Index How African cities are looking to rejuvenate themselves like Johannesburg Urban regeneration is proving its worth in the South African city. Could it provide a template that would bring opportunities for marketers elsewhere in Africa? JOBURG'S CHALLENGE 18km2 –areaofinnercityJohannesburg,SouthAfrica,targetedforregeneration 17% Proportion of top national public companies located in Johannesburg that moved from the Central Business District (CBD) to other areas of the city between 1982 and 1994 27% Proportion of the 104 top national businesses located in Johannesburg in 1994 JOBURG'S TIMELINE FOR CHANGE 20% Proportion of the top 10 retail companies in the country that kept their headquarters in the CBD City Improvement District (CID) covers eight blocks; today, it’s 25 blocks 2003 61% Loss in business investment because of high crime rate 2003 39% Proportion of inner city residents unemployed 10% Proportion of inner city residents who relied exclusively on the informal business sector Now Building 'corridors of freedom’, well-planned transport arteries 2010 The FIFA World Cup saw 300,000 tourists visit South Africa to watch football, with Johannesburg one of the most popular destinations 1997 The city comes under the jurisdiction of a single municipal council 2001 Johannesburg Development Agency created 2002 Johannesburg has the highest crime rate in South Africa 2003 Trust for the Urban Housing Foundation (TUHF) established to fund the refurbishment of inner-city buildings and support residential conversions 2004 iGoli 2030 document suggests Johannesburg could be a global-scale, service-based economy and 'a world-class city with service deliverables and efficiencies, which meet world best practice' South Africa’s Ministry of Finance launches a national tax-incentive programme to promote private sector participation in urban renewal and accelerate the pace of regeneration IMPACT Source: bit.ly/2sQMIh0 4% Population growth rate per year 1:18 For every R1m (US$63,000) invested by the Johannesburg Development Authority, private investors have put in R18m since 2001 R600m Value of property assets created in the inner city of Johannesburg since 2001 5% Total spaces within the urban development zone of the inner city developed as quality public spaces 48% Drop in crime rate one year after closed-circuit television cameras were installed in city centre (2015) 80% Drop in crime rate two years after closed-circuit television cameras were installed in city centre (2015) R4bn Amount the TUHF has invested in inner-city residential rental property up to 2015 22,000 Residential units in South African cities funded by TUHF up to 2015 20.5% Gross geographic product (GGP) growth contributed to South African economy by the economy of Johannesburg THE EFFECTS ARE BEING FELT BY SOUTH AFRICAN MILLENNIALS are employed, and economically active have a bank account have bought something that was out of their budget are saving for something expect to leave their current employer by 2020* 78% 96% 62% 62% 76% Source: bit.ly/2sQMIh0 1 REGENERATION AND SOCIETY: JOHANNESBURG'S LESSONS LEARNED 246 their peers in mature economies Sources: bit.ly/2HBAv2o; bit.ly/2DwdPy5 maintain that business has a positive impact on wider society 73% *compared with 79% of their peers in emerging markets and 61% of Re-gen visions should result in solid plans for a set period of time and with assigned financial resources 3 Establishment of an autonomous agency was instrumental in the regeneration of Johannesburg 5 In complex political contexts, the process of visioning, planning, and implementing can overlap Marketers can look to other international experiences to discover useful insights 7 An equitable regeneration process also depends on solid solutions for gentrification and provisions for displaced residents The process of crafting a vision of regeneration was used to build consensus in a socially polarised context The regeneration plan divided tasks and encouraged interagency cooperation inner city Source: bit.ly/2sQMIh0 cim.co.uk/exchange