Fortress Retail recently hosted the Collective Impact event, bringing together key stakeholders to discuss collaborative strategies to combat urban decay, improve infrastructure and integrate new technologies for the benefit of communities surrounding shopping centres.

The event, moderated by renowned journalist Jeremy Maggs, featured insights from prominent industry experts including Julius Kleynhans (OUTA), Alan Dinnie (Profica), Dirk Nico Prinsloo (Urban Studies), Vuyiswa Ramokgopa (RISE Mzansi) and Vuso Majija (Fortress Real Estate).

Steven Brown, CEO of Fortress, emphasised the potential for economic growth and efficiency to address South Africa’s unemployment crisis. “If our beautiful country focused on creating economic efficiencies, we would solve the unemployment problem and growth would power ahead, in turn raising the living standards for all,” he stated.

Jeremy Maggs presented a keynote address on how to fix South Africa that highlighted the need for collective accountability and purpose-driven action: “We have to reimagine, rebuild, and renew our purpose to fix South Africa by putting on pressure to hold us all accountable to making things better.”

Shopping centres bring revenue to the municipalities that they are situated in, and shopping centres act as a catalyst for further developments in the area. As such, it’s important for the retail property sector to develop personal working relationships with municipal officials. This is a challenge in some municipalities as it is not clear who the decision makers are, delaying decision-making and in turn, implementation of new projects.

Majija commented: “There is no common understanding that our successes are intertwined with the municipality. Collaboration between the private sector and business is good. Both parties need to understand that working together attracts investment which in turn drives the economy and creates jobs.”

Ramokgopa called for bridging the gap between the public and private sectors. “We need to close the trust deficit between the public and private sector. It starts with hiring the right people with the right skills in local government. We need to fix local municipalities to ensure they get things done.”

The gap between the public and the private sector is growing due to the distrust between the two parties. Property development is a highly regulated industry that relies heavily on municipal permits and approvals. Dinnie pointed out that “the public sector has shifted to compliance rather than delivery. They are scared of the risk and corruption accusations, so they aren’t supportive of new developments. They don’t want to take on the risk.”

Municipalities have a clear mandate which is to provide the necessary infrastructure that can deliver basic services which in turn, lay the foundation for businesses to operate and grow the economy. Kleynhans highlighted the need for leadership and streamlined regulations in local municipalities. “Local municipalities are over-regulated and it needs good leadership to manage the politics and administration to ensure delivery.”

Shopping centres boost local economic development and community development. South Africa’s retail sector is world-class, with growth from approximately 500 centres 30 years ago to over 2,500

centres today. This would not have happened if it was not for the partnerships between developers and local government.

Prinsloo said: “We have a history of good collaborations with local municipalities to be able to build world-class shopping centres and developments – we have to get back to this.”

Vuso Majija stressed the importance of building relationships at the local level. “Relationships are needed to make malls a success. Every centre manager should know the ward counsellor, the station commander, and the chairperson of their taxi association in the municipalities where they operate. Developers need to work with the municipality, for example, to fix roads and offer solar power sharing with the local government. In return, municipalities must reciprocate by offering developers rebates on their rates and taxes in return for these infrastructure investments.”

Municipalities are unable to find digital platforms that will allow them to operate more efficiently. Highlighting the need for modernisation, Dinnie remarked that, “municipalities need to digitise processes. The private sector can help to do this with the added benefit of getting things approved faster.”

Prinsloo spoke about the potential of AI in urban planning. “AI will be hugely beneficial to make smarter cities, e.g., smart metering and data analysis to speed up understanding and impact faster so we can make better decisions.”

Kleynhans underscored the critical need for funding in local municipalities. “Local municipalities need to manage their income and grants responsibly and consider innovative solutions to generate more income to address the needs in their communities. This is critical for change! Business and organised communities must be more active to drive real change on common issues so politicians will listen.”

Ramokgopa concluded with a call for stable leadership. “We lack the political will and the operational discipline to get stuff done. We need good, stable leadership for continuity.”

In his closing remarks, Majija emphasised the urgency for action. “There is an urgency to get things done like never before! The private sector must put their hand up and get involved – mayors or local government representatives must make themselves available for real engagement opportunities with business leaders to resolve the real issues at hand.”

The Collective Impact event highlighted the critical need for collaboration between the retail property sector and local government to foster sustainable development and improve the quality of life for communities across South Africa.