Jozi, the city of neon lights and cement pavements that once fascinated eminent poet Mongane Solomon Wally Serote in the mid-Sixties - prompting him to pen an epic poem in its honour entitled City Johannesburg - has now seriously braced itself for a restoration of its former glory.

It is no longer a case of issuing a series of plans spelling the powers-that-be’s good intentions, practical steps with an Afripolitan touch are being taken to put the much awaited rejuvenation and regeneration project on the map. The ultimate goal is to create a world class African city and the titanic battle has begun where it matters the most - the once very dilapidated inner city.

In the inner city massive facelifts of the cement pavements and road repairs are on track, albeit at the inconvenience of the city‘s estimated 2 million inhabitants.

And investors may soon be spoilt for choice as opportunities to grow and create wealth burgeon. For instance, if you are black and harbour serious aspirations of being a real estate mogul, then you can tap into the R20bn largesse, courtesy of the Johannesburg Property Company (JPC) whose stringent empowerment guidelines promote black ownership of major property assets in Jozi’s inner city.

Other abundant opportunities for investors are in the infrastructure development sector. An estimated R4 billion has been earmarked for transport infrastructure development over the next three years, partly to prepare for the purpose of hosting the 2010 Soccer World Cup.

The model that has been adopted in this case is the Transport Oriented Development (TOD) that has recorded impressive successes in South American cities such as Bogota in Columbia and Curitiba in Brazil and the aim is to built an integrated global city that links transport routes to residential areas, thereby promoting social integration and crucially bringing the poor closer to their work places, preferably into the inner city that is easily linked with the rest of the metropolis. This is also a recipe to eliminate the apartheid social and spatial legacy, by promoting integration of both black and white, and the haves and have-nots.

While the rejuvenation of the commercial property sector started more than five years ago, when the major corporations moved back into the inner city, investment injections in the residential property sector are also gathering steam.

Today the inner city contains the headquarters of esteemed residents such as three of the country’s Top four banks - Absa, Standard Bank and First National Bank. Parastatal Transnet is also safely ensconced in Carlton Centre as well as mining behemoth Anglo Ashanti, among others.
 
The residential property sector rejuvenation was kick-started three years ago with the conversion of the historic Corner House office block in the Marshalltown vicinity into plush residential apartments. Subsequently, low-cost residential apartments mushroomed, among others the R5.5 million Elangeni block and the R100 million Brickfields in the vibrant Newtown area that is integral to Blue IQ Projects, conducted under the auspices of Gauteng’s Economic Affairs and Development.

The Johannesburg Development Agency (JDA) has also spearheaded the refurbishment of recreational facilities and amenities as well as improved many buildings that have been regarded as sinkholes through its Better Buildings Programme which deals with more than 100 buildings mostly in Hillbrow, Berea and Yeoville.

The write-off value of these assets was estimated at R300 million. The private sector has also come to the party and refurbished close to 8,500 residential units which accommodate an estimated 30,000 people. “Sinkholes are being exchanged for ripple pond investments- investments with a positive effect on their surrounding,” lauds the JDA regarding its turnaround successes.

However, the crown on the jewel of the regeneration project successes is Hillbrow ‘s PONTE CITY- a block of flats near the Ellis Park Stadium which was once a monument of grime and crime, the high rise building no longer cuts a melancholic figure, towering over spiralling urban decay.

But a serious challenge awaits the authorities as they grapple with that stomping ground of Jozi’s bohemian population- Yeoville’s Rocky Street. With brand fast food outlets like King Pie and Nando’s having returned there, it appears the battle may be won.

The financial markets have also not been left unstung by the regeneration bug. Last year the Johannesburg municipality issued retail bonds to which the public could subscribe. Known as Jozibonds, these fixed income issues are also listed on the Johannesburg Securities Exchange (JSE). These capital raising issues/bonds operate at a fluctuating interest rate and as such do not incur interest rate risk compared to Government retail bonds. But this opportunity is not just the province of the well-heeled. This is why the Council deployed 30 Jozi bonds ambassadors in areas such as Soweto, Orange Farm, Alexander and Dieplsloot to speak to among others, stokvels, kitchen societies and taxi associations. 

In the past the municipality has issued four bonds which were positively rated by various rating agencies including Fitch and CA Ratings

Says Parks Tau, member of the Johannesburg municipality mayoral committee for finance: “The cash received from the bonds issue will help the city to accelerate service delivery in terms of building better roads, new stadia for the 2010 World Cup and clinics, and providing clean water and sanitation.”