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 2 of a four-part series.
The pivotal role of second 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.
A 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.
The seminar continued to delve into critical issues surrounding African urban development, with a focus on infrastructure deficits and the economic potential of intermediate cities across the continent.
Panelists addressed the significant challenges hindering their growth, particularly the infrastructural deficits that plague many African nations. “Infrastructure investment is crucial for cities to achieve scale and productivity,” says Heymans. “However, the question of whether Africa has sufficient savings to finance these investments remains.”
He highlighted the disparity between primary and secondary cities in Africa, noting the stark infrastructural divide and the limited examples of well-developed second cities across the continent.
“In almost all of Africa, the infrastructural deficit is glaring. It’s challenging to find robust examples of thriving second cities outside of the major metropolitan areas.” He noted an estimated annual spending deficiency of approximately USD100-USD120 billion needed to bridge Africa’s infrastructural gaps, ranging from dams to fibre optic networks essential for economic connectivity.
“Without adequate infrastructure, cities struggle to attract productive enterprises. This perpetuates a consumer-driven economy rather than fostering productive industries,” says Seville.
Addressing the concept of agglomeration and industry clustering, panelists highlighted successful international examples where clustered industries have thrived in second cities, contributing significantly to regional economies.
“Clusters tend to form in cities that provide the necessary infrastructure and conducive environments for industries to thrive. These clusters play a pivotal role in driving economic growth and innovation ,” notes Seville
“As we navigate these challenges, it’s crucial to adopt patient and culturally sensitive approaches to urban development,” says Heymans, echoing sentiments shared throughout the seminar.