THE UITENHAGE Despatch Development Initiative (UDDI) - a private-public sector partnership involving business, provincial government, local government and labour – has been launched with seed capital of R1.5 million. Uitenhage forms part of the Nelson Mandela Metro. Funding of R500 000 each was contributed by the East Cape Development Corporation, the Nelson Mandela Metro and Volkswagen South Africa. The Nelson Mandela Metropolitan Municipality has also pledged to fund various projects in the Uitenhage/Despatch area. The key objectives of the UDDI project are to reduce unemployment and create long term economic growth and viability in the Uitenhage and Despatch area using a clearly defined project model and detailed project plans. UDDI Steering Committee chairperson and Volkswagen Human Resources director Brian Smith says four integrated projects will form part of the initiative that is to be driven by the people of Uitenhage in line with President Thabo Mbeki's “Vuk'u Zenzele” programme. “Clearly, the start-up funding is not adequate to create the jobs required to make a difference in Uitenhage and surrounding areas, and major donor funding will be needed in order to support the identified projects, namely The Innovation Campus, The Automotive Cluster, Urban Renewal and Skills Development,” says Smith. “The first of these projects, The Innovation Campus, is designed to create new jobs in the area via business start-ups with a strong focus on SMMEs. The aim of this Campus is to promote SMME development through tools such as business plan competitions, business incubation and consulting, coaching and training programmes, ideas generation and funding. The Automotive Cluster is charged with strengthening and building on the automotive cluster that already exists - including companies like Goodyear, SKF, Hella, Dana-Spicer, Dorbyl, Johnson Control, Bel-Mec and Volkswagen - by attracting new suppliers to Uitenhage. There will be a move to increase local content and value added by packaging and marketing Uitenhage as one of the key automotive centres in South Africa. In terms of Urban Renewal the city has a big legacy of apartheid neglect in terms of housing, infrastructure and basic services. The city and its infrastructure has been allowed to stagnate and Uitenhage is in need of urban renewal, upgrading and beautification in order to showcase its rich cultural history and its tourist attractions. Projects that are envisaged include development of community self-help projects, peri-urban agricultural projects, tourism initiatives, CBD upgrades and other moves that will improve the quality of life, stimulate the local economy and created jobs. While the Skills Development and Placement Centre will be looking at solving the paradox of having very high unemployment but a shortage of key skills to support economic growth in high technology sectors. South Africa needs to be able to fast-track unemployed youth with skills, training and industrial induction in order to equip them for the world of work. This project will draw largely on the experience and capacity of the Volkswagen Education and Training Institute and other industrial training facilities in Uitenhage that are currently not being used to full capacity. The Centre will select, educate and train unemployed people in order to meet the skills needs of business, SMME's and Urban Renewal Projects, with a focus on the placement of trainees in their own business, temporary or permanent jobs within industry, or the Urban Renewal Projects,” he says UDDI project leader Malibongwe Yokwe says that since 1994 Uitenhage has had to adjust to many political, social and economic changes that have had a major impact on the city. “Given the city's high dependence on the motor manufacturing industry, the Motor Industry Development Programme (MIDP) has had a major impact, as has the opening of the South African manufacturing industry to international competition. Frequent droughts and the decline of the wool and mohair industry in the Karoo has also impacted on Uitenhage and created an influx of rural people seeking employment in industry. On the local government level the formation of the Nelson Mandela Metropolitan Municipality has removed local focus from Uitenhage which no longer has its own municipality and local government structures and officials. While the establishment of the Coega IDZ, although a benefit for the region, poses a major competitor for Uitenhage as an industrial centre and could further threaten the economic base of the city, if all new industries are attracted to Coega,” he says. Yokwe adds that leaders within Uitenhage held a number of meetings during 2001 in order to discuss how this situation could be turned around. It was decided to focus on economic development and job creation following an offer from Volkswagen in Germany for a study group to look at the Auto Vision Project in Wolfsburg. This project has achieved a major economic turnaround and created thousands of jobs in the German city of Wolfsburg that has many similarities to Uitenhage. In March, a Steering Committee was formed in order to drive the project known as the Uitenhage Despatch Development Initiative (UDDI), which is a private-public sector partnership involving business, provincial and local government and labour. The Steering Committee currently consists of Brian Smith (Chairman - Business), Leon de Klerk (Business), Irvin Jim (Numsa), Mcebisi Jonas (ECDC), Mike Kwenaite (NMM), Achmat Mohamed (Business), Litha Mcwabeni (ECSECC), Phinde Vena (Business), Malibongwe Yokwe (Project Leader).