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Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005. 1 JOHANNESBURG: PRO-POOR GROWTH THROUGH SUPPORT OF THE SMME ECONOMY Christian M. Rogerson 1. Introduction The aim in this case study is to highlight certain promising directions for encouraging pro-poor growth in Johannesburg, South Africa’s largest and economically most vibrant city. Historically, Johannesburg has been one of the leading foci for the development of LED planning in South Africa and often a benchmark or point of comparison for the performance of other cities. Moreover, it is also, in many respects, a policy laboratory or testing ground in that city provides several examples of policy and practice that have been adopted (or adapted) by other South African centres. This case study does not seek to provide a comprehensive examination of LED in Johannesburg as that task is beyond the scope of this present discussion (see Rogerson, 2005). Rather, the case study aims to examine the state of pro-poor LED within the city and especially to focus in detail on one promising cluster support initiative which is driving a revival and reinvention of the city’s clothing economy around the axis of an incipient fashion district. The paper is structured into three major sections of discussion. In the first section a context is provided of the changing economy of the city and of the major development challenges that confront the Metropolitan Council. The following section turns to profile and review the city’s core LED directions and specifically to identify its pro-poor dimensions. The third section reviews the important example of the emerging fashion district and argues that it provides a best practice example of LED interventions that are fostering a pro-poor growth in Johannesburg. Sources for the paper are primary interviews with Council officials and stakeholders of the

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Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

1

JOHANNESBURG: PRO-POOR GROWTH THROUGH SUPPORT OF THE SMME ECONOMY Christian M. Rogerson 1. Introduction The aim in this case study is to highlight certain promising directions for

encouraging pro-poor growth in Johannesburg, South Africa’s largest and

economically most vibrant city. Historically, Johannesburg has been one of the

leading foci for the development of LED planning in South Africa and often a

benchmark or point of comparison for the performance of other cities. Moreover, it

is also, in many respects, a policy laboratory or testing ground in that city provides

several examples of policy and practice that have been adopted (or adapted) by

other South African centres. This case study does not seek to provide a

comprehensive examination of LED in Johannesburg as that task is beyond the

scope of this present discussion (see Rogerson, 2005). Rather, the case study

aims to examine the state of pro-poor LED within the city and especially to focus in

detail on one promising cluster support initiative which is driving a revival and

reinvention of the city’s clothing economy around the axis of an incipient fashion

district.

The paper is structured into three major sections of discussion. In the first section a

context is provided of the changing economy of the city and of the major

development challenges that confront the Metropolitan Council. The following

section turns to profile and review the city’s core LED directions and specifically to

identify its pro-poor dimensions. The third section reviews the important example of

the emerging fashion district and argues that it provides a best practice example of

LED interventions that are fostering a pro-poor growth in Johannesburg. Sources

for the paper are primary interviews with Council officials and stakeholders of the

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

2

Johannesburg fashion district to supplement extensive desk-top research of

documentary sources.

2. Johannesburg – An Economic and Development Profile Currently, it is estimated that the population of Johannesburg is approximately 3

million. In many respects, the city of Johannesburg towers over South Africa,

southern Africa, and even the continent as a whole. It is the region’s transport hub

and shopping center; the city’s international airport is the busiest in Africa. Often

Johannesburg is likened to the New York of Africa, dominating the continent in

terms of the scale and sophistication of its stock market, financial services,

corporate vibrancy, media and culture. Above all, as a recent report describes, “in

an African and even global context, Johannesburg has been synonymous with

driving capitalism” (CDE, 2002).

It has been stated, however, that in the context of post-apartheid change,

“Johannesburg is the test case of urban reconstruction” for South Africa (Beall et al,

2002: 7). At the core of the developmental issues that confronts the Greater

Johannesburg Metropolitan Council is the fact that Johannesburg is a highly

unequal city (CDE, 2002). Indeed, whilst a large proportion of Johannesburg’s

population is poor, the city also has a substantial middle and upper-middle class

competing in global financial and trade markets and adhering to international norms

of urban consumption and culture. As Beall et al. (2002: 7) assert: “Their

expectations of what constitutes a well-run city permeate the aspirations of the

GJMC and must be set against the demands of the city’s disadvantaged

populations”. The constant search in Johannesburg is thus for a balance in urban

development planning between global competitiveness on the one hand and

poverty reduction on the other.

Over the past two decades, this search for an urban development strategy has

been taking place in the context of an economic base in transition, if not radical

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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economic restructuring. The first three decades of apartheid rule, from 1948 to

1980 were marked by strong growth in most sectors of economic activity in

Johannesburg (Rogerson, 1995). Indeed, the only sector that confronted economic

decline during this period was the city’s traditional activity of gold mining “which saw

its share of total employment within Johannesburg fall from 23 percent in 1946 to

only 1 percent by 1996” (Beall et al, 2002: 7). Although Johannesburg is often

described as ‘iGoli- the city of gold”, as early as 1950 manufacturing had overtaken

mining as the leading source of employment in the city; by 1970 employment in the

primary sector in Johannesburg was down to only 36 000 jobs (CDE, 2002).

Restructuring of the urban economy has been proceeding at an especially rapid

pace since 1980 (Rogerson, 1995; Chandra et al, 2001). Since 1980, there has

occurred a marked downturn in employment especially within the manufacturing

sector. Existing data suggests that the demise of manufacturing in Johannesburg

continued and that between 1996-1999 there occurred a 7.9 percent fall in

employment. Despite the onset of de-industrialization in Johannesburg and a

situation of overall employment decline, it must be acknowledged that the city has

retained its strength in the high skills-based and hi-tech segments of manufacturing

(Rogerson, 1995, 2000a).

