1. Integrated Urban Development Framework (IUDF) Sustainable City Conference 6 November Josiah Lodi

2. Setting the scene: South Africa is urbanizing rapidly
63% of South Africans already live in urban areas
This will rise to 71% by 2030
By 2050, 8 in 10 South Africans will live in Urban Areas

3. The Genealogy of the SA National Urban Policy
Development of the IUDF started in November 2012.
Consultation Process October 2014 – July 2015
Draft IUDF approved by Cabinet in September 2014 for public consultation.
Discussion Document launched in October 2013.
PHASE 1
PHASE 2
PHASE 3
CABINET APPROVES IUDF
26 April 2016.
Implementation of the short term (2016/19) priority actions as identified in the IUDF Implementation Plan
PHASE 5 ( )
PHASE 4

4. Responding to urbanization globally

5. IUDF vision for South Africa
‘Liveable, safe, integrated, economically inclusive and globally competitive cities, where residents actively participate in urban life’.

6. IUDF aims to achieve a set of complementary goals
CROSS CUTTING
PRIORITIES
LEVERS
VISION
STRATEGIC GOALS
Integrated urban planning and management
Inclusion and Access
Rural-Urban Linkages
Liveable, safe, resource efficient cities and towns that are socially integrated, economically inclusive and globally competitive, where residents actively participate in urban life
Integrated transport and mobility
Integrated and sustainable human settlements
Inclusive Growth
Integrated urban infrastructure
Urban Safety
Effective Governance
Efficient land governance and management
Inclusive economic development
Spatial Integration
Empowered Active Communities
Urban Resilience
Effective urban governance
Sustainable Finances

7. The logic of the IUDF Policy levers
The IUDF is premised on the understanding that:
(1) integrated urban planning and management forms the basis for achieving integrated urban development, which follows a specific sequence of urban policy actions:
(2) integrated transport that informs (3) targeted investments into integrated human settlements, underpinned by (4) integrated infrastructure network systems and (5) efficient land governance, which all together can trigger (6) economic diversification and inclusion, and (7) empowered communities,
which in turn will demand/require 
(8) effective and smart governance and (9) financial reform to enable and sustain all of the above.
Coordinated Investments in People and Places
Urban dividend is an optimal situation where the increasing concentration of an economically active population translates into higher levels of economic activity, greater productivity and higher rates of growth.

8. Confronting spatial inequality
Photo: Johnny Miller

9. Confronting spatial inequality
Photo: Johnny Miller

10. Confronting spatial inequality

11. IUDF Implementation: Principles
All of government Implementation
Promote collaboration and Partnerships
Guide Spatial Investments

12. IUDF implementation: Action Principles
2019 MTSF priorities: synergies across all relevant sectors: horizontal and vertical alignment.
Strengthen and improve collaboration in planning and delivery mechanisms.
Acknowledge and adhere to the hierarchy of plans and stick to agreed plans.
Differentiate between types of cities and towns and their roles in the national space economy.
Provide opportunities for non-governmental stakeholders to co-create and contribute to solutions.

13. IUDF Implementation: Integrated programmes across urban hierarchy
Municipalities 95
Intermediate:
Urban Towns 16
Urban villages 45
Mixed
Rural:
Municipalities 8 13

14. Core IUDF Implementation Partners
NT – City Support Programme
DCOG – Intermediate City Municipalities Support Programme
SALGA – Small Town Regeneration Programme
Metros
Intermediate Cities
Small towns & Rural towns

15. National IUDF Implementation Structures
IUDF Political Committee
It is the overall Political IUDF political structure comprising of national Deputy Ministers;
It meets regularly to oversee programme implementation and discuss urban policy issues; and
It assists with sectoral coordination to improve IUDF implementation;
IUDF Technical Working Group
It comprises of key national sector departments, participating provinces and municipalities,
It provide overall technical guidance and reports to the Political Committee; and
It meets on the monthly basis;
It ensures sectoral coordination at a technical level

16. Progress with implementing the IUDF
The Intermediate Cities Support Programme is being implemented in partnership with the Swiss State for Economic Affairs and the World Bank.
Implementation methodology has been developed
The implementation methodology is being tested in two municipalities i.e. Polokwane and uMhlathuze
Local Steering Committees have been established in the two pilots
Lessons from the pilots are currently being documented in order to improve the implementation in the future.
First phase of the roll out in 7 additional municipalities has commenced in Rustenburg, Steve Tshwete, KwaDukuza; Lephalale, Mogale City, Sol Plaatje and Drakenstein.
New grant (IUDG) mechanisms have been introduced through the DoRa in February 2018.

17. ICM Support Programme – Priority Areas
Plan
Improving integrated planning and spatial development
Fund
Linking sound spatial plans and long-term development plans to 3- and 10-year Capital Expenditure Frameworks (CEF)
Putting in place a grant framework (IUDG) which incentivizes integrated and compact development
Build
Sustaining investment in the right places over time via better project and programme preparation and better multi-year implementation management
Measure
Outcome focused monitoring tracks impact. Development of indicators to monitor impact

18. City of Umhlathuze Pilot site

19. City of Polokwane Pilot site

20. Progress with implementing the IUDF
Key issues emanating from the two pilot municipalities are:
Old SDFs that needs an overhaul or SDF that do not have implementation programmes.
Polokwane is a water scarce municipality, in 2013 even declared a moratorium on new developments, yet there are high water losses of about 48%.
Backlogs remain high in rural areas – about 70% of land under traditional leadership.
Major asset management weaknesses in the form of lack of planning for maintenance. The budget for repairs and maintenance is about 2%.
No long term financial planning is undertaken by cities. Plans only cover 3 year MTREF
Main gaps identified are on the lack of an infrastructure delivery management system.

