CREATIVE ECONOMIC DEVELOPMENT AND GROWTH IN ETHEKWINI - eThekwini Municipality
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15TH ISSUE DECEMBER 2015
ECONOMIC DEVELOPMENT AND GROWTH IN ETHEKWINI
CREATIVE
WELCOME TO
THE EDGE
Welcome to the 15th edition
of The EDGE, a quarterly
economic bulletin that looks
at the eThekwini economy,
with a brief overview of the
global and national context.
PUBLISHED BY THE ETHEKWINI ECONOMIC
DEVELOPMENT AND INVESTMENT PROMOTION UNIT,
THE EDGE AIMS TO INFORM STAKEHOLDERS OF THE
LATEST DEVELOPMENTS AND TRENDS IN ETHEKWINI.
THE THEME OF THIS EDITION CENTRES ON THE
CREATIVE INDUSTRIES SECTOR WITHIN ETHEKWINI.
2
CONTENTS
Page
Foreword 2
Message from the Editor 3
Economic Overview 4
Local Economic Outlook: EThekwini 8
A Closer Look at the Creative Industries Sector in eThekwini 14
Looking Ahead to the Next Edition 29
EDGE Contributors
Editor: Aurelia Albert Policy, Strategy, Information and Research Department, eThekwini Municipality
Contributors:
Ajiv Maharaj Policy, Strategy, Information and Research Department, eThekwini Municipality
Denny Thaver Policy, Strategy, Information and Research Department, eThekwini Municipality
Thobeka Ngcobo Policy, Strategy, Information and Research Department, eThekwini Municipality
Shivani Singh Policy, Strategy, Information and Research Dept, eThekwini Municipality
Pumla Jali Policy, Strategy, Information and Research Department, eThekwini Municipality
Russel Hlongwane KwaZulu-Natal Society of Arts Gallery
Sindi Shangase Business Support Unit, eThekwini Municipality
Toni Monty Durban Film Office, eThekwini Municipality
Sharon Ngcobo Durban Film Office, eThekwini Municipality
1
FOREWORD
BY HER WORSHIP THE DEPUTY MAYOR,
ETHEKWINI MUNICIPALITY, COUNCILLOR
NOMVUZO SHABALALA
The creative industries sector is an some positive stories to tell, our creative
important part of the Durban economy industries sector remains a long way from
and includes many jobs in sub-sectors, where it should be. There is immense
ranging from the more glamorous film potential for the creative industries to
industry, to people who weave grass into foster entrepreneurship and benefit local
craft items, from high technology design, people, particularly small businesses.
to buskers on street corners playing Given the talent of our people in creative
home-made instruments. industries, this sector should be thriving
Our city must be able to provide a and resulting in exports. Sadly though,
platform for all of these people to ply many of our artists leave the city in order
Welcome to the their trade and exercise their skills, to pursue their dreams elsewhere, simply
15th edition whether to earn a living or simply to
express the creative spirit of the collective
because the city does not have the right
support to enable their growth in their
of The EDGE, of Durban’s people. chosen fields.
which examines Durban has a rich culture and this forms The Durban Film Office is working hard to
the creative an ideal basis upon which creative change this, especially with regard to the
industries sector. industries may be built and can thrive.
Whenever I visit foreign cities, I’m struck
film and media sector and has had many
successes over the years. However, the
by the ingenuity of the local people creative industries sector has a number
to take their heritage and culture of different sub-sectors and much more
and turn it into craft, theatre, fashion, needs to be done in these sub-sectors so
media, architecture, publishing and so that they, too, can play a meaningful role
forth. In Leeds, England, I was struck in people’s lives.
at how small creative businesses were
able to manufacture creative spaces We need to create awareness about the
that contributed towards the urban creative industries sector by, firstly, taking
regeneration of the inner city. In addition, the heritage and culture out of isolated
the Light Night, held in Leeds, turns the sites and museums and into the streets
whole city into a festive space of creative in different forms, from theatre and
events after dark. monuments to architecture and painting.
I think that exposing it in this way will
Durban is blessed with a rich heritage, create interest in the sector and lead to
which includes aspects of Zulu tradition, other things, such as urban regeneration
the Indian history, European influences, and job creation. This is a challenge to all
the Shembe following, maritime history, those involved in this sector.
apartheid history, icons like John
Langalibalele Dube, Mahatma Gandhi Lastly, I would like to wish all readers and
and Nelson Mandela, as well as more stakeholders a safe and joyous holiday
local stories and sites. This has created season and a prosperous 2016.
a rich local culture and together with
the diversity of people and great natural
beauty, creates a platform upon which
the creative industries should be thriving.
However, sadly, this is not the case. While
there may be pockets of excellence and
2
MESSAGE FROM
THE EDITOR
This edition have performed relatively poorly. The
South African economy, in particular,
more creative spaces within the City,
where greater skills and talents will be
focuses on the has been hard-hit by weak economic identified and developed.
Creative Industry growth and eThekwini has not escaped
either. In addition, the current drought Key questions which are posed
sector within constitutes a further negative impact on throughout this publication include:
the Province in general. • How can the challenges being
eThekwini. experienced by the Creative Industry
The effect of a weakening Rand has also be alleviated by partnerships
While this industry remains small
contributed to a rise in local exports, between Government and industry?
within Durban, it has integrated itself
although the full extent of related • What more can be done to support
within the economic landscape and its
opportunities have not been exploited. creative industries in eThekwini
contribution to GDP has grown during
amidst the current economic
the past several years.
This edition then delves into eThekwini’s climate?
