Elizabeth, 10 December 2015 – The Mandela Bay Development Agency (MBDA) today
announced the results of its annual economic barometer study, which measures
and reflects the return on urban renewal investment in the Nelson Mandela Bay
study analyses a variety of economic indicators, such as business confidence,
private sector investment in real-estate through upgrading, and correlative job
creation of businesses in these areas.
to a survey directed at business owners and residents, MBDA’s research also
includes formal economic impact assessments in areas in which catalytic and
turnkey urban renewal and development projects either have taken place or are
underway. These areas include Helenvale, Central, North End, Richmond Hill,
Uitenhage CBD, King’s Beach and New Brighton.
48 % of all businesses in these areas made improvements to their properties in
2014, up from 37.4% in 2013. In the residential sector, 39,3% of property
owners made improvements to their homes.
invested by businesses across all areas in 2014 was R23,8 million, and by
residents a total of R4,3 million. The average value of the improvements made
to properties by business owners was R155 657, while the amount
recorded in the residential market was R14 716.
top urban nodes in which business owners made improvements to properties were
King’s Beach (83%), Richmond Hill (68,3%) and Helenvale (65%). In the
residential category, the highest number of home improvements were recorded in
Central (75%), Richmond Hill (33,7%) and
King’s Beach (33%).
Hill recorded the highest average value of property improvements in the
business category (R288 036), followed by New Brighton (R272 500) and Kings
Beach (R260 000). In the residential market, King’s Beach home owners invested
the highest average (R137 000), followed by North End (R31 184) and then
Central (R21 667).
we are extremely pleased with what is happening in Central and Richmond Hill as
evinced by our study findings. It is especially rewarding to see how MBDA
programmes in Helenvale are leading to investment in the business sector, and
the same can be said for New Brighton,” said Dr Pierre Voges, Chief Executive of
employment creation by businesses in the upgraded urban areas added 385 new
jobs to the Nelson Mandela Bay economy, with the largest numbers being recorded
in Central (193), North End and King’s Beach (both 48) and then Richmond Hill
(43). On average, one out of four businesses (26,5%) in the upgraded urban
areas hired new staff in 2014, with the exception being Helenvale.
average, nearly 8% of businesses in the upgraded urban areas were start-ups, in
their first year of operation. Central (15,3%) and Helenvale (15%) are Nelson
Mandela Bay’s hub for new start-ups, with the King’s Beach area following
closely with the most start-up companies in areas upgraded or under development
by the MBDA.
economic barometer also showed that 45% of business in the areas, and 44% of
residential owners, agreed that the organisation’s urban development programmes
had increased property values relative to other areas in the city.
insights generated by MBDA economic barometer included the following findings:
The rankings of the various
environmental factors showed that amongst all survey respondents, the MBDA’s
upgrades had been highly effective at addressing the number of derelict
properties in Central.
84,9% of all respondents
indicated that they were positive or extremely positive about the aesthetic
improvements to Donkin Reserve, Athenaeum and Trinder Square.
In Helenvale, 91,6% of
individuals polled were extremely positive or positive about the aesthetic
improvements in the area; 92,5% of residents and 70% of businesses indicated
that their refuse was collected regularly, while 36,8% of all respondents noted
there were sufficient refuse bins in place; and 70% of businesses and 60,9% of
residents indicated that they were satisfied with the cleanliness in the area.
following investments where made in properties during the period:
The total value invested by
Central businesses into their properties between 2009 and 2011, as well as in
2013 and 2014 was R 50.2 million.
The total value of
investment by Helenvale businesses into their properties in 2013 and 2014 was
R510 003. This is compared to an investment of R2.3 million by Helenvale
The total value invested by
King’s Beach businesses into their properties in 2011 as well as in 2013 and
2014 was R12.7 million. Residents in comparison only invested
R 855 000 over the same period.
The total value invested by Richmond Hill
businesses into their properties in 2013 and 2014 was R11.8 million, compared
to R405 000 by residents.
Total cumulative investment
for 2014 in the Uitenhage CBD businesses was
is no doubt that the face of Nelson Mandela Bay has changed dramatically in
recent years. The development agenda underlying this visible transformation,
and indeed informing all the MBDA’s work, is very clear: to deliver catalytic projects that generate a
positive economic and social impact, making Nelson Mandela Bay an attractive
place to live, work, play and invest,” Voges said.
MBDA has proven its value in developing a vision and corresponding strategies,
manifesting these through the completion of sustainable projects that spur
public confidence and investment in previously neglected and under-utilised
As communities in Nelson Mandela Bay continue to face new challenges,
the MBDA will continue to meet those challenges head-on to facilitate
prosperity and growth in the years to come.”