By contrast to the weak employment trends in manufacturing and mining sectors,

employment in the tertiary sector has escalated rapidly since 1980 and has been

led in particular by the burgeoning growth of the financial services, insurance, real

estate and business services economy (Beall et al, 2002, CDE, 2002). In terms of

the sector of financial and business services, Johannesburg is South Africa’s major

focus for banking, insurance, accounting, advertising and a host of financial

intermediation services (Trail Business Development Services, 2003). As the

location for nearly three-quarters of national corporate headquarter offices in South

Africa, Johannesburg has become established firmly as the decision-making and

financial control capital of South and southern Africa (Rogerson, 2005). Business

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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tourism and especially the segment of MICE (meetings, incentives, conferences

and exhibitions) is a vibrant element in the local economy (Gelling, 2004; Rogerson,

2004a, 2005). Finally, in terms of the expansion of service activities, it should be

noted that Johannesburg is the geographical focus of South Africa’s largest cluster

of ‘smart’ or ‘knowledge-based’ activities, in particular relating to the information

and communications technology (BluePrint Strategy and Policy, 2003).

Presently, in its economic complexion, Johannesburg is primarily a post-industrial

metropolis and the locus for coordinating South Africa’s (and increasingly the sub-

continent of Southern Africa’s) private sector (CDE, 2002). Indeed, Johannesburg

has been aptly described as South Africa’s quintessential professional, private

sector city (CDE, 2002). It is estimated that Johannesburg is responsible for

generating a Gross Geographic Product of R117 billion which represents roughly

16 percent of South Africa’s Gross Domestic Product and 40 percent of Gauteng

province. In terms of economic performance, over the last decade, Johannesburg

has bettered marginally at an average 2 percent growth per annum the national

performance, which is estimated at 1.8 percent growth over the past ten years. It is

viewed as “troubling” however, that Johannesburg’s growth of Gross Geographic

Product “has failed to increase as fast as other international cities” (GJMC, 2002:

12). As a whole, the urban economy is viewed as mirroring “strongly successive

waves of development and decline, which have seen the City move away from

mining and industrial production towards an economy fundamentally based on

services and trade as well as some high value manufacturing” (GJMC, 2002: 25). In

a 2003 report produced by the Metropolitan Council of Johannesburg, it was

observed that the city’s economy “is dominated by four sectors, three of which are

service sectors” (GJMC, 2003: 18). As indexed both by their contribution to total

formal employment and contribution to total GGP in 1999, the two leading sectors

of activity in the city economy are financial and business services and the retail and

wholesale trade sector. By far the most important is financial and business services

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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which was responsible for 22.6 percent of total formal employment and 31.7

percent of contribution to GGP (GJMC, 2003: 18).

The city offers 12 percent of all national employment opportunities in South Africa,

a total of 840 000 jobs. Nevertheless, a worrying feature is that employment growth

in Johannesburg has averaged a meagre 1 percent expansion over the past ten

years with levels of unemployment rising in the city to an estimated 30 percent by

2000. Parnell (2004a) suggests that for 2002 the extended unemployment figure of

32 percent as provided in the Labour Force Survey is generally considered to be

the best current estimate. Currently (2004) it is estimated that the rate of annual job

creation in the formal economy is around 2.5 percent, which includes a new burst of

growth in manufacturing. Nevertheless, in part this generally poor labour

absorptive performance of the formal economy is linked to the restructuring of the

city’s economic base from manufacturing to services and increasingly to

knowledge-based economic activities (such as IT service activities), which do not

employ as many low skill workers as manufacturing (Beall et al, 2002; GJMC,

2002).

An important and growing sphere of employment in Johannesburg is the city’s

increasingly vibrant small enterprise economy which encompasses a large and

growing element of survivalist informal sector enterprise (Rogerson and Rogerson,

1996, 1997; Rogerson, 2002a). This informal economy has grown up and out of the

progressive failures of the formal economy to generate sufficient employment

opportunities for the expanding numbers of work seekers, including new migrants

from all parts of South Africa and since 1994 also from much of sub-Saharan Africa

(Peberdy and Rogerson, 2003). Overall, Johannesburg’s small enterprise economy

has been demonstrated as an axis of both economic growth and survival

(Rogerson and Rogerson, 1996, 1997; Rogerson, 2000b). Johannesburg’s informal

economy encompasses a broad range of activities from street trading, backyard

manufacturing, informal transport and a host of informal service activities. This

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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informal economy has grown up and out of the progressive failures of the formal

economy to generate sufficient employment opportunities for the expanding

numbers of work seekers, including new migrants from all parts of South Africa and

since 1994 also from much of sub-Saharan Africa (Rogerson, 2000c; Peberdy and

Rogerson, 2003). Although the data on the informal economy must be treated with

some caution, the city’s best estimates are that total activity in the informal

economy is growing rapidly with an increase in employment of 86.5 percent

between 1996-1999 to a total of 161 000 people, with the largest segment engaged

in informal retailing (Monitor, 2000).

Within the context of Johannesburg’s worrying economic performance and of the

accompanying rises in levels of unemployment and poverty that the city became

actively involved from the mid-1980s in the business of LED planning. Although the

promotion of new growth, job creation, poverty and unemployment top the list of the

development challenges that face Johannesburg, other related issues of concern

must also be noted. First, is the city’s poor record on safety and violence and of the

high crime rate which has precipitated descriptions of Johannesburg as a “fearful

city” (Dirsuweit, 2002). A recent detailed investigation conducted by the World Bank

recently identified crime as the single most important deterrent to new private sector

investment in the city (Chandra et al, 2001). Second, is the growing impact and

weight of South Africa’s HIV/AIDS epidemic which is projected to reduce life

expectancy from 68 years in 1990 to only 44 years by 2010. Crime, HIV and

unemployment, once again collectively underline the imperative for local

intervention measures to combat escalating levels of poverty within development

planning for Africa’s aspirant world city.

