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3 People and Households Size of city km 2 Population density in people per km 2 The number of households grew faster than the population between 1996 and After Joburg, Ekurhuleni has the lowest average number of people per household. Growth Dwelling types Population No. households Average number of people per household % 25% 50% 75% 100% Informal Formal Traditional Go to StepSA.org to see maps on how population density changes across the city Social Fabric Ekurhuleni has made progress towards reducing poverty and improving livelihoods; but inequality remains a challenge. Matric level 24.3% Human development index (HDI) Life expectancy HDI is a composite of life expectancy, literacy and gross value added (GVA) Highest education level Gini coefficient (inequality measure) Higher education 8.6% Levels of poverty very high inequality Number of people living below the poverty line % Literacy 91% GVA R187.5 billions Urban safety is important for a city s social fabric; go to SCODA to access urban safety data for Ekurhuleni % of total population GJ (millions) per year SUSTAINABILITY Liquid petroleum/gas 0.4% Sources of fuel 2011 Energy consumption Change in energy intensity Emissions: top three sectors in % 85.2% 20.4% Residential 32.0% Industrial 0% Heavy furnace oil 0.4% Paraffin 1.0% Coal 1.8% Jet fuel & avgas 18.1% Diesel 20.5% Non revenue water 2011 Electricity 31.2% Petrol 26.5% Petrol and diesel account for almost half of the energy used. The presence of OR Tambo International Airport explains the high jet fuel usage and the transport sector s large share of emissions. Residential Commercial Industrial Transport Government Agriculture Units of energy in GJ Energy intensity: measures the amount of energy used to produce goods and services 32.8% Transport 18.8% 36.6% Non revenue water is water that is lost before it reaches the customer, either physically (leaks) or apparently (e.g. theft, not billed). City of Ekurhuleni State of Cities Report 2016 Dashboard Indicators

4 100% 80% 60% 40% 20% 0% CITY FINANCE economy Municipal revenue sources Affordability of municipal bills for type A households (municipal bill as % of benchmark income) 25% 20% 15% 10% 5% 0% R-billions % 77.4% 6.9% 8.7% 8.3% 2008/ /14 9.2% 10.2% R Affordability Gross value added (GVA) Own revenue Equitable share Grants Type A is a household that lives in a property with an assessed value of R100,000, consumes 400 kwh of electricity and 20 kl of water per month, and has a 240 litre bin removed weekly. Its monthly income is R Average household income Average household income grew more slowly in Ekurhuleni than in other cities, but the cost of living is at a similar level. R R National household income Rands Cost of living (based on a bundle of goods) R78.20 R92.20 R Service Delivery INFRASTRUCTURE ICT infrastructure 2011 Percentage of population with connections 15.3% Fixed-landline telephone 93.3% Mobile telephone 42.6% Internet connections Repairs and maintenance % of operating expenditure 9.1% 2009 Mode of transport to work The majority of people in Ekurhuleni use taxis or private cars to move around the city. The city s dispersed urban nodes creates challenges for public transport access % of households have access to piped water inside dwelling/yard % % % of households have refuse removed by municipality (weekly or less frequently) % Other transport modes % of households have access to sanitation services* * includes access to flush toilets, VIPs and pit toilets After Joburg, Ekurhuleni has the highest access to sanitation. Of concern is the doubling of non revenue water levels between 2007 and % 2014 National Treasury recommends 8 10% of operating expenditure 0% 20% 40% 60% 80% 100% Train Bus TAXI Taxi Car Walk Unemployment rate Average unemployment rate 40.4% 28.8% Provincial average unemployment rate 26.3% 2011 Although unemployment levels have improved significantly, they remain above the provincial average. Citizen Engagement 43% Voter registration/turnout Local election National election 56% Voter turnout at local elections is similar to that of the other Gauteng metros and is lower than for national elections. 74%

