Leading figures in economics and urban planning convened at the Gordon Institute of Business Science (GIBS) seminar titled ‘Second to None: Second Cities and Next Cities as Engines of Africa’s Prosperity’. This is Part 1 of a four-part series.
The pivotal role of intermediate cities in South Africa’s urban landscape as it affects contractors in the HVAC&R space took center stage at the seminar, where panelists discussed the challenges and opportunities inherent in these cities’ development trajectories.
The panel discussion included: Prof Adrian Seville, GIBS; Siphelele Ngobese, senior researcher: South African Cities Network; Hennie Heymans, CEO DHL Express Sub-Saharan Africa; and Francois Fouche, economist and researcher.
They underscored the evolving significance of intermediate cities beyond their traditional role as secondary urban centers. They emphasise these cities’ potential to drive sustainable livelihoods, economic growth, and bridge the gap between rural and urban areas.
“We’ve moved away from referring to them as secondary cities to acknowledging them as intermediate cities,” notes Ngobesa. “These cities are not just satellites to larger metros but are emerging as critical anchors in their own right.”
The discussion delved into the unique developmental objectives of intermediate cities, emphasising their role in addressing inequality and fostering inclusive growth. Panelists highlighted the Integrated Urban Development Framework (IUDF) as a key policy framework guiding efforts to harness the rural-urban linkage for broader prosperity.
“Intermediate cities are pivotal in the context of the IUDF, which emphasises their role in integrating economic activities and providing essential services,” explains Ngobesa. “They are diverse in function, serving as manufacturing hubs, mining centers, and crucial economic nodes.”
Statistics presented during the discussion revealed that approximately 24% of South Africa’s urban population resides in intermediate cities, underscoring their demographic and economic significance. Despite challenges such as infrastructural deficits and historical spatial planning legacies from apartheid, these cities are experiencing growth and diversification.
“In the apartheid era, intermediate cities were established to manage urban migration from rural areas. Today, they are evolving into centres of economic activity, each playing a unique role in South Africa’s regional development.”
The panel also explored examples of intermediate cities breaking traditional economic patterns through strategic government support, such as promoting industries like coffee cultivation to diversify local economies.
“Patience and understanding of cultural differences are essential for achieving sustainable development leaps in African cities,” says Hennie Heymans, CEO of DHL, highlighting the need for nuanced approaches to urban planning and governance.
The panel issued a call to action for stakeholders to invest in the infrastructure, governance, and economic activities of intermediate cities to unlock their full potential as engines of inclusive growth and development in South Africa.