3. LED Planning Directions With the explicit objective of becoming Africa’s world-class city, the overwhelming

emphasis in contemporary LED planning in Johannesburg is towards promotion of

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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growth and competitiveness. The council has been actively engaged in supporting

the positive re-imaging of Johannesburg through a number of place promotion

initiatives. In one recent marketing drive ‘Jo’burg’ is energetically promoted as ‘the

world class African city’, a city that is boasted to be ‘in the heart and minds of most

South Africans’.

The first post-apartheid innovations designed to address the growing employment

crisis in Johannesburg were made as part of wider provincial economic

development planning for Gauteng province. The recommendations made by the

1997 Province Trade and Industry Strategy are highly influential for they provided

guidance for the subsequent revised economic frameworks for planning

Johannesburg as a world city. The key finding of the research undertaken by the

provincial Department of Finance and Economic Affairs was that whilst restructuring

of the economy was taking place in response to changing market conditions,

existing growth trends across Gauteng were insufficient to meaningfully address

existing levels of unemployment or to improve provincial standards of living, not

least in the province’s major city of Johannesburg (Gauteng Province, 1997).

Further, it was argued that a higher rate of economic growth for the province could

be achieved only by fundamentally shifting the growth trajectory of the provincial

economy. The nature of this fundamental shift was to be towards the economic

development of Gauteng as South Africa’s ‘smart province’ (Gauteng Province,

1997). This necessitated three strategic thrusts in terms of (1) re-aligning the

manufacturing sector away from traditional heavy manufacturing and low-value

added manufacturing and shifting instead towards sophisticated, high-value-added

production activities; (2) creating an enabling environment for the growth of

knowledge-based or smart activities; and (3) developing the service economy and

more especially focussing upon financial services and technology, auxiliary

business services, corporate head offices and business tourism. The

operationalisation of the 1997 Gauteng Provincial Trade and Industrial Strategy led

to an investigation of a number of anchor ‘mega-projects’ to be implemented as part

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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of the province’s Spatial Development Initiative and subsequently taken over and

embodied as the mandate of Blue IQ. The agency Blue IQ was established as the

dedicated provincial organization which is responsible for implementation of the

specific projects identified in the Gauteng Trade and Industrial Strategy (Blue IQ,

2002).

In Johannesburg, the major direct projects of Blue IQ relate to high technology

manufacturing, improving transport and logistics and in support of tourism

development. In high value-added manufacturing and transport and logistics there

are three projects which concern new developments at Johannesburg International

Airport, the Gautrain Rapid Rail Link and the City Deep Container Terminal (see

Blue IQ, 2002). In the service sector, Johannesburg is the focus of a number of

tourism projects which are part of the Blue IQ portfolio, namely the development of

the heritage tourism project of Constitution Hill which has been likened to the US

Capitol Hill in Washington DC (Rogerson, 2004a), the planned transformation of

Kliptown in Soweto into a “significant tourist destination and heritage site” (Blue IQ,

2002) and the Newtown regeneration project which aims to promote a cluster of

creative and cultural industries that might enhance the area’s tourism potential

(Dirsuweit, 1999). Supporting the regeneration of Newtown is the opening in July

2003 of the spectacular Nelson Mandela Bridge as a symbolic landmark and

‘signature bridge’ which is to become the new icon associated with a renaissance of

Johannesburg (Rogerson, 2004a). These Blue IQ initiatives, which emanate from

Provincial Government, now intersect and synergise with newer consolidated

strategic economic development planning initiatives for Johannesburg. More

especially, the three core provincial foci of promoting high value added

manufacturing, for supporting knowledge-based or ‘smart activities’ and for

expanding the service sector, especially the tourism economy are threads which

are continued in Johannesburg’s long term economic development strategy for the

city – Johannesburg 2030 - which was issued in 2002 (GJMC, 2002).

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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The most significant city economic development framework for Johannesburg is

that launched in February 2002 by the important Johannesburg 2030 document

which was prepared by the city’s corporate planning unit (GJMC, 2002). This

framework document seeks to offer a vision and long-term strategy for the future

development of Johannesburg over the next three decades. By 2030 the core goals

are to elevate Johannesburg into the ranks of ‘world cities’ with a strongly outward-

oriented economy, specialised in the service sector, and exhibiting strong economic

growth which delivers increasing standards of living and quality of life to all the city’s

inhabitants (GJMC, 2002). Economic growth is viewed as the “the crucial driver to

building a better city” and for such growth “Johannesburg must be able to

encourage the right kinds of long-term activity, investment and jobs” (GJMC, 2003:

33). The report envisions that by 2030 “the quality of life of a citizen in

Johannesburg will have more in common with the quality of life of a citizen in San

Francisco, London or Tokyo than that of a developing country’s capital” (Hossack,

2002).

The main economic planning thrust of Johannesburg 2030 is designed to boost

investment in the city, raising economic growth in order to furnish residents with a

sustainable increase in jobs and wealth and the Council with increased revenue

in order to deal with issues of infrastructure and service delivery (CDE, 2002).

The pro-growth municipal economic development strategy essentially defines the

key challenges for the city in terms of increasing investment efficiency,

accelerating the expansion of economic activities and creating a conducive

environment for the private sector investors. The key planning issues are to

address the two major identified obstacles to growth and investment in the city,

namely crime and the lack of appropriate labour skills (Chandra et al, 2001;

GJMC, 2002, 2003). The pervasive issue of crime is to be dealt with by

refocusing the metropolitan police force to target crime related to business whilst

maintaining strict adherence to principles of zero-tolerance of by-law and traffic

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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infringements. Despite the fact that Johannesburg has the most highly skilled

work force in South Africa, the report acknowledges that many enterprises are

faced with a serious shortage of managerial, technical and professional skills

(Chandra et al, 2001; GJMC, 2002).

