In my view

Anele Qaba, CEO of MBDA. (Image: Supplied)

The Mandela Bay Development Agency, an entity owned by the Nelson Mandela Bay Municipality, closed 2024 with big lessons learnt, significant gains made and – most importantly – purposeful forward momentum into 2025.

In January 2024, we were already experiencing a six-month delay in grant payments from the parent municipality. However, we had a strong conviction that the situation would improve – and it did in March 2024. Management has already developed a recovery and acceleration plan. Part of the acceleration plan focused on improving the central business districts’ operating environment in terms of security and cleansing of those core precincts: Gqeberha, Kariega CBDs and NMB Stadium/North End Precinct.

The adjustments process also allowed us to reset our goals as articulated in the Institutional Scorecard to 25 strategic key performance indicators (KPIs). In May 2023, the entity had adopted a new five-year strategic plan, and in March 2024, a new organisational structure was approved for implementation. The restructuring was geared towards aligning human resources placement with the strategic and annual goals of the entity. The restructuring process had two key objectives: (1) to develop a lean and agile entity, and (2) to align resources to strategy for improved performance outcomes.

Guided by the entity’s policies and procedures, an ambitious recruitment programme followed from April 2024, and, with funding secured, the programme and project acceleration implementation plan were put into action. Despite the short timeframe, we achieved 52% of our KPI targets, utilised 50% of our capital budget, and spent 87% of our operating budget. These achievements were no easy feat, considering the limited time available between 20 March and 30 June 2024.

MBDA performance outcomes for 2023-24. 

Two out of 25 KPIs were overachieved:

The programmes that received an over-achievement status are:

• 665 EPWP work opportunities were created against a target of 546 set by the NMBM.
• 90 STEMI programmes were implemented at the NMB Science and Technology Centre, against a target of 80.

Eleven out of 25 KPIs achieved:

The programmes that received an achievement status are:

• Completing the Bayworld Killer Whale Café as scheduled.
• Completing the upgrading of Baakens Park Walkway (Phase 1A).
• Publishing the MBDA's economic impact assessment in Nelson Mandela Bay.
• Achieving the goals sent toward our Financial Sustainability Model.
• Completing specific upgrades at the Nelson Mandela Bay Stadium.
• Developing a Nelson Mandela Bay Stadium Strategic Commercial Plan.
• Meeting the targets of the Precincts Cleansing Plan.
• Meeting the targets of the Precincts Security Plan.
• Completing planning for the Ward 34 Multi-purpose Centre.
• Completing planning for the Ward 17 Multi-purpose Centre.
• Completing the Bayworld Programme Land Alienation Plan.

Eight out of 25 KPIs partially achieved:

The programmes that received partial achievement status are:

• Rehabilitating the St Peter's site, which will officially open early in 2025.
• Making progress towards the completion of the Korsten/Schauderville Sports Field.
• Making progress towards the completion of the Korsten/Schauderville Heritage Building, Caretakers Cottage and Courtyard.
• Making progress towards the completion of the Korsten/Schauderville Walkway and Access Road.
• Making progress towards the rehabilitation of the Uitenhage Railway Sheds.
• Making progress towards the completion of the Helenvale Extension 12 park.
• Making progress towards the completion of the New Brighton Drop-off site.
• Achieving 87% operational budget spent against the 95% target.

Four out of 25 KPIs not achieved:

The programmes that did not receive an achievement status for various reasons are:

• Due to project complications, we could not complete the Bayworld Sanctuary and Park.
• Due to project complications, we could not complete the Korsten/Schauderville Pavilion.
• Due to the late arrival of the capital budget, we could only spend 50%, against the 95% target.
• Due to project complications, we could not spend 100% of the KFW SPUU budget.

Other notable achievements during 2024

Although we did not achieve all our institutional goals for the 2023-2024 financial year, a period that began on 1 July 2023 to 30 June 2024, several achievements were possible to close the calendar year.

1. Rolling out of EPWP format CBD Cleansing Programme for Gqeberha and Kariega CBDs

The new five-year strategic plan of the entity incorporates the delivery of project management services. It was for this purpose that we divested from the use of contracted service providers for precinct cleaning, to the implementation of an in-house programme. The recruitment process for the 226 workers was open and transparent, with adverts in the main newspapers. All recruits were onboarded to the entity with the EPW principles applied. This programme has proven that it is possible to deliver these services directly, efficiently and in a cost-effective manner.

