Cities Support Program in South Africa, Phase II

The largest eight cities in South Africa generate close to 60% of the national gross domestic product. Currently, 64% of the country’s population live in these cities and, according to growth projections, 80% by 2050. Inclusive economic development and competitiveness of cities can only be achieved if the urbanization process is better managed. Spatial planning needs to be improved to address the challenges of the "apartheid spatial form" of cities. Integrated planning and budgeting, an improved business enabling environment and climate reslience are key to support a sustainable urban development approach.

The overall objective of the Cities Support Programme Phase II is that cities become engines of economic growth through more prosperous and inclusive communities.

Cities' capacity for financing investment programmes is strengthened and based on long term financial strategies

Fiscal frameworks, policies, incentives and grants are aligned to support sustainable urban financing and transformation

Executive leadership capabilities are built and support to National Treasury and metros to manage reform processes

Strengthened infrastructure planning, implementation, and management

Integration of climate response in the areas of asset management and capital investment and support strategies in response to water risks

Cities’ capacities are improved to develop and implement sub-national doing business reforms that create an enabling, inclusive and competitive business environment

Cities provided with access to spatially orientated city economic data through a national industry census

Improved economic incentives policies that are better aligned with cities economic development plans

Expected results:  

Scale up of long term financial strategies to 6 cities

Development of a revenue reform support strategy

Executive leadership and management of reform processes training programs

Infrastructure managment tool support strategies for 5 cities

Support to the development of asset management policy and objectives, asset management strategy and supply chain management policy

Climate responsive technical content for existing infrastructure managment tools developed

Training workshop on climate response in land and infrastructure asset delivery and management

Resilience rating for capital project portfolios piloted

Capacity for resilient project preparation and financing enhanced

Implementation of registering property and construction permitting reform action plans

Review of national economic development incentives conducted and recommendations provided

Results from previous phases:  

The first phase of the CSP generated useful frameworks and tools, analytics and diagnostics, recommendation papers, best practices and improvements in the business enabling environment for cities. Concrete reforms in the cities were supported to improve the environment for businesses (e.g. improvement from 180 days in 2015 to 80 days in 2017 for a quotation in the getting electricity process in Nelson Mandela Bay). National government got interested in working also on national level on doing business indicators which is financed by another program. SECO’s support contributed

to a comprehensive review of the Cities Infrastructure Delivery and Management System Tool (CIDMS) to incorporate additional mandates allocated to the cities and supported pilot implementations. In addition, SECO supported the City of Cape Town during its severe water crisis. ‘Just-in-time’ advice was provided to draft a long-term water strategy that will ensure sustainable supply of water to the city.

Phase 2 01.04.2020 - 31.10.2025   (Active)