The analytical thrust of this document dovetails with the analysis conducted

earlier by the Province, namely a shift towards high-value added manufacturing

and a stronger service economy, including tourism. Specifically, Johannesburg

2030 is focused on helping the city grow into an export-oriented hub, closely

integrated into the global economy with an emphasis upon trade, transport,

financial and business services, information and communication technology and

business tourism (GJMC, 2002). In particular, the city has identified a group of

‘winners’ or “preferred sectors“ that are to receive assistance from a sectoral

development programme (Rogerson, 2005). Overall, the Johannesburg 2030

strategy identifies therefore the city’s most important sectors and indicates a firm

commitment by Council of “working with them to expand their presence in the

city” (Bethlehem, 2002). Sectoral targeting and prioritisation is thus at the heart of

urban economic development planning for Johannesburg. Several broad policy

tools available to Council are discerned and put forward as potential interventions

to assist the select or targeted sectors. These include providing information and

linkages to other spheres of government for key sectors; to offer co-ordination for

Council services to key sectors; to provide sectoral bureaux for key sectors; to

furnish data, information and market access to key sectors; to assist in the

removal of specific bottlenecks faced by key sectors; and, to assist in the

provision of catalytic investments in key sectors (GJMC, 2002: 96). Among the

most important key targeted sectors for the city are financial and business

services, tourism, the information and communication technology sector,

biotechnology and high-value-added manufacturing. More recently, council

officials are emphasising business process outsourcing activities, freight and

logistics, creative industries and sport.

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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Institutionally, the activity of LED centres around the city’s Economic

Development Unit within the Department of Finance and Economic Development.

The Johannesburg Development Agency is a vital implementation agency. The

core emphasis in contemporary development planning is for the development of

a range of partnerships between local government and other strategic partners in

the city. The city’s director of economic development stresses that in

implementing the Johannesburg 2030 strategy, it aims “to harness the energy of

diverse sectors through partnerships” (Bethlehem, 2003). In terms of human

resource upgrading the Council is engaged in developing a set of different skills

partnerships with different stakeholders in the city, including the city’s

Universities, to provide a basis for the city having the appropriate skills base

(Bethlehem, 2003). For small business development the Council is involved in a

partnership with Investec Bank and the local Technikon SA in creating the

Business Place where Johannesburg residents can secure business advice free

of charge. This walk-in center provides access to business counsellors, internet

and library facilities as well as networking and training facilities. A major focus of

activity at the Business Place is support for youth entrepreneurship (Jackson,

2004).

In terms of short-term development interventions, the Council has begun work on

identifying several catalytic projects which are designed to further leverage

economic growth and development in the city. First, is that the City will partner

the province and the national Department of Trade and Industry in terms of

improving the logistics and operations of the City Deep container terminal. A

second project is poverty focused and aims to support urban agriculture through

facilitating the use of undeveloped state land for the benefit of groups of survival

cultivators. A third initiative is for establishing a “special-purpose vehicle” or

agency which will be initially funded by the Council and aims to “scour the world

for potential conferences and events and make representations to ensure that

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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Joburg is at least considered as a potential host” (Creamer, 2003). The success

of the 2002 World Summit on Sustainable Development highlighted the

significance of the hosting of ‘mega-events’ for the Johannesburg economy.

Building upon the success of the WSSD the city is looking further to benefit from

being one of key venues for the 2010 Soccer World Cup as well as bidding to

host other such events, including most recently for the Gay Games. Further

support for the development and upgrading of the city’s SMME economy is

offered through the implementation of the preferential public procurement system

which aims to increase by 30-40 percent the proportion of city spend on suppliers

that are BEE (Black Economic Empowerment) companies and SMMEs (Jackson,

2004). Moreover, as the city believes that SMME growth and development is

closely tied to the growth of large enterprises plans have been prepared for

encouraging outsourcing and purchasing of goods and services from SMMEs

(Jackson, 2004).

In another project, the Council is proposing the development of global back-office

financial services in Johannesburg. It is suggested that Johannesburg would be a

low-cost investment location, “particularly if the services could be built on the

back of the city’s world class banking institutions” (Creamer, 2003: 4). Special

attention is being given to the potential attraction to Johannesburg of investors –

local and international – in the labour-intensive activity of call centers in which the

city is seeking to compete with cities such as Bangalore in India and Dublin in

Ireland. Within South Africa Johannesburg is already the leading location for call

centre operations – an estimated 60 percent of national call centres are in the

city – and it has been announced that the city has launched a sustained drive to

position itself as potentially an international leader in the call centre industry

(Thale, 2004).

Overall, pro-growth initiatives clearly dominate the Johannesburg LED agenda. In

a rich critical analysis of the building of a developmental local government to fight

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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poverty using Johannesburg as a case study, Parnell (2004a) highlights that the

institutional frameworks of city government in South Africa are poorly constructed

in order for the large-scale roll out of municipal initiatives to fight poverty. She

argues that “in South Africa, as in many post colonial contexts, state apparatus

especially at the sub-national level is inadequately configured for implementing a

developmental agenda” (Parnell, 2004b, p. 2). Nevertheless, there are emerging

and promising initiatives from South Africa’s largest city that point to the making

of pro-poor growth. Attention turns here to focus specifically upon local initiative

to support the SMME economy.

4. Best Practice for Pro-Poor Growth – The Johannesburg Fashion District During the post-apartheid period the municipal government of Johannesburg has

begun to put into a reverse a long and distinguished history of programmes that

had sought formerly to ‘underdevelop’ the small enterprise economy in the city and

most especially to halt the advance of black entrepreneurship as manifested in

various forms of micro-enterprise and informal enterprise activities. A suite of new

initiatives have been launched to facilitate an ‘improved policy environment’ for

street traders in the city. The extent of this improvement is, however, open to

question and has been resisted by the hawker community. In terms of policy

development for the informal economy, Johannesburg undoubtedly lags behind the

progressive initiatives that have been pioneered by Durban Metropolitan Council

(Skinner, 2000; Lund and Skinner, 2004).