Creative Industry sector, tracing its • Is the current status-quo sufficient
EThekwini has become increasingly
steps and linkages to the mainstream to meet economic growth and job
recognised as a creative centre in recent
economy and revealing how the industry creation targets?
years, especially within the arts, culture,
is a growing contributor to job creation • How might the Creative Industry
film and design fields, with innovation
and poverty alleviation. The Creative be utilised as a sector to boost job
playing an intrinsic role in each sub-
Industry has also contributed to inner creation through innovation and
sector. The role of the City deals largely
city revitalisation, given the number of entrepreneurship?
with creating an enabling environment
organically-formed precincts and hubs
and providing a support platform in
of activity spurred by growing numbers This edition of the EDGE is designed to
order that the industry may grow and
of entrepreneurs entering the industry. assist our readers think critically, through
flourish. The creation of creative spaces,
the provision of a balanced view of key
reflecting a vibrant urban culture of
However, much of this industry issues. I hope that you enjoy the read!
differing character, is an important way
operates independently within the
in which this sector may be enhanced.
private sector with little or no support The EDGE wishes all its readers a safe,
from Government. Government could joyous festive season and a prosperous
This edition looks at the global, national
well play a vital role in supporting the New Year!
and eThekwini economies, all of which
creative industry, such as developing
3
ECONOMIC
OVERVIEW
Global Economic National Economic observed in trade was driven by (+2,6%),
construction (+4,2%) and agriculture
Outlook Outlook (+3,2%). In contrast, job losses were
recorded in utilities (-6,7%) and transport
The International Monetary Fund (IMF) (-2,6 %). In the third quarter of 2015, the
Major global developments
has again lowered its 2015 growth outlook labour force participation rate increased
since the beginning of 2015
for South Africa, projecting in its October to 58,8% from 58,1% recorded in the
have included the unpredictable
World Economic Outlook (WEO) Report previous period. The expanded definition
commodity prices which have
that the economy would expand by only of unemployment, which includes people
influenced key decision-making
1,4% this year and by 1,3% in 2016. who have stopped looking for work,
processes, largely due to the supply
slowed to 34,4% from 34,9%.
of and demand for raw materials.
This is close to the downward revision by
National Treasury of 1,5% in the Medium- El Nino, which causes flooding and
A key factor is the slowdown of
Term Budget Policy Statement. This does warm weather, drought and torrential
China’s economic growth, as well
not bode well for the country’s goal of rains, has impacted on regional
as an anticipated tightening of
reaching the job target set in the National economies. Presently, its impacts are
monetary policy in the USA. Global
Development Plan, as the unemployment being severely felt in KwaZulu-Natal,
growth for 2015 is projected at
rate increased to 25,5% in the third which, together with the Free State, has
3,1%, which is 0,2 percentage
quarter of 2015 from 25% in the previous been declared a disaster area by national
points below July 2015 forecasts
period. The number of unemployed Government. This will now provide
by the World Economic Outlook
people rose by 3,6%, while employment relief to communities and the provincial
Update. The recovery in advanced
increased at a slower rate of 1,1%. In the economy. However, it has been noted
economies is expected to improve
same quarter, the not economically active that the province must use water sparingly
slightly, while activity in emerging
population declined by 1,3% to 14,87 because this is a global phenomenon
markets and developing economies
million and discouraged work-seekers that is said to prevail along with climate
is projected to slow for the fifth
decreased by 8,5% to 2,2 million. change and global warming.
consecutive year.
The 1,1% increase in employment
EThekwini: Unemployment Insurance Fund
UIF Applications Quarter 1 to 3: 2014 vs 2015
Source: Department of Labour
40 000
35 000
Number of applications
30 000
25 000
20 000
15 000
10 000
5 000 2,9%
QUARTER 1 QUARTER 2 QUARTER 3 2014 2015
TIME
4
UIF applications were much higher in 2014 than in 2015
for the first two quarters, but this has changed in the third
quarter, where the 2015 level is slightly higher than in 2014.
There is also a decline in the third quarter and private sector fixed investment,
for both years, which is a common finding leading to slow employment. Along with
for the third quarter in any given year. other commodity exporters, South Africa
has faced slower economic growth and a
This poor growth outlook also means that weaker currency as the commodity slump
business confidence is likely to remain (particularly metals and energy) follows
suppressed over the next two years due on from a decade of price rises and
to weak domestic demand and pressure investment in extraction. However, the fall
on costs. In addition, there is also in the oil price has had a positive impact
uncertainty over private sector property on South Africa’s current account deficit.
rights, which is undermining confidence
SACCI Business Confidence Index
Average SACCI Business Confidence Index 2015
Source: South African Chamber of Commerce and Industry
94
92
90
88
86
84
82
80
78
76
Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15
The South African Chamber of Commerce The Business Confidence Index plays the declining business confidence index.
and Industry (SACCI) Business Confidence an important role in decision-making for This is a growing concern, as its decline
Index fell to a 22 year low, of 81,6 points, in investors seeking long-term investment and associated momentum harks back
September 2015. This decline in business destinations. to the slide in business confidence in
confidence comes amidst a struggling 2007/08, before the global economy
economy, lagging export volumes and a There exist both domestic and global entered recession.
weak global economic recovery. factors which have impacted negatively on
5
ECONOMIC
OVERVIEW
Kagiso Purchasing Manager’s Index
Kagiso Purchasing Manager’s Index (Seasonally Adjusted)
Source: The Kagiso Purchasing Manager’s Index
60
55
50
PMI Index
45
40
35
30
25
Jan 14 Mar 14 May 14 Jul 14 Sep 14 Nov 14 Jan 15 Mar 15 May 15 Jul 15 Sep 15
The Kagiso Purchasing Manager’s Index (PMI) is a
monthly survey of purchasing managers in South Africa’s
manufacturing sector.
