A growing manufacturing city
Ekurhuleni is investing in economic sectors with high industrial capacity and a high rate of labour absorption
The recent released manufacturing survey by Absa shows that business confidence has fallen to 16 index points in the second quarter of 2017, a fall from 28 index points in the previous quarter.
Despite all of these challenges to growth in manufacturing, its strategic development plans this sector remain an important area around which the City of Ekurhuleni forecasts its regional growth prospects. This is an important factor, as the region is battling an unemployment rate of about 34%.
In the context of this high level of unemployment, the City is faced with a pressing need to invest in economic sectors with high industrial capacity and a high rate of labour absorption.
The regional economic imperatives are thus centered on strengthening the City’s manufacturing industries and making strategic investments in the development of economic infrastructure such as township industrial estates and township industrial parks, as well as reinforcing the culture of entrepreneurship by leveraging the municipality’s procurement spending to crowd in investment and supporting local companies.
The City’s focus on manufacturing is also informed by its appreciation of global trends in the performance of the manufacturing sector. The City’s commissioned research over time has revealed that the global manufacturing sector is entering a dynamic phase that will bring about a wide range of new market opportunities.
The City is also working hard to improve its research development capabilities, as a critical feature of facilitating productive investment in innovation and technology.
Manufacturing of more knowledge-intensive goods requires modern infrastructure (access to the internet), specialised and skilled employees, access to funding, access to new markets, advanced business acumen, advanced machinery and equipment, and a network of experts.
Strategic efforts in this regard are going towards the City’s campaign to establish an Ekurhuleni University of Technology. A university of this nature will play an important role in skills development that serves the dynamic needs of the modernising manufacturing sector. The City conducts at least 40 civic awareness campaigns each year, aimed at both commercial and residential customers. The campaigns deal with topics ranging from the dangers of illegal connections (also their economic destruction of the city grid), the safe use of electricity in the house, energy efficiency, tariffs and choices that are open to the home user, to the disadvantages of choosing to have your meter tampered with, and more. In an effort to intensify these community awareness campaigns, an additional 120 young people were signed up to execute targeted communication within Ekurhuleni. Threats posed by illegal connections are discussed with the political leaders in communities.
Energy challenge
City of Ekurhuleni has embarked on projects to alleviate energy poverty, reduce constraints on the national grid as well as reduce carbon footprint. Some of these projects include:
generation: This process involves the extraction of methane gas from refuse and converting it into power. Currently, the plant at the Simmer and Jack landfill site is in operation. There are plans in place to duplicate this process in other landfill sites in Ekurhuleni.
systems: This plan calls for a rollout of rooftop solar PV plants in modular stages, i.e. 0.5 MW to 2 MW per year. Solar plants will be placed on the roofs of Ekurhuleni buildings across the city. The electricity generated in this manner can be fed into the grid for general consumption or used at its source, i.e. off-grid options available.
settlements: There are about 119 informal settlements in Ekurhuleni and this plan is aimed at the continued roll-out of solar lighting to households located therein. The initiative seeks to alleviate energy poverty through portable solar units that provide energy for four globes and a cell phone charger. To date, 25 253 units have been installed.