Investments pour into Jozi despite economic turbulence
29 March 2016
Despite the current economic challenges, the City of Johannesburg is on track to meet its 2015-2016 investment targets.
In the second quarter of the financial year, the City's Department of Economic Development attracted R1.28-billion worth of investments to Johannesburg against a target of R1-billion.
"Given the mounting pressure on the national economy, including the recent investment downgrades that the sovereign has received, there is increased pressure on Johannesburg to offer more economic value and attractiveness to investors," says Executive Director Ravi Naidoo in the department's 2015-2016 mid-year performance report prepared for council.
"This has increased the importance and difficulty associated with the promotion of economic development at City-level."
One of the investments is the development of DStv City by Multichoice to the value of R1-billion. The investment will create 1 518 jobs.
Another is the R266-million Waterfall development by Atterbury, which will create 9 409 temporary and 10 600 permanent Jobs.
Other investments the City attracted during the quarter include the refurbishment of residential and business properties in the Urban Development Zone (UDZ) by Chilli Child Business Construction and Kaybro Investments at a total value of R 15.5-million.
The department's SMME and Entrepreneurial Support projects are also in full swing, contributing to economic growth and creating employment opportunities.
In the period between 1 October 2015 to 31 December 2015, a total of 1 669 SMMEs were supported through the City's SMME hubs and strategic partnerships with entrepreneur networks, exceeding the quarter's target by almost 70%.
In the first two quarters of the financial year, the City supported 3 128 SMMEs through its five hubs – over 150% above the annual target of 2 000.
The busiest of these hubs, in terms of client volumes, is one in the Johannesburg central business district, which attracts 67% of the total clients seen. Other hubs, including the ones in Soweto – situated at the Soweto Empowerment Zone – and the Poortjie, continue to grow and attract new clients.
"The Jozi SMME Hub at Riversands is showing growth but at a slower pace than expected. The team at that hub will undertake some outreach programmes at nearby Diepsloot in order to create more awareness of the hub and services offered," adds Naidoo.
Joburg Tourism, which falls under the department, also had a fruitful quarter. Among other things, it secured the hosting later this year of four more conferences.
These include the African Women in Leadership Meeting this month, Digital Media Africa in September, Africa Science Conference in October and the Biennial Conference of the African Methodist Youth Movement in November.