The index provides leading indications new sales orders increased for the second
of business conditions in the sector. A time and employment increased slightly,
reading above 50% indicates that the inventories decreased and prices went
manufacturing economy is generally up, due to a weak rand along with falling
expanding, while a reading below 50% fuel prices. Manufacturing PMI in South
indicates that it is generally declining. Africa averaged 51,74% from 1999 until
2015, reaching an all-time high of 64,2% in
PMI for South Africa was recorded at 49% July of 2006 and a record low of 34,2% in
in September 2015 from 48,9% in August, April of 2009.
showing factory activity contracted for
the second consecutive month. While
MANUFACTURING PMI IN
SOUTH AFRICA AVERAGED
51,74%FROM 1999 UNTIL 2015
6
Change in Manufacturing Production
South African Manufacturing Production (% change year-on-year)
Source: Statistics South Africa
8
6
4
2
0 Sep 14 Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 Jul 15 Aug 15
-2
-4
In South Africa, contrast, production of petroleum,
chemical products, rubber and plastic
industrial products increased by 4,8% and food PRODUCTION OF
PETROLEUM, CHEMICAL
production and beverages rose by 2,9%. PRODUCTS, RUBBER AND
PLASTIC PRODUCTS
measures Industrial production in South Africa
averaged 1,29% from 1999 until 2015,
the output INCREASED BY
4,8%
reaching an all-time high of 9,90%
of businesses in April of 2008 and a record low of
-23,20% in April of 2009.
integrated in the
manufacturing
sector of the
economy.
Manufacturing production in South
Africa decreased by 0,2% year-on-
year in August of 2015, following a
downwardly revised 5,3% growth the
previous month, as the production
of basic iron and steel, non-ferrous
metal products, metal products and
machinery division fell by 8%. By
7
LOCAL ECONOMIC
OUTLOOK: ETHEKWINI
The eThekwini The region employs roughly 9%
(approximately 1,3 million) of the
expected to catapult the City onto the
global platform for the next seven years,
municipal national total of 14,4 million people and from which a multitude of economic
region recently is currently growing at a rate of 2,2%. and social benefits may be reaped.
Although the unemployment rate is low Such benefits include exposure to world
recorded for eThekwini, the challenge remains to markets to attract and enhance tourism
the lowest grow employment by more than 4% in and foreign direct investment.
order to meet its share of the NDP target.
unemployment The event, to take place for the first time
rate of 16,5% The City is looking to establish a Catalytic on African soil, is expected to generate
in the Quarterly Projects Office, reporting to the City
Manager. The aim of this office is to fast-
up to R20 billion to the national economy,
translating into an additional R11 billion
Labor Force track the implementation of key projects gross domestic product growth and is
Survey by within the eThekwini region, which is
anticipated to kick-start the sluggish local
envisaged to add approximately R2 billion
to the local economy. The Games will
Statistics South economy. underpin the City’s growing reputation
Africa during the as the events capital of the continent
The Economic Development and and may act as a major boost towards
second quarter Investment Promotion Unit also achieving the ambitious visitor targets
of 2015. implemented new initiatives, inclusive set in the Municipality’s Tourism Strategy
of the Youth Innovation Challenge, a leading up to 2022.
partnership with major tech companies,
the International Labour Organisation, In addition, there will be opportunities to
Sustainable Enterprise Development showcase the City’s on-going initiatives
Facility and the Government of Flanders, with respect to new tourism products,
with the purpose of supporting youth- innovation, poverty alleviation and
driven technology businesses. transformation, some of which may be
directly linked with the Games.
The announcement that Durban will
host the 2022 Commonwealth Games is
ETHEKWINI: THE CHALLENGE
REMAINS TO GROW
EMPLOYMENT BY
4%
MORE THAN
8THE ETHEKWINI MUNICIPAL
REGION RECENTLY
RECORDED THE LOWEST
UNEMPLOYMENT RATE
16,5%
Key Indicators - Local Statistics
Electricity Consumption
Source: EThekwini Electricity Unit
MONTH SALES PURCHASES
2015
Residential Business Bulk FBE Prepayment Street Total
Consumption and General lighting and Electricity
Unmetered Purchases
Supplies
Jan - Mar 583,3m 498m 1,191m 21,1m 191,9m 28,1m 2,785m
Apr - Jun 615,6m 511,3m 1,094m 21,8m 199,4m 28,1m 2,659m
Jul - Sep 519,3m 452m 1,120m 22,6m 207,3m 29,5m 2,784m
Electricity sales declined in the third few months, the former two categories
quarter of the 2015 calendar year for the seem to be exercising caution concerning
Residential and Business and General their electricity consumption.
categories, but have increased across
all other categories. Although there has
Please note that these are unaudited figures and
been load-shedding relief during the last are subject to change at any time.
9LOCAL ECONOMIC
OUTLOOK: ETHEKWINI
Water
Water Consumption and Losses
Source: EThekwini Water and Sanitation Unit Authorised Concumption
(Billed and unfilled)
Water Losses
60 000 000
water consumption and loss in kilometres
50 000 000
40 000 000
30 000 000
20 000 000
10 000 000
QUARTER 1 QUARTER 2 QUARTER 3
TIME
The graph above indicates that water consumption This reflects a worrying situation amidst the drought
has remained generally steady during 2015, declining and water restrictions being applied in certain areas
slightly in the third quarter. However, water loss has within the region. Water loss is a major area of
increased at a similar rate. concern for the City.
Building Plan - Consolidated Statistics for 2015
Source: Development Planning and Management Unit
Building Plans Consolidated Statistics 2014 and 2015
Plans Received and Processed 2014 Plans Received and Processed 2015
New New Resubmitted Resubmitted New New Resubmitted Resubmitted
Received Processed Received Processed Received Processed Received Processed
North 1 442 1 528 1 619 1 610 1 077 1 044 1 124 1 071
South 787 354 570 628 355 182 590 433
Central 2 846 2 672 3 293 3 632 2 245 2 060 2 515 2 554
Inner West 1 235 1 231 1 247 1 269 900 841 962 1 070
Outer West 1 015 1 016 946 991 775 743 817 778
Sub Total 7 325 6 801 7 675 8 136 5 352 4 870 6 008 5 906
10Data on the number of building plans closely behind. The table above illustrates
received and processed indicate that the that a very high proportion of building
central region has the highest number of plans submitted or re-submitted are
plans in place, with the north following being successfully processed.
Port of Durban
Number of Containers Invoiced
Source: Transnet National Ports Authority
2014 2015
800 000
Number of containers invoiced
700 000
600 000
500 000
400 000
300 000
200 000
100 000
0
QUARTER 1 QUARTER 2 QUARTER 3
TIME
The number of containers invoiced during the 2015 level was slightly lower than in
the first two quarters of 2015 was higher 2014. Nonetheless, levels have increased
than the same period in 2014. However, since quarter two, thus reflecting an
this changed during third quarter, where increase in activity at the Port of Durban.