The Johannesburg record is much better in relation to supporting micro-enterprise

and small firms. Attention has been drawn already to the role of the Business

Centre for nurturing youth entrepreneurship and to the city’s active preferential

procurement policy (Jackson, 2004). Most importantly, the Council has become an

active and important player in a set of cluster initiatives which have led to the

launch and formal planning of what is termed fashion district of Johannesburg.

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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As is argued below, the fashion district project is an example of the effectiveness

and importance of local level initiatives for support of the SMME economy, a

successful example of LED planning for pro-poor growth.1

The genesis of the Johannesburg fashion district must be located in the

redevelopment spaces that were created in the inner city from the large-scale

exodus of formal manufacturing and office services to decentralized areas of the

city (Jocum and Cachalia, 2002). From the mid-1990s several abandoned office

blocks of Johannesburg inner city began to be taken over and brought into re-use

by at least two groups of micro-enterprises and informal sector producers.

4.1 New Entrepreneurs The first group of new clothing producers moving into the inner-city were new

immigrant entrepreneurs. With the re-integration of post-apartheid South Africa into

the global economy, Johannesburg has been the focus of a wave of new immigrant

movements and refugee flows, particularly from sub-Saharan Africa (Landau,

2004). Among inner-city Johannesburg’s new clothing entrepreneurs are included

large numbers from Francophone West Africa (especially Senegal, Mali and Ivory

Coast) as well as Botswana, Kenya, Somali Republic, Democratic Republic of

Congo, Malawi and Zimbabwe (Peberdy and Rogerson, 2003). These often well-

educated and globally-connected entrepreneurs brought new skills (especially

embroidery), networks and designs into the Johannesburg clothing economy. The

second, largest group of new clothing entrepreneurs, are represented by

businesses which are run by black South Africans. Many of these entrepreneurs

started their clothing businesses in the home either in a township area or the inner-

city flatlands of Johannesburg, before relocating into premises in the inner-city.

Other entrepreneurs emerged out of the large number of retrenchments which were

taking place in the Johannesburg formal clothing economy during the 1990s, when

1 This section draws heavily from material contained in Rogerson 2004b.

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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at least 6000 clothing jobs were lost as a result of factory closures due to low-cost

competition from imported clothing goods (Rogerson, 2001).

A profile of these new entrepreneurs and their business operations can be

gleaned from the results of a baseline survey conducted during 2003. Using a

snowball methodology interviews were conducted with a total of 149

entrepreneurs, of which 95 were South Africans and 54 were immigrants. At the

time of the survey no detailed figures existed on the numbers of such clothing

micro-entrepreneurs operating in the inner city; the best estimates suggested that

there were around 1000 such businesses (Cachalia et al, 2004). Table 1

discloses that marked differences exist between the two groups of entrepreneurs

and of trajectories of their different business operations. Apart from national

origin, the sharpest differences relate to gender, level of education and place of

residence of entrepreneurs. Of great significance is that the group of skilled male

immigrant entrepreneurs exhibit distinct product specialization in embroidered

clothing and high quality design clothing with an African motif. By contrast, the

larger community of South African women entrepreneurs are engaged in sewing

a range of goods particularly in terms of women’s clothing and soft goods

(Rogerson, 2001).

Table 1: Profile of Johannesburg Inner City’s New Clothing Entrepreneurs and their Businesses. Characteristics South African Entrepreneurs Immigrant Entrepreneurs

Gender All 95 interviewees were women Of 54 interviewees, 52 were men

and only 2 businesses were female

run

Origins Most entrepreneurs from South

Africa’s black townships, most

Entrepreneurs from 11 different

African countries, most importantly

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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Characteristics South African Entrepreneurs Immigrant Entrepreneurs

importantly from Soweto Senegal, Malawi, Ghana, Cote

d’Ivoire and Mali. Majority of

immigrant entrepreneurs arrived in

South Africa between 1995-1999.

Age Largest group in 41-50 age range Most entrepreneurs less than 40

years

Place of Residence

Nearly all entrepreneurs still live in

the townships of Soweto, the East

Rand, or West Rand and commute

into the inner city

Nearly all immigrants live close to

their businesses with a residence in

the inner-city or surrounding

suburbs.

Education Majority have Grade 11 and one-third

have completed secondary

education.

Two sub-groups are evident. First is

a group of poorly educated mainly of

Malawi-origin with only junior

qualifications. Second, is a group of

often highly educated entrepreneurs

included several with tertiary and

professional qualifications.

Types of Production

Lack of specialization with wide range

of goods produced, mainly women’s

clothing, curtains, bedding, traditional

clothing and school uniforms.

Strong specialization among better

educated entrepreneurs in

embroidered clothing, African design

and styled garments and of specially

designed individual items of clothing.

Prior Work Factory work in clothing industry; also

domestic service, nurse, secretary

and shop work

Long family history of experience

and local craft traditions in

embroidery or clothing.

Length of Establishment of Business

Over half of businesses in operation

for at least 6 years and at least 25 %

for over 10 years.

Majority (80 percent) of businesses

established within two years of

immigrant arriving in South Africa

and nearly half of businesses within

one year of arrival

Source: Author survey

Table 2 reveals further sets of differences in the workings, networks and

business development operations of these two sets of entrepreneurs. Overall,

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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what emerged from this survey was a profile of two struggling communities of

entrepreneurs, most of whom were earning poverty-level livelihoods. The most

successful operations tended to be those run by the more skilled and educated

immigrant entrepreneurs who specialized in particular higher value niches of

clothing manufacture. A central finding was of the limited degree of connections

between the operations and business activities of the South African and

immigrant entrepreneurs.

