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As Figure 7.7 shows, all the SACN cities have experienced growth in expenditure, but the impact is particularly apparent in the smaller cities which started from a low expenditure base. Figure 7.7: Total expenditure by city (2010–2014) 140 Rand (billions) 105 70 35 2010 2011 2012 2013 2014 Johannesburg Cape Town eThekwini Tshwane Ekurhuleni Nelson Mandela Mangaung Buffalo City Msunduzi Capital expenditure fluctuates over the period and per city, but in most cities peaked in 2009 in the run-up to the 2010 FIFA World Cup (Figure 7.8). Figure 7.8: Summary of capital expenditure (2010–2014) 8 Rand (billions) 6 4 2 JHB CPT ETH TSH EKH NMB MAN BUFF MSU 2010 2011 2012 2013 2014 Source: SACN (2015) Since 2013, most cities have steadily increased their capital investments, driven by the national infrastructure investment priorities, i.e. roads and public transport, housing (both RDP housing and, increasingly, social housing), and municipal services including water, sanitation and electricity 254 State of South African Cities Report 2016
distribution. Johannesburg’s capital expenditure has increased the most, to over R6-billion in 2014, matching the 2009 peak. Overall Johannesburg dominates capital expenditure, exceeded only by eThekwini in 2010 and 2013, and Cape Town in 2013. Operating expenditure has shown steady growth, driven largely by strong increases in bulk purchases (of electricity and water) and in employee-related costs across all of the cities (Figure 7.9). Figure 7.9: Summary of operating expenditure categories (2014) 30 Rand (billions) 22.5 15 7.5 0 JHB CPT ETH TSH EKH NMB MAN BUFF MSU Employee related costs Remuneration of councillors Bad debts Repairs and maintenance Bulk purchases Other operating expenditure The key cost driver has been bulk purchases of electricity, as the above-inflation tariff increases over a number of years have had a significant impact on electricity’s share of expenditure. Since 2009, bulk purchases as a percentage of total operating expenditure has increased by between 1% and 14% across cities. This has placed pressure on all other operating expenditure, and cities have had to stabilise or reduce spending in other areas, such as repairs and maintenance and employee costs. At 5% of total operating expenditure, repairs and maintenance are underfunded across all of the cities. Since 2009, its share of total operating expenditure has declined by between 5% and 2% in most of the cities. While saving on repairs and maintenance may be an easy option because the impacts are not immediately apparent, this strategy will be more costly in the medium term, as deteriorating infrastructure will have to be replaced rather than repaired. Despite perceptions about runaway employee costs, most of the cities have stabilised growth in this expenditure since 2009 (Table 7.3). 7 Finance and Innovation 255
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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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! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !
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Built environment investments not s
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The cost of fragmentation In additi
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associated land uses benefit all, n
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Local government is best placed to
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Competing land interests need to be
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PRE-1994 building POLICY 1994-2003
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The 2011 State of South African Cit
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The most recent National Household
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Figure 2.6: Alternate transport-urb
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SPATIAL TRANSFORMATION: Tracking tr
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Spatial transformation needs respon
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What is Required to Transform South
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Transformation of management and ca
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PRODUCTIVE CITIES Spatial transform
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Introduction South Africa is headin
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Congestion and pressure on resource
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transportation networks. Land-use p
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strategies in separate silos, with
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The Economic Role and Performance o
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• Johannesburg is South Africa’
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Nevertheless, recent economic fores
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• In the last five years, Tshwane
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Figure 3.7 shows the average labour
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Over the last 10 years, at a sector
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There is a marked correlation betwe
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Figure 3.13: Estimated city share o
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Figure 3.15: City gross fixed-capit
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development role set out in the 199
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Table 3.3: Key economic development
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• eThekwini has an active economi
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Both types of township are low-inco
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Informal economy and self-employmen
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South Africa’s Expanded Public Wo
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PRODUCTIVE CITIES 123 3
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Key Messages 1 2 3 4 5 6 Cities sti
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Andile’s story This is based on a
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of that ward participate in making
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Cape Town metro Mangaung Mamre Pell
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These service delivery gains have c
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YOUTH STUDY: Youth potential and vu
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However, when the NWAC is superimpo
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Tshwane, Figure 4.7: Johannesburg C
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As mentioned, urban integration is
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Table 4.2: Change in lowest income
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Ethekwini metro Northdale Hambanath
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Urban safety South Africa’s citie
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City’s unemployment rate is about
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Collective violence 7 Two main dime
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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
Page 204 and 205: informal political and social cultu
Page 206 and 207: Section 51 of the Municipal Systems
Page 208 and 209: While these dynamics are critical a
Page 210 and 211: Blurred intergovernmental responsib
Page 212 and 213: Access to information As many ward
Page 214 and 215: Figure 6.5: Turnout for national an
Page 216 and 217: COMMUNITY-BASED PLANNING: Strengthe
Page 218 and 219: The right people are not necessaril
Page 220 and 221: Local government will require new k
Page 222 and 223: All the cities have performance man
Page 224 and 225: Unethical behaviour is one of the r
Page 226 and 227: Figure 6.9: Municipal audit consist
Page 228 and 229: Service Delivery and Development As
Page 230 and 231: Still playing catch-up on basic ser
Page 232 and 233: knew anything about the city’s ID
Page 234 and 235: The established routines need to ch
Page 237 and 238: FINANCE and INNOVATION Sustainable
Page 239 and 240: Introduction With total expenditure
Page 241 and 242: In 2013/14, unauthorised, irregular
Page 243 and 244: Figure 7.2: Nelson Mandela Bay Muni
Page 245 and 246: The challenge is that the interface
Page 247 and 248: Phase 3: City autonomy and accounta
Page 249 and 250: National Treasury uses Uniform Fina
Page 251 and 252: As Figures 7.5 and 7.6 show, Johann
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Page 257 and 258: • Despite this, the overwhelming
Page 259 and 260: Effectiveness of spending and servi
Page 261 and 262: cities have low capital expenditure
Page 263 and 264: An encouraging development is that
Page 265 and 266: 3. Political interventions • Some
Page 267 and 268: Smart city strategies Smart city st
Page 269 and 270: encourage non-compliance. If priced
Page 271 and 272: • Municipalities could rightfully
Page 273 and 274: Recommendations If spatial transfor
Page 275: Finance and Innovation 275 7
Page 278 and 279: Key Messages 1 2 3 4 5 A Call to Ac
Page 280 and 281: 1. The Spatial Transformation chapt
Page 282 and 283: Statements of intent in the SOCR St
Page 284 and 285: WARWICK TRIANGLE: A fragile public-
Page 286 and 287: Arguably, the primary constraint pr
Page 288 and 289: Figure 8.1: The quadruple helix - t
Page 290 and 291: • Completing the National Framewo
Page 292 and 293: development agency) that took place
Page 294 and 295: MILE’s strategic objectives are:
Page 296 and 297: Public participation should be the
Page 298 and 299: The implementation of CBP through t
Page 300 and 301: According to Cloete (2015) a partne
Page 302 and 303: 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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