11LOCAL ECONOMIC
OUTLOOK: ETHEKWINI
Aircraft Movements in eThekwini
Aircraft Movements Quarter 1 to 3: 2014 vs 2015
Source: Airports Company South Africa
2014 2015
12 800
Total aircraft movement
12 600
12 400
12 200
12 000
11 800
11 600
11 400
QUARTER 1 QUARTER 2 QUARTER 3
TIME
The graph above indicates that aircraft Domestic Operating Airlines
movements have increased sharply SAA, Kulula, BA Comair, Mango Airline,
from the first to second quarters in 2015, SA Airlink and SA Express
levelling off in the third quarter. Total International Operating Airlines
aircraft movements in 2015 is slightly Air Mauritius, Emirates, SA AIRLINK and
higher than in 2014. SA Express
New Airlines
Turkish Airlines, Prolight, Ethiopian,
Flysafair and Qatar airlines
Dube TradePort Volumes
Total Terminal Throughput
Source: Dube TradePort Corporation
3 800 000
3 700 000
3 600 000
Total tonnage
3 500 000
3 400 000
3 300 000
3 200 000
3 100 000
QUARTER 1 QUARTER 2 QUARTER 3
TIME
12The graph Dube TradePort Corporation has been
successful in attracting R1,4 billion in
platform, which in the long-term is
destined to add value to other industries
shows activity at private sector investment to date. down the value chain within surrounding
developments.
Dube TradePort The first phase of the Dube TradeZone
with regard to development has attracted a considerable Eureka Capital SA is a significant
amount of the total investment value investor within the neighbouring Dube
domestic and secured in Dube TradePort during the City, a mixed-use commercial property
international past 36 months. Included are investments development that has invested in a 21
by Samsung Electronics, which is involved 500 square metre six-storey building.
terminal in the manufacturing of televisions and The structure will house offices and an
throughput. monitors, Brenco Reelin, active in the
refurbishment of train bearings and seals,
innovation centre, which will add value
to a number of knowledge-intensive
Activity increased and Rossi SA, involved in the assembly, technology industries.
sharply since repair and distribution of gearboxes
destined for the mining industry.
quarter 1 of
DUBE TRADEPORT
2015 and this DB Schenker, a large multi-national
logistics and warehousing company, is
CORPORATION HAS
BEEN SUCCESSFUL IN
is expected to also located within Dube TradeZone. All ATTRACTING
these organisations are fully operational
continue in the
final quarter of
within the zone and bring a mix of
services and facilities to the business R1,4
2015. BILLION
IN PRIVATE SECTOR
INVESTMENT
13A CLOSER LOOK AT THE
CREATIVE INDUSTRIES SECTOR
IN ETHEKWINI
Creative UNESCO’s Culture, Trade and when addressing financial reforms
Industries Globalisation website defines creative
industries as “those industries that
and new approaches to development
strategies and the roles for the market
combine the creation, production and and Government. The crisis has shown
Creative commercialisation of products which that new development paths are
industry are intangible and cultural in nature.
These contents are typically protected by
required to redirect policies towards
equitable, sustainable and inclusive
refers to a copyright and they can take the form of growth strategies to create jobs and
goods or services.” provide a better quality of life. Against
cross-section this background, the creative industries
of economic Internationally, the creative industries sector is considered an interesting new
sector has become a significant force development option.
activities which in the global market place. Across the
involves the world, the creative sector encapsulates According to UNCTAD’s Creative
economic, political, social, cultural and Economy Report, world trade of goods
generation or technological issues. It has helped nations and services continued its expansion up
exploitation of propagate their identity and aspirations,
while making a major impact on society
to $592 billion in 2008, with an annual
growth rate of 14% during the 2002
knowledge and and the economy as a whole and plays to 2008 period, thus reconfirming that
information. a useful role in creating employment
opportunities, especially for developing
creative industries has been one of
the most dynamic sectors of the world
countries. economy during the previous decade.
The recent global economic crisis
has also exposed the limitations of
applying mainstream economic policies
Creative Industries Nationally
Nationally, the creative industries sector billion directly to the country’s GDP in To this list of sectors, others may be
is not only a catalyst for economic the 2013/14 financial year and accounts added, such as games, innovation and
growth and job creation but is also a for more than 500 000 jobs, contributing research, as well as development. In
significant cultural tool to educate and 3,6% to total employment. order to create a single vision for creative
promote self-esteem, a sense of dignity, industries, the Department of Arts and
pride in ones’ culture and self-belief, The industry recognises nine basic Culture is launching the Cultural and
especially given the country’s history of creative sectors, namely advertising and Creative Industries Federation of South
racial oppression and the imposition of marketing, architecture, crafts, design - Africa (CCIFSA). In this way, it is hoped
western values and culture. It presents an including product, graphic and fashion that members of the sector will have an
ideal and timely opportunity for people design - film, television, video, radio and entity to represent their interests at a
to have their own say in which images, photography, IT, software and computer governmental level. CCIFSA will provide
stories and human values they want to services, publishing, museums, galleries sector decision-making and bargaining
impact upon the minds of their children, and libraries, music, performing and power on all issues affecting them.
families and communities. In South Africa visual arts.
the creative economy contributed R90,5
14Creative Industries Locally
Locally, the The creative industries sector locally falls
under the aegis of a myriad of public and
The City’s Economic Growth and Job
Creation Strategy has identified a number
creative industry private sector entities. The Economic of priority sectors which will grow the
is segmented Development and Investment Promotion
Unit and Business Support Unit are tasked
economy and create employment. In the
services sector, these include tourism, ICT,
broadly into with providing support and strategic creative industries (film and media, crafts
input for the industry. These Units also and fashion), finance and professional
film, music, arts, envisage playing a leadership role in services and transport and logistics.
crafts, fashion attempting to unite various role-players The specific strategies and initiatives
and in transforming the cultural and with respect to each of the sub-sectors
and maritime. creative industry. Innovate Durban is also in the creative industries are outlined
attempting to play a role in catapulting by the various special-purpose vehicles
innovation within the creative industry in elsewhere in this publication.
eThekwini.
