The integrated urban development framework (IUDF) is helping intermediate cities to develop planning and implementation capacity through the use of long-term planning processes and integrated funding models, says Public Affairs Research Institute public policy and management expert and IUDF programme manager Dr Crispian Olver.
Intermediate cities are defined by the relative density of the population in municipalities. In addition to proper governance and financial management, the emphasis of the framework is on infrastructure development, owing to the considerable need for infrastructure in such cities.
“We are working with 39 intermediate cities, which range from provincial capitals to densely populated rural areas. Some are linked to declining industries, have a narrow industry-specific manufacturing base or are service cluster hubs. We are starting to see a more mixed economy developing in these areas and greater differentiation of industries and services.”
About R14-billion a year is required to meet infrastructure development requirements in intermediate cities, but government infrastructure grants cover only about 43% of this funding requirement.
“The aim is to make government infrastructure spending more effective in municipalities and get more value for money. The idea is to move away from project-by-project funding to focus on a long-term, ten-year capital expenditure framework,” says Olver.
The IUDF complements the Spatial Planning and Land Use Management Act and the Spatial Development Framework. The development of the IUDF was driven by the Department of Cooperative Governance and Traditional Affairs with the involvement of the South African Cities Network.
“We piggy-backed on this legislation to develop a framework for ten-year infrastructure plans and funding based on the plans,” he adds.
The plans have to fit into the affordability envelope for municipalities and the National Treasury is doing innovative work on the financial side to help municipalities develop long-term financial plans. The National Treasury compares the revenue – many of the intermediate cities have sustainable revenue sources and large tax bases – to past performances and the ability to absorb debt to develop the funding mix required, explains Olver.
“The sequence of planning should involve an economic strategy, then a spatial strategy and then an infrastructure development strategy. It is crucial that infrastructure investments are aligned to spatial targets, otherwise the value of the investment will not be realised.
“Getting long-term planning and delivery right will improve grant support from the National Treasury and allow for the grants to have a bigger impact on infrastructure delivery and development, because private resources can be leveraged if there is a proven record of successful delivery.”
However, these areas are often subjected to rapid and uncontrolled urbanisation that places strain on infrastructure and municipal resources, especially as the developments are not linked to planning or financing. Further, civil protests often arise, owing to perceptions of poor service delivery, even if the communities are not catered for in the development plans.
The uMhlatuze municipality, which includes Richard’s Bay, in KwaZulu-Natal, is part of the IUDF pilot trials. uMhlatuze municipality deputy city manager Nontsundu Ndonga, who is a town planner by profession, says that the implementation of the IUDF helped the municipality to redefine its work and approach to development.
“The IUDF emphasises the active role that the municipality must play in getting the input of as many stakeholders as possible, which also improves support for infrastructure projects,” she explains.
“A key challenge is to diversify the economy of the municipality away from a focus on industries, requiring a diverse approach and responsiveness to the private sector to attract investment. Visible, long-term plans allow the private sector and the general public to buy into the plan and understand what we are trying to do,” she concludes.
Olver and Ndonga spoke at an Infrastructure Dialogue organised by the South African Cities Network and the Development Bank of Southern Africa.