5 Aerotroplis Introduction Airports have become major drivers of economic growth, competitiveness and urban form in cities across the world. An Aerotropolis is an economic development strategy designed to increase the competitiveness and connectivity of cities. In 2000, the director of the University of North Carolina s Kenan Institute of Private Enterprise put forward the Aerotropolis concept because airports will shape business location and urban development in the twenty-first century as much as highways did in the twentieth century, railroads in the nineteenth and seaports in the eighteenth. An Aerotroplis is when a city is built around an airport, thereby connecting time-sensitive suppliers, manufacturers, distributors, and business people to distant customers, clients and marketplaces, and may extend in a radius of 30 km or more from the airport. Examples include Airport City, Manchester, Detroit Region Aerotropolis, Hubstart Paris, Richtenbacher Inland Port (Columbus, Ohio) and Atlanta Aerotropolis. Source: The presence of OR Tambo International Airport makes Ekurhuleni well suited to become an Aerotropolis economy. In 2014, about 90% of the 360 thousand tonnes of air freight handled by South Africa passed through OR Tambo. Over 60% of the trade flow remains in Western Europe, followed by the Middle East (17%), North America (9%) and East Asia (6%), with airfreight to the rest of Africa, South America, Eastern Europe, and South- East Asia making up the remainder. Air cargo traffic through the airport is projected to reach 550 thousand tonnes by The Aerotropolis project is one of the flagship projects of the Ekurhuleni Metropolitan Municipality (EMM), and aims to become the first Aerotropolis in Africa, with OR Tambo International Airport as the nucleus. The Premier of Gauteng has elevated the Aerotropolis to a Gauteng City-Region-wide initiative because of its transformative magnitude it has been extended to cover Lanseria airport in Johannesburg and Wonderboom airport in Tshwane (GPG, 2015). 330 State of South African Cities Report 2016

6 Overview of flagship programme Situated in the heart of Gauteng, Ekurhuleni is home to three of South Africa s seven poorest townships and the hub of South Africa s ailing manufacturing sector. However, it also hosts the largest airport in Africa and effectively forms the gateway to the continent. As the Aerotropolis grows and prospers, the citizens of Ekurhuleni will benefit from the creation of new jobs, the expansion of social infrastructure, resulting in an improvement in the standard of living for all (EMM, n.d.). However, to build the Africa Aerotropolis will require politicians and officials to think big, to think bold and to act decisively! In 2012/13, the EMM set up an Aerotropolis Project Office that has various objectives. To develop the Ekurhuleni Aerotropolis Master Plan. To coordinate and streamline spatial planning and land use management instruments, such as the Municipal Spatial Development Framework (EMM, 2011) and Regional Spatial Development Framework. To align all other related master plans (i.e. those of other state entities such as Sanral, ACSA, IRPTN, CIPR, Aerotropolis). To mobilise and coordinate air and bulk cargo movements. To develop the Ekurhuleni Aerotropolis value proposition and brand positioning. To mobilise and engage with stakeholders. City of Ekurhuleni There is no question that millions, which we do not have, will have to be spent to develop the Aerotropolis economy. The key, however, is to devise a bankable strategy that involves the publicprivate sector. We have to create conditions that attract investment and funding of development. Executive Mayor of Ekurhuleni Metropolitan Municipality EMM appointed a consortium of five domestic and international companies, led by Aurecon, to help develop a five-year Ekurhuleni Aerotropolis Strategic Implementation Plan and ultimately the 30-year Master Plan. This multi-disciplinary consortium has extensive experience working on planning and infrastructure projects, both within the municipality and internationally, and includes urban and transport planners, economists, financial and logistics experts, environmental managers, market researchers and strategists. The Ekurhuleni Aerotropolis Strategic Implementation Plan was completed in The next phase looks at information gathering, analysis, scenario planning, evaluation and selection, defining economic clusters and identifying where new or substantial infrastructure is required. The criteria in finalising development scenarios include: demographics (will the planned development adequately address the poverty, skills development and unemployment objectives of the city?); proposed land-use (will this be efficient and create an attractive environment?); forecasted demand transport facilities (will this ensure the maximum efficiency of movement of people and freight in the region, and within each facility?); economic growth (will this ensure the economic wellbeing of Gauteng and Ekurhuleni s businesses and community from the smallest informal trader to the largest multi-national corporation?); predicted CO 2 emissions (how much of an impact on the environment will it have?) A key aspect of the programme is land-use planning and management, and a detailed time-distance analysis was undertaken in order to confirm and refine preferred spatial locations for targeted economic activity. City of Ekurhuleni: Aerotroplis 331