Film - Durban Film Office
A 2007 industry assessment conducted intermediate level. The objective was
Visualising Durban’s Film and
by the Durban Film Office aimed to to equip local film-makers with the
Television Sector understand the key issues facing the necessary skills to effectively navigate
future of the local film industry and to the business of film and ensure that
Author: provide direction as to how we should be local creative talents enjoyed access to
positioning the Durban film and television industry professionals who understood
Toni Monty, Durban Film Office
industry in the marketplace.
the mechanics of the industry, how to
package projects for market consumption
One of the key findings of the study
and, ultimately, promote the local
indicated that whilst Durban seemed to
have a fairly large base of creative talent, emerging industry.
we seemed to lack adequate advanced
business skills to harness and package In this respect, a little more than five
these talents for the broader market years on, we have seen significant
place. In addition, the study uncovered transformation of the local industry, with a
a large emerging base of filmmakers number of these programme participants
operating at ‘micro-budget film-making’ having become self-sustaining operations,
level that had little prospect of breaking producing content that is being absorbed
into the mainstream market, due to a by the South African market place and,
lack of formal training, access to finance increasingly, by the international market.
and distance from established markets in
South Africa.
For the Durban Film Office, this has
been a major breakthrough and we are
In response to these findings, the
Durban Film Office launched a set of confident that with a little more help, the
development programmes in 2009 local film and television production sector
to address these weaknesses. The is well on its way to establishing itself as a
programmes included interventions key player in the South African landscape
which focused specifically on developing and, perhaps, in the not too distant
producer skills at emerging and future, the international landscape.
15A CLOSER LOOK AT THE
CREATIVE INDUSTRIES SECTOR
IN ETHEKWINI
The most rate (CAGR) by 2016 globally, with North
America currently holding the leading
but growing. Research conducted by
the Durban Film Office in 2014 indicates
significant finding market share of 42%, followed by
Europe and then the Asia-Pacific.
that in comparison with Johannesburg
and Cape Town, Durban has progressed
of the 2007 study, According to a 2014 study conducted
fairly slowly in visual effects services
and in terms of post-production outfits,
however, was the by FilmLA, ‘major VFX companies
have gone global’, outsourcing large
offers mostly small to medium-sized
operations engaged with sub-
existence of a chunks of VFX work to countries
offering attractive incentives and low
contracting work from bigger firms in
Johannesburg and Cape Town.
fairly large latent labour costs. We just have to look at
how New Zealand’s film industry was In spite of the presence of a large digital
digital media skills boosted when Peter Jackson’s Weta
Digital landed the visual effects work on
media skills base, film budget spend in
Durban is primarily on set construction,
base in the form blockbusters such as The Hobbit, Iron
Man 3, The Wolverine and Avataar.
crews and vehicle hire, as well as
locations, with pre- and post-production
of animators, The group has provided digital effects
work mostly performed in competitor
cities with established studios.
video editors, web to a string of international box office hits
as well as smaller films, advertisements
Interestingly, there are currently nine
media training institutions in Durban
designers, graphic and television shows, currently employs
about 1 200 people and reportedly
offering courses in animation and VFX at
various levels and it goes without saying
designers and the earned NZ$700 million in 2013, with four
out of every five NZ dollars generated in
that without a robust industry to absorb
these graduates, Durban runs the risk of
like. the City of Wellington. losing these talents to other cities.
With Durban having always been We can also find evidence of this in As a technology-driven sector which
dubbed ‘video town’, it did not India’s fast-emerging animation and employs highly skilled operators,
come as too much of a surprise, but visual effects market, which started Durban’s growth as a VFX location will
given the global digital revolution off as an outsource location for visual be dependent on the local industries
the finding presented an untapped effects and is now a co-producing ability to harness existing strengths,
opportunity that, if packaged well, country for visual effects, animation and such as available entry level skills,
could increase Durban’s competitive 3D content, with partners such as Walt training facilities and accessible high-
ability in the sector. Digital media Disney, IMAX, Warner Brothers and speed internet.
skills play a significant role in the Sony. According to PwC Outlook, India’s
industry from pre-production to post- estimated net industry worth for 2018 There are also potential opportunities
production. Compounded by the rapid will be above US$750million. with National incentives, through the
advancement of mobile technologies Department of Trade and Industry
and the global move from terrestrial Importantly, VFX is not limited to and the National Film and Video
television to digital, demand for digital cinematic film production but finds Foundation, that in their current form,
media skills is set to increase and we application across a number of sectors, generally do not apply directly to
are compelled to ask; How does the including television commercials, VFX but with a bit of lobbying, these
Durban film and television industry television broadcast, gaming, incentive schemes could be adjusted to
capitalise on this inevitable growth simulation technologies, architecture, capture the real opportunities in VFX.
opportunity? manufacturing and education to name
but a few. So, should capturing pre-and post-
The potential opportunities in the production spend become central to
world of visual effects caught our Locally, whilst South Africa is one of the realising the City’s growth strategy for
attention as we scoped the industry. As leading producers of films in Africa, this this sector? Considering that some
a multi-billion dollar global industry, the country is yet to fully capture global of the building blocks are already
visual effects industry has the capacity opportunities in VFX. According to in place and that a single VFX film
to employ up to 1 800 people per statistics presented by the National Film could generate as many as 1 800 job
feature film during production phase and Video Foundation, pre- and post- opportunities in post-production, it
visual effects VFX and, according to production activities only constitute certainly demands consideration.
MarketandMarkets, together with the 3 - 4% of the value chain respectively.
mobile, PC and console gaming, the The bulk of these activities are based in
animation industry is expected to reach Johannesburg and Cape Town and are
a total net worth of $242,92 billion, at largely focused on providing services
a 12,94% compounded annual growth and local production in animation.
