SpropertySolutions to
SpropertySolutions to municipal servicedelivery bolster property investmentThe property market has always been viewed as one of the most stable investments for property developers and investors.Public and private sector alignment and collaborations will ensure continued success in the industry, with the knock-oneffect of increased investor confidence.A vote of confidence in the property sector is that there is ongoingdevelopment planning, especially with respect to large developmentswhere a solid pipeline exists in concept stage; however, there has beena shift in the burden to the private sector for bulk infrastructurecontributions. Materially, this affects project feasibility, which resultsin project pipelines being cancelled or deferred. The greatestimpact is the loss of construction and operating jobs for buildingand maintaining infrastructure and it means that rates collectionsare not happening as required. Infrastructure planning isn’t alwayssupported by budget planning, with a gap between budget allocationand actual execution.Broll Property Group’s Mantsi Moiloa, Group Head: PublicSector, says there needs to be greater convergence of investmentand facilities management to enable the long-term management offacilities and therefore the upkeep of the investment. “It is notable,though, that the government has begun to shift away from investingin new capital projects and is channelling funds into facilitiesmanagement to retain the condition and value of its assets. This isa positive move that I believe needs to be adopted on a city scale,”she adds.Moiloa points to taking inspiration from the Department ofPublic Works’ National Immovable Asset Maintenance ManagementPlanning Guideline as it provides a strategic approach to tacklingthe issues in municipalities and dealing with budget constraints toarrive at a plan of less reactive maintenance and more preventativemaintenance. “This approach is aimed at creating a stable systemin which things run according to plan and become predictable. Itbalances the pursuit of an ideal state with the realities of the Statepurse. That’s what is needed to promote confidence in investment ina long-term asset like property.”Inadequate service delivery leads to uncertainty for the country’scitizens, SMEs and large corporations. “For businesses, the cost ofproduction has spiked, especially when it comes to generatingpower – for those who have generators and solar – and companieslose their competitiveness due to a delay in the delivery of productsand services.“These challenges are not insurmountable, however. Thereare many private sector offerings in the way of renewable energysolutions. Public Private Partnerships (PPPs) are also increasing,but greater participation by government is important – an exampleof this could be the revisiting of initiatives such as the incentiviseduse of solar-powered geysers and expanding that concept beyondnarrowly-defined tax-incentivised installations, to renewableinstallations in general, as well and waste and water efficiencymeasures,” she adds.The generation of new sources of income should be complementedby combating revenue leakages. She suggests more widespreadadoption of community-based micro-grid funding of public-privaterenewable projects through Eskom or municipal power entities.“Let the government also be a financial beneficiary in the rolloutof the private sector’s ability to problem-solve-for-profit. Lastly, weneed to stem low-resistance revenue leakage. Prepaid electricity andwater should be the norm and easy to opt into. This helps reducenon-payment of consumption which, in turn, will help municipalitiesbring in the revenue they need to function optimally, and ultimatelyrecapitalise infrastructure. It will help individuals and companiesbecome more responsible in their usage. There are only a fewmunicipalities that have implemented prepaid water systems to date,yet in many other African countries, prepaid systems are standard.“Implementing these measures would bolster investor confidence,as they bring stability and predictability to the system. Creatingresilient sustainable cities provides security, not only around thereliability of service delivery, but also the security that investors needto make that commitment,” concludes Moiloa. S
SInclusive leadership in real estate:a pathway to better citiesHow do we maintain the momentum of gender inclusivity, ensure the sustainability of our achievements and continueto build a South Africa that genuinely mirrors our rich diversity?By Bathobile Chime, Divisional Director, Client Solutions, Cushman & Wakefield | BROLLInclusivity becomes a systemic reality when our cities, infrastructureand buildings are deliberately designed to promote it. An inclusivecity fosters socioeconomic development, creating environmentswhere everyone can thrive.Considering that approximately 57% of the global populationresides in urban areas, which contribute around 80% of the world’sGDP, inclusivity directly impacts the lives of nearly five-billion peopleand a staggering USD71-trillion.Cushman & Wakefield has developed the industry’s first InclusiveCities Barometer, a powerful tool that fosters a data-driven dialogueon how real estate activities impact urban inclusion and the socialfabric of our cities. The barometer assesses the inclusiveness of 44cities in EMEA and 35 in APAC, based on nearly 9 000 data points,110 metrics across four dimensions and 12 subdimensions. It servesas a guide to inspire cities and industry stakeholders to create moreinclusive, vibrant and sustainable urban environments.The essence of inclusive citiesInclusive cities prioritise diversity, equity and accessibility for allresidents, regardless of their background, identity or socioeconomicstatus. They embody principles of spatial justice, ensuring that allcitizens participate independently and productively in all aspects ofurban life. This includes measures such as close connectivity betweenhousing and work locations to support families and promote genderequality, as well as mixed-use development schemes that enhancethe urban experience and contribute to reducing crime, makingour cities safer and more secure. No two cities are alike. Cities aredynamic ecosystems shaped by various factors, including the needsof the diverse groups of people who inhabit them.Inclusivity as an assetMore inclusive cities tend to attract talent and innovation, leadingto investment and growth that benefits both organisations andindividuals through increased social mobility and entrepreneurship.They are more adaptable to the changing needs and expectationsof their citizens and stakeholders. Through collaboration betweenurban planners, government, design and real estate industries, wecan create flourishing environments where everyone prospers.Categorising inclusive citiesMany cities are advancing towards greater inclusivity, and measuringtheir progress is crucial to understanding how to create socialvalue through responsible real estate activities. The barometeracknowledges that not all cities “start from the same startingline”, allowing for a more nuanced and constructive approach tosupporting increased social value through urban inclusion. This is avital consideration for South Africa, where many cities were, in thepast, designed for exclusion.In the report, cities are grouped into four categories based ontheir progress towards inclusive urban environments. Mature UrbanCentres have a long history of social inclusion, prioritising citizens’needs, aiming for equal wealth distribution and balanced economicgrowth. Social Drivers show strong social inclusion across manyareas but are still working to reduce wealth and lifestyle inequalities.Rapid Risers were previously less focused on equitable economicand social development but are now rapidly advancing their urbaninclusion initiatives. Emergers are just beginning their journeytowards urban inclusion, with strong ambition to improve.South Africa’s progressJohannesburg and Cape Town fall into the Emergers category. Forboth cities, the top three factors contributing towards their inclusivityare access to parks and green public spaces (and beaches in CapeTown), increasing efforts through community-led movementsto empower and support the progression and integration ofmarginalised communities and increasing efforts to provide socialinfrastructure to all residents by building connectivity betweenpreviously segregated communities.This progress is promising, but more needs to be done.However, achieving greater inclusivity involves addressingcomplex and interrelated factors. Are there high-quality jobs forall skill groups? Can people travel safely and cost-effectively onpublic transport to reach these jobs? Are they safe in all partsof the city at night? Do they face discrimination or isolation incertain areas? Creating inclusive cities requires collaborationbetween communities, policymakers and organisations that designand manage physical spaces.Looking at South Africa’s broader national empowermentstrategy, its objectives include changing the racial and gendercomposition of ownership and management structures of existingand new enterprises and in skilled occupations. Essentially,according to the Sanlam Transformation Gauge 2023, the intent isfor economic inclusion and the business sector to broadly reflectthe country’s demographics. SService magazine | 29