2. Launch of hybrid security programme (cameras, boots and patrols) in strategic hotspots

The CCTV programme is a major intervention aimed at ensuring that crime in the major economic centres is contained and brought down. The roll-out of over 100 new high-speed and multi-dimensional cameras is a deterrent and a major step towards crime detection and investigations. Other positive consequences for camera installations have been the resumption of other related services, such as the electrification of traffic lights in places where cameras have been installed. These cameras, installed on the back of a high-speed fibre network, contain features such as facial and number plate recognition, 360-degree views and high-capacity zoom capabilities.

The second phase of the project related to monitoring and control with deployment capabilities. The CCTV room has multiple screens and controllers who are connected to patrol services. This combination of technology and boots on the ground has led to successful apprehensions and the gathering of sufficient evidence to enable prosecution.

3. Inception and hosting of the inaugural Home of Legends Cup, 16 November 2024

As the operator of the Nelson Mandela Bay Stadium, it is incumbent on the MBDA to develop new revenue streams to ensure the sustainability of the stadium. We have mentioned the business plans that are now complete towards the establishment of tourism offerings around the North End Lake.

In October, we launched the Home of Legends Cup event, a celebration of football and culture. The event was a welcome success, with potential for even greater growth in years to come. An independent report by local economists has established that the total exogenous change on the national economy arising from the Home of Legends Cup was an estimated R25.5 million. This included R11.6 million in direct expenditure related to hosting the event, and R13.8 million in additional quantifiable benefits that were also injected into the economy.

Based on these figures, it was estimated that the Home of Legends Cup temporarily increased the country’s production and business turnover by R59.5 million, contributing an additional R13.8 million to the GDP. For every R1 million spent on the event, the country’s GDP increased by R0.5 million due to the combined direct, indirect and induced effects.

To complement the economic impact assessment findings, both a CBA and a ECBA were undertaken. The ECBA found that for every R1.00 in direct costs incurred in hosting the inaugural Home of Legends Cup, R1.85 in benefits were generated for the national economy. 

4. Hosting the Investec Champions Cup, 7 December 2024

The Investec Champions Cup is the outcome of proactive lobbying and bidding efforts earlier in the year, when I, together with stadium management, engaged several rugby franchises for the opportunity to bring topflight rugby to the Bay.

The event featured the much-loved DHL Stormers, who faced RC Toulon on the field. The stands of the Nelson Mandela Bay Stadium shook with the excitement of nearly 30 000 enthusiastic rugby fans as the Frenchmen closed the day, winning 24 to 14. The success of this event is an outcome of these bold initiatives, proven to be a hit both on the field and for its impact on the economy of the Bay.

The event was a commercial triumph for the city and the stadium. It brought tourism and hospitality revenue into the city and presented the NMB Stadium with an opportunity to showcase what it can do as a multipurpose facility for teams and fans alike. This is important for us as we rebuild market confidence, with the aim of attracting even larger events and test matches to the Bay.

Conclusion

In conclusion, although we end the calendar year with a regressed audit report for the 2023-2024 financial year, we must hasten to indicate that the matters that caused this finding precede my arrival at the entity in June 2023; the unauthorised expenditure was initiated in October and December of 2022. Supported by the Board, I have already taken steps to begin a consequence management process in order to get to the bottom of the issues and strengthening of controls to prevent similar matters in the future.

In spite of the challenge, we closed 2024 with optimism for the new year as we are ready to execute on our mandate to close the current financial year ending on 30 June 2025. We are more determined to reinvigorate the economy of the Bay through strategic interventions in total precinct management, project management services and by leading game-changing catalytic projects to change the fortunes of the Bay towards prosperity. Plans are at an advanced level for several initiatives around the North End Lake; St Peters Village will open in the new year; the Sheds project in Kariega is moving on schedule; works at Bayworld are nearing completion; a community park in Extension 12 Helenvale is opening in January; and the development of the Zip-Line in the Baakens will finally take shape in the first half of 2025.

We wish all our stakeholders to come back in 2025 refreshed and energised for a productive and fruitful year ahead.

Issued by MBDA Communications Manager, Nicole Klokow [email protected]. (041) 811 8200.