Specialisation in visual effects is small,
16Projects of the Durban Film Office
Anticipated Anticipated
Project Title Objective Current Status Successes
Outcome Output
Micro Budget Film Increase the Currently 10 film- 10 production Increased local 10 locally produced
programme for production of local makers participating companies currently content production. films to be distributed
emerging creatives content in order to in the programme. undergoing training. through our local
stimulate the local and international
film industry. broadcasters.
The Development To assist intermediate Currently four Two projects selected Four market- Accelerated project
Film-fund programme and professional film- projects in the in 2014 are going ready feature films development
makers to fast-track programme. into production in produced by end processes to enable
the development of December. 2016. access to National
their projects. and International
production funding.
Uzalo season trainee SABC 1 Telenovela Trainee positions: Trainees will Developing local Television production
development Uzalo Season 2 Sound, camera, commence in television production trainee programme.
programme with Durban Film make-up and hair, November 2015. skills base.
Office offering a art department, Six trainees to
6-month training production office and graduate after six
programme which wardrobe. months.
will train the youth
on competencies in
the basic functions of
television production.
Scout Programme – Established by the Pilot phase of Eight previously Increased skills base A training programme
developing the local Durban Film Office programme complete disadvantaged in local film services designed to develop
services industry to develop previously and second phase in young and aspiring industry. the local film services
disadvantaged implementation. location scouts were industry.
film-makers in trained by a local and
the business of seasoned Locations
location scouting Manager.
and, eventually,
full location
management.
Durban FilmMart The Durban FilmMart Seventh edition to Many projects that Networking with Local platform
- market access Finance Forum take place in 2016. have come through the global industry to increase
programme provides selected the Durban FilmMart is likely to increase business networks,
African film-makers programme have opportunity funding collaborations and
with the opportunity been actualised and market support provide access to
to pitch film into films which are for local projects. funding and financing
projects to leading currently travelling opportunities.
financiers and also the world at various
facilitates networking festivals and markets.
opportunities.
WHILE SOUTH AFRICA IS ONE OF THE
LEADINGPRODUCERS OF FILMS IN
AFRICA, THIS COUNTRY IS YET
TO FULLY CAPTURE GLOBAL
OPPORTUNITIES IN VFX
17A CLOSER LOOK AT THE
CREATIVE INDUSTRIES SECTOR
IN ETHEKWINI
Publishing
The publishing sector is a key contributor to South Africa’s
manufacturing sales, making an average monthly sales
contribution of R1,5 billion in August 2015.
The sector experienced a period of industries, such as paper manufacturers,
expansion between 2000 and 2006 and educational institutions, ink producers,
then a noticeable decline between authors, printers, designers,
2006 and 2011. However, it has since bookbinders, illustrators, booksellers,
experienced numerous spikes in the distributors and CD manufacturers.
value of its monthly sales (as seen in the The industry is, therefore, an important
graph below). The publishing industry source of revenue and employment in
also acts as the central core of an entire South Africa.
network of related individuals and
Publishing - Monthly Value of Sales (R1 000)
2 500 000
2 000 000
1 500 000
1 000 000
500 000
0
MO011998
MO081998
MO031999
MO101999
MO052000
MO122000
MO072001
MO022002
MO092002
MO042003
MO112003
MO062004
MO012005
MO082005
MO032006
MO102006
MO052007
MO122007
MO072008
MO022009
MO092009
MO042010
MO112010
MO062011
MO012012
MO082012
MO032013
MO102013
MO052014
MO122014
MO072015
South Africa’s print media sub-sector is houses specialise in either education
dominated by a handful of companies, publishing (grade R to 12), academic (or
notably: Media24, Caxton Group, higher academic) publishing, or trade
Times Media Group and Independent publications (those found in one’s local
Newspapers. Most book publishing bookstore).
18Publishing sector: Opportunities and challenges¹
OPPORTUNITIES CHALLENGES
• In 2014, findings from a research study commissioned • Impact of the internet on printing and publishing
by Canon revealed that 92% of businesses believe operations
professionally printed material is critical to their business, • Availability of print media in languages which all South
whether done by commercial printers or in-house print Africans can speak
divisions. Industries surveyed were retail and wholesale, • Transformation in terms of race and gender
marketing and communications, education and health, • Structural barriers make it very difficult for small,
manufacturing and primary business services, as well as IT independent presses to succeed
and finance. The study demonstrated that the role of print
is not going to change within the next two to five years
• The advent of the Internet and mobile technology
applications has impacted on the manner in which
information is consumed. In spite of electronic access to
most published data, the place of the printed document
cannot be completely exchanged easily or cheaply at this
stage of the industry’s technological evolution. The key will
be to exploit synergies between print and digital media so
that they are combined in an innovative and more effective
communication mix which caters to consumers’ needs.
¹ FP&MSETA(2014). A profile of the printing, print-media and publishing sector. Available online:
http://www.fpmseta.org.za/downloads/FPM_sub-sector_printing_print%20media_publishing_final.pdf
During the past 15 to 20 years, the global publishing industry
has undergone significant changes which have required industry
players to adapt.
An initial driver for change was desk-top publishing (DTP) and, enable them to make optimal use of new technologies and
more recently, computer-to-plate (CtP) technology. Digital media, processes.
while often touted as the demise of print media, has diversified iii. These new technologies and processes require increased
channels of communication and production, much in the same capital investment. There is also a need to frequently invest in
vein as radio and television in the past. new software and expanded databases.
iv. The advent of online publications, email newsletters, digital
Some key international trends include: commerce and internet bulletin boards has meant wholly new
i. An increase in the variety of informational products, driven- modes of communication and domains of business. Traditional
mostly by the internet and digital media products. This has also paper-based media faces a number of challenges if it is to
implied the internationalisation of markets and has a significant provide established and emerging reading markets with a
impact on historically-protected local markets. product and price that works and will continue to work in the
ii. The need to invest in skills development of core personnel to future.
