Johannesburg THE FACTS ECONOMY AND LABOUR FORCE. Rebirth of the inner city
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1 THE FACTS City: Johannesburg Major Cities: N/A Country: South Africa Population: 3,888,180 Population Density: 2,400/km 2 Sex Profile: Males 49.5% / 50.5% Females; 99M : 100F Governance Structure: Mayor-Council ECONOMY AND LAOUR FORCE Occupational Typology (C/S/W): 28.0% / 33.0% / 31.3% Top Employers: Age Profile: Years Share % % % Company Vodacom MTN Group HP illion SA Miller First National ank Standard ank Rebirth of the inner city Starting in 1950, South Africa s apartheid government drafted the first version of the Group Areas Act, a law that designated non-whites to live in certain areas and locales. With the end of apartheid in the early 90s, blacks and nonwhites were free to move into the city s downtown area that was previously associated with the headquarters of financial corporations and institutions like the stock exchange. The outcome was a severe case of urban blight due to the increasing crime rate and urban decay resulting from the increasing concentration of lower income individuals. As a result, many landlords and corporations left the downtown core completely leaving a desolate area in their wake. However, recent developments have curbed the area s deterioration and could possibly reverse it. First of all, the municipal government of Johannesburg has made considerable investments during the year 2000 to implement CCTVs in the area. The city s police department has found the results of this to be extremely positive with crime reducing by 43%. More importantly, a grass roots movement sparked by local entrepreneurs has added to the revitalization of the inner city. Influenced by the West, many educated Johannesburg expats are returning to spur development in the region. For example, property developer Adam Levy is turning old desolate office buildings into very attractive apartments that resemble rooklyn s Williamsburg or London s East End. This in turn is attracting more middle and higher income residents and would be attractive to members of the global creative class. Corporations are also returning more entrepreneurs to create more entertainment attractions such as the new Soweto Theatre (seen below). Coupled with the declining crime rate, the inner city is gradually becoming more attractive to Johannesburg s more affluent and educated population and increases the city s chances of becoming world class. 1
2 Labour Force Distribution by Sector: Male Female Total Legislators, senior officials and managers 9.54% 5.72% 7.90% Professionals 10.66% 10.24% 10.48% Technicians and associate professionals 8.26% 11.53% 9.66% Clerks 8.37% 20.46% 13.57% Service workers, ship and market sales workers 15.29% 9.42% 12.77% Skilled agricultural and fishery workers 0.75% 0.23% 0.53% Craft and related trades workers 16.43% 3.67% 10.94% Plant and machine operators and assemblers 10.42% 1.63% 6.64% Elementary occupations 13.39% 29.53% 20.33% Undetermined 6.88% 7.57% 7.18% GDP: $30,503M Economic Growth Rate: No recent city specific numbers were found although it is understood that Johannesburg generally leads development in South Africa. National real GDP growth rate was 2.8% during 2011, and averaged 3.15% between 2005 and
3 TALENT SCORECARD Talent Score Justification Educated Population: K 8 (Primary) Educated Population: 9 12 (Secondary) Educated Population: Post-secondary Educational Institutions: College Educational Institutions: University - C + C- For 15% of Johannesburg residents, K 8 is their highest level of educational achievement. For 29% of Johannesburg residents, 9 12 is their highest level of educational achievement. 14% of Johannesburg residents have some form of University or Technical education. The city features several colleges and specialty schools that focus on topics such as film, photography and culinary arts. The South African School of Motion Picture Medium and Live Performance received an Academy Award in The city features two prominent universities. One of these, the University of the Witwatersrand, ranks poorly on the global scale. In the latest edition of the Times Higher Education World University Rankings, it finished between Education Spending C+ Educational spending is fairly high at 7% of GDP. The increased spending is occurring at the primary and preschool levels as part of the country s 2025 schooling initiative. Tertiary education however, particularly in Johannesburg, suffers from overcrowding with numerous qualified applicants being turned away. Creative Class Share 28.0% of the workforce falls into the Creative Class category. Overall score for talent - As compared to surrounding African countries, South Africa s talent pool is definitely above average. ut when matched against global cities, especially in the West, it falls short on the Talent Index. 3
