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MBDA programmes inject growth in production, GDP, jobs, and a positive sentiment in the Bay

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Since its establishment in 2003, the Mandela Bay Development Agency (MBDA) an entity of the Nelson Mandela Bay Municipality (NMBM), has sought, through its development programmes, to act as the primary institution behind the revitalisation of key precincts within the greater Nelson Mandela Bay (NMB). This precinct approach has entailed the MBDA undertaking several capital investment projects in dedicated and strategic geographic precincts of the Nelson Mandela Bay.

To quantify the impact of these projects, the MBDA engaged the services of Urban-Econ, an independent specialist’s agency to co-develop an economic barometer that measures the socio-economic impact of the MBDA. The purpose of this economic barometer was twofold. Firstly, it sought to quantify the economic impact that the Agency’s various capital projects had, directly or indirectly on local business activity, GDP, and employment. Secondly, it sought to, via means of a survey administered to businesses and residents, determine what impact the MBDA’s activities had on citizens and business perceptions of the areas where these projects are underway or have occurred.

Outlining the process, Senior Economist Thomas Parsons says “a process was undertaken for three of the MBDA’s focus areas namely: Gqeberha CBD, Schauderville-Korsten, and South End-St Peters. Based on this approach, a total of 75 responses were targeted across the three areas. This comprised 30 respondents in Gqeberha CBD split equally between businesses and residents, 20 residential respondents in South End-St Peters, and a further 25 residential respondents in Schauderville-Korsten.

The 2023 dipstick survey was designed to provide a snapshot of the view of the MBDA’s activities in the respective areas through targeted inputs with businesses and residents”.

“Based on the survey results, between 23% (Schauderville-Korsten) and 33% (South End-St Peters) of surveyed residents had made some form of improvements to their properties over the last five years, with the average value of these improvements varying between R25 000 and R87 000.”

“Extrapolating the survey results to the broader areas suggests that total investment by residents in the Schauderville-Korsten and South End-St Peters areas over the last five years could be in the region of R104.2 million”.

In comparison, 29% of surveyed businesses in Gqeberha CBD indicated that they had made improvements to their properties, with an average value of R56 000. None of the businesses or residents surveyed, however, indicated that the MBDA’s activities in the area had influenced their decisions to invest.

Survey respondents across all three areas were also asked about their perceptions of the MBDA’s activities in the various areas. In Gqeberha CBD, both businesses and residents were somewhat positive about the MBDA’s permanent cleaners, with between 14% and 21% of respondents viewing their impact as positive. These same respondents, however, were less positive about the permanent security in the area, with 21% of surveyed businesses, 78% of surveyed residents perceiving their activities in a negative light.

Schauderville-Korsten residents expressed equally negative sentiment around the area’s multi-purpose recreational park developed by the MBDA. Over three-quarters of respondents viewed the development negatively, owing mainly to the fact that the park was inadequately maintained and unsafe.

South End-St Peters respondents meanwhile, where very positive about both the MBDA’s upgrading of St Peters and the Baakens River Valley functional improvements. Approximately 33% of surveyed respondents were extremely positive about the St Peters upgrades, while 19% were extremely positive about the Baakens River Valley upgrades. The remining respondents expressed positive sentiment, with no respondents expressing negative feelings about either of the upgrades.

Using a mix of results from the three surveyed areas and Census data published by Stat SA, it was possible to estimate the potential contribution that the residential properties in these respective areas contributed to the NMB’s total annual rates revenue. Based on this exercise, it was estimated that that these three areas as defined, collectively contributed R299.0 million to municipal income in 2022. This includes both property rates income as well as revenue derived by the NMB from the sale of services (i.e. water and electricity).

Parsons adds, the data “to date, the MBDA has invested approximately R24.8 million across the three areas, comprising a mix of capital investment (e.g. upgrading of St Peters) and operational expenditure (e.g. Gqeberha CBD cleaning programme)”.

Based on this investment by the MBDA, total production has increased by R66.2 million, increasing GDP by R19.2 million. The investment has also helped to create 80 jobs across the economy through the direct, indirect and induced effects of this investment. These jobs have helped to boost overall household income by R8.2 million”.

Welcoming the Economic Impact Report, MBDA Chief Executive Officer, Anele Qaba says the report provides the entity with a clear line of sight in terms of its economic activity impact. It is critical for us to be able to measure the impact of our activities, not only on economic terms, but to see visible impact across the spectrum”.

