The South African Cities Network commissioned an assessment of the impact of urban development incentives on leveraging private investment in South Africa’s Townships.
The assessment used a case study approach. A broad conception of leveraging tools is adopted which includes the following key types:
• Financial Incentives
• Fiscal Incentives
• Financial Instruments
• Institutional Tools
• Regulatory Tools
The research identified lessons frm five case studies representing different urban development contexts (Inner cities: Cape Town and Johannesburg; Townships: Khayelitsha and Inanda-Ntuzuma-KwaMashu; and Greenfields: Cosmo City). The impacts of a range of incentive types on private investment in each case study is provided. Findings were synthesised into a comparative impact framework, in which the effectiveness of various incentives, and key issues which impact on this, are analysed in terms of constraints to investment in inner cities and constraints to investment in township areas. This framework establishes an empirical foundation upon which broad recommendations regarding grant and incentive policies are made. Key conclusions are made regarding the national policy context for incentives.
A presentation summary of the report’s findings are available.