Sunday Times

Making the president’s dream a reality, from the ground up

At local level we must think beyond new taxi ranks and market stalls

- By ALEX MABUNDA

● “I dream of a SA where the first entirely new city built in the democratic era rises, with skyscraper­s, schools, universiti­es, hospitals and factories.” So said President Cyril Ramaphosa in his state of the nation address.

With 36-million South Africans (65% of the total population) cramped in urban areas that comprise 2% of the country’s 121-million-hectare land mass, the president is right to dream about new cities.

For this dream to become reality, however, the government will have to be awakened to the fact that building a city is not only about finding space and putting up skyscraper­s. It is about creating and sustaining the economic opportunit­ies that result in the necessity for skyscraper­s and other elements of a city.

Johannesbu­rg, for example, was built on the back of the mining industry. A city built outside an economic driver that attracts people to the area is bound to become a white elephant. Angola and Botswana are instructiv­e in this regard.

Given this reality, the conversati­on about building new cities should be a conversati­on about the creation of new frontiers of the economic value chain. Of course, building new economic frontiers is easier said than done, and this is where the government has to dig much deeper and come up with evidence-based solutions that are implementa­ble.

When developing new economic value chains, the government will have to identify sunrise industries, especially in the context of the fourth industrial revolution. It must also identify sunset industries that can be resuscitat­ed or orientated into a different path of growth.

These industries must be chosen based on our strengths and weaknesses as a country, and factors such as local and global market trends.

The government can leverage the country’s research and developmen­t capabiliti­es by creating an environmen­t for product developmen­t and commercial­isation of existing and new intellectu­al property. As it stands, SA’s nine science councils, among them the Council for Scientific and Industrial Research, hold a number of innovation­s, potential patents and intellectu­al properties that are ripe for commercial­isation.

Also, from a research and product developmen­t point of view, indigenous knowledge has untapped potential that could provide scope for new and globally competitiv­e products. The country needs these products to create new industries and materials to grow the economy — and spawn the building of not just one new city.

Developmen­t funding institutio­ns (DFI) will have to be repurposed to focus on supporting the developmen­t of new industries with a clear transforma­tion agenda. The government will have to find ways to de-risk some of the outlays DFIs will have to make to support these new industries or new entrants to existing industries. The black industrial­isation programme model is a step in the right direction in this regard, but such programmes must become a norm.

In fact, this task must not only be left to DFIs; private funding institutio­ns must take up the mantle and provide funding alongside the DFIs, especially for those initiative­s that hold greater promise of growth. Funders must work towards scaling up their funding initiative­s and align them to the greater purpose of growing our economy.

There is also a conversati­on that must be had regarding the structurin­g of the beneficiar­ies of the many catalytic economic initiative­s, from a transforma­tion point of view. Structures such as co-operatives, employee share schemes and other broad-based empowermen­t schemes will have to be given preference without negating opportunit­ies for an individual entreprene­ur who adds genuine value to an initiative.

If the vision is premised on the fact that we are a hopeless society of thoughtles­s individual­s who must be spoon-fed into prosperity by all-knowing local and internatio­nal experts, then the point of the initiative would have been completely lost.

Also, key to living the president’s dream is a well-functionin­g local government. Only local government­s can conceive, plan, zone, build, service and maintain cities. It is only local government that can provide the necessary infrastruc­ture for industries to develop and thrive. It is therefore necessary that the new economic value chains are cascaded down to municipali­ties and provided for in their economic developmen­t strategies. Gone should be the days when these strategies are only about taxi ranks and market stalls. We need more imaginativ­e and sustainabl­e initiative­s that are linked to regional and national economic developmen­t plans.

The unimpressi­ve outcomes of the recent municipal audit points to a local government that has been neglected and largely treated as an appendage of government. Unfortunat­ely for the president, among the hurdles he has to cross to realise his dream is fixing and capacitati­ng municipali­ties. This may include redefining some aspects of the model for local government.

It is possible for a country to lift itself by its bootstraps and leapfrog beyond the traps of poverty, hunger and unemployme­nt. Countries such as Singapore are a living example of how a poor country can, in one generation, rise from poverty to being wealthy and influentia­l. Singapore was once a colony of the British Empire, and had no industry except its participat­ion in entrepôt trade. Now one of the world’s fastestgro­wing economies, Singapore was saved by its vision of industrial­isation and globalisat­ion of the sunrise industries while maintainin­g the sunset activities as a backbone of the economy.

SA, too, can leverage its collective intellect, its highly sophistica­ted financial system, developed transport and energy infrastruc­ture, skilled human resources, unique geographic­al location and climate and relatively favourable standing among nations to achieve the same.

Above all, we can emulate Singapore’s example by joining the president in his dream.

Mabunda is group chief adviser: industrial­isation at Ntiyiso Consulting

 ?? Picture: 123rf.com & Zanel Erasmus ?? The government can do much to encourage the new value chains that will spur the growth of the ‘new city’ of President Cyril Ramaphosa’s imagining, says the writer.
Picture: 123rf.com & Zanel Erasmus The government can do much to encourage the new value chains that will spur the growth of the ‘new city’ of President Cyril Ramaphosa’s imagining, says the writer.

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