Table 2: Business Development Operations of Johannesburg Inner City’s New Clothing Enterprises. Characteristics South African Owned Immigrant Owned

Size The vast majority are one person

enterprises. In terms of job

opportunities the average was 1.5

persons.

Half of enterprises are one person

operations. There are several larger

businesses employing up to 8

workers. Overall, average size is 2.1

persons.

Nature of Employees

All employees are South African –

many ‘employees’ are part-time

workers, family or friends.

Majority of businesses hire other

immigrants often from the home

country. As business grows, trend is

to take on an increasing proportion

of South African workers.

Source of Capital

Start up capital from own savings,

friends or retrenchment pay outs.

In majority of cases capital is

brought in from the home country

sometimes with capital built up from

a period of work in South Africa.

Source of Skills Local training courses in sewing, prior

work or self-taught.

Skills learned in home country

through family or training in

embroidery skills

Major Business Problem at Start-Up

Finance for machinery, skills,

knowing the market.

As foreigner unable to open bank

account due to lack of South African

ID documents. .Two sub-groups are

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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Characteristics South African Owned Immigrant Owned

evident. First is a group of poorly

educated mainly of Malawi-origin

with only junior qualifications.

Second, is a group of often highly

educated entrepreneurs included

several with tertiary and professional

qualifications.

Supply Sources Nearly all from suppliers in the inner

city.

From suppliers in the inner city but

supplemented by imported fabric

sourced through other immigrants,

mainly from West Africa.

Major market Johannesburg inner city Mainly inner city but with some sales

to Johannesburg suburbs..

Collaboration Sharing of work orders, joint

production and space with other

South African producers. Limited

linkages with immigrants except for

contracting out of embroidery

Strong networks of collaboration

amongst immigrant entrepreneurs

including subcontracting and work

sharing.

Support Networks

Mainly small loans from NGOs – no

support from government

Limited – primarily immigrant support

networks

Relationships Often hostile to immigrants Small number of immigrants victims

of police harassment due to often

uncertain legal status.

Source: Author Survey

4.2 LED Planning for the Fashion Capital of Africa Johannesburg’s fashion district is planned to become Africa’s fashion capital. The

area defined as the fashion district comprises a total of 20 blocks situated on the

eastern edge of the inner city (Fig. 1).

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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Figure 1: Official Marketing for the Johannesburg Fashion District

In terms of the revitalization of the inner-city, several initiatives have taken place

since 1998 to support this cluster of formal and informal clothing producers and

suppliers. Formal sanction for the planning of a garment district was given by the

Johannesburg Metropolitan Council after the completion in 1999 of a detailed

investigation on the overall state of the changing inner-city economy. A working

group was constituted to formalize a planning process for a garment district in the

inner-city. Key players in this initiative were the Inner City Management Team of the

Johannesburg Metropolitan Council, a local consulting firm (the BEES Consulting

Group), various specialists and staff from the Ford Foundation, which provided

seed funding. Together this working group prepared an Inner-City Garment Industry

Development Project Outline document as a proposal to the Greater Johannesburg

Metropolitan Council in April 2000 for the formal development of a niche-focused

Garment Industry District (Jocum and Cachalia, 2002).

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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With the backing of the metropolitan council and additional support funding through

the Ford Foundation a further phase of preparatory action research work was

pursued by various task teams during 1999-2001 as a basis for strategic

intervention. An enterprise support task team focused upon identifying the key

service needs and gaps of South African entrepreneurs working in the inner city

garment industry. The most important finding concerned the limited support

services that were available to micro-enterprises located in Johannesburg inner-city

(Rogerson, 2001). Serious deficiencies were that few training institutions, either in

the formal or informal sector, were available to these enterprises; no business

advice or quality control centers existed to provide support; few businesses

provided machinery repair services and almost no businesses in the inner city

offered printing, advertising, marketing, tendering or network services. Against this

unpromising picture of limited support services were the many support needs of

these clothing SMMEs. The research disclosed that most entrepreneurs were

unable to cost their goods correctly, keep adequate business records or market

their garments (Rogerson, 2001). Amongst a host of operational problems and

support needs, the following were viewed as most critical; the need for advanced

training (both technical and business) with an emphasis upon specialized skills

such as embroidery; the need for improved premises to address the lack of storage

spaces, often inadequate office spaces, poor lighting, the absence of space for the

display or exhibition of manufactured goods, and the lack of child care facilities;

weak business skills; no known agencies offering information and advice; and the

lack of any financial institutions willing to offer micro-credit (Cachalia et al, 2004).

Other task teams conducted research on issues around social capital and

associational activities. The major conclusion of the social capital investigation was

that limited social capital existed, especially in the relationships and linkages

between clothing producers and their suppliers and between South African and

immigrant entrepreneurs. The research of the associational activities group

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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disclosed that 95 percent of clothing producers did not belong to any associations

and that therefore there was an imperative for the establishment of a manufacturers

association. It was recommended that whatever form of business association that

was evolved, that it should be inclusive of immigrant entrepreneurs as well as of the

larger group of South African owned clothing enterprises. Finally, additional

research on enterprise support confirmed that training was a critical gap in existing

support services, more especially as the group of informal training schools that

existed in the inner-city were mostly unregistered, not accredited and were ‘fly-by-

night’ operations which operated with untrained instructors (Jocum and Cachalia,

2002; Cachalia et al, 2004).

Project intervention began in 2001. Against the backdrop of the urgent need to

upgrade business and technical skills, initial discussions were held between BEES

(acting on behalf of Council) and the national and provincial Departments of Labour

(DoL) to secure finance support for upgrading the existing inadequate training

situation for the inner city clothing producers. Under the Skills Development

Programme set up by the national Department of Labour (DOL) to support the

unemployed, it was proposed that a DoL training programme be established to

equip entrepreneurs through ‘learnerships’ with advanced sewing skills and

improve the quality of their garments (Cachalia et al, 2004). As these discussions

were taking place, a private sector white business entrepreneur (with many years of

experience in the Johannesburg clothing industry) identified a niche in the market.