19A CLOSER LOOK AT THE
CREATIVE INDUSTRIES SECTOR
IN ETHEKWINI
Architecture and its role in promoting urban tourism
Recent studies Increasingly, we are seeing a greater
number of tourism activities taking
(who are attracted by the excitement
of the urban environment) and
into the interplay place in urban areas. These activities business travellers (who require access
between the include tourist-historic urban cores,
museums, urban waterfronts, theme
to urban amenities).
architecture and parks and specialised urban precincts, all The Platform for Architecture and
of which include a significant portion of Tourism3 undertook one of the first studies
tourism sectors architectural design and creativity. Many of its kind in 2007, to fully understand the
reveal that they are of these urban areas have an important interplay between architecture and urban
role to play in the overall tourism system, tourism. The study provided several very
inextricably linked, with some acting as key ‘getaways’ for interesting findings, from the perspective
with Smith 2 (2005) both international and domestic tourists. of a tourism entrepreneur:
A vibrant, inner-city with innovative - 88% of proprietors/licensees
citing that “the and creative architecture can go a long are convinced that investment
role of creativity in away to sustainably attract international
and local tourists into urban areas.
in contemporary architecture is
profitable;
the development These urban areas have several distinct - 80% of the entrepreneurs regard
of cities and attributes which make them appropriate
as tourist destinations, notably:
contemporary architecture as an
essential marketing factor;
tourist spaces - 97% of the interviewees confirmed
is of increasing - They have naturally large populations
with large personal networks (i.e.
the expectation that “contemporary
architecture can be used as a vital
importance”. visiting friends and relatives); marketing tool.”
- They draw tourists to their attractions - 95% of the interviewees confirmed
because they are often much better the expectation that “contemporary
developed than in other destinations; architecture attracts new customers.”
- They are easily accessible through
airports and scheduled services;
- There is a large stock of
accommodation built to serve the
² Smith, M., 2005: Introduction, in J. business and leisure tourist;
Swarbrooke, M. Smith, and L. Onderwater, - They appeal to a wide variety of
(eds), Tourism, Creativity and Development: tourist markets as they offer a
ATLAS Reflections 2005, Association for combination of communications,
Tourism and Leisure Education, Arnhem, 3 - 6. transport, services and facilities to
meet tourist needs. These markets
include a better educated population
³ Platform for Architecture and Tourism. (which is attracted to the cultural
2007. Analysis of the interaction between heritage of cities and towns), seniors
architecture and tourism. Available online: (who undertake more sightseeing and
http://www.platou.at/portal3/images/ are more likely to appreciate cultural
stories/Download/amg_summary.pdf and historic heritage), young people
20The study also identified factors through their customers and guests. Also, high
which contemporary architecture attracts quality spaces enable employees to
tourism. These factors include: work in an efficient and effective way.
- Sustainability: well-planned
- Improved functioning and well-being: architecture can easily be adapted to
short distances, good accessibility changing demands over time and is,
and quality of space all increase guest therefore, cost-efficient.
satisfaction.
- Corporate identity: innovative designs Lastly, the study identified positive effects
and shapes make an attraction more stemming from contemporary architecture.
memorable for tourists. These included:
- Lifestyle and zeitgeist: a superior
atmosphere attracts customers who - Tourism success, especially in culture-,
value quality during leisure-time indulgence- and sophisticated
and holidays highly. Contemporary experience tourism;
architecture generates public attention - Cultural vitality and innovation
through media and first-adopters and potential;
becomes the central element in the - Regional identity and strong
word-of-mouth equation. destination brands;
- Quality of life for entrepreneurs: - Regional development and tourism
entrepreneurs constructing spaces by sustainability;
using contemporary architecture create - Contribution to regional value-add.
their own working ambience, based on
their own objectives. This fact enables
them to work and act authentically for
21A CLOSER LOOK AT THE
CREATIVE INDUSTRIES SECTOR
IN ETHEKWINI
Creative and Design Precincts in eThekwini
Known to the There exists naturally formed precincts
that are a hive of activity where people
organisations and to some extent,
supported by Government. Unfortunately,
‘creatives’ in come together to co-work, share space not everyone is aware of these precincts
Durban and and ideas for the common goal of
enhancing their existing businesses,
around Durban or the challenges being
experienced by the private sector
throughout South formulating new concepts and actors who are attempting to unlock
contributing to the creativity within the opportunities.
Africa, Durban region.
has a lot to offer Durban is fast becoming a leader within
What is amazing about these spaces is the creative industries sector in South
in terms of its that most of them are formed with no Africa. This is the result of the interest and
creative spaces or little help from Government, yet have support of a group of highly energised
managed to thrive and contribute to people who are trying to breathe new
and precincts in the goals of job creation and poverty life into the sector through interactions,
and around the alleviation. interventions, raising awareness, lobbying
and transformation.
city centre. The transformation of old warehouses
and abandoned or old buildings has A few of the precincts which exist within
contributed significantly to inner-city eThekwini’s inner-city include Rivertown
revitalisation, a project that is considered Precinct, Station Drive Precinct and the
high priority by Government, yet jointly Smart Space at 320 Dr Pixley KaSeme
instigated by private individuals and Street.
Rivertown Precinct
The regeneration and development of the of Spiga D’oro restaurant in Florida Road.