21. Grant incentive: Integrated Urban Development Grant (IUDG)
A grant (IUDG) mechanism has been introduced through the Division of Revenue Act (DoRA)
All secondary cities can apply but only 39 intermediate cities will be evaluated
Municipal Qualification criteria:
Top management stability
Audit findings
Unauthorised, irregular, fruitless and wasteful expenditure
Capital budget expenditure
Section 71 performance reporting
A municipality must meet or exceed the threshold performance on all five the indicators in order to qualify for the IUDG.

22. IUDG Process Roadmap End July End August End January February
Apply to qualify for the IUDG
Receive notification of qualification
In order to qualify for the grant, a municipality must apply and meet a number of minimum conditions
IUDG Process Roadmap
Receive notification of qualification
Submit draft CEF and capital programme
End July
End August
Once it has complied with the minimum conditions, the municipality must prepare a 10-year Capital Expenditure Framework and a 3-year capital programme. These are reviewed in a workshop attended by the municipality, DCOG, National Treasury, national/provincial sector departments and provincial treasuries and provincial CoGTAs.
CEF review workshop
End January
Submit final CEF and capital programme
February
End April
Monitoring takes place three times a year through meetings that review reports submitted by the municipality. The municipality, DCOG, National Treasury, provincial treasuries and provincial CoGTAs are the core attendants. DBSA, MISA and national/provincial sector departments are also invited.
Submit first in-year report
First in-year monitoring meeting
Submit second in-year report
Submit output and outcomes targets
Second in-year monitoring meeting
Submit end of year report
End July
End September
October
End June
End February
Stress point that the budget is the starting point. We will not be commenting on the adequacy of the budget. The model will set tariffs that generate revenue to fund the budget as it stands.
March
Year end review meeting
Monitoring looks at the implementation of the capital programme, outputs, outcomes and continued compliance with the minimum conditions.
Receive notification of continued qualification
Municipalities must also submit monthly reports. These are simple submissions relating to grant expenditure only.
August
End August

23. Tranche Criteria : Rank GVA/Rank Urban Population ( “urban” defined by density)
39 ICMs
Large Semi -diversified
Mining
Manufacturing
Service Centre
Low GVA/High Pop/High density
Emfuleni
Rustenburg
Mogale City
Matlosana
Bushbuckridge
Msunduzi
Matjhabeng
Newcastle
Maluti a Phofung
Makhado
Mbombela
Emalahleni
Govan Mbeki
Nkomazi
Greater Tzaneen
Polokwane
Madibeng
uMhlathuze
Thulamela
Mafikeng
Rand West
Drakenstein
Sol Plaatjie
Enoch Mgijima
Steve Tshwete
KwaDukuza
Mogalakwena
King Sabata
Merafong
Alfred Duma
Ventersdorp/
Tlokwe
Gr Tubatse/
Fetakgomo
Metsimaholo
George
Ba-Phalaborwa
Stellenbosch
Gr Giyani
Lephalale
Ray Nkonyeni

24. What is going on? Who is fostering inclusion? How…
Who is growing economy? How…
Who governs cities? How…
Who shapes our cities? How…
In the aim of understanding what is currently going on in cities we have asked ourselves who are the actors- not only the state but all actors- who are working into each of these objectives and what it is that is currently going on. We seek to paint a broad picture of what is going on in our cities, acknowledging that we are not capturing a comprehensive view.

25. Who is growing economy? How…
We have mapped out a range of current public sector initiatives which are actively trying to engage with various aspects of strengthening urban economies – from economic planning, to economic policy, strategy, stimulus, economic data and intelligence, administration, partnering, enterprise support… All the way through to dealing with different levels and scales of the economy. However, as much as this mapping shows us a healthy scale of effort, it has also made shown up how the activities are uncoordinated, and that their impact has been modest or sub-optimal. The reality is that government efforts are often big slow processes that do not enable or respond effectively to the efforts of private sector actors- large and small.
The actions of key economic actors (developers, the state, urban dwellers, etc.) are also often not aligned – whether strategically or spatially. This is not simply a matter of needing more effort or doing more. The actual agenda and alignment of actors and actions require urgent attention if the IUDF vision is to be advanced.

26. Who governs cities? How…
WHO is working on improving governance and what is happening in practice?
Nascent practices of citizen-based monitoring and increased use of technology to raise voice
Practices of social audits being initiated by civil society and social movements in order to improve service delivery
Robust and informed social campaigns and land availability, affordable housing and good governance
Emergence of national and city government initiatives aimed at greater transparency to empower meaningful engagement such as municipal money

27. Who shapes our cities? How…
On the one end of the spectrum millions of people living in cities have created their own settlement in tremendous demonstrations of effort to create a sense of belonging against all the odds. There are also many NGOs and CBOs supporting communities in informal settlements to build on and improve their realities. The state is also active in developing space and place through the many investments made across various housing formats RDP, social and affordable housing complexes. Then there is a a prominent private sector property development impact which is both small scale and large listed sector companies. As we look across cities we see clearly the bredth of activity taking place.

28. What is the state of implementation?
In some way, shape, or form, all sectors are already shaping the cities we live in through efforts and contributions. The collective results of which are proving to not fundamentally transform the lives of people living in South Africa.
Government is planning, co-ordinating and implementing, academia and innovation is thinking, exploring, reflecting and informing, business and civil society are doing what they feel they must.
There are many things happening in different quarters we are not aware of. One of the goals of this conference is to harvest what’s out there- crowd in initiatives, voices and ideas.

29. Our Collective IUDF Challenge
With so much being done by so many people. How can the existing energy in the system to get things done be harnessed towards a common vision?
And how the different actors begin to work more effectively in concert?
This is the provocation for the session

30.
@IUDF-za