In particular, the SEWAFRICA entrepreneur proposed the foundation of a training

centre for clothing producers as an extension to his existing sewing accessory

business which was located in the heart of the inner-city. A three-way partnership

was now consolidated, backed by the DoL, for a strategic training initiative to

support the strengthening of the inner-city fashion district of Johannesburg. The

role of the private sector partner was to provide the equipment and premises for the

training center which was located in the planned fashion district. The NGO’s role

was to recruit trainees and manage the programme. Finally, the Clothing and

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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Technology Department of the local Technikon was identified as the most suitable

partner to provide materials and trainers. After several meetings, the DoL gave

permission for a pilot training programme to proceed, albeit with the strict caveat

that only South African citizens were to be trained (Jocum and Cachalia, 2002).

The partners agreed that technical training courses would be offered to individuals

who could already sew and were operating a micro-enterprise in the inner-city.

Recruitment of trainees began through visitations to buildings known to contain a

concentration of clothing micro-enterprises with the first groups starting training in

August 2001. After initial problems in recruitment and of the shift to part-time

courses (which produced much better attendance levels), word-of-mouth

information provided at the sewing center and referrals by former trainees resulted

in all sewing training courses being filled, some even beyond capacity. The training

classes disclosed that whilst all trainees were able to sew, often their knowledge of

sewing was limited. Equally important was that trainees lacked basic business skills

with costing and pricing a continuous set of difficulties (Jocum and Cachalia, 2002).

Several activities were encompassed within the inner city fashion cluster strategic

planning intervention (BCG Consulting, 2002). Among the most important were to

upgrade the activities of the poor women entrepreneurs from a survival level by

introducing support mechanisms for building social capital and through the

provision of business development services. Another critical area of intervention

was to strengthen the cluster skills base by offering training courses in how to run a

business and in enhancing sewing and design skills as well as expanding local

sources of business information. The project provided guidance, structured

courses, mentorship programmes and essential business and marketing skills for

entrepreneurs. Further support for business development is through a system of

referrals which seek to expand the potential for developing high value niche market

linkages both locally and beyond the inner city cluster. As a result of the extensive

technical skills training programme, over 400 inner city entrepreneurs have

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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benefited from training courses operated through SEWAFRICA. Moreover, at least

50 of these trainees are organized into production networks through groups of

between four and eight entrepreneurs who work together to maximize their output

and to share knowledge and experience of clothing production. In 2004 the project

launched the Informal Garment Operator’s Association to represent the interests of

the Inner City‘s clothing and fashion enterprises, including the immigrant

entrepreneurs.

Currently, the core objective of the planners of the fashion district is to re-position

the clothing industry in Johannesburg almost a decade after the traditional

garment industry had collapsed. The pool of skilled fashion workers, displaced

during the period of decline, is merging now with the new skills from immigrant

entrepreneurs from sub-Saharan Africa as well as South African entrepreneurs.

The resultant mix is seen as evolving as an ‘organic cluster’ which is re-orienting

the direction of the industry. Historically, the clothing industry in Johannesburg

competed in narrow buyer-driven clothing value chains that provided the supply

lines to major South African retail chains. As a result of trade liberalisation and

South Africa’s re-integration into global markets. these retail chains are now no

longer sourcing their requirements locally (Rogerson, 2004b). It is thus

recognised that the future prosperity of the district lies in value-added design and

manufacturing around certain niche products and markets which are viewed as

having a real long term potential to penetrate specialist local, regional and

international markets. The focus is thus no longer upon ‘garment production’ per

se but upon encouraging a cutting edge fashion industry which will situate

Johannesburg as ‘the urban edge of African fashion’.

Formally stated, the goal of the Johannesburg Development Agency is to

“provide an infrastructure and support system for a mixed use precinct where

complementary commercial activities exist”; moreover, the long-term aim is “to

grow and develop the area so that it becomes a sustainable environment that is

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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safe, clean, economically viable and generates continued growth and prosperity

for the fashion industry” (JDA, 2004). At the base of the fashion district are the

cluster of approximately 1000 clothing micro-enterprises (Cachalia et al, 2004). A

series of support projects have been launched to enhance the overall

performance or ‘collective efficiency’ of this cluster and to promote synergistic

networks of opportunity which also tap the strengths of immigrant entrepreneurs.

Most recently, SEWAFRICA House has opened as the nucleus for the creation

and promotion of African designers, hosting rooftop fashion shows of emerging

new designers. The project discourages the production of mass clothing wear

and instead seeks to facilitate that designers market themselves and their

products as well as linking in with micro-CMT (cut, make and trim) producers

working in the inner city. The emphasis is squarely upon encouraging an

individual and localized Pan African look which cannot be threatened by

competition from imported clothing.

Overall, SEWAFRICA is an incubator that is geared to rejuvenate Johannesburg

fashion in partnership with the Economic Development Unit of the City of

Johannesburg and the Johannesburg Development Agency. The building has

been made into a creative space using the primary colours of the South African

flag as its design foundation. It incorporates “The Fashion Shack” which

showcases the products of creative young designers working in the upper floors

of the building. It is planned that designers at SEWAFRICA outsource their work

to CMT seamstresses and dressmakers in the fashion district to provide added

local business linkages. In addition, many of the seamstresses working in the

fashion district are using their new skills to produce home wear, décor items and

soft furnishings as well as fashion clothing. At the fashion hub, designers are

encouraged to develop a viable business plan with the assistance of the Open for

Business SMME support programme. Young designers rent a package deal at

the hub which provides them with working space with design, changing rooms, a

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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display area, and access to pooled machinery and equipment that they would not

be able to otherwise purchase.

