANSFORMATION: Tracking tr
Page 76 and 77: Spatial transformation needs respon
Page 78 and 79: What is Required to Transform South
Page 80 and 81: Transformation of management and ca
Page 83 and 84: PRODUCTIVE CITIES Spatial transform
Page 85 and 86: Introduction South Africa is headin
Page 87 and 88: Congestion and pressure on resource
Page 89 and 90: transportation networks. Land-use p
Page 91 and 92: strategies in separate silos, with
Page 93 and 94: The Economic Role and Performance o
Page 95 and 96: • Johannesburg is South Africa’
Page 97 and 98: Nevertheless, recent economic fores
Page 99 and 100: • In the last five years, Tshwane
Page 101 and 102: Figure 3.7 shows the average labour
Page 103 and 104: Over the last 10 years, at a sector
Page 105: There is a marked correlation betwe
Page 109 and 110: Figure 3.15: City gross fixed-capit
Page 111 and 112: development role set out in the 199
Page 113 and 114: Table 3.3: Key economic development
Page 115 and 116: • eThekwini has an active economi
Page 117 and 118: Both types of township are low-inco
Page 119 and 120: Informal economy and self-employmen
Page 121 and 122: South Africa’s Expanded Public Wo
Page 123: PRODUCTIVE CITIES 123 3
Page 126 and 127: Key Messages 1 2 3 4 5 6 Cities sti
Page 128 and 129: Andile’s story This is based on a
Page 130 and 131: of that ward participate in making
Page 132 and 133: Cape Town metro Mangaung Mamre Pell
Page 134 and 135: These service delivery gains have c
Page 136 and 137: YOUTH STUDY: Youth potential and vu
Page 138 and 139: However, when the NWAC is superimpo
Page 140 and 141: Tshwane, Figure 4.7: Johannesburg C
Page 142 and 143: As mentioned, urban integration is
Page 144 and 145: Table 4.2: Change in lowest income
Page 146 and 147: Ethekwini metro Northdale Hambanath
Page 148 and 149: Urban safety South Africa’s citie
Page 150 and 151: City’s unemployment rate is about
Page 152 and 153: Collective violence 7 Two main dime
Page 154 and 155: Towards More Inclusive Cities Citiz
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Furthermore, citizen education and
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South Africa requires a spatial pol
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SUSTAINABLE CITIES Leveraging the t
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Introduction Since 1994, the govern
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will need to have low-emissions gro
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Most of South Africa’s energy con
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Figure 5.3: Average baseline energy
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• Tshwane initiated its A Re Yeng
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WASTE: legislation, policies and pl
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500 0 400 200 0 2011 2013 2015 2017
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facility (i.e. waste is sorted manu
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Figure 5.10: Depiction of in- and o
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As Figure 5.12 shows, Cape Town and
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Accelerating the transition to sust
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disadvantaged groups, through facil
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Accelerating the transition to food
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Biodiversity South Africa is the th
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Open spaces Ecological and social o
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in the city and in their homes then
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Emissions reduction to mitigate cli
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Principles of a Sustainable City Ur
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Recommendations Develop and embed a
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Key Messages 1 2 3 4 5 Cities have
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informal political and social cultu
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Section 51 of the Municipal Systems
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While these dynamics are critical a
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Blurred intergovernmental responsib
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Access to information As many ward
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Figure 6.5: Turnout for national an
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COMMUNITY-BASED PLANNING: Strengthe
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The right people are not necessaril
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Local government will require new k
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All the cities have performance man
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Unethical behaviour is one of the r
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Figure 6.9: Municipal audit consist
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Service Delivery and Development As
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Still playing catch-up on basic ser
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knew anything about the city’s ID
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The established routines need to ch
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FINANCE and INNOVATION Sustainable
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Introduction With total expenditure
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In 2013/14, unauthorised, irregular
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Figure 7.2: Nelson Mandela Bay Muni
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The challenge is that the interface
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Phase 3: City autonomy and accounta
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National Treasury uses Uniform Fina
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As Figures 7.5 and 7.6 show, Johann
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In the case of property development
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distribution. Johannesburg’s capi
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• Despite this, the overwhelming
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Effectiveness of spending and servi
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cities have low capital expenditure
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An encouraging development is that
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3. Political interventions • Some
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Smart city strategies Smart city st
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encourage non-compliance. If priced
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• Municipalities could rightfully
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Recommendations If spatial transfor
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Finance and Innovation 275 7
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Key Messages 1 2 3 4 5 A Call to Ac
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1. The Spatial Transformation chapt
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Statements of intent in the SOCR St
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WARWICK TRIANGLE: A fragile public-
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Arguably, the primary constraint pr
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Figure 8.1: The quadruple helix - t
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• Completing the National Framewo
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development agency) that took place
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MILE’s strategic objectives are:
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Public participation should be the
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The implementation of CBP through t
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According to Cloete (2015) a partne
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The chapters in this State of Citie
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Overall Recommendations Urban space
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Ensuring city transformation throug
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Roadmap to the city dashboards All
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Buffalo City @refinedrevolt
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CITY FINANCE economy Municipal reve
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Overview of flagship programme The
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Reflections While the development o
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People and Households Size of city
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Design Capital Introduction Cities
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Manenberg Contact centre Source: P.
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City of Ekurhuleni @moography
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100% 80% 60% 40% 20% 0% CITY FINANC
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Overview of flagship programme Situ
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the corporate structure and governa
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Go!Durban Introduction Integrated p
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Go!Durban will include new railways
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City of JOHANNESBURG @jayjay_gregor
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100% 80% 60% 40% 20% 0% CITY FINANC
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Overview of flagship programme The
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However, the success of the Corrido
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Naval Hill Introduction Heritage is
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In December 2012, the redevelopment
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Msunduzi @natesvw
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100% 80% 60% 40% 20% CITY FINANCE e
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important tourist sites, there have
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In addition, the PURP includes the
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Safety and Peace through Urban Upgr
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A number of other projects have tak
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City of Tshwane @drae_savvides
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100% 80% 60% 40% 20% 0% CITY FINANC
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Wi-Fi is a significant enabler that
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The coverage map below shows the pl
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Introduction A key part of the deve
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These indicators were evaluated on
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SCODA is a partnership between citi
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Indicator PRODUCTIVE CITIES Definit
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Indicator SUSTAINABLE CITIES Defini
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2016 State of Cities Report Spatial
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Acronyms ACSA Airports Company Sout
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FIGURES Figure 1.1 State of South A
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. . . Figure 6.7 Percentage of seni
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References for Chapter 1 AfDB (Afri
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FFC (Financial Fiscal Commission).
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Cameron B. 2009. Integrated Rapid P
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References for Chapter 4 Balbo M. a
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Venter C and Cross C. 2014. Access
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DPME (Department of Planning and Mo
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National Treasury. 2006. Local Gove
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Tel: + 27 11 407 6471 • Fax: + 27
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