7 Time-distance analysis AVIATION INTEGRATOR/CEP FAST-CYCLE LOGISTICS ICT REPAIR BIO-LOGISTICS 0 5 Minutes MANUFACTURING ADVANCED MANUFACTURING VALUE-ADD BIO-LIFE SCIENCES & DIAGNOSTICS EDUCATION & SKILLS TRAINING R & D AEROSPACE LOGISTICS RETAIL FULFILMENT ARTISAN TRAINING TOURISM & CULTURE RENEWABLE ENERGY SPORTS & RECREATION RETAIL FULFILMENT AGRI- BUSINESS PROFESSIONAL SERVICES R & D 0 10 Minutes Minutes 15+ Minutes Source: Aerotropolis 2015 Mayoral Report This flagship programme is supported by various government industrial iniatives that are intended to revitalise manufacturing, aviation, transport and logistics industries linked to the OR Tambo International Airport. Catalyst projects have been identified, including an SA Post Office e-commerce hub, Medical City Africa, Cargo Logistics Hub, Denel MegaCity Aviation and Aerospace Manufacturing Precinct, International Conference Centre, Auto-Mall of Africa and a super-regional destination outlet retail mall. These projects have the potential to attract massive foreign direct investment into the OR Tambo Industrial Development Zone and the Special Economic Zone (GPG, 2015). Job creation is a core component of the Aerotropolis development, which could result in new jobs (EMM, n.d.) across sectors, including: Logistics workers and warehouses: including packing and shipping, line and forklift operators, freight forwarders, customer fulfilment, telecommunications. Manufacturing jobs: including production operators, in-house shipping and logistics teams, design, management, procurement. Office and clerical jobs: including finance, accounting, engineering and design, legal, human resources, branding and marketing. Researchers: including advanced materials research, polymer testing, medical and diagnostic device research. Service workers: including food services, hoteliers, laundry, day-care, bus and shuttle operators. Educators: including Vo-Tec training, computer literacy, remedial skills training. Construction jobs: including masons, carpenters, roofers, glaziers, landscapers, construction supervisors, panel farm erectors. Agricultural and green industrial workers: including farmers, pickers, washers, packagers, truckers, energy managers, solar panel fabricators. Given the magnitude of the programme, one consolidated funding strategy is not possible. Therefore, the approach will be to match the most appropriate funding strategy for each element of the programme. Emphasis will remain on supporting the vision of the Aerotropolis, but drivers that will affect possible funding include 332 State of South African Cities Report 2016

8 the corporate structure and governance, nature of application of funds, timing and duration, funders and revenue sources Reflections Given the importance of air transport for both freight and people, it seems logical that an Aerotropolis can serve as a stimulus to economic development in areas around airports. Two key success factors are: Very efficient and effective transport links to the rest of the region and beyond, in order to maximise the locational benefits. Cooperation, integration and alignment of plans and implementation strategies across all three spheres of government, the key municipalities involved (e.g. Ekurhuleni, Johannesburg and Tshwane) and the various sector departments. The cost of air transport for heavy or bulky items (which is considerably more expensive than rail, road and sea, and could increase further as oil prices rise or oil reserves decline) could limit the economic development potential of an Aerotropolis. However, this is offset by the need for fast travel for goods such as high tech electronic goods and agricultural products (flowers, fruit, vegetables and fish). City of Ekurhuleni The planned ethekwini Free State Gauteng freight and logistics corridor (Strategic Infrastructure Project 2) is a national government project to improve the movement of goods between Durban and Gauteng. It will benefit both Ekurhuleni and ethekwini where the Aerotropolis KZN/Dube Tradeport is being built on a greenfields site around King Shaka International airport. Looking forward The next phase of the project (the 25-year Master Plan) will address four major challenges that were identified: capital, land, connectivity and partnerships. In arriving at this plan, the five-year implementation plan will undertake the following actions, grouped according to five principles: Community: create Aerotropolis gateways and coordinate province-wide bus/brt services. Collaborate: clean and effective government administration that meaningfully spends allocated budgets each year. Concentrate: coordinate current municipal land use with the upcoming study and beautify the City of Ekurhuleni through improving natural resources and linkages for citizens. Connect: upgrade road linkages (PWV 13 and 15), reduce traffic congestion (100km of road improvements), improve road network (5km of new road construction and upgrades to 30 intersections) and Sentrarand (inland port freight hub), and integrate Johannesburg and Ekurhuleni s public transport systems. Compete: Identify and assemble 25 redevelopment sites and increased support targeted industirial sectors. In addition, the Ekurhuleni Digital City initiative, which will provide citizens with widespread broadband infrastructure, will greatly benefit Aerotropolis development. References EMM (Ekurhuleni Metropolitan Municipality) Spatial Development Framework. Ekurhuleni: EMM. EMM. [n.d.] Aerotropolis Concept Document. EMM EMM Five-year implementation report. Ekurhuleni: EMM. GPG (Gauteng Provincial Government) State of the Province Address City of Ekurhuleni: Aerotroplis 333