“The MBDA will in the month of July and August go back to stakeholders to engage on this report and to discuss ways to maximise the impact of the MBDA in these precincts. In addition, and after Council approving the City’s budget, the MBDA will now finalise its Annual Business Plan for the period 1 July 2024 to 30 June 2025”.

Indaba agrees collaboration is way forward for Tourism and Heritage in Nelson Mandela Bay

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Heritage and tourism stakeholders in Nelson Mandela Bay agreed yesterday that greater cooperation and dismantling “silos”, along with more action and less complaining, are key to unlocking the tourism potential of the metro’s unique and diverse heritage.

More than 120 delegates participated in the inaugural Heritage and Tourism Indaba, representing tourism-related businesses and member organisations, heritage and cultural organisations, arts and creative industries, environmental organisations, and government agencies.

Convened by the Mandela Bay Development Agency (MBDA) and partners, the event at The Athenaeum in Athol Fugard Terrace, Central, aimed to get role-players working together on a concrete action plan to protect and preserve heritage assets and restore Nelson Mandela Bay as a prime tourism destination.

MBDA chief executive Anele Qaba said while heritage assets were under pressure from crime, vandalism and environmental degradation, the agency had made progress in securing new partnerships and resources to aid in reversing the decline.

These include agreements with provincial entities to fund creative and film industries “to capture our unique stories”, and a collaboration “that will unlock pursuit of a large-scale tourism and conferencing facility,” Qaba said.

NMB Executive Mayor Gary van Niekerk said the MBDA had “taken on a huge responsibility to renew and revive in Nelson Mandela Bay”, and he looked forward to executable plans and action coming out of the Indaba.

Van Niekerk said that the value of heritage “cannot be understated” and that the Bay needed to “brag more” about its unique heritage and the growth of community-based events such as the Richmond Hill Street Music Festival and Ebubeleni Festival.

Qaba added that plans for redevelopment of the old Boet Erasmus stadium land were being finalised, along with progress being made in redeveloping Bayworld, and an investment roadshow would be held before year-end to attract private sector interest in the MBDA’s key mandate areas and projects.

The MBDA is also moving on commercialisation plans in the NMB Stadium/North End precinct, with options to be presented to the Council in the coming months.

The St Peter’s precinct will open to visitors before the end of the year, to be packaged for operation by private industry role-players while ensuring the social connection to old South End is maintained. Qaba said that a request for proposals had been advertised for prospective operators for a zipline in the lower Baakens Valley for an “inner-city adventure offering”.

“These reflect the MBDA playing its role as a catalyst and enabler of development, not to hog it for itself. There is room for economically viable public-private partnerships and joint ventures. Only when industry and government entities work together will there be change,” Qaba said.

His remarks set the scene for proposals and solutions presented by stakeholders and debated in breakaway groups.

Key themes and concerns raised by most stakeholders centred on “crime and grime”, along with hindrances to tourism growth in delays and inertia hampering development approvals and implementation of projects. A lack of collaboration across government departments and amongst stakeholder interest groups was also pinpointed as a stumbling block.

Discover Mandela Bay project manager Shaun van Eck highlighted that global trends in tourism centred on experiences and authentic stories, rather than products and services.

Participants in the indaba highlighted numerous opportunities for authentic tourism experiences unique to Nelson Mandela Bay, including in the metro’s unique 5-biome status, wildlife both terrestrial and marine, traditional cuisines and sport.

“Sidelined cultures” including Khoi Khoi, San and Xhosa needed to be elevated in the local cultural heritage landscape, and the metro’s role in the liberation struggle needed to be leveraged for tourism, speakers said.

Safe zones where multiple tourist activities and experiences could take place were proposed, as well as a coordinated calendar of key events.

MBDA senior project manager and Urban Planner Dorelle Sapere said the energy, passion and willingness to work together committed by the delegates were key takeouts of the day’s discussions.

She said the MBDA would now collate the information and proposals presented for solutions, develop, and share a database of participants, and engage with local government departments on driving and fast-tracking proposed solutions.

Sapere said new approaches to cleaning and security in the MBDA’s mandate areas were now in a pilot phase, as well as engaging with government agencies that own “problem buildings”. The MBDA would also facilitate linkages with funding for developers of tourism products.

MBDA Tourism
Participating in shaping a new direction for heritage and tourism in Nelson Mandela Bay, from left, Discover Mandela Bay project manager Shaun van Eck, executive mayor Gary van Niekerk, Historical Society chair Graham Taylor and MBDA CEO Anele Qaba.