The South African Property Owners Association (SAPOA) and the City of Tshwane recently hosted a high-level business breakfast with fifty developers and investors focusing on opening clear lines of communication between the public and private sectors, addressing shared challenges, and exploring opportunities for coordinated action to drive sustainable urban development and investment in the city.
Executive Mayor Alderman Cilliers Brink emphasised the crucial role of public-private partnerships in driving Tshwane’s economic development.
“Our concern is how to get people to build in our city because that development investment creates jobs and helps with the relief of poverty. Our cities in this country are the engines of our economy, and we want to understand what makes property owners invest, what makes them stick around, and what pushes them out.”
He stressed the need for open dialogue and collaboration, noting, “It is crucial to lay a foundation for cross-pollination and open communication between both parties, where an understanding of challenges and opportunities can be realised.”
Mayor Brink also acknowledged the infrastructure challenges facing the City. “We must address the deterioration of essential services like water, electricity, and road maintenance, as these are pivotal to creating a conducive environment for businesses to thrive.”
The City of Tshwane’s finances have been shaky in recent years. According to the Auditor-General’s report, Tshwane’s irregular expenditure was more than R10 billion in the fiscal year 2022/2023, highlighting the city’s fiscal mismanagement. The city has also suffered with diminishing revenue collection, limiting its capacity to support key services and infrastructure initiatives.
Tshwane has been beset by governance challenges, including political instability and inefficiencies. The City has gone through several leadership changes, resulting in policy inconsistencies and decision delays. According to a report by the South African Cities Network (SACN), Tshwane’s government instability has greatly hampered its ability to implement long-term strategic goals, resulting in stalled projects and inefficient service delivery.
Tshwane’s infrastructure has been deteriorating, with outdated and poorly maintained systems posing a serious threat to economic growth. The South African Institute of Civil Engineering (SAICE) graded the city’s infrastructure as “at risk” in its 2022 report, highlighting issues such as frequent water supply disruptions, electricity outages, and crumbling road networks. These infrastructure deficiencies have resulted in significant disruptions to business operations, increased costs, and diminished investor confidence.
SAPOA CEO Neil Gopal underscored the significance of the collaboration, noting, “TEDA has recently taken up membership with SAPOA, and we will formalise this partnership with an enabling MoU.”
Gopal also addressed the challenges faced by cities, including infrastructure issues and the importance of property investment. “The underperformance of any city poses significant risks to both businesses and citizens, and the economy as a whole. Infrastructure, which is in a state of disrepair, directly affects the delivery of services to residents and businesses.”
“In order to address these challenges, no city or private sector organisation is going to do this by themselves. We both need to collaborate and do this together. Therefore, I cannot emphasise enough the need for stronger collaboration and partnership between your city, Mr. Mayor, and SAPOA members.”
The business breakfast served as a vital platform for ongoing dialogue, with both the City of Tshwane and SAPOA committing to formalise their relationship and continue high-level engagements aimed at improving services, boosting investments, and fostering economic growth in the city.