Physical upgrading of the fashion district is taking shape through ‘branding’ and a

creative infrastructure that links the streets of the fashion district together through

a colourful mosaic pattern that runs across the pavements in a zigzag of easily

recognisable sewing arrangements. Moreover, ‘fashion’ is understood and

planned as a broad cultural-industrial concept. Although clothing design and

sales constitute the core of the fashion district and define its predominant land

use and character, a range of other associated aspects of fashion are

encouraged to add to a wider mix of compatible uses and amenities in order to

build “an exciting, vibey and productive area”. Among these other elements of the

‘urban edge of African Fashion’ in Johannesburg inner city are DJ bars,

restaurants, and furniture, home furnishing and décor outlets (JDA, 2004). The

Johannesburg fashion district now finds a place within the trendy Elle magazine’s

national ‘hip city guide’ of South Africa which proclaims “Whatever it is you want

to wear, you’ll find it here” (Elle, 2004). Moreover, optimists predict that by 2007

“Joburg style will be firmly placed on the world fashion map”.

4.3 The Fashion District as an Example of Pro-Poor Growth The promising impacts of the fashion district project as a pro-poor LED

intervention were evident from an evaluation which was conducted during

October-November 2003. The goals of the evaluation exercise were to analyse

the progress made of the several support interventions made in terms of inter

alia, training programmes designed to upgrade the essential skills of

entrepreneurs to run a successful clothing business; the establishment of

networks among both South African and immigrant entrepreneurs in building

social capital; a business or market linkage programme to expand the markets of

entrepreneurs; and, the operation of a mentorship programme which sought to

give guidance to garment producers in developing their skills and generally

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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improving their business operations (BCG Consulting, 2002). In total 117

interviews were conducted (98 interviews were with South African owned

enterprises and 19 were with immigrant owned enterprises) with the sample

structured in order to examine whether differences could be observed between a

group of clothing entrepreneurs that have been targeted beneficiaries of the

support interventions and of a control group of clothing entrepreneurs who had

not been involved in the support interventions.

The key findings of this evaluation concerning these issues are summarized on

Table 3.

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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Table 3: Evaluation of the Impact of Support Interventions in the Fashion District Indicator Control Group Supported Enterprises

Production change over

previous year

One-third report increased

output

80 percent report increased output

Income change over

previous year

31 percent report income growth 74 percent report income growth

Employment change 19 percent record increased

numbers of employees and 10

percent decline in employee

numbers

18 percent record increased

numbers of employees. No

enterprise reduces its numbers of

employees.

Diversification of outputs 15 percent expand adjust

product range with new products

Nearly 50 percent had introduced

new products, mostly home décor

Networking among South

African enterprises

One-third are involved in any

form of joint cooperation or

business networking

80 percent are involved in joint

cooperation or networking with

other producers

Cooperation between South

African and Immigrant

enterprises

15 percent report involvement 42 percent involved in cooperative

networks with immigrants

Confidence to operate a

clothing business

62 percent claim to have

necessary skills

80 percent claim to have necessary

skills

Source: Author survey

The results disclose that a positive performance has been recorded by this

intervention to support upgrading the businesses (and livelihoods) of groups of

micro-entrepreneurs operating in the clothing economy of South Africa’s largest

city. The business performance of project beneficiaries in terms of production

levels and incomes generated is clearly much better than for the group of non-

project beneficiaries. An important factor behind the performance of project

beneficiaries is their enhanced capacity to adapt to changed market conditions

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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through enterprise strategies of diversification which were made possible due to

training. Another significant success factor is the growth of networking and

cooperation which is occurring between South African producers in particular and

increasingly also with groups of non-South African owned clothing enterprises. It

is apparent also that project beneficiaries were both more confident and aware of

their own shortcomings (and of the corresponding need for further training) as

compared to the control group. The confidence to run a business has risen

considerably since the commencement of the project. A similar level of

assurance and upgrading of capacity is evident in the outcomes of the training

programmes concerning skills for running a clothing production enterprise.

Finally, the mentorship support initiative functions both to cementing the gains so

far achieved by the project intervention as well as laying the foundations for

further progress.

5. Summary Remarks This case study sought to highlight the Johannesburg fashion district as an

example of potential best practice or learning for pro-poor growth. The project

stands out as one of the successful innovations in Johannesburg for supporting

SMME development through local initiative. Industrial clusters not only enhance the

ability of small firms to compete in global markets but also can play a potentially

important role within a pro-poor agenda by creating jobs and promoting incomes for

the poor. Poverty reduction is not, however, an automatic outcome but rather

requires explicit consideration of policy concerns within cluster development

strategies.

Key learning issues from the Johannesburg experience relate inter alia, to the need

to support collective efficiency, the importance of training for cluster upgrading, and

the significance of niche positioning in value chains. Finally, as Marriott (2004)

points out, the record of the fashion district demonstrates how pro-poor growth

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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initiatives can be firmly embedded within a city’s overarching goals for achieving

global competitiveness.

ADDENDUM Since the completion of the case study, the City of Johannesburg

released in 2005 a Human Development Report which reflects a wider

policy commitment of the city to the poor. Under the umbrella of "A

world-class African city for all - this is Johannesburg's commitment to the

poor" the city presents a wide range of strategic pro-poor interventions.

Three key sets of strategic interventions are highlighted. These relate to

safeguarding and supporting poor and vulnerable households in the city;

championing rights and opportunities; and, building the prospects for

social inclusion in the city.

Case Study prepared for the World Bank-Netherlands Partnership Program Evaluating and Disseminating Experiences in Local Economic Development (LED) Investigation of Pro-Poor LED in South Africa, 2005.

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