4 TECHNOLOGY SCORECARD Technology Score Justification Patents C+ Johannesburg is not celebrated as a centre for patent application in any rankings. South Africa itself is ranked 5th amongst the top middle-income countries with 308 patent applications filed in 2011 with 18.3% coming from Universities. Innovation C Johannesburg is ranked in the 5th percentile of 2thinknow s innovative rankings out of 331 cities. Coupled with the mediocre patent ranking, it s innovation can be said to be average. Job Growth D- Johannesburg has a very high unemployment rate at 24.5% due to its lack of skilled labor. Over the past decade ( ), 2% of jobs have been added to the country s non-agricultural formal sector with more and more citizens dropping out of the labour force. Creative Class Share High-Tech Index Sustainability/ Green Economy Entrepreneurship Overall score for technology A C 28.0% of Johannesburg's workforce is a part of the Creative Class. Johannesburg is home to at least one major telecommunications firm. MTN Group, which operates in 21 African and Middle Eastern countries, has its headquarters in Johannesburg. However, the World Economic Forum ranked South Africa 72nd out of 142 countries in its 2012 Global Information and Technology report for its ability to drive economic productivity and social development through ICT. Johannesburg has numerous green initiatives, particularly "green" buildings that use cutting-edge materials, technology and construction techniques to minimize energy use not only for corporate use but private accommodation as well. The year 2013 will also see the introduction of a carbon emissions tax. In addition, South Africa is ranked in the above average category in Siemens Green Cities Index. South Africa suffers from an underwhelming lack of entrepreneurship due to marginalization of blacks during the apartheid years and the lack of support from the government since then. The red tape in establishing a business is extensive, averaging 19 days whereas it takes 6 days in the continent s leader; Mauritius. Johannesburg s global rankings are not spectacular, placing it in the middle or lower percentiles. However, its green initiatives are particularly impressive and deserve recognition. 4
5 TOLERANCE SCORECARD Tolerance Score Justification Immigration + Visible Minority A- The Centre for Development and Enterprise estimates that 13% to 14% of Johannesburg s population was foreign born in Recently, there have been calls from government officials to implement more stringent immigration laws to curb the wave of immigrants, particularly from Zimbabwe and its slumping economy. As per 2001 data, Johannesburg was 73% black, 6.3% colored (mixed race), 4.1% Indian and 16% white. Integration Multiculturalism Gay and Lesbian Population D C + South Africa is generally seen as a xenophobic nation with immigrants being blamed for many (especially) violent crimes. Immigrants in Johannesburg are usually low skilled and reside in poor areas such as Yeoville. There does not appear to be any special multicultural rules for the city of Johannesburg. Although same sex marriage are legally protected by the constitution, there have been increasing acts of homophobia by South Africa s rulers and traditional leaders in recent times. Johannesburg, despite possessing a burgeoning nightlife for gays is still prone to acts of violence against its gay population. Religious Diversity + Openness C+ Civil Rights + Using the province of Gauteng as a proxy, Johannesburg is 31.4% mainline Christian, 28.7% belong to African or Independent churches, 18.4% are not affiliated with any form of organized religion, 1.6% are Islamic and 0.8% are Hindus. The city does not seem considerably open to diversity based on the criteria identified above. Conservative elements of the city such as violence towards immigrants tend to be on the higher side, awarding it a low grade of C+. The South African Constitution guarantees a high level of civil and political rights for all South African citizens. However, The Freedom of Expression Foundation (Fritt Ord) that assesses civil liberties around the world gives South Africa a 2 (with the maximum being a 1) for civil liberties and political rights indicating that rights in Johannesburg are not as respected as compared to the same in major western cities. ohemians Overall score for tolerance Johannesburg s arts and entertainment scene appears to be an average. However the South African music genre, Kwaito, originated from Johannesburg and is associated with South Africa s post-apartheid black youth. While there are some very progressive laws and initiatives in Johannesburg, those are sometimes ignored and seem to support an underlying intolerance held by some citizens. 5
6 AMENITIES AND QUALITY OF PLACE SCORECARD Amenities and Quality of Place The SOs (Symphony, Opera, allet) Score A- Justification The city possesses a standalone Orchestra titled The Johannesburg Philharmonic Orchestra. Also, the South Africa allet Theatre and Opera performances operate out of the Johannesburg Civic Centre. Museums A+ The city possesses many museums like the Nelson Mandela museum that detail the countries apartheid past and others that total the history of the African continent itself. Entertainment and Nightlife + Along with 5 soccer and 2 rugby teams, the city sports a diverse nightlife ranging from the concentrated funky clubs and pubs in Soweto to the laid-back jazzy groove of Newtown. Although numerous, the city itself does not rank highly as a party destination on an international scale. Crime Rate C+ South Africa has witnessed major issues of violent crime within the Gauteng province, a proxy for Johannesburg, sporting a murder ratio of 29.1 per 100,000 of the population in 2010/2011. This however, marks a significant improvement from the early 2000s when the ratio was as high as 48.8, highlighting the effectiveness of recent security initiatives. Recreation Facilities Neighbourhoods A The city has numerous parks, zoos, game reserves, and heritage