Rivertown Precinct, located between the
Durban International Convention Centre Rivertown is expected to become a mixed-
and the beachfront, was initiated by the use area that includes residential, hotel,
eThekwini Municipality, which wanted commercial, cultural and retail projects,
to boost private sector investment and with the aim of uplifting the area. The
revitalise the inner-city. The Municipality Precinct will not imitate the Maboneng
approached Propertuity CEO, Jonathan Precinct in Johannesburg, but rather
Liebermann, developers of the Maboneng create something entirely new and driven
Precinct in Johannesburg, to collaborate by a pure Durban feel, according to the
with them to develop the Rivertown developers. Its accessibility, scale and
8 Morrison Street
Precinct. Currently, the collaborative the character of its historic light industrial
project consists of a number of other and storage building stock and street
stakeholders, including Durban-based network is ideal for regeneration into
designworkshop:sa architects (responsible a vibrant mixed-use, mixed-economy
for Durban’s Warwick Junction), local project. Existing sheds and structures
marketers and Marco Santoniccolo, owner which characterise the area will continue to
22define the street level precinct experience. design/creative industry. The hosting of
The initial development at 8 Morrison regular markets and exhibitions is also
Street has already been developed into a popular feature of this old-warehouse
a bustling space that includes a number turned creativity hub.
of permanent tenants, mostly within the
Station Drive Precinct
The popular Station Drive Precinct is transformed into co-working and co-sharing
located off Umgeni Road in Durban, spaces that allow fellow creatives to work
adjacent to the Lion Match Business Park. alongside one another to innovate. These
This was the first urban renewal and creative collaborative working spaces are becoming
district in Durban and is home to a wide popular amongst creatives and innovators.
range of creative businesses in a dynamic The ever-popular ‘The Makers Space’ is also
setting. located within the Foundry.
The Precinct houses the Foundry and the The location is ideal due to its proximity
Design Factory, which consists of a number to other businesses and a busy transport
of local creative brands, such as Savior route, which will be a key node along the
The Foundry Brand Co. These old buildings have been Go Durban! network.
Smart Space - 320 Pixley Ka Seme Street
Smart Space, which is still somewhat under A number of workshops and entrepreneurial
construction, is located on the 23rd floor programmes are being run at Smart
at 320 Pixley KaSeme Street. The building, Space whilst the floor is being renovated.
which is being developed by Rivertown According to Seedat, the floor may house
developers, Propertuity, is a landmark up to 400 entrepreneurs, businesses and
within the Durban CBD. Muhammed those involved in mentorship programmes.
Seedat, founder of Smartrac Academy of An attempt is being made to create a
Entrepreneurship, will be launching one of Google-like space, as well as the fastest
South Africa’s biggest co-working spaces. internet in Durban.
Part of Smart Space is already in use,
although the rest of the floor is still under
construction.
Smart Space
23A CLOSER LOOK AT THE
CREATIVE INDUSTRIES SECTOR
IN ETHEKWINI
BAT Centre - Promoting Music and Art in eThekwini
The BAT Centre This year, the BAT Centre also celebrated
its 20th Anniversary as a diverse
creative process of children through
the facilitation of valuable skills, creative
was established community organisation focusing thinking and life-skills.
in 1995 and is on music, visual arts, dance, crafts
and literature in Durban. Part of the The BAT Centre hosts a Children’s Holiday
depicted as home celebration will include a showcase of Programme, affording children from
exhibitions, poetry, comedy, music, visual under-privileged areas an opportunity
for all who seek arts, dances, seminars, workshops and to be a part of art, music and sport
support and a the like. programmes during the school holidays
(July and December). The centre has also
vibrant space The BAT Centre provides historically initiated a Youth Alive programme, aimed
to develop their disadvantaged artists and musicians with at developing the youth through social
space, materials, training and marketing integration and exposure of new cultures,
artistic talent. The opportunities to assist further establish as well as empowerment of responsible
BAT Centre Trust their status within the industry. The
centre offers music essentials, such as
actions and innovative thinking. The BAT
Centre also provides the Durban Youth
is a private, non- a hall where concerts are hosted and Council (DYC), which comprises eight
profit organisation fully-equipped rehearsal spaces for
musicians. The centre has a SAMRO
different schools in and around Durban,
with space (from grade 10 to 12) for
dedicated to the office which deals with broadcasting conducting seminars every Wednesday.
promotion of licences and music-user licences, such as
for playing background music in public
A visual art studio is also available, where
artists from different disciplines, such as
the music, visual areas, including restaurants, events, radio painting, sculpting, printing and design
stations, shopping malls and the like. are able to sell their artwork. The centre
arts, dance, craft The centre is well-known for its current also boasts a craft shop that offers a
and literature of Artists in Residency (AIR) Programme, comprehensive selection of African
which is a full-time course (April to artwork and crafts, including carvings and
KwaZulu-Natal. In December) and provides support to basketry, traditional beadwork, pottery,
so doing, the BAT aspiring artists from disadvantaged hand-crafted jewellery and painted
backgrounds. It currently comprises textiles. Both the Menzi Mchunu Art
Centre aims to 25 visual arts students and 25 music Gallery and the Democratic Gallery host
generate work for students. This programme aims to help monthly exhibitions on different topics in
build and strengthen character, imparting various mediums.
artists and to build knowledge and preparing artists for work
new markets for in a professional artistic environment
or to furthering their studies at tertiary
the arts. institutions.
Other programmes include community
development projects that focus on
the promotion of volunteerism and
mentorship activities to help initiate the
24ARTISTS IN RESIDENCY (AIR)
PROGRAMME, WHICH IS
A FULL-TIME COURSE. IT
CURRENTLY COMPRISES
25
VISUAL ARTS STUDENTS AND
25 MUSIC STUDENTS.
Opinion on Arts and Culture versus Creative Industries
Author: Russel Hlongwane, Vice-President Providing a Context Social Relevance
of KwaZulu-Natal Society of Arts Gallery
The promising term ‘’creative industries’’ The World Health Organisation defines
has established itself quite well in modern health as ‘’not merely the absence of
parlance, at least amongst creative types. disease or infirmity’’ and the arts arguably
It’s looking to replace the commonly form the foundation in such a state of
known ‘’arts and culture’’ term and being. This notion is further augmented by
the perceived latent economic output the emerging ‘’World Happiness Index,’’
associated with this sector. which lays its foundation on tenets such
as self-worth, identity, public policy and,
The age old ‘’arts and culture’’ terminology ultimately, well-being.
seems to uphold an outdated view of the
arts as well as culture in its widest scope.
The public has an abstracted appreciation
of artistic practice or the contribution of
the arts to social health. There is even
lesser speech on the creative economy. A
modern understanding of the arts can be
found in two dichotomies, the first being,
the arts as a social compass. or critique
and secondly, understanding the arts as a
trigger to leapfrog economies.
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