trails. The Cradle of Humankind, one of eight World Heritage Sites in South Africa, and the only one in Gauteng, is renowned as the place where humankind originated. There are also cultural villages around the city which are major tourist destinations. Johannesburg s inner city is mainly occupied by the underprivileged and poor immigrants. This is currently undergoing a revitalization project that is leading to the movement of the entrepreneurial middle class. The more affluent segment of the population lives primarily in the Northern part of the city, thereby highlighting the degree of separation between classes. Scenes + Public Transit ike Paths + The Johannesburg music scene was very influential in birthing Kwaito, the popular South African genre in the early 90s. Also, Johannesburg possesses its own quirky fashion scene which has only just been formalized with the recent implementation of the Soweto Fashion Week. Although there are many means of public transportation including informal taxis and a railway system, public transit is generally chaotic, because the trains do not extend Northward, where the city has extended. There is no official record of bike paths or the city s support for biking. However, there is a strong mountain biking culture in the city 6
7 Amenities and Quality of Place Civic Capital (NGOs, Non-Profits) uilt Form Investment Infrastructure (Utilities, Roads, etc.) Overall score for amenities and quality of place Score + A + + Justification A few NGOs exists with most of them centered on the HIV epidemic faced by the country. The Global Water Foundation and The Nelson Mandela Children s Fund also have headquarters in the city. As Africa s financial hub, there are many skyscrapers in the city s central business district. There exists a wide variety of building styles, ranging from Art-Nouveau to Post Modern. The city has two airports, both offering international and local flights. There are 3 freeways that ease transportation both within the city and with neighboring towns. It also has 9,000km of road with most of them being tarred. However, traffic congestion remains a major concern on these roads. As Africa s financial and commercial centre, Johannesburg does indeed offer an abundant amount of amenities. However, its high crime rate and location close to the tourist-friendly Cape Town prevent it from being a true global hot spot. 7
8 REFERENCES The Facts: Official city population retrieved from the 2007 Community Survey on June 4, 2012, from Statistics South Africa Age profile/pyramid, Sex profile, Occupational typology, and Labour force by distribution numbers obtained from Statistics South Africa s 2001 interactive census on June 4, GDP growth data retrieved on June 4, 2012, from The World ank: Data Comments on Johannesburg GDP Doing usiness in Joburg retrieved on June 4, 2012, Ranking for the University of Witwatersrand retrieved on June 4, 2012 from The Times Higher Education Rankings World University Rankings Johannesburg University Stampede kills one C News Africa March 10, 2012, retrieved on June 4, Action plan to 2014: Towards the realisation of Schooling 2025 retrieved on June 4, 2012 from the Department of asic Education of the Republic of South Africa Technology: WIPO 2012 Patent Co-operation Treaty Yearly Review, retrieved on June 6, Innovation cities Global Index 2011, retrieved on June 6, South Africa: Nation has Lowest Employment Rate retrieved on June 6, Joburg promises to create 45,000 jobs (May ) retrieved on June 6, Green becomes Developer s color of choice retrieved on June 6, 2012 from the Wall Street Journal (June 5, 2012) Siemens Green Cities Index 2011, retrieved on June 6, 2012, South African seeks an entrepreneurial revolution, retrieved on June 6, 2012, from Global post (June 4, 2012) Tolerance: Immigrants in Johannesburg perceptions and reality, (August 2008) retrieved on June 6, 2012, from the Center For Development and Enterprise City demographics obtained from Statistics South Africa s 2001 interactive census on June 4, In Johannesburg, immigrants fear new wave of violence retrieved from France 24 International News 24/7 on June 6, South Africa s traditional leaders want gay rights constitution clause changed retrieved from Global Post on June 6, Primary tables Gauteng retrieved from Statistics South Africa Census 2001 on June 6, South African Constitution retrieved from South African Government Information on June 6, th Space Interactive South Africa: Home Affairs calls for tighter immigration laws retrieved on July 22,
9 Amenities and Quality of Place: Murder in RSA for April to March 2003/2004 to 2010/2011 retrieved on June 6, 2012 from the South African Police Service Department of Police Overview of Tourist Activities and general recreation retrieved on June 6, 2012, from City of Gold and Glamour: Johannesburg Additional Overview of Tourist Activities and general recreation retrieved on June 6, 2012, from Joburg Visitors South Africa s Soweto gets its fashion week (May 25, 2012) retrieved on June 6, 2012, from CS News Johannesburg s leading status retrieved on June 6, 2012 from MasterCard Worldwide Centers of Commerce Index Sidebar ringing a Taste of New York to Johannesburg retrieved from New York Times (March 9, 2010) on June 6, Urban rebirth: Johannesburg shakes off crime-ridden past retrieved from CNN.com/Africa (May 28, 2012) on June 6, 